Wegovy-maker Novo faces calls to map out strategy beyond weight-loss drugs

Novo Nordisk, the maker of weight-loss drug Wegovy, is facing pressure from investors to outline its long-term strategy beyond its blockbuster drug. CEO Mike Doustdar will be questioned on Monday about how the company plans to compete with US rival Eli Lilly and boost growth after the peak of Novo's share price in 2023. The shares have plummeted by over 70% since the peak, while Lilly's have surged.

Novo's sales of its rival treatment Zepbound are expected to overtake Wegovy this year, with a loss of more than US$7 billion. Novo's pipeline is thinning ahead of patent expirations of semaglutide, the active ingredient in both drugs. Analysts suggest the company should diversify into other therapeutic areas, such as cardiovascular or rare diseases.

Novo's CEO has been working on cost-cutting measures and targeting acquisitions to strengthen the late-stage pipeline. However, the upcoming patent expiry of semaglutide has raised concerns about long-term sales growth. Doustdar's first year in charge has been challenging, with a major setback after halting trials of its experimental heart drug, ziltivekimab.