Novo Nordisk announced Tuesday (February 24) that it will cut the U.S. list prices of its blockbuster diabetes and weight-loss drugs Ozempic and Wegovy by up to 50%, effective January 1, 2027.

As first reported by The Wall Street Journal, both Ozempic and Wegovy will carry a new list price of $675 per month under the changes. That represents a 50% reduction from Wegovy's current $1,349 monthly list price, and roughly a 34% cut from Ozempic's current $1,028 price. The reductions will also apply to pill versions of the drugs, including Rybelsus.

The Danish drugmaker said the changes are aimed at making the drugs more affordable for patients whose costs are tied directly to the list price — particularly those with high deductibles or who pay co-insurance through employer-based health plans. The timing of the price cuts aligns with the rollout of new, lower Medicare prices for the same medications under federal health plans for older adults.

The move escalates a fierce price war between Novo Nordisk and rival Eli Lilly, which manufactures competing glucagon-like peptide-1 (GLP-1) drugs Zepbound and Mounjaro. According to CNN, both companies have been lowering prices for cash-paying patients and have signed "Most Favored Nation" deals with the President Trump administration, which included expanded access to Medicare patients.

Once the dominant player in the GLP-1 market, Novo Nordisk has lost significant ground to Eli Lilly, which now captures more new prescriptions for obesity medications. Earlier this month, Novo Nordisk forecast declining sales and profit growth for the year, sending its stock price sharply lower. The company also revealed disappointing results Monday (February 23) from a trial of CagriSema, its next-generation obesity drug.

It's important to note that the list price changes will not affect self-pay prices, Novo Nordisk said. Wegovy pills through direct-to-consumer channels currently range from $149 to $299 per month depending on dosage, while the Wegovy injectable pen costs $349 per month — with a $199 introductory price available to new patients for the first two months. Patients with insurance coverage can currently pay as little as $25 per month.

The new pricing takes effect on January 1, 2027, applying to all doses of Ozempic, Wegovy, and Rybelsus.