The Long-Running U.S. Shortage of Novo Nordisk’s Wegovy and Ozempic is Resolved

The U.S. Food and Drug Administration (FDA) has announced that the long-running shortage of Novo Nordisk’s blockbuster weight loss injection Wegovy and diabetes treatment Ozempic is resolved after more than two years. The shortage was caused by a surge in demand for the injectable drugs, which has led to a shortage of the active ingredient, semaglutide.

Threat to Compounded Medications

The FDA’s decision will pose a threat to the ability of compounding pharmacies to make cheaper, unbranded versions of Wegovy and Ozempic over the next few months. Many patients have relied on unapproved versions of the injections since compounding pharmacies are allowed to make versions of branded medications in short supply.

Impact on Stock Prices

Novo Nordisk’s stock closed about 5% higher on Friday, while shares of Hims & Hers, a telehealth company offering compounded Wegovy and Ozempic, fell more than 25%.

Background

The active ingredient in both Novo Nordisk’s injectable drugs, semaglutide, has been in shortage in the U.S. since 2022 after demand skyrocketed. This has forced Novo Nordisk and its rival Eli Lilly to invest heavily to expand their manufacturing footprints for their respective weight loss and diabetes drugs.

FDA’s Decision

The FDA determined that Novo Nordisk’s supply and manufacturing capacity for semaglutide injections can now meet the current and projected demand in the U.S. However, the agency noted that patients and prescribers may still see "intermittent and limited localized supply disruptions" as products move through the supply chain to pharmacies.

Conclusion

The FDA’s announcement marks the end of a period where compounding pharmacies could make, distribute, or dispense unapproved versions of semaglutide without facing repercussions for violations related to the treatment’s shortage status. Compounding pharmacies must stop making compounded versions of semaglutide in the next 60 to 90 days, depending on the type of facility, giving patients time to switch to the branded versions of the medications.

Frequently Asked Questions

Q: How will this impact patients who rely on compounded versions of Wegovy and Ozempic?
A: Patients who rely on compounded versions of Wegovy and Ozempic will need to switch to the branded versions of the medications, which may not be covered by their insurance.

Q: Will the FDA continue to allow compounding pharmacies to make unapproved versions of semaglutide?
A: No, the FDA’s decision marks the end of the period where compounding pharmacies could make, distribute, or dispense unapproved versions of semaglutide without facing repercussions for violations related to the treatment’s shortage status.

Q: What is the price of Novo Nordisk’s Wegovy and Ozempic?
A: The price of Novo Nordisk’s Wegovy and Ozempic is roughly $1,000 a month.

Workplace Unionization Trends

In recent years, there has been a significant shift in the way workers are organizing and unionizing in the United States. Traditional labor unions, which have been the dominant force in the labor movement for decades, are facing increasing competition from alternative labor unions. These alternative unions, often referred to as “alt-rock” unions, are redefining the way work is organized and challenging the traditional union model.

The Rise of Alternative Labor Unions

The current wave of alternative labor unionism is not a new phenomenon. In the 1960s and 1970s, organizations such as the United Farm Workers and the United Mine Workers of America emerged as alternatives to traditional unions. However, the current movement is different in scale, scope, and approach.

The rise of alternative labor unions can be attributed to several factors. One major driver is the growing dissatisfaction among workers with the traditional union model. Many workers feel that traditional unions are too bureaucratic, slow to adapt to changing circumstances, and focused on protecting the interests of their own leadership rather than those of their members.

Another factor is the increasing fragmentation of the workforce. With the rise of the gig economy and the decline of traditional employment, workers are no longer tied to a single employer or industry. This has led to a proliferation of small, independent unions that are better equipped to serve the needs of workers in non-traditional industries.

Finally, the rise of social media and digital communication has made it easier for workers to organize and communicate with each other. Alternative unions are leveraging these technologies to mobilize and engage their members, often in ways that are more nimble and responsive than traditional unions.

Examples of Alternative Labor Unions

There are many examples of alternative labor unions that are challenging traditional unions and bringing new energy to the movement. One prominent example is the Service Employees International Union (SEIU) Local 2, which represents workers in the hospitality industry. SEIU Local 2 has been able to mobilize workers in a way that traditional unions have not, using social media and direct action to build support for their demands.

Another example is the National Domestic Workers Alliance (NDWA), which represents low-wage workers in the domestic workers industry. NDWA has been able to build a powerful movement by leveraging the power of social media and grass-roots organizing.

