Novo Nordisk and Eli Lilly, two major pharmaceutical companies, are facing challenges in meeting the high demand for their weight loss and diabetes drugs. Despite efforts to increase production, supply issues persist. However, both companies have made some progress in addressing these challenges.
Eli Lilly has successfully doubled its capacity for producing injectable incretin drugs, which are used for weight loss and diabetes treatment. These drugs mimic hormones produced in the gut to suppress appetite and regulate blood sugar. The company plans to further increase production, with the most significant increases expected in the second half of 2024. Eli Lilly’s new manufacturing facility in North Carolina will play a crucial role in expanding production, with the plant expected to start producing incretin drugs by the end of 2024.
Novo Nordisk, on the other hand, has taken a different approach to address supply challenges. Novo Holdings, which owns a majority stake in Novo Nordisk, announced its acquisition of drug manufacturer Catalent in a $16.5 billion deal. Catalent is the main supplier of fill-finish work for Novo Nordisk’s weight loss drug Wegovy. As part of the deal, Novo Nordisk will purchase three of Catalent’s manufacturing plants from Novo Holdings for $11 billion, gradually increasing its filling capacity from 2026 onwards. This acquisition is expected to improve supply and allow Novo Nordisk to exert better control over the quality of Wegovy supply.
In addition to addressing supply challenges, Novo Nordisk has also increased the supply of lower-dose versions of Wegovy. This is significant because patients typically start with lower doses and gradually increase them to mitigate side effects. By increasing the availability of these low “starter” doses, more patients can begin treatment with Wegovy. Novo Nordisk plans to continue increasing the overall supply of Wegovy throughout the year.
While both companies have made progress in addressing supply challenges, demand is still expected to outstrip supply in the near future. However, these developments indicate that Novo Nordisk and Eli Lilly are actively working to meet the growing demand for weight loss and diabetes drugs.
In other healthcare news, Elon Musk’s startup Neuralink has achieved a major milestone in the field of brain-computer interfaces (BCI). The company has implanted its BCI into a human patient for the first time, aiming to help patients with paralysis control external technologies using their minds. Neuralink’s announcement marks a significant step forward in the development of BCIs, with several other companies also working on similar technologies.
The road to market for medical device companies like Neuralink is long, as they need to conduct further trials to prove the safety and efficacy of their products. Competing BCI company Synchron has also made progress and recently acquired a minority equity stake in a German manufacturer to ramp up production of its BCI. Synchron’s stent-like BCI, delivered through blood vessels, has already been implanted in several patients.
These advancements in the field of neurotechnology have the potential to revolutionize communication and control for individuals with paralysis. While there are still regulatory hurdles to overcome, the progress made by Neuralink and other companies brings us closer to achieving this goal.
Overall, Novo Nordisk and Eli Lilly are actively addressing supply challenges in the weight loss and diabetes drug market. Their efforts to increase production and improve supply are promising, though demand continues to outstrip supply for now. Meanwhile, advancements in brain-computer interfaces offer hope for individuals with paralysis, with Neuralink and other companies pushing the boundaries of neurotechnology.
