Belgium has issued a royal decree prohibiting the use of Novo Nordisk’s (NYSE: NVO) diabetes drug Ozempic (semaglutide) for weight-loss treatment, following a similar move by the UK in July, according to a Reuters report. Despite previous requests in October 2022 for doctors to cease off-label prescriptions for obesity, the measure had minimal impact. Germany is considering banning the export of Ozempic to ensure domestic supply.
Ozempic is marketed under three tradenames: Wegovy for weight management, Ozempic for type 2 diabetes, and Rybelsus for blood sugar control, all approved by the US FDA and the EU. Off-label use for weight loss has led to a global shortage of semaglutide, exacerbated by celebrity endorsements. Novo Nordisk CEO Lars Fruergaard Jørgensen anticipates continued supply-demand imbalance in the short to medium term.
Supply Disruptions and Market Impacts
Novo Nordisk updated its official website on November 10th, citing “continuous supply disruptions” and announcing restrictions on low-dose wholesalers to retail pharmacies. In the US, compound drugs of Ozempic and Wegovy appeared due to tight supply, leading to adverse reaction reports to the FDA. In China, Ozempic was first approved in April 2021 and is now used off-label for weight loss, with sales volume increasing significantly due to loose regulation. The drug is covered by the National Reimbursement Drug List (NRDL) for diabetes treatment, not weight loss, indicating high demand and low supply.
Wegovy’s sales reached USD 3.156 billion in Q1-Q3 2023, a 481% year-on-year increase. In China, Huadong Medicine’s Liluping (liraglutide) and Benemae Pharma’s benaglutide are available for weight loss, competing with Ozempic in a market driven by diabetes and weight loss demands.- Flcube.com
