Novo Nordisk Expands Ireland Facility, Launches Vials to Counter Eli Lilly in Weight-Loss Market

Novo Nordisk is preparing to launch a lower-cost vial version of its blockbuster drug Wegovy in the US later this year and will expand its Athlone facility in Ireland to produce the weight-loss treatment for markets outside the US. The moves represent a direct counter to aggressive pricing tactics from rival Eli Lilly, which has already captured significant market share through similar measures.

Eli Lilly set the stage for this escalation by introducing vials for its drug Zepbound in 2024 and subsequently cutting the price by at least $50 in 2025. This calculated assault on Novo Nordisk's leadership has compelled a response. The shift to vials represents a notable change in direction for Novo Nordisk, which has historically focused on injection pens and, more recently, a tablet form.

The CEO confirmed the vial launch plans to investors, simultaneously preparing them for a challenging period. He stated that the substantially lower prices are essential to compete not only with Lilly but also with pharmacies compounding their own versions of the active ingredient. The CEO told investors: "If we were about to throw in the towel we would not be investing in factories in Ireland."

The newly launched tablet version of Wegovy is gaining initial traction. Data from IQVIA indicates approximately 38,220 prescriptions were written in the fifth week following its January launch, with a monthly entry price set at $149. The once-daily pill is available in 1.5mg, 4mg, 9mg and 25mg doses and demonstrated about 17% weight loss if all patients stayed on the treatment. The vial format allows patients who prefer injections to use the same medication without the need for oral administration.

Concurrently, Novo Nordisk is pursuing legal avenues to protect its market. The company has filed a lawsuit against Hims & Hers for distributing unauthorized copycat versions of Wegovy. This legal action coincides with a U.S. Food and Drug Administration (FDA) announcement to restrict the use of GLP-1 active ingredients in pharmacy-compounded drugs, citing quality and safety concerns.

The company's outlook for 2026 has been tempered by the fierce competition. Management now anticipates a decline in both revenue and operating profit, projecting a drop of 5 to 13 percent, driven by competition and pricing pressures in the US. This guidance overshadowed the full-year 2025 results, which saw a 10 percent revenue increase to over 309 billion Danish kroner, driven by a 41 percent surge in Wegovy sales. However, Q4 saw a 2% sales decline and 4% lower operating profit.

In fiscal 2025, its diabetes and obesity care drugs saw sales increase 7%, with a 26% gain in obesity care drugs. For 2026, sales growth is targeted at 5% to 13% and will be positively impacted by a reversal of sales rebate provisions in the U.S. Net debt for the full-year was reported at 95.424 billion Danish kroner (US$15.155bn), following acquisitions.

Investors reacted sensitively to the mix of strategic expansion and weakened forecast. On February 13, Novo Nordisk's NYSE-listed shares closed at $49.57, marking a 5.4 percent decline since the start of the year. The stock's 52-week range, between $43.08 and $93.80, underscores the significant correction from its peak. The current analyst consensus rating for the stock is "Hold," with an average price target of $56.07.

Ireland is a major global hub for pharmaceutical and biopharmaceutical manufacturing, consistently ranking as one of the world's top exporters of medicinal and pharmaceutical products. Many major pharma companies operate in the country, including Eli Lilly, Pfizer, Johnson & Johnson and AbbVie.

Experts predict that the GLP-1 market will grow to $254 billion by 2034, which would be a compound annual growth rate of 17%. Novo Nordisk is one of the leaders in making GLP-1 (glucose-like peptide 1) drugs, which are approved for weight loss and diabetes management, with its weight management drug Wegovy and its diabetes management drugs Ozempic and Rybelsus.