Wegovy-maker Novo faces calls to map out strategy beyond weight-loss drugs
Novo plans more than five multi-blockbuster launches by 2030 as it seeks to reassure investors after a 70% share slump and rising Lilly competition.
- 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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The pharmaceutical company also plans to significantly expand the production of weight loss tablets. In the future, more than 60 million patients worldwide will be treated.
BT
Novo will expand its business in areas such as liver and cardiovascular diseases.
Wegovy maker Novo Nordisk faces investor pressure to find growth beyond weight-loss drugs
Facing increased scrutiny, Novo Nordisk must clarify its future strategy outside of its leading weight-loss drug. Investors are advocating diversification into new therapy areas for sustainable growth. With Eli Lilly set to outshine its sales figures this year, analysts suggest a pivot towards developing zenagamtide instead of CagriSema. It is crucial for Novo to navigate patent challenges and competitive threats with a transparent and strategic…
The Capital Markets Day, which will be held in London on Monday, is expected to have a major impact on people's future views on Novo
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