The Challenges and Opportunities

While alternative labor unions are bringing new energy and innovation to the labor movement, they also face significant challenges. One major challenge is the lack of resources and support from traditional labor organizations. Many traditional unions are seen as being slow to adapt to the changing landscape and are often resistant to the new forms of unionization.

Another challenge is the lack of clear guidance and support from government agencies and regulatory bodies. As the labor landscape continues to evolve, it is essential that these agencies provide clear guidance and support to help alternative unions navigate the complex regulatory environment.

Despite these challenges, alternative labor unions are bringing new opportunities for workers to organize and advocate for their rights. By leveraging social media and direct action, they are able to mobilize workers in a way that traditional unions have not. This can lead to more effective and responsive unionization, which can ultimately benefit workers and the broader community.

Conclusion

The rise of alternative labor unions is a significant development in the labor movement. While they face challenges, they also bring new energy and innovation to the table. As the labor landscape continues to evolve, it is essential that workers, policymakers, and traditional unions alike recognize the importance of alternative labor unions and work to support their growth and success.

Frequently Asked Questions

Q: What is an alternative labor union?

A: An alternative labor union is a union that operates outside of the traditional union structure and is often characterized by its use of social media and direct action to mobilize and engage its members.

Q: Why are alternative labor unions rising in popularity?

A: Alternative labor unions are rising in popularity because they are able to adapt quickly to changing circumstances and are more responsive to the needs of their members.

Q: What are some examples of alternative labor unions?

A: Some examples of alternative labor unions include the Service Employees International Union (SEIU) Local 2, the National Domestic Workers Alliance (NDWA), and the Food and Commercial Workers International Union (FCWIU).

Q: What are the challenges facing alternative labor unions?

A: Alternative labor unions face challenges such as a lack of resources and support from traditional labor organizations, as well as a lack of clear guidance and support from government agencies and regulatory bodies.

Q: What are the opportunities presented by alternative labor unions?

A: Alternative labor unions present opportunities for workers to organize and advocate for their rights in a more effective and responsive way, leading to better working conditions and higher wages.

Rivian Beats Wall Street’s Expectations, Achieves First Gross Quarterly Profit, but Forecasts Lower Sales in 2025

Rivian Automotive, the electric vehicle maker, reported a gross profit of $170 million in the final quarter of last year, surpassing Wall Street’s expectations. The company also achieved its first-ever quarterly profit, a milestone closely watched by investors.

However, Rivian forecasted lower sales in 2025, with deliveries expected to range from 46,000 to 51,000 units, down from 51,579 vehicles delivered in 2024. The company also narrowed its adjusted losses for 2025 to a range of $1.7 billion to $1.9 billion, down from a loss of $2.69 billion in 2024.

Rivian’s CEO, RJ Scaringe, attributed the uncertainty in the automotive industry, citing potential changes to federal incentives for EVs and tariff policies that could impact the company.

Fourth-Quarter Results

Rivian reported a net loss of $743 million, or 70 cents per share, for the fourth quarter, compared to a loss of $1.52 billion, or $1.58 per share, during the same period a year earlier. Revenue was $1.73 billion, exceeding the expected $1.4 billion.

Full-Year Results

For the full year, Rivian lost $4.75 billion, or $4.69 per share. Revenue was $4.97 billion, up roughly 12% from $4.43 billion in 2023.

Guidance for 2025

Rivian forecasts a modest gross profit in 2025, and its Chief Financial Officer, Claire McDonough, attributed the company’s guidance to "hundreds of millions" in expected hits to its EBITDA due to reduced sales resulting from the potential removal of tax credits.

R2 and Capital Expenditures

Rivian plans to idle its sole auto plant in Normal, Illinois, during the second half of the year to retool for the launch of its new "R2" midsize vehicles in 2026. The company expects capital expenditures this year to range from $1.6 billion to $1.7 billion, up from $1.41 billion last year.

Rivian’s Future

Rivian is focusing on growing its software business, including a new joint venture with German automaker Volkswagen. The company is also breaking out its "Automotive" and "Software and Services" units to provide additional transparency for investors.

FAQs

Q: What was Rivian’s gross profit in the fourth quarter?
A: $170 million

Q: What was Rivian’s revenue in the fourth quarter?
A: $1.73 billion

Q: What is Rivian’s forecast for deliveries in 2025?
A: 46,000 to 51,000 units

Q: What is Rivian’s forecast for adjusted losses in 2025?
A: $1.7 billion to $1.9 billion