Wegovy-maker Novo faces calls to map out strategy beyond weight-loss drugs
Novo said it will launch more than five new drugs by 2030, but investors want a bolder plan as semaglutide patent protection nears expiry.
- Novo faces intense pressure as rival Lilly's Zepbound treatment is expected to outpace Wegovy by more than $7 billion this year, leaving investors demanding clarity on the European firm's roadmap amid semaglutide patent expiries.
- After trial setbacks including the failure of CagriSema, Novo shares plunged more than 70% from their peak, prompting the company to raise its sales and operating profit growth targets to between zero and minus 6%.
- Sydbank analyst Soren Lontoft Hansen said it will be a "very tough task" to convince the market of Novo's strength given price pressure and semaglutide patent expiry at the beginning of the next decade.
- Union Investment portfolio manager Markus Manns argued Novo should diversify into other therapeutic areas, stating, "They should work harder in building a third leg," as internal research alone cannot bridge the revenue gap.
- Investors point to European rival AstraZeneca, which forecast $80 billion in annual revenue by 2030, as a model, while analysts warn that without acquisitions, Novo lacks power to compete in the $100 billion weight-loss market.
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Novo Nordisk wants to bet on the sale of medicines without a prescription and expand the business to areas that so far have not explored, but the bets have not convecated the investors and the company's shares have devalued. CEO Mike Doudstar now hopes to restore shareholder confidence.
Novo CEO Says Drugmaker Has More to Do to Win Over Investors
Novo Nordisk A/S Chief Executive Officer Mike Doustdar said the company must do more to build investor confidence as the Ozempic maker faces a patent cliff for its biggest drugs at the beginning of the next decade.
Novo Nordisk, the maker of Ozempic, is also looking to enter the hair loss treatment market as the Danish drugmaker looks to expand its direct-to-consumer business, Bloomberg reported. We'll be covering similar topics at our Portfolio Investment Day conference on October 21. One of the biggest investment events of the year is coming up, where professional experts will tell you what to invest in now. Register here.
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