Why Novo Nordisk's $499 Monthly Pricing is a Big Deal

After shares of Novo Nordisk (NVO) fell throughout the last year, the more recent drop may be its last. The company, along with its rival Eli Lilly (LLY), will offer its obesity drug for $499 per month.Novo sells Wegovy through NovoCare pharmacy for $499. This offer will give patients who do not have insurance coverage a more affordable price.GoodRx (GDRX) will offer Ozempic and Wegovy for $499. Novo said that these cash sales would account for around 10% of its total prescriptions.In Monday's trade, NVO stock gained 2.56%. GDRX jumped by 37.27%, while LLY stock fell by 0.45%. Still, LLY stock gained nearly 10% in the last week, bottoming at $623.78.Novo shares are cheaper than they were six months ago. In return for the discount, investors get a profitable firm, albeit with weak growth prospects. Analysts revised their EPS estimates lower in 2025. In addition, the stock suffers from weak, negative momentum.In June, Novo ended its partnership agreement with Him & Hers Health (HIMS). The discount offering should more than offset the lost revenue. It might also help keep the company from becoming a target of the government. The Trump Administration seeks to tax drug companies on the grounds of their high prices.