The maker of Ozempic and Wegovy, Novo Nordisk, has announced plans to cut 9,000 jobs as profits are impacted by the rise of copycat weight-loss drugs. The move comes amid growing debate in Australia over including weight-loss medications on the Pharmaceutical Benefits Scheme (PBS).

The Danish company faces increasing competition in the obesity treatment market, particularly from US rival Eli Lilly. Since the approval of Ozempic in 2017, both companies have developed new medicines aimed at enhancing weight loss and diabetes outcomes.

Novo Nordisk stated that the job cuts, expected to generate annual savings of about US$1.25 billion by the end of next year, will be reinvested into growth opportunities in diabetes and obesity, including research and development.

Ozempic, a semaglutide-based medicine, is available on the PBS for type 2 diabetes but has gained popularity as a weight-loss solution, partly fueled by social media and celebrity endorsements. Its sister drug, Wegovy, along with the injectable Mounjaro, represents the first new-generation weight-loss drugs approved by Australia’s Therapeutic Goods Administration (TGA).

In recent months, patients, doctors, and obesity advocacy groups have lobbied for Ozempic and Wegovy to be listed on the PBS for chronic weight management, arguing that it would make these treatments more accessible. The Royal Australian College of General Practitioners noted that PBS listing could reduce monthly costs from hundreds of dollars for private scripts to around $30.

Although Wegovy has been twice rejected for subsidy in Australia, authorities appear increasingly engaged in the discussion. Federal Health Minister Mark Butler confirmed he wrote to the Pharmaceutical Benefits Advisory Committee (PBAC) in March to seek advice on equitable access to obesity treatments.