Novo Nordisk Cuts Ties With HIMS & Joins Forces With WeightWatchers
Novo Nordisk has announced that starting July 1, 2025, WeightWatchers will begin selling Wegovy for a one-time price of \$299. This special pricing will also be available through Novo's other telehealth partners until July 31. The move marks a significant shift for WeightWatchers, which filed for Chapter 11 bankruptcy protection in May. The company had previously blamed some of its struggles on competition from weight-loss drugs like Wegovy. Now, it seems WeightWatchers has adopted the mindset of "if you can't beat them, join them."
In a related development, Novo Nordisk revealed it has ended its partnership with Hims and Hers Health (HIMS), citing concerns over the telehealth company's sale of compounded copies of Wegovy and its marketing practices. The popularity of these cheaper, compounded alternatives -made legal during a Wegovy shortage declared by the FDA in 2023 - helped fuel sales for HIMS and other platforms. However, this came at the expense of Novo and Eli Lilly, both of whom manufacture original, FDA-approved weight-loss medications. While the tactic may have provided a short-term boost for HIMS, it didn’t help its standing with major pharmaceutical partners.
With the FDA declaring an end to the shortage and setting a May 22 deadline for compounders to cease sales, Novo took the opportunity to formally cut ties. Dave Moore, executive vice president at Novo Nordisk, commented that the company will continue working with partners who align with its values and who help improve access to approved medications - an unmistakable message that HIMS no longer fits that bill.
Looking ahead, Novo remains in active discussions with other potential partners and continues to work with platforms like Ro and LifeMD (LFMD), both competitors to WeightWatchers. The broader goal is clear: Novo wants to convert users of compounded versions into patients on its officially approved treatment, regaining control over a market that had drifted due to temporary supply gaps. Novo couldn't have hoped for a better new distribution channels for its weight loss treatment than WeightWatchers. This is undoubtedly a major coup.
PHARMACEUTICAL INVESTING - THE REALITY OF THE TARIFF THREAT
The Trump administration’s ambition to bring pharmaceutical manufacturing back to the United States is a bold one, but it faces steep near-term obstacles making it unachievable any time soon.
Eli Lilly CEO, Dave Ricks, noted that shifting production from countries like Ireland and India is not a matter of months. It would take years and require billions of dollars in investment. The minutiae of specifications set out in the complicated regulatory approvals needed for manufacturing facilities are not transferable, plus the specialized workforce and infrastructure required, make quick reshoring impossible.
The pharmaceutical industry’s global supply chains further complicates the picture. Around 80% of active pharmaceutical ingredients used in U.S. drugs are sourced internationally, primarily from China and India. Disrupting these well-established networks with tariffs could create significant ripple effects throughout the healthcare system.
In that context, even if the process started today, it would not yield any tangible results until well after President Trump's term in office. More particularly, any tariffs imposed would do little to encourage domestic production. Instead, they would penalize imports without delivering the intended boost to U.S. manufacturing and push healthcare costs higher. Worse still, essential medications, from diabetes treatments to advanced cancer therapies, could face delays or shortages, with serious consequences for patients and providers alike. By steering clear of direct interference in the pharmaceutical supply chain, policymakers are likely aiming to avoid the kind of healthcare-related backlash that could undermine their broader economic or political goals.
So, taken together, the regulatory hurdles, economic costs, political sensitivities, and sheer logistical complexity make the idea of pharmaceutical tariffs unlikely.
The administration appears to recognize this, focusing instead on sectors such as semiconductors and cell-phones that can be repatriated more quickly and with less public resistance.
In a surprise move that rattled investors, Novo Nordisk (NYSE:NVO) has ousted its CEO, Lars Fruergaard Jørgensen, marking the end of an era for the pharmaceutical giant. The announcement came just days after the company slashed its sales and profit outlook for the first time since launching Wegovy, its blockbuster weight-loss drug, four years ago. Jørgensen had recently expressed confidence that growth would rebound in the second half of the year, particularly in the company’s largest market, making the timing of his departure even more unexpected.
What makes this decision even more intriguing is that Novo Nordisk has only had five CEOs in its 100 year history. It nurtures talent from within, people who are tried and tested rise through the ranks and ultimately, if they are good enough, reach the top. This was the story of Jørgensen. He has been at Novo Nordisk since 1991 and was appointed to the top job in 2017. So he is neither new to the company nor to the role of CEO.
