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

Key Points:

• Novo Nordisk became Europe's most valuable listed firm in 2023 after launching Wegovy in 2021, but its share price has since dropped over 70%, while competitor Lilly's stock has surged due to strong sales of its Zepbound obesity treatment.
• Investors are concerned about Novo's future growth prospects as semaglutide patents for Wegovy and Ozempic expire in the early 2030s, and the company faces trial setbacks and rising competition in the obesity drug market.
• Novo's new CEO, Doustdar, has implemented cost-cutting measures and is focusing on acquisitions and partnerships to strengthen a thinning late-stage pipeline after halting trials of its heart drug ziltivekimab.
• Analysts urge Novo to diversify beyond diabetes and obesity into areas like cardiovascular and rare diseases, and to prioritize promising early-stage candidates such as zenagamtide rather than doubling down on obesity drugs alone.
• Despite raising sales forecasts, Novo's management is expected to signal a greater appetite for bolt-on acquisitions or licensing deals to offset looming revenue declines from patent expirations and competitive pressures.