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By Maggie Fick, Jacob Gronholt-Pedersen and Bhanvi Satija
LONDON/COPENHAGEN, Dec 23 (Reuters) – Novo Nordisk secured U.S. regulatory approval for its weight-loss capsule, giving the Danish drugmaker a shot at reclaiming floor misplaced to rival Eli Lilly.
Booming gross sales of Wegovy powered the agency to change into Europe’s most respected listed firm, however it has misplaced over $400 billion in market capitalisation because the center of 2024 as competitors from Lilly and copycat rivals intensified.
The capsule approval, which got here late on Monday, might spur a much-needed rebound for Novo after a bruising yr of sliding shares, revenue warnings and slowing Wegovy gross sales.
Novo is aiming to show round its fortunes beneath new CEO Mike Doustdar, who took the helm in August, and has since introduced 9,000 job cuts globally to cut back prices and refocus the agency.
Listed here are a few of the challenges going through Novo because it seems to be to bolster gross sales and fend off rivals:
WEGOVY VS ZEPBOUND
Eli Lilly’s rival drug Zepbound has overtaken Novo’s Wegovy when it comes to prescriptions in the important thing U.S. market this yr. With Wegovy, Novo was first-to-market with a extremely efficient weight problems remedy, which was accredited within the U.S. in 2021. Lilly launched Zepbound in late 2023.
LOSING GROUND
Novo’s share value has fallen steeply versus rivals during the last yr.
VALUE PREMIUM SLIPPING
That has introduced the corporate’s price-earnings ratio again according to friends. It had beforehand commanded a large premium.
RISING COSTS
The drugmaker’s prices have risen as it spent billions to increase manufacturing and gross sales capability.
NO LONGER TOP DOG
Novo, valued at $650 billion in June final yr, has shed extra than half of its worth since. Its newest market capitalisation is above $240 billion, together with each listed and unlisted inventory.
(Reporting by Maggie Fick, Bhanvi Satija and Jacob Gronholt-Pedersen;Enhancing by Mark Potter, Kirsten Donovan)
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