Ozempic maker slashes 9000 jobs as battle over weight loss drugs heats up

The maker of Ozempic and Wegovy has announced it is cutting 9000 jobs as the impact of copycat weight loss drugs drags down profits.

Novo Nordisk announced the move amid the debate in Australia about adding weight loss drugs to the Pharmaceutical Benefits Scheme (PBS).

The Danish company has been battling an explosion in competition in the obesity market, particularly US rival Eli Lilly.

READ MORE: It's easier than ever for Aussies to buy weight loss drugs online

The pharmaceutical giants have each been developing newer medicines to turbocharge weight loss and diabetes results since the approval by US regulators of Novo Nordisk's Ozempic in 2017.

The company said on Wednesday it expects the job cuts to deliver annual savings of about $US1.25 billion by the end of next year, which will be redirected to "growth opportunities" in diabetes and obesity, including research and development, it said in the statement.

Ozempic, a brand of the medicine called semaglutide, is available on the PBS for the treatment of type 2 diabetes.

But over recent years it has been gaining popularity as a weight loss solution, driven in part by social media trends and rumours about celebrity use.

Ozempic's sister drug Wegovy and another injectable Mounjaro are the first new generation drugs approved by the Therapeutic Goods Administration (TGA) for weight loss.

READ MORE: How do weight loss drugs Ozempic and Wegovy work and will they be available in Australia?

During past months, patients, doctors and obesity advocacy jobs have stepped up lobbying for drugs such as Ozempic and Wegovy to be listed on the PBS for chronic weight management.

They make the case it would increase accessibility for obese people with obesity.

The Royal Australian College of General Practitioners says such as move would bring down costs from hundreds of dollars for a private monthly script to about $30.

In Australia Wegovy has twice been knocked back for subsidy.

But authorities appear to be listening to the debate over increasing availability of weight loss drugs.

Federal Health Minister Mark Butler confirmed he wrote to the Pharmaceutical Benefits Advisory Committee (PBAC) in March, asking it to advise on equitable access to medicines for treating obesity.

- With CNN

DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.