PODCAST:Behind the Money
TITLE:Ozempic’s unconventional origins
DATE:2024-01-10 00:00:00
URL:
MODEL:gpt-4-gizmo
The "Behind the Money" podcast episode titled "Ozempic’s Unconventional Origins," dated January 10, 2024, explores the fascinating journey of Novo Nordisk, a pharmaceutical giant, and its development of the drugs Ozempic and Wegovy. Hosted by Michaela Tindara from The Financial Times, the episode features Hannah Kushler, the FT's global pharmaceutical editor, who visited Novo Nordisk’s headquarters in Copenhagen.
The episode starts with a vivid depiction of Novo Nordisk's labs, where the groundbreaking drugs Ozempic, a diabetes treatment, and Wegovy, formulated for weight loss, were developed. Despite the unassuming exterior, the labs are equipped with state-of-the-art technology, including robotic arms and advanced machinery, which have replaced much of the manual work of the past.
Kushler explains that these drugs represent a new era in obesity and diabetes treatment, offering significant weight loss compared to previous treatments. Previously, surgery was the only effective obesity treatment, but now, patients can administer these drugs through weekly injections. This advancement has propelled Novo Nordisk into the spotlight, with Wegovy and Ozempic achieving blockbuster status (annual sales over a billion dollars) and exceeding expectations in sales, reaching $4.2 billion and $13.3 billion, respectively.
The podcast delves into Novo Nordisk's history, tracing its origins to the 1920s when it started making insulin. The company was founded out of a love story, with August Crow traveling to Toronto to acquire insulin production rights for Scandinavia, which later led to the formation of Novo Nordisk. An essential aspect of this journey is the company's unique ownership model, where the Novo Nordisk Foundation, a charitable organization, holds significant voting rights and shares, allowing the company to focus on long-term goals and research.
Novo Nordisk's approach to research and development, particularly in obesity, was a risky bet that started in the 1990s. Despite the challenges in this field, the company's foundation-backed ownership allowed it to persevere, leading to the eventual FDA approval of Ozempic in 2017 and Wegovy a few years later.
The podcast highlights the company’s challenges ahead, such as scaling up drug supply and convincing insurers to cover the high costs of these treatments. Novo Nordisk is also facing competition from Eli Lilly, its main rival in anti-obesity drugs. Despite these challenges, the company's long-term strategy, rooted in its unique ownership structure, has positioned it well for continued success.
In summary, the episode of "Behind the Money" provides an in-depth look at Novo Nordisk's journey in creating Ozempic and Wegovy, emphasizing the company's innovative approaches, its historical roots, and the challenges and opportunities that lie ahead in the pharmaceutical industry.
