Danish drugmaker says it aims to grow revenue in line with its leading rivals Novo Nordisk stock tumbled on Monday as the weight-loss drug manufacturer failed to excite investors hoping for a turnaround. At an investor event on Monday, Novo Nordisk set out its ambitions by 2030 to launch at least five multi-blockbusters, deliver compound annual revenue growth in line with industry peers, scale capacity to serve 10 times more people with obesity on oral GLP-1 drugs and serve 60 million patients globally. Novo Nordisk stock tumbled 6% in premarket trade, reaching its lowest level since April.
Novo’s stock price is not even a third of its 2024 peak. AstraZeneca's CFO on GLP-1 Drugs, AI, and More Play video: AstraZeneca's CFO on GLP-1 Drugs, AI, and More Under CEO Mike Doustdar, Novo has spent the last year undergoing a wide-reaching restructuring, and analysts are eager to understand what’s next for the company. Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it.
I would like to receive updates and special offers from Dow Jones and affiliates. I can unsubscribe at any time. Sales continue to grow for the drug maker’s exclusive semaglutide products — Ozempic for Type 2 diabetes and the Wegovy injection and pill for weight loss.
But there is concern that the franchise isn’t growing as fast as it used to, and Novo is still too dependent on semaglutide — even CagriSema, its next-generation weight-loss drug, which could be approved later this year, includes the medication. **Deep dive:**How Ozempic maker Novo Nordisk blew its lead in GLP-1 weight-loss drugs “This is the opportunity for CEO Doustdar to take control of the narrative and tell us how he intends to right the ship,” BMO Capital Markets analyst Evan David Seigerman told investors on Thursday. In a note to investors last week, Goldman Sachs analysts described the lead-up to the Capital Markets Day as “stale at best.” It’s been a tumultuous year for Novo. At this event last year, new CEO Doustdar announced that Novo would let go of 11.5% of its workers in what would be the largest corporate layoff in Denmark’s history.
In the following weeks and months, former workers tagged social-media posts about their departures with #Club9000, indicating the roughly 9,000 workers laid off globally, or #Club5000, for those let go in Denmark. That wasn’t all that happened. Much of Novo’s board resigned last fall, and influential leaders like Lotte Bjerre Knudsen, who led development of semaglutide, have since stepped down.
Under Doustdar’s attempt to right-size Novo, which lost its lead in the weight-loss market to Eli Lilly, the company is now leaner and much more focused on speed as it tries to better compete against the American pharmaceutical giant and the dozens of companies developing new weight-loss therapies. A year into his tenure as CEO, analysts still have questions about the broader strategy for the company, which is known for making insulin and other products for Type 2 diabetes patients. The company’s U.S.-listed shares are down 28.8% over the last year.
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