Novo Nordisk (NVO) Stock Bets Big on Ireland After Wegovy Pill Success

TLDR

• Novo Nordisk will manufacture Wegovy weight loss pills at its Athlone, Ireland facility for markets outside the US
• The pill version launched in early January attracted over 240,000 American users and tracked 38,220 prescriptions in its fifth week
• CEO Mike Doustdar called the pill launch “one of the most successful pharmaceutical debuts ever”
• Novo hopes the pill will help reclaim market share lost to rival Eli Lilly’s Zepbound drug
• The company warned of up to 13% sales decline this year due to an intensifying price war in obesity drugs

Novo Nordisk announced plans to expand its Athlone, Ireland facility to produce Wegovy weight loss pills for international markets. The move comes as the Danish drugmaker fights to regain ground in the obesity drug market.

Novo Nordisk A/S, NVO

IQVIA data showed Wegovy pills hit 38,220 U.S. prescriptions in the fifth week after launch. The strong uptake signals growing consumer preference for oral medication over injections.

Novo acquired the Athlone plant from Alkermes in 2024 for €85 million. The facility previously operated as Elan Drug Technologies.

The company will produce Wegovy pills for non-U.S. markets in Ireland. American supplies come from domestic manufacturing sites.

Battle for Market Share

Novo faces stiff competition from Eli Lilly’s Zepbound. The Danish company once dominated the weight loss drug market but has lost share to its American rival.

The company recently announced plans to offer Wegovy in vial form. This matches Lilly’s product lineup of injectables, vials, and pills.

Last week Novo warned investors of a potential 13% sales decline this year. The forecast sent shares down 20%.

An intensifying price war has pressured profit margins. The Trump administration has pushed for lower obesity drug prices.

Novo cut 9,000 jobs worldwide last year. The Athlone facility lost up to 75 positions from a workforce of 400.

Pricing Controversy

The company priced Wegovy pills at $149 per prescription. U.S. company Hims & Hers Health said it would sell a version for just $49.

The Food and Drug Administration warned Hims & Hers to stop. The dispute highlights ongoing debates about drug pricing and competition.

Two years ago Novo abandoned plans for a factory near Dublin. The new Athlone investment shows renewed commitment to Irish manufacturing.

Ireland serves as a pharmaceutical hub for global companies. Eli Lilly produces active ingredients for its weight loss drugs there.

Doustdar declined to specify the investment amount for the Athlone expansion. The facility will focus on serving international markets outside the United States.

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