Novo Nordisk said Friday that production of Ozempic and Wegovy has tripled to 1.4 million doses per week globally, formally ending the three-year shortage that has constrained the world's most-watched weight-loss franchise and forced patients onto compounding-pharmacy alternatives. The Danish drugmaker's stock jumped 7.2% in Copenhagen to a record 982 kroner.
The capacity ramp follows the completion of a 30 billion krone manufacturing buildout across plants in Kalundborg, Bagsvaerd, North Carolina and the recent Catalent acquisition. Novo CEO Lars Fruergaard Joergensen told investors on a conference call that the company would shift its strategic focus from supply allocation to demand creation through expanded direct-to-consumer marketing and broader insurance coverage agreements.
End of the Compounding Era
The shortage's end carries significant regulatory consequences. The FDA's compounding allowance under Section 503A required a documented shortage, and the agency is now expected to phase out compounded GLP-1 production over the next 60 days. That removes a roughly $4 billion annual revenue threat from compounders like Hims and Eli Lilly's competitor LillyDirect platform.
Hims & Hers Health shares dropped 14% on the news to $32.40 as investors priced in the loss of compounded semaglutide revenue, which the company had disclosed represented 22% of its 2025 sales. CEO Andrew Dudum told CNBC the company would pivot more aggressively into branded GLP-1 distribution partnerships and expand into other compounded categories including testosterone and finasteride.
Eli Lilly Responds
For Eli Lilly, Novo's capacity solve eliminates the supply advantage that helped Mounjaro and Zepbound capture roughly 38% of the U.S. GLP-1 market by year-end 2025. Lilly shares closed up 2.1% on Friday as investors viewed the news as confirming the broader category growth trajectory rather than threatening Lilly's franchise. The company reports Q1 earnings May 1.
The longer-term implications are bullish for the entire weight-loss category, which JPMorgan now models at $214 billion in annual global sales by 2030. Both Lilly's oral GLP-1 orforglipron and Novo's amycretin combination therapy are expected to reach commercial launch within 18 months, expanding total addressable demand and lowering the cost barrier that has kept many patients out of treatment.