David Wehner

Both Eli Lilly and Novo Nordisk agreed to reduce the prices of their drugs in some markets in exchange for some coverage with the Trump administration and obviously removal of the tariff threats that were a big cloud over the entire industry last year.

There is...

obviously surging demand for these drugs.

But the concern is that the price cuts are sort of working against or counteracting that growth in volume.

So take Novo Nordisk, for example.

The company's anticipating a 5% to 13% sales decline this year.

A lot of that is because prices are coming down.

In some markets, the drug's even going generic, like Canada, for example.

And it's not yet seeing that volume growth that makes up for that price decline.

Over time, there is some hope that the company could see growth, especially as it rolls out the Wegovy pill, which is essentially the first tablet form of GLP-1.

So a lot of excitement in the company for that.

But volume growth needs to be very high to make up for that decline in prices that the company is seeing.

Yeah, absolutely.

We're certainly seeing price competition in a way that you don't normally see for big pharma blockbusters.

In a way, it underscores the different type of market that we're in.

This isn't like that sort of immunotherapy cancer thing that comes out as $100,000 plus a year and the pharma company just sort of milks that out until the patent expires.

This is more of a mass market drug situation where the companies are just trying to get tens of millions of people to

take these drugs and eventually hundreds of millions of people to be on these drugs.

And then that sort of justifies those lower prices.