Novo Nordisk's Wegovy Eyes Asian Market Debut Despite Supply Crunch

Novo Nordisk A/S NVO reportedly plans to introduce its highly sought-after anti-obesity medication, Wegovy, in Japan on February 22, marking its inaugural entry into the Asian market despite facing supply/demand challenges. 

Japan, chosen as the sixth country for Wegovy's launch, presents a different landscape concerning obesity than Western countries. While obesity is less prevalent in Japan, Novo aims to make the drug accessible to patients by aligning its pricing strategy with standard medical reimbursement rates.

Under this plan, most patients in Japan will bear 30% of the medical expenses for Wegovy. Novo is advocating for government support to cover costs, particularly for the most overweight individuals.

The monthly expense for patients will amount to ¥7,504 ($50.15) for a 0.25-milligram starter dose, and ¥42,960 for a 2.4 mg dose, Reuters noted, citing Novo Nordisk.

Eligibility for the drug in Japan is determined by a body mass index (BMI) above 35 or a BMI exceeding 27 for patients with two or more obesity-related coexisting conditions, according to Novo.

Thursday, Novo Nordisk announced the investment of more than DKK 16 billion (€2.1 billion) starting in 2023 to expand the existing production site in Chartres, France. The investment includes capacity for GLP-1 products.

Most recently, Novo Nordisk announced its limited starter kit supplies of Ozempic (semaglutide) in Europe and reduced the distribution of Victoza (liraglutide), aiming to bolster Ozempic's production, which has experienced a significant surge in demand. 

Earlier this month, Novo Nordisk said it would invest more than DKK 42 billion ($6 billion) starting in 2023 to expand manufacturing facilities in Kalundborg, Denmark.

Price Action: NVO shares are up 1.79% at $105.11 on the last check Friday.

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