Why Even Market Leaders Aren’t Immune: The Lesson from Novo Nordisk

Competition Doesn’t Stop at a Patent

Ozempic’s revenue growth is under pressure from several directions. Eli Lilly’s Mounjaro has proven a formidable rival, offering a stronger efficacy profile in some cases — enough to prompt many doctors and patients to switch. Add to that market saturation, pricing and reimbursement constraints, and the looming threat of generics, and the picture becomes even more complex.

In some countries, pharmacies and clinics are also producing their own formulations — a practice known as compounding. While compounding is intended for individual patient needs, it’s meant to remain small-scale.

Legal Action Against Pharmacies

Novo Nordisk has noticed that some compounders are now operating on a larger scale. In the U.S., lawsuits have even been filed against pharmacies supplying tirzepatide or semaglutide versions outside official channels. Novo has explicitly cited this trend as one reason for its downgraded revenue outlook.

There are also reports of unauthorized or poorly controlled variants, particularly online or in markets outside the EU and U.S. Large-scale counterfeiting doesn’t appear to be the main issue — it’s mainly Mounjaro and compounded alternatives that are weighing on Novo Nordisk’s sales.

The outcome: pricing pressure, reputational risks, and legal battles.

The Takeaway for Innovators

Novo Nordisk’s experience shows that a robust IP strategy takes more than a strong patent. It also requires ongoing innovation to maintain your lead. Active market monitoring helps you spot infringements, copies, or alternative products early. And when risks arise, enforcement must be smart and targeted — actions tailored to your business and market context.

Only by combining these elements can your innovation stay truly protected.