During his tenure, Jørgensen transformed Novo Nordisk into a dominant force in the global obesity drug market. Under his leadership, sales of the company’s signature GLP-1 treatments, Wegovy and Ozempic, soared - fueling a market frenzy that helped turn Novo into Europe’s most valuable company by market cap.
So the big question is ‘Why?”
Despite the shake-up, Novo’s chairman, Helge Lund, attempted to calm nerves on a call with analysts and investors. He emphasized that the company’s long-term strategy remains unchanged and that the leadership transition has been under discussion for several weeks. Jørgensen will stay on until a new CEO is appointed.
The fact that no successor has been lined up suggests that this was a sudden decision which was as unexpected on the inside as it was to external investors.
So once again, why? What happened? Was there a bust-up in the board room?
Adding another twist to the story, Novo Nordisk announced that Lars Rebien Sørensen—the company’s former CEO of 16 years and now chairman of the powerful Novo Nordisk Foundation—will return to the fold as a board observer, with the expectation that he’ll take a full seat at the next annual general meeting. His return is seen by some as a move to restore confidence and ensure continuity as Novo navigates this pivotal moment.
There’s a lot more coming to light about why Lars Fruergaard Jørgensen was ousted as CEO of Novo Nordisk, and the story is starting to look like a power shift rooted in both legacy and strategy.
At the center of it all is the Novo Nordisk Foundation—the company’s controlling shareholder—which is chaired by none other than Lars Rebien Sørensen. If that name rings a bell, it’s because he’s the former CEO of Novo Nordisk, the same man Jørgensen replaced back in 2017. It now appears that Sørensen, still very much a heavyweight within the organization, played a key role in pushing for Jørgensen’s removal. The reason? Frustration over how the company has been handling its transition from a pure-play diabetes care specialist to a broader health player, particularly in obesity, a market with massive potential, but also plenty of execution risk.
Sørensen isn’t stepping back into the CEO seat. He’s in his 70s now and likely not looking for that kind of return, but he will rejoin the board and help lead the search for a successor. He brings serious credibility, having led Novo Nordisk for 16 years and been twice named global CEO of the year by Harvard Business Review.
But there’s more to the shakeup than just internal disagreements. A growing concern is what's happening in the U.S., which remains Novo Nordisk’s most important market.
President Donald Trump has been vocal about imposing tariffs on pharmaceutical products and pressuring drug companies to lower prices. That’s a direct threat to a business model heavily reliant on U.S. revenues.
As such, for the first time in its more than 100-year history, Novo Nordisk may break from tradition and appoint an external CEO, and possibly even a non-Dane. The company has always promoted from within and stuck to Danish leadership, having had just five CEOs in its century long life. But this time, they might opt for someone with deep U.S. experience, maybe even an American CEO, who could better navigate the tricky political and economic landscape stateside.
So, while this may look like just a change at the top, it could end up being something much bigger, a real shift in how Novo Nordisk is managed and how its culture evolves going forward. For a company that’s prized stability and internal continuity for over a century, that’s no small thing.
That said, there’s been an effort to calm the waters. Novo Nordisk’s chair, Helge Lund, has stepped in to reassure investors and stakeholders that the company’s core strategy isn’t changing. According to him, the long-term vision stays intact, and the Novo Nordisk Foundation, still very much in the driver’s seat, will continue to play an active role in holding management accountable. In other words, while the faces may be changing, the fundamentals are not.
NOVO NORDISK - Q1 Trading Report (1 January 2025 to 31 March 2025), published 7th May 2025
Operating profit increased by 22% in Danish kroner and by 20% at constant exchange rates (CER) to DKK 38.8 billion.
Sales in US Operations increased by 20% in Danish kroner (17% at CER). Sales in International Operations increased by 18% in Danish kroner (19% at CER).
Sales within Diabetes and Obesity care increased by 21% in Danish kroner to DKK 73.5 billion (19% at CER), mainly driven by Obesity care growth of 67% in Danish kroner to DKK 18.4 billion (65% at CER) and GLP-1 diabetes sales growing 13% in Danish kroner (11% at CER) and. Rare disease sales increased by 5% measured in Danish kroner (3% at CER).
