Prices for self-pay obesity drugs are facing increased pressure as both Novo and Eli Lilly adopt direct sales and partner with telehealth companies to attract patients, steering them away from compounded alternatives and encouraging longer treatment durations—despite the risk of price cuts impacting profit margins.
Analysts and investors express concerns that Novo might be losing the price competition, having made deeper cuts compared to Lilly in an effort to boost prescriptions, which have been lagging behind Lilly’s competing drug, Zepbound.
The new program, launching on Tuesday through telehealth platforms like Ro, WeightWatchers, and LifeMD, will allow eligible self-paying patients to purchase supplies for three, six, or twelve months at fixed monthly rates, with more extended plans offering greater discounts. Other telehealth providers, including Hims & Hers and Sesame, are expected to join shortly, according to Novo.
Last year, the Danish drugmaker replaced its CEO, announced significant job cuts, and appointed a new head for its U.S. operations as part of its strategy to compete more effectively with Lilly, which quickly embraced direct-to-consumer sales.
PATIENTS BECOMING CONSUMERS
Ed Cinca, Novo’s senior vice president of marketing and patient solutions, noted that individuals are seeking “simpler and clearer ways to manage payment” in their obesity treatment journey.
“We are observing the evolution of patients into health consumers,” he stated, adding that self-paying individuals prefer straightforward budgeting, transparent pricing, and easier adherence to their treatment plans.
Under the new plan, Wegovy injection pens will be priced at $329 per month for a three-month subscription, $299 for six months, and $249 for a twelve-month plan—representing a discount of 6% to 29% from the standard monthly price of $349.
The Wegovy pill will be priced at $289, $269, and $249 per month, which is approximately 3% to 17% below its regular $299 monthly rate.
Lilly’s self-pay pricing for Zepbound starts at $299 per month for the 2.5 mg dose, $399 for the 5 mg dose, and $449 for the 7.5 mg dose and higher, as part of its “Self Pay Journey Program”.
Lilly’s competing oral obesity medication is currently under review by the U.S. Food and Drug Administration, with approval anticipated in the second quarter. Reports from earlier this year indicated that approval might be granted in April.
Competition has escalated as both firms strive to divert patients from lower-cost compounded alternatives to their branded, FDA-approved products.
FOLLOWING THE PATH OF CONSUMER INDUSTRIES
Zach Reitano, CEO of Novo’s telehealth partner Ro, remarked that both Novo and Lilly are exploring novel strategies to connect with customers, resulting in lower drug prices alongside reduced distribution costs.
Novo is placing greater emphasis on telehealth and direct distribution to engage self-paying patients, marking a significant shift away from conventional insurance models and physician offices.
Novo reduced the standard monthly self-pay price for Wegovy from $499 to $349 in November, achieving approximately a 30% price drop after initially introducing a temporary $199 starter-dose offer.
