Novo Nordisk and Eli Lilly shares both fall after Ozempic price-cut plan

MarketWatch

by Steve Goldstein

February 24, 2026

AI-Generated Deep Dive Summary

Shares of Novo Nordisk and rival Eli Lilly dropped on Tuesday following reports of planned price cuts for their popular weight-loss drugs, Ozempic and Wegovy. The Wall Street Journal cited Novo Nordisk’s executive vice president of U.S. operations, who revealed that the list price for both medications will be reduced to $675 per month starting in 2027. This marks a significant decrease—Wegovy by 50% and Ozempic by 34%. The move comes amid growing scrutiny over high drug prices in the U.S., particularly for products that have become blockbusters due to their popularity. The decision to cut prices could reflect efforts to address public and regulatory concerns about affordability. Both Ozempic and Wegovy have been highly successful, with demand driven by their effectiveness in treating obesity and related conditions. However, the price reductions may also signal competitive pressure, as both companies aim to maintain market share against each other and emerging rivals. Eli Lilly’s shares fell despite not being directly involved in the report, underscoring the interconnectedness of the pharma sector and investor sensitivity to pricing trends. This development highlights the broader challenges faced by pharmaceutical companies in balancing profitability with public expectations for affordable medications. While price cuts may make these drugs more accessible to patients, they could also impact revenue and profit margins, particularly for smaller competitors or those with narrower product portfolios. Investors are likely closely monitoring how these changes will affect long-term growth prospects for both Novo Nordisk and Eli Lilly, as well as the broader pharmaceutical industry. The move also raises questions about future business strategies in the weight-loss drug market. Companies may need to explore alternative revenue streams, such as partnerships, new markets, or innovations in drug delivery, to offset potential losses from price reductions. Additionally, stakeholders will be watching for any regulatory or legislative responses to these pricing adjustments, which could further shape the landscape for pharmaceutical companies

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Originally published on MarketWatch on 2/24/2026