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US Port Strike Threatens Supply of Popular Weight-Loss Drugs Ozempic, Wegovy, Mounjaro, and Zepbound

As pharmaceutical companies scramble to mitigate the impact of the port strike, Wegovy and Ozempic maker Novo Nordisk is preparing to implement its contingency plan to keep the flow of their weight-loss drugs into the United States going. Mounjaro and Zepbound manufacturer Eli Lilly has been less forthcoming with the details of their contingency measures.

The ongoing US port strike on the East and Gulf coasts is causing significant disruptions to pharmaceutical supply chains, particularly for the popular weight-loss drugs Wegovy, Ozempic, Mounjaro, and Zepbound. With a labor stoppage by the International Longshoremen’s Association (ILA) stretching from New England to Texas, essential drug ingredients and delivery devices are facing delays. Major pharmaceutical companies like Novo Nordisk (NYSE: NVO) and Eli Lilly (NYSE: LLY), which manufacture these obesity drugs, are bracing for the impact while rushing to implement contingency plans.


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According to customs data, key ports such as Norfolk, Virginia, are critical hubs for importing the active pharmaceutical ingredients (APIs) and medical devices used in the production of these weight-loss drugs. The Port of Norfolk alone has processed over 400 containers filled with pharmaceutical goods in the past year, making it one of the most crucial nodes in the U.S. drug supply chain.

“Novo Nordisk and Eli Lilly are both heavily reliant on the Port of Norfolk,” said William George, director of research at ImportGenius, a company that tracks customs data. “Novo Nordisk has imported hundreds of TEU containers containing semaglutide, the key compound in both Ozempic and Wegovy. These shipments include not just APIs but also fine syringes for insulin and weight-loss injections.”

Drug Supply Chain Vulnerabilities

The port strike, which comes at a crucial time for drug manufacturing, threatens to create bottlenecks in the supply of APIs. Nearly 48% of the APIs used in the U.S. are imported from countries like India and Europe, and without them, the production of drugs like Ozempic, Wegovy and Mounjaro could grind to a halt.

“Almost all of this industry operates on a just-in-time basis,” explained Noushin Shamsili, CEO of Nuco Logistics, a company specializing in pharmaceutical imports. “Raw materials arrive just when needed, so any delays in port operations directly impact drug manufacturing.”

Shamsili noted that the effects of the strike could include not only delays in drug production but also increased shipping costs and potential inventory shortages. Pharmaceutical companies, however, are not standing idly by. Novo Nordisk, for instance, has quickly responded by shifting its transportation strategy. A company spokesperson confirmed that the drugmaker has started using air freight to import its products and mitigate potential disruptions.

“We plan to ship our products to and from the U.S. via airfreight,” said a Novo Nordisk spokesperson. “We are closely monitoring the situation to ensure minimal disruption to our production and delivery schedules.”


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Contingency Plans in Place

While Novo Nordisk appears confident in its ability to minimize the impact of the strike, other pharmaceutical companies are more cautious. Eli Lilly, which manufactures Mounjaro and Zepbound, has been less forthcoming about its contingency measures. A company spokesperson emphasized that Eli Lilly is actively working to reduce its exposure to risks inherent in managing a global supply chain but declined to provide specific details on its response to the strike.

In addition to the port strikes, other challenges are compounding the situation. Hurricane Helene recently damaged a key Baxter International facility in North Cove, North Carolina, which produces intravenous fluids that supply 60% of the U.S. market. This has led to concerns that shortages of critical medical supplies may worsen, particularly if the strike continues for an extended period.

“The U.S. has just overcome a general shortage of IV fluids, and now we are facing potential supply issues again due to both the strike and hurricane damage,” said Mirko Woitzik, director of intelligence solutions at Everstream Analytics. “This could lead to rationing in hospitals and delays in elective surgeries, as we saw after Hurricane Maria in 2017.”

US Government Monitoring Situation

The Biden administration has taken note of the potential risks to the pharmaceutical supply chain and has been working with various stakeholders, including the Department of Health and Human Services (HHS), to assess vulnerabilities. A preliminary analysis from HHS suggests that the strike’s immediate impact on essential goods like medications and medical devices should be limited. Still, federal agencies are staying vigilant, with the Food and Drug Administration (FDA) and the Administration for Strategic Preparedness and Response also involved in ongoing assessments.

However, industry experts warn that prolonged delays could exacerbate existing shortages in the U.S. pharmaceutical market, particularly for weight-loss drugs that have seen soaring demand in recent months. As Brandon Daniels, CEO of supply chain risk management consultant Exiger, pointed out, “We are more concerned about the shortages of medicines that are already on our radar. This strike only adds another layer of complexity to an already fragile supply chain.”

While air freight provides a temporary solution for high-value pharmaceuticals like semaglutide, it is a costly alternative. Shipping costs are expected to rise, further straining the pharmaceutical industry’s just-in-time model. As the strike continues, companies and government agencies will need to collaborate closely to ensure that essential drugs remain accessible to U.S. consumers.

“We will continue to triage the most important and affected critical goods,” Daniels said. “But the longer the strike drags on, the greater the risk of long-term disruptions.”

Novo Nordisk (NVO) and Eli Lilly (LLY) Stock Price Action

Shares of Novo Nordisk (NYSE: NVO) stock closed Thursday’s trading session at $115.08, down 1.2%. YTD, NVO stock is up 12.70%.

Eli Lilly (NYSE: LLY) stock closed the day down 0.62% at $885.55 per share. YTD, LLY has climbed 49.54%.

Novo Nordisk, ticker symbol NVO, one-year candlestick stock chart.
Novo Nordisk (NYSE: NVO) one-year interactive stock chart. (Source: Barchart) – Click chart to enlarge.

View Novo Nordisk Interactive Stock Chart on Barchart


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Ryan Troup

Ryan Troup is the Editor in Chief of Wealthy VC and TCI. Ryan has 15+ years of investing experience. Twitter | Email

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