UK Pharmacies Rebel Against Lilly's Mounjaro Price Hike, Wegovy Sees Surge in Demand

Eli Lilly has increased the list price of Mounjaro by up to 170%, prompting UK pharmacies to rebel. Some pharmacies are refusing to pass on the full cost to patients, while others are freezing prices or running out of stock. Boots is using the price hike as a marketing weapon, offering a "Switch to Wegovy" deal that saves patients £129. Novo Nordisk is capitalizing on the situation, as pharmacies become gatekeepers and Wegovy gains an advantage.

Eli Lilly's recent decision to increase the list price of Mounjaro by up to 170% has sparked significant pushback from UK pharmacies and sparked market shifts. The price hike, set to take effect in September, has led to a range of responses from pharmacies, including refusal to pass on the full cost to patients, price freezes, and stock shortages. The move has also opened up opportunities for competitors like Novo Nordisk, which is capitalizing on the situation with its Wegovy product.

The price increase was announced in response to a White House push to raise medicine prices in Europe to allow for price cuts in the United States. Eli Lilly has stated that the higher price will not affect patients receiving the drug through the NHS but will impact those who purchase it privately. The company has implemented legal protections to prevent inappropriate stockpiling of medicines by providers and has temporarily paused shipments to manage supply and ensure patient access [1].

Pharmacies in the UK have reported panic buying of Mounjaro following the price announcement, leading to temporary shortages. In response, some pharmacies are refusing to pass on the full cost increase to patients, while others are freezing prices or running out of stock. Boots Online Doctor, a major UK pharmacy, is using the price hike as a marketing opportunity by offering a "Switch to Wegovy" deal that saves patients £129 [2].

Novo Nordisk, the manufacturer of Wegovy, is capitalizing on the situation by positioning itself as a more affordable alternative. With pharmacies becoming gatekeepers and Wegovy gaining an advantage, Novo Nordisk is poised to benefit from the market shift. Eli Lilly's aggressive pricing strategy has also drawn attention to the competitive dynamics in the obesity drug market, where companies are increasingly turning to direct-to-consumer (DTC) strategies to capture market share.

In China, Eli Lilly is expanding its obesity drug market presence through a partnership with JD Health International to launch an online platform for obesity and diabetes treatments in 2025. This move is part of Lilly's broader strategy to navigate the crowded market and sustain its competitive edge. The company's investment case hinges on its ability to scale DTC strategies while navigating domestic competition, pricing pressures, and regulatory challenges [3].

The Mounjaro price hike highlights the complex dynamics of the global obesity drug market, where companies must balance pricing strategies with patient access and market competition. As the market continues to evolve, investors and financial professionals will closely monitor the impact of these strategic moves on companies like Eli Lilly and Novo Nordisk.

References:
[1] https://www.pharmacy.biz/eli-lilly-pauses-mounjaro-uk/
[2] https://onlinedoctor.boots.com/articles/mounjaro-price-increase-answers
[3] https://www.ainvest.com/news/eli-lilly-strategic-expansion-china-obesity-drug-market-assessing-investment-implications-direct-consumer-sales-competitive-innovation-77b-global-market-2508/