Danish pharmaceutical company Novo Nordisk (NVO) has asked the U.S. Food and Drug Administration (FDA) to ban compounding pharmacies from making unapproved and cheaper versions of its weight loss medication Wegovy and its diabetes treatment Ozempic.
In its request to the FDA, Novo Nordisk is arguing that its medications are too complex for other manufacturers to make safely. In a written statement, the agency said it is reviewing the request and will respond directly to Novo Nordisk.
Compounding pharmacies create medications that are tailored to the specific needs of an individual patient. These tailored medications are often used for patients who have an allergy to a certain element of a medication such as a dye that’s used, or if a person cannot swallow a tablet or capsule and needs a medicine in liquid form.
Cracking Down on Drug Copies
Novo Nordisk is asking the FDA to ban compounded versions of semaglutide, the active ingredient in both its Ozempic and Wegovy medications. It is the latest attempt by the pharmaceutical company to crackdown on copies of semaglutide.
In addition to its request of the FDA, Novo Nordisk has also filed some 50 lawsuits against clinics, compounding pharmacies, and drug manufacturers over the past year. The company is trying increase its supply of Ozempic and Wegovy to meet surging global demand. When brand-name drugs are in short supply, compounding pharmacies can prepare copies of the drug if they meet FDA requirements.
More Affordable Versions
Patients have turned to compounded versions of semaglutide amid current shortages of the branded drugs, especially in the U.S., and to lower the cost. Ozempic and Wegovy can each cost more than $1,000 per month before insurance and other rebates are included. Many healthcare insurance plans don’t cover the medications, making compounded versions a more affordable option.
Both Wegovy and Ozempic are still under patent protection in the U.S. and abroad, and Novo Nordisk fiercely protects the active ingredients in the medications. The company has said there is a danger in letting other manufacturers, including compound pharmacies, to sell and market versions of its drugs to consumers. NVO stock has risen 13% this year.
Is NVO Stock a Buy?
Novo Nordisk stock currently has a consensus Strong Buy rating among seven Wall Street analysts. That rating is based on six Buy and one Hold recommendations issued in the last three months. There are no Sell ratings on the stock. The average NVO price target of $154.25 implies 33.30% upside from current levels.
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