Why Ozempic and Wegovy just got shockingly cheaper

Novo Nordisk dropped a bombshell Monday by announcing significant price reductions for its blockbuster weight loss and diabetes medications Ozempic and Wegovy, offering relief to the millions of Americans paying out of pocket for these increasingly popular drugs. The timing of the announcement reveals just how much pressure the pharmaceutical giant is feeling from multiple directions.

The Danish drugmaker now offers the first two monthly doses of both medications for just $199, a dramatic reduction from previous pricing. After those initial months, cash-paying customers will pay $349 monthly instead of the previous $499 price tag. The promotional pricing on those starter doses expires at the end of March and applies to the two lowest available dosages.

These discounts become available for self-paying customers who purchase through the company’s direct-to-consumer channels and via Novo Nordisk‘s various partners, including Costco, GoodRx and Weight Watchers, plus more than 70,000 retail pharmacies across the country.

What’s really driving the price cuts

The move represents far more than simple corporate generosity. Novo Nordisk faces mounting competition in the weight loss market from rival Eli Lilly while also dealing with intense pressure from President Donald Trump’s administration. Additionally, compounding pharmacies have been eating into the manufacturer’s sales by offering less expensive versions of these super-popular GLP-1 drugs.

Dave Moore, executive vice president of US operations for Novo Nordisk, acknowledged the growing interest in direct payment options among people living with obesity. The cash market currently accounts for roughly 10% of total Wegovy prescriptions in the United States, and the company is counting on its self-pay channel to boost sales both domestically and internationally.

Evan Seigerman, a pharmaceutical analyst at BMO Capital Markets, wrote in a note to clients that the reduced self-pay prices for starter doses now sit closer to what compounding pharmacies charge and significantly undercut the cash price of Eli Lilly’s competing drug Zepbound. Starter doses of Zepbound cost $349 monthly through Eli Lilly’s direct-to-consumer channel, while higher doses run $499 monthly.

The Trump administration’s massive deal

Novo Nordisk’s announcement arrived shortly after the drugmaker and rival Eli Lilly revealed a major agreement with the Trump administration that will expand their access to Medicare and Medicaid markets in exchange for price reductions. Under that arrangement, consumers buying injectable GLP-1 medications directly from the companies will pay an average of $350 monthly to start, with the drugmakers committed to reducing prices to approximately $250 over the next two years.

If oral GLP-1 tablets receive approval from the Food and Drug Administration, the lowest dose will cost just $149. These prices will become available when TrumpRx, the administration’s direct-to-consumer online platform, launches in early 2026.

How many Americans are affected

Recent data from a KFF Health Tracking Poll released Friday reveals that roughly one in eight adults currently use a GLP-1 drug such as Ozempic or Wegovy to lose weight or treat a chronic condition. Among those with health insurance who have used the drugs, about a quarter paid the full cost themselves rather than submitting claims.

Cost emerged as one of the most commonly cited reasons for stopping the medications among people who have ever used GLP-1 drugs, according to the poll findings. This statistic underscores why the price reductions matter so much to patients struggling to afford continued treatment.

The insurance coverage gap

While insurers broadly cover Ozempic as a diabetes treatment, coverage for Wegovy as a weight loss medication remains much spottier. The inconsistent coverage stems partly from Wegovy’s list price of $1,349 monthly, though patients with insurance coverage typically pay far less than that amount.

List prices for GLP-1 drugs generally range from around $1,000 to about $1,350, but the actual out-of-pocket costs vary dramatically depending on individual insurance plans and whether the prescription is for diabetes management or weight loss purposes.

The escalating pharmacy wars

Novo Nordisk launched its direct-to-consumer pharmacy earlier this year, initially offering Wegovy for $499 monthly. In August, the company began selling Ozempic at half that previous price to patients paying cash. Eli Lilly has similarly slashed prices for its GLP-1 weight loss drug Zepbound for self-pay patients.

Seigerman’s analysis suggests Novo Nordisk‘s pricing moves likely reflect a reaction to the company’s softening market share as it attempts to regain its competitive footing. The pharmaceutical landscape for weight loss medications has become increasingly crowded and price-sensitive, forcing established players to adjust their strategies.

The battle over GLP-1 drug pricing will continue evolving as more competitors enter the market and political pressure from Washington intensifies. For now, millions of Americans seeking these medications have more affordable options than existed just months ago.

Source: Based on reporting from CNN