Within R&D, Novo Nordisk completed the REDEFINE 2 trial, where CagriSema demonstrated superior weight loss of 15.7% in adults with obesity or overweight and type 2 diabetes. Novo Nordisk still expects to file for the first regulatory approval of CagriSema during the first quarter of 2026.
Also within R&D, oral semaglutide 25 mg in obesity was submitted for regulatory review to the US FDA, with the potential to be the first oral GLP-1 treatment for obesity.. In addition, once-weekly semaglutide 2.4 mg in MASH was submitted for regulatory approval in both the EU and US, and granted priority review in the US.
For the 2025 outlook, sales growth is expected to be 13-21% at CER, and operating profit growth is expected to be 16-24% at CER. Sales and operating profit growth reported in Danish kroner is now expected to be 3 and 5 percentage points lower than at CER, respectively. The updated sales outlook reflects lower-than-planned penetration of branded GLP-1 treatments in the US, impacted by compounded GLP-1s.
Novo Nordisk is focused on preventing unlawful compounding and further expanding access in the US. With around 1 billion people living with obesity globally and only few million on treatment, Novo Nordisk continues the global roll-out of Wegovy®.
Starting July 1, 2025, Novo Nordisk’s weight-loss drug Wegovy (semaglutide) will become the preferred GLP-1 medicine for obesity on CVS Caremark’s largest commercial formularies, which cover tens of millions of Americans.
This means Wegovy will be prioritized over Eli Lilly’s Zepbound for patients whose pharmacy benefits are managed by CVS Caremark, the largest pharmacy benefit manager (PBM) in the U.S.
Wegovy will have preferred status and be the top-listed GLP-1 drug for weight loss, making it easier and potentially cheaper for patients to access through their insurance. CVS Caremark will integrate Wegovy with lifestyle support programs as part of its weight management initiative
Meanwhile, Eli Lilly’s Zepbound will be removed from preferred coverage on CVS Caremark’s standard formularies, though some patients already on Zepbound may qualify for exceptions.
This formulary win is a major boost for Novo Nordisk, giving it a competitive edge in the high-growth obesity drug market.
Novo Nordisk Cuts Ties With HIMS & Joins Forces With WeightWatchers
Novo Nordisk has announced that starting July 1, 2025, WeightWatchers will begin selling Wegovy for a one-time price of \$299. This special pricing will also be available through Novo's other telehealth partners until July 31. The move marks a significant shift for WeightWatchers, which filed for Chapter 11 bankruptcy protection in May. The company had previously blamed some of its struggles on competition from weight-loss drugs like Wegovy. Now, it seems WeightWatchers has adopted the mindset of "if you can't beat them, join them."
In a related development, Novo Nordisk revealed it has ended its partnership with Hims and Hers Health (HIMS), citing concerns over the telehealth company's sale of compounded copies of Wegovy and its marketing practices. The popularity of these cheaper, compounded alternatives -made legal during a Wegovy shortage declared by the FDA in 2023 - helped fuel sales for HIMS and other platforms. However, this came at the expense of Novo and Eli Lilly, both of whom manufacture original, FDA-approved weight-loss medications. While the tactic may have provided a short-term boost for HIMS, it didn’t help its standing with major pharmaceutical partners.
With the FDA declaring an end to the shortage and setting a May 22 deadline for compounders to cease sales, Novo took the opportunity to formally cut ties. Dave Moore, executive vice president at Novo Nordisk, commented that the company will continue working with partners who align with its values and who help improve access to approved medications - an unmistakable message that HIMS no longer fits that bill.
Looking ahead, Novo remains in active discussions with other potential partners and continues to work with platforms like Ro and LifeMD (LFMD), both competitors to WeightWatchers. The broader goal is clear: Novo wants to convert users of compounded versions into patients on its officially approved treatment, regaining control over a market that had drifted due to temporary supply gaps. Novo couldn't have hoped for a better new distribution channels for its weight loss treatment than WeightWatchers. This is undoubtedly a major coup.
PHARMACEUTICAL INVESTING - THE REALITY OF THE TARIFF THREAT
The Trump administration’s ambition to bring pharmaceutical manufacturing back to the United States is a bold one, but it faces steep near-term obstacles making it unachievable any time soon.
