Investors called on Novo Nordisk to pivot to sectors beyond weight loss after disappointing trial results for a new drug saw the Danish pharmaceutical giant’s stock plummet.
The Ozempic maker established the modern market for GLP-1 weight loss drugs, but its next-generation treatment, CagriSema, underperformed compared to a similar offering from US-based Eli Lilly. One Deutsche Bank analyst called Novo’s new drug “obsolete,” a characterization that the company’s CEO rejected.
The question is now whether Novo veers into other fields like rare diseases and heart conditions. “Obesity and diabetes — it’s too risky to bet the entire company on these two franchises,” one investor said.