Novo Nordisk’s shares have plummeted over 9% this week after a Super Bowl ad highlighted the growing challenge to the company’s dominance in the weight-loss industry. The Danish pharma giant is now on track for its worst week on Wall Street this year.
The ad, promoted by telehealth company Hims & Hers, took a surprising political tone and criticized the high price tag of branded weight-loss drugs. Hims & Hers offers an off-brand version of Ozempic for $199 a month, significantly cheaper than Novo Nordisk’s nearly $1,000 list price.
The controversy has sparked concerns about Novo Nordisk’s ability to maintain its market share. The company’s GLP-1 injections have been in short supply due to high demand and U.S. patent protections, leading some patients to seek cheaper alternatives. Hims & Hers’ move into the market has disrupted Novo Nordisk’s sales growth, with the company now projecting slower sales growth in 2025.
Novo Nordisk’s stock has also fallen by 20% after its experimental diabetes and weight-loss drug CagriSema failed to meet expectations in December. The disappointment has added to the pressure on the company’s shares, which have declined by over 34% over the past year. In contrast, Hims & Hers’ stock has skyrocketed nearly 500% in the same period.
Source: https://qz.com/novo-nordisk-hims-hers-ad-super-bowl-1851763746