Eli Lilly CEO, Dave Ricks, noted that shifting production from countries like Ireland and India is not a matter of months. It would take years and require billions of dollars in investment. The minutiae of specifications set out in the complicated regulatory approvals needed for manufacturing facilities are not transferable, plus the specialized workforce and infrastructure required, make quick reshoring impossible.
The pharmaceutical industry’s global supply chains further complicates the picture. Around 80% of active pharmaceutical ingredients used in U.S. drugs are sourced internationally, primarily from China and India. Disrupting these well-established networks with tariffs could create significant ripple effects throughout the healthcare system.
In that context, even if the process started today, it would not yield any tangible results until well after President Trump's term in office. More particularly, any tariffs imposed would do little to encourage domestic production. Instead, they would penalize imports without delivering the intended boost to U.S. manufacturing and push healthcare costs higher. Worse still, essential medications, from diabetes treatments to advanced cancer therapies, could face delays or shortages, with serious consequences for patients and providers alike. By steering clear of direct interference in the pharmaceutical supply chain, policymakers are likely aiming to avoid the kind of healthcare-related backlash that could undermine their broader economic or political goals.
So, taken together, the regulatory hurdles, economic costs, political sensitivities, and sheer logistical complexity make the idea of pharmaceutical tariffs unlikely.
The administration appears to recognize this, focusing instead on sectors such as semiconductors and cell-phones that can be repatriated more quickly and with less public resistance.
NOVO NORDISK OUST CEO
In a surprise move that rattled investors, Novo Nordisk (NYSE:NVO) has ousted its CEO, Lars Fruergaard Jørgensen, marking the end of an era for the pharmaceutical giant. The announcement came just days after the company slashed its sales and profit outlook for the first time since launching Wegovy, its blockbuster weight-loss drug, four years ago. Jørgensen had recently expressed confidence that growth would rebound in the second half of the year, particularly in the company’s largest market, making the timing of his departure even more unexpected.
What makes this decision even more intriguing is that Novo Nordisk has only had five CEOs in its 100 year history. It nurtures talent from within, people who are tried and tested rise through the ranks and ultimately, if they are good enough, reach the top. This was the story of Jørgensen. He has been at Novo Nordisk since 1991 and was appointed to the top job in 2017. So he is neither new to the company nor to the role of CEO.
During his tenure, Jørgensen transformed Novo Nordisk into a dominant force in the global obesity drug market. Under his leadership, sales of the company’s signature GLP-1 treatments, Wegovy and Ozempic, soared - fueling a market frenzy that helped turn Novo into Europe’s most valuable company by market cap.
So the big question is ‘Why?”
Despite the shake-up, Novo’s chairman, Helge Lund, attempted to calm nerves on a call with analysts and investors. He emphasized that the company’s long-term strategy remains unchanged and that the leadership transition has been under discussion for several weeks. Jørgensen will stay on until a new CEO is appointed.
The fact that no successor has been lined up suggests that this was a sudden decision which was as unexpected on the inside as it was to external investors.
So once again, why? What happened? Was there a bust-up in the board room?
Adding another twist to the story, Novo Nordisk announced that Lars Rebien Sørensen—the company’s former CEO of 16 years and now chairman of the powerful Novo Nordisk Foundation—will return to the fold as a board observer, with the expectation that he’ll take a full seat at the next annual general meeting. His return is seen by some as a move to restore confidence and ensure continuity as Novo navigates this pivotal moment.
There’s a lot more coming to light about why Lars Fruergaard Jørgensen was ousted as CEO of Novo Nordisk, and the story is starting to look like a power shift rooted in both legacy and strategy.
At the center of it all is the Novo Nordisk Foundation—the company’s controlling shareholder—which is chaired by none other than Lars Rebien Sørensen. If that name rings a bell, it’s because he’s the former CEO of Novo Nordisk, the same man Jørgensen replaced back in 2017. It now appears that Sørensen, still very much a heavyweight within the organization, played a key role in pushing for Jørgensen’s removal. The reason? Frustration over how the company has been handling its transition from a pure-play diabetes care specialist to a broader health player, particularly in obesity, a market with massive potential, but also plenty of execution risk.
