Shares of Ozempic maker fall after new strategy presentation
Shares of Danish pharmaceutical company Novo Nordisk fell by nearly 7% on Monday after the company unveiled a new strategy for its obesity drug business. The decline later eased to around 4.8%.
According to CNBC, Novo Nordisk plans to launch more than five drugs with the potential to become major commercial products by 2030. By 2035, the company aims to generate more than 150 billion Danish kroner, or about $23 billion, in revenue from its development pipeline, including existing assets.
The company also expects its revenue growth between 2026 and 2030 to be broadly in line with the pharmaceutical industry average.
Investors, however, had hoped for stronger signals. Nordnet economist Per Hansen said the market was looking for a project that could quickly change the company’s momentum, but Novo Nordisk did not present such a solution.
The main problem is patents
Novo Nordisk CEO Mike Doustdar acknowledged that one of the biggest risks is the expiration of patent protection for semaglutide, the active ingredient in Wegovy and Ozempic. In the U.S., which accounts for more than half of the company’s sales, key patent protection is expected to expire in 2032.
After that, Novo Nordisk could face stronger pricing pressure and tougher competition from makers of similar drugs. Doustdar noted that the obesity drug market has become so attractive that nearly every major pharmaceutical company, as well as many smaller players, is now trying to enter it.
The company plans to reduce its dependence on semaglutide in advance and broaden its drug portfolio. Management expects Novo Nordisk to emerge from the loss of key patents as a larger and more diversified company than it is today.
Why Ozempic became so popular
Ozempic was originally developed to treat type 2 diabetes, but it gained widespread attention after semaglutide was shown to help people lose significant amounts of weight. The drug reduces appetite and slows stomach emptying, helping people feel full for longer and eat less.
Its popularity surged after celebrities, influencers and social media users began widely discussing its effects. Interest was further boosted by Wegovy, another Novo Nordisk drug with the same active ingredient that is specifically approved for weight loss. As a result, semaglutide became one of the biggest trends in the pharmaceutical market and helped turn Novo Nordisk into a key player in the fast-growing obesity drug sector.
As a reminder, Novo announced an expansion of its obesity drug pipeline.
Latest Novo Nordisk News
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