How has Novo Nordisk responded to competition from compounded GLP-1s?
After the FDA declared the semaglutide shortage over in February 2025, Novo sued compounders it accused of misrepresenting their products as equivalent to Ozempic and Wegovy — while compounders challenged the FDA's shortage declaration in court.
When the FDA listed semaglutide in shortage from 2022, compounding pharmacies were permitted to make copies, and at the 2024 peak nearly one in three Americans taking a GLP-1 said they got it from a compounder at roughly $150 to $300 a month. The FDA declared the semaglutide shortage over in February 2025, triggering enforcement deadlines.
Novo sued compounders it said were marketing products as equivalent to Ozempic and Wegovy. Compounders challenged the FDA's shortage decision, and in March 2026 a Fifth Circuit panel questioned whether the agency had followed proper procedure. Critics say Novo's pricing created the demand for compounded drugs; Novo argues compounded products are not FDA-approved and pose safety risks.