Sørensen isn’t stepping back into the CEO seat. He’s in his 70s now and likely not looking for that kind of return, but he will rejoin the board and help lead the search for a successor. He brings serious credibility, having led Novo Nordisk for 16 years and been twice named global CEO of the year by Harvard Business Review.
But there’s more to the shakeup than just internal disagreements. A growing concern is what's happening in the U.S., which remains Novo Nordisk’s most important market.
President Donald Trump has been vocal about imposing tariffs on pharmaceutical products and pressuring drug companies to lower prices. That’s a direct threat to a business model heavily reliant on U.S. revenues.
As such, for the first time in its more than 100-year history, Novo Nordisk may break from tradition and appoint an external CEO, and possibly even a non-Dane. The company has always promoted from within and stuck to Danish leadership, having had just five CEOs in its century long life. But this time, they might opt for someone with deep U.S. experience, maybe even an American CEO, who could better navigate the tricky political and economic landscape stateside.
So, while this may look like just a change at the top, it could end up being something much bigger, a real shift in how Novo Nordisk is managed and how its culture evolves going forward. For a company that’s prized stability and internal continuity for over a century, that’s no small thing.
That said, there’s been an effort to calm the waters. Novo Nordisk’s chair, Helge Lund, has stepped in to reassure investors and stakeholders that the company’s core strategy isn’t changing. According to him, the long-term vision stays intact, and the Novo Nordisk Foundation, still very much in the driver’s seat, will continue to play an active role in holding management accountable. In other words, while the faces may be changing, the fundamentals are not.
NOVO NORDISK - Q1 Trading Report (1 January 2025 to 31 March 2025), published 7th May 2025
Operating profit increased by 22% in Danish kroner and by 20% at constant exchange rates (CER) to DKK 38.8 billion.
Sales in US Operations increased by 20% in Danish kroner (17% at CER). Sales in International Operations increased by 18% in Danish kroner (19% at CER).
Sales within Diabetes and Obesity care increased by 21% in Danish kroner to DKK 73.5 billion (19% at CER), mainly driven by Obesity care growth of 67% in Danish kroner to DKK 18.4 billion (65% at CER) and GLP-1 diabetes sales growing 13% in Danish kroner (11% at CER) and. Rare disease sales increased by 5% measured in Danish kroner (3% at CER).
Within R&D, Novo Nordisk completed the REDEFINE 2 trial, where CagriSema demonstrated superior weight loss of 15.7% in adults with obesity or overweight and type 2 diabetes. Novo Nordisk still expects to file for the first regulatory approval of CagriSema during the first quarter of 2026.
Also within R&D, oral semaglutide 25 mg in obesity was submitted for regulatory review to the US FDA, with the potential to be the first oral GLP-1 treatment for obesity.. In addition, once-weekly semaglutide 2.4 mg in MASH was submitted for regulatory approval in both the EU and US, and granted priority review in the US.
For the 2025 outlook, sales growth is expected to be 13-21% at CER, and operating profit growth is expected to be 16-24% at CER. Sales and operating profit growth reported in Danish kroner is now expected to be 3 and 5 percentage points lower than at CER, respectively. The updated sales outlook reflects lower-than-planned penetration of branded GLP-1 treatments in the US, impacted by compounded GLP-1s.
Novo Nordisk is focused on preventing unlawful compounding and further expanding access in the US. With around 1 billion people living with obesity globally and only few million on treatment, Novo Nordisk continues the global roll-out of Wegovy®.
Starting July 1, 2025, Novo Nordisk’s weight-loss drug Wegovy (semaglutide) will become the preferred GLP-1 medicine for obesity on CVS Caremark’s largest commercial formularies, which cover tens of millions of Americans.
This means Wegovy will be prioritized over Eli Lilly’s Zepbound for patients whose pharmacy benefits are managed by CVS Caremark, the largest pharmacy benefit manager (PBM) in the U.S.
Wegovy will have preferred status and be the top-listed GLP-1 drug for weight loss, making it easier and potentially cheaper for patients to access through their insurance. CVS Caremark will integrate Wegovy with lifestyle support programs as part of its weight management initiative
Meanwhile, Eli Lilly’s Zepbound will be removed from preferred coverage on CVS Caremark’s standard formularies, though some patients already on Zepbound may qualify for exceptions.
This formulary win is a major boost for Novo Nordisk, giving it a competitive edge in the high-growth obesity drug market.