Novo Nordisk Stock Climbs on Wegovy Pill Deal with Amazon Pharmacy
The Danish drugmaker is expanding access to its newly-approved oral weight-loss medication through the e-commerce giant, intensifying its rivalry with Eli Lilly.
Shares of Novo Nordisk (NYSE: NVO) climbed in recent trading after the company announced a significant expansion in access for its popular weight-loss drug, Wegovy. The Danish pharmaceutical giant is partnering with Amazon Pharmacy to distribute its newly-approved oral pill formulation, a move that dramatically broadens the drug's availability and heats up the competition in the lucrative obesity drug market.
Novo Nordisk stock rose 1.36% to $57.34, boosting its market capitalization to over $251 billion. The rally is part of a larger trend that has seen the company's shares gain approximately 20% over the past month, largely driven by enthusiasm for its new oral Wegovy tablet.
The partnership with Amazon Pharmacy marks a pivotal step in Novo Nordisk's strategy to dominate the burgeoning weight-loss market. According to a company announcement, the deal provides customers with transparent pricing and rapid home delivery. Eligible patients with commercial insurance may pay as little as $25 for a month's supply, while a cash-pay option starting at $149 per month is also available.
The introduction of a pill version of Wegovy is a potential game-changer. It removes the barrier of self-injection, a common hesitation for patients, and could significantly widen the user base for the blockbuster GLP-1 medication. The move to a major e-commerce platform like Amazon underscores a push towards direct-to-consumer access, meeting patients where they are.
This strategic maneuver is a direct challenge to Novo Nordisk's primary competitor, Eli Lilly, which markets the rival weight-loss drug Zepbound. While some clinical trials have suggested Zepbound may offer slightly higher weight-loss efficacy, Novo Nordisk is betting that convenience and broader access can secure a decisive market advantage. By making Wegovy available as a pill and through Amazon's vast logistics network, the company is aiming to make its treatment the most accessible option.
The battle for supremacy in the obesity treatment space is one of the most closely watched narratives in the pharmaceutical sector. Analysts at Morgan Stanley project the market could be worth $150 billion by 2035, and both Novo Nordisk and Eli Lilly are investing heavily to capture the largest possible share. Novo's distribution strategy also includes a recent partnership with WeightWatchers, which will now leverage Amazon Pharmacy for medication delivery to its members, according to reports.
Despite the positive momentum, Novo Nordisk faces the ongoing challenge of scaling production to meet immense demand and navigating a competitive landscape where new treatments are continuously emerging. While most analysts maintain a positive outlook on the stock, its average price target of $54.90 sits slightly below its current trading level, suggesting some investors believe its recent run-up has already priced in much of the good news. The company's ability to execute on its new distribution strategy and defend its market share against Eli Lilly will be critical for its performance in the coming quarters.