Wegovy-maker Novo faces calls to map out strategy beyond weight-loss drugs
Investors are concerned about Novo Nordisk's long-term sales growth as the clock ticks down on patent protection.
Novo Nordisk's shares have plummeted more than 70% since reaching a peak in 2023. CEO Mike Doustdar will face questions on Monday about Novo's strategy to compete with US rival Eli Lilly and how to grow beyond its blockbuster weight-loss drug, Wegovy. Novo's market capitalization peaked at over $600 billion in 2023, but its shares have fallen since then.
Eli Lilly's shares, meanwhile, have surged. Sales of Lilly's rival Zepbound treatment are projected to exceed Wegovy's by more than $7 billion this year. Novo faces pressure to reveal a roadmap for growth, including new areas. Analysts suggest diversifying into cardiovascular or rare diseases. Novo's CEO has been tightening costs and culling unproductive programs.
The company halted trials of an experimental heart drug, further heightening concerns about long-term sales growth. Novo raised its sales and profit growth targets in August, but shares dropped in February following a setback in trials of a new obesity drug. Investors are urging Novo to provide clear medium-term financial targets and explore acquisitions or licensing deals.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Wegovy-maker Novo faces calls to map out strategy beyond weight-loss drugs freemalaysiatoday.com
