Novo Nordisk A/S NVO plans to limit starter kit supplies of Ozempic (semaglutide) in Europe and reduce the distribution of Victoza (liraglutide), aiming to bolster Ozempic's production, which has experienced a significant surge in demand.
Victoza and Ozempic belong to the GLP-1 receptor agonist class.
The Danish pharmaceutical company intends to "temporarily reduce the supply of Victoza."
Anticipated intermittent shortages of Ozempic are forecasted throughout 2024, while shortages of Victoza are expected to persist until the second quarter of the same year, according to statements released on the EMA's official website.
No new patients should be started on Victoza until at least the second quarter of 2024 when supply is expected to normalize, and the available product should only be used to continue treatment of patients currently treated.
Novo Nordisk will limit the supply of the starting dose for Ozempic (0.25 mg), which is expected to limit the initiation of new patients, to mitigate the increasing demand for maintenance doses (Ozempic 0.5 mg and 1 mg).
It is recommended to limit initiations of new patients during the shortage and until the supply situation improves, which is expected in the first quarter of 2024.
Last week, Novo Nordisk announced plans to invest more than DKK 42 billion ($6 billion) starting in 2023 to expand existing manufacturing facilities in Kalundborg, Denmark, as the company seeks to meet the increasing demand for its popular weight-loss products and other drugs.
The investment, which includes GLP-1 products, will increase Novo Nordisk's ability to meet future market demands.
NVO Price Action: Novo Nordisk shares are down 0.31% at $103.24 on the last check Tuesday.
Read Next: Can Weight-Loss Drug Ozempic Tip The Scales For Tema's New Healthcare ETF?
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
