Novo Nordisk is facing a supply shortage for its weight-loss drugs, Wegovy and Saxenda, due to surging demand…
Here’s What You Need to Know:
- After initial Wegovy shortages, customers turned to Saxenda for a replacement, leading to its limited availability through the end of 2023 and possibly beyond.
- Other obesity therapies are also reportedly encountering supply challenges of their own.
- Novo Nordisk saw a surge in demand for Saxenda when Wegovy experienced early manufacturing hurdles, leading to a sales jump of 52% in 2022.
- In an effort to control the demand, Novo reduced the U.S. supply of low doses of Wegovy and halted all local TV advertising for Wegovy to limit overall traffic.
- Another pharmaceutical company, Eli Lilly, returned to limited supply for its diabetes treatment, Mounjaro, after briefly restoring supply in February.
- Novo Nordisk and Eli Lilly have invested heavily in capacity expansions to account for the consistently increasing demand.
- Novo Nordisk announced a $2.58 billion plan in 2021 to build three new manufacturing facilities and extend its site in Denmark to increase its capacity for producing active pharmaceutical ingredients.
- Lilly is adding $1.6 billion to its new manufacturing sites in Boone County, taking the total investment to $3.7 billion, marking the most significant single-site investment in the company’s history.
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[Source: Fierce Pharma, July 19th, 2023]