Approximately one in eight Americans are taking medications like Ozempic or Wegovy for weight loss, diabetes, heart disease and more.
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The two struck a deal Monday for Hims to offer official versions of Novo Nordisk’s GLP-1 drugs Ozempic and Wegovy.
Just 20% of firms with 200 or more workers said they covered GLP-1 drugs for weight loss, according to the Peterson-KFF Health System Tracker.
Novo’s Copenhagen-listed shares rose 5.2% on Monday. New York-listed shares in Hims & Hers, meanwhile, shed an Ozempic-like 16% in volume.
The proliferation of cheaper generic drugs and more competition has already begun to bring down prices on weight-loss treatments.
US firms are also staring down a multi-billion dollar patent cliff of their own, prompting a yearslong buying spree.
The company also said earlier this week it will drop $6 billion on a new manufacturing facility in Huntsville, Alabama.
AstraZeneca is the biggest drugmaker in Britain and its £193 billion ($253 billion) market capitalization tops the London Stock Exchange.
Metsera on Tuesday called Novo Nordisk’s new $10 billion offer “superior” to rival Pfizer’s bid of $8 billion.
Record performance of its GLP-1 drugs sent shares in Eli Lilly soaring almost 4% after its earnings call on Thursday.
The acquisition comes as new CEO Mike Doustdar tries to revive once meteoric growth that has come crashing down to earth this year.
A 2024 RAND study found that US drug prices are 278% higher than in 33 other developed countries in the OECD.
Both companies have been desperate to innovate beyond their current injectable GLP-1 weight-loss drugs for a while now.
China’s pharmaceutical sector, a minor player just years ago, has revved up into a global juggernaut faster than a Fuxing high speed train.
About 5 million people are affected by idiopathic pulmonary fibrosis globally, according to the National Institutes of Health.
Morgan Stanley analysts have estimated that Lilly’s GLP-1 pill could bring in as much as $40 billion in annual sales by 2033.