Weight Loss Drug Supply Struggles as Demand Soars: Novo Nordisk and Eli Lilly Show Progress
The demand for weight loss drugs has reached unprecedented levels, causing a strain on the supply chain and leaving many patients unable to access the treatments they need. Novo Nordisk and Eli Lilly, the leading weight loss drug manufacturers, have acknowledged the supply issues but are making significant progress in increasing production to meet the rising demand.
The popularity of weight loss drugs such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound has surged as patients seek effective solutions for shedding pounds over time. Despite the drugs’ high costs, limited insurance coverage, and unpleasant side effects, patients are flocking to these treatments. In fact, Goldman Sachs analysts predict that by 2030, around 15 million adults in the U.S. will be on obesity medications, and the weight loss drug market could be worth $100 billion by the end of the decade.
Unfortunately, the surge in demand has led to intermittent shortages of most weight loss drugs. Patients are struggling to find pharmacies that have the medications in stock, causing frustration and inconvenience. However, both Novo Nordisk and Eli Lilly have recently provided updates on their efforts to address the supply issues and ensure patients can access the treatments they need.
Novo Nordisk announced that it has more than doubled its supply of lower-dose versions of Wegovy in January compared to previous months. This increase in supply will allow more people to start taking the drug. While there is still limited availability of certain doses of Wegovy, Novo Nordisk plans to gradually increase supply throughout the year.
Similarly, Eli Lilly has achieved its goal of doubling production capacity for its incretin drugs, which include Zepbound and Mounjaro. The company plans to expand production with “equal urgency” this year, with significant increases expected in the second half of the year. By then, Eli Lilly anticipates its production of sellable doses of incretin drugs to be at least 1.5 times higher than in the second half of 2023.
To further boost supply, Novo Nordisk and its parent company, Novo Holdings, have announced multibillion-dollar deals. Novo Holdings will acquire drug manufacturer Catalent, the main supplier of fill-finish work for Wegovy. Novo Nordisk will subsequently purchase three of Catalent’s manufacturing sites from Novo Holdings, gradually increasing its manufacturing capacity starting in 2026. Analysts believe these deals will expedite production faster than building new plants or adding more production lines.
Both Novo Nordisk and Eli Lilly are also investing billions in building new production sites. Eli Lilly’s new plant in Concord, North Carolina, is expected to start production of incretin drugs by the end of the year, with products available for shipping in 2025. The company is also constructing additional facilities in North Carolina’s Triangle Park and Germany. Similarly, Novo Nordisk plans to expand its manufacturing sites in Denmark and build a new production facility in France.
In addition to increasing production capacity, alternative forms of weight loss drugs could also help alleviate supply constraints. Eli Lilly plans to launch its incretin drugs in a delivery device called KwikPen in certain countries outside the U.S. This method, which requires additional regulatory approvals, will expand supply as the company can tap into existing manufacturing resources for insulin. Furthermore, the development of oral weight loss and diabetes drugs, which are easier and cheaper to manufacture, is seen as crucial for meeting demand. Eli Lilly is currently developing an oral drug called orforglipron, which has shown promising results in midstage trials.
While the supply struggles for weight loss drugs persist, Novo Nordisk and Eli Lilly are making significant progress in increasing production and expanding their manufacturing capabilities. Patients can look forward to improved access to these treatments in the coming years as the companies work to meet the soaring demand.
