Ozempic is one of the easier prescription drug names to pronounce and remember. I do not know who conjured up the brand name, but it was time well spent.
For those who don’t know, it’s a “semaglutide” a type of drug that slows down appetite inducing hormones. Studies have shown that semaglutides can lead to an average 15-20% weight loss in obese patients. There also appear to be knock on benefits for the organs like the heart, liver and kidneys too.
The stock price of the Danish pharma firm, Novo Nordisk, Ozempic’s brand owner has risen 65% in the last 12 months valuing the company at more than $500b.
In 2021 a global Ipsos study found that 45% of us are trying to lose weight. In some countries like the US, Chile and Saudi the percentage is even higher.
For an Rx, the licensing and commercialisation of Ozempic happened fast. It started in the US in 2017 with Canada and the EU following in 2018. Even here in Japan, often behind the global curve, the drug has approval.
Currently Novo Nordisk is experiencing supply chain constraints with Ozempic and sister drug Wegovy. Perhaps this is an opportunity for competitors to catch up? Elly Lilly has a rival offering (Zepbound, whose name I like far less) which in the U.S. they are promoting online.
In Q3 2023 the stocks of snack food companies like Mondelez, Krispy Kreme and even leviathan McDonalds dipped as investors mulled the impact of Ozempic. Prices have since recovered.
Prescriptions for Ozempic or a GLP-1 as they are known technically, are not cheap. The charge is between $300-1300 a month. Then there is the thorny issue of insurance or reimbursement. In Japan the prescription is only granted to those with high blood pressure, hyperlipidemia, and Type 2 diabetes.
In Europe, according to the FT, 80% of sales are paid by consumers directly, and many are sticking to the prescription.
In reality, however, the percentage of the population able to access and afford GLP-1s remains small.
Ozempic is self administered, by injection, once a week either in the abdomen or thigh. Does this reduce adoption rates? It’s clearly not for casual users.
Another challenge for Ozempic is regulatory. Here in Japan many clinics promote ‘a medical diet’. You may be surprised to know many of these clinics are staffed by regular doctors looking for some extra pocket money.
Can you imagine an Olympic clampdown on Ozempic? I can especially as it’s in the media everyday.