Novo Nordisk’s GLP-1 Weight Loss Drug Wegovy Is Not a Panacea for Obesity

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Novo Nordisk (NYSE: NVO) has added billions of dollars in market capitalization over the ongoing craze around the GLP-1 anti-obesity and anti-diabetes drugs. However, the Danish pharma giant's most recognizable weight loss drug, Wegovy, is increasingly looking like a stepping stone instead of the promised panacea for the obesity pandemic.

For the benefit of those who might not be aware, the GLP-1 hormone plays an important role in suppressing hunger and regulating the production of insulin and glucose. After a meal, GLP-1 agonists raise the level of insulin, which decreases blood glucose levels. Simultaneously, these drugs reduce the speed at which the stomach empties its contents into the small intestine, thereby increasing the feeling of fullness and satiation. Novo Nordisk uses Semaglutide as its proprietary GLP-1 agonist in drugs that are marketed under Ozempic and Wegovy labels, with the former geared toward type-2 diabetes and the latter marketed as a treatment for obesity.

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While Novo Nordisk currently has a number of additional GLP-1 drugs in the pipeline, including those that can be ingested and those that leverage both GLP-1 and Amylin agonists to offer better efficacy, Wegovy and Ozempic remain the company's primary GLP-1 offerings for now. Yet, these drugs are increasingly besieged by concerns around efficacy, pricing, and side effects.

The Monthly Dose of Novo Nordisk’s Ozempic and Wegovy GLP-1 Drug Costs Just Around $5, Yet It Retails for $1,300 in the US Without Any Insurance Coverage

A new study published in the JAMA Open Network toward the end of March has concluded that a monthly dose of Novo Nordisk's Ozempic and Wegovy drugs entails production costs of just around $5. However, Ozempic's