Novo Nordisk will change its CEO, Lars Fruergaard Jorgensen, the corporate FridayQuoting a pointy decline within the value of his inventory, which stems from elevated competitors for his widespread weight reduction medication.
The Danish drug maker mentioned he was in search of a brand new CEO to switch Jengensen, who has been main a brand new Nordisk for eight years.
This transfer displays a exceptional fall in luck for the producer of one of the vital well-known medication on the earth, which is bought as a ozepik for diabetes and Wegovy for weight problems. The corporate’s shares have fallen by 50 % within the final yr.
Gross sales of this medication have created instances of growth for Novo Nordisk. In 2023. The corporate’s distinctive success prompted The Danish Central Financial institution will preserve rates of interest greater than it could. For greater than a yr, Novo Nordisk’s market worth has surpassed the complete Denmark gross home product.
However traders have damaged down on the corporate because it faces an more and more fierce competitors. Decrease costs Copycat variations of weight reduction medicines made by a course of generally known as Junction have been shortened in Novo Nordisk gross sales. Even tougher is the competitors from Eli Lily, the drug producer, bought as Mounjaro and Zepbound.
Novo Nordisk had an preliminary begin, successful approval to launch his weight problems medication greater than two years earlier than Eli Lily. However Novo Nordisk shortly loses its competitor’s market share: American sufferers have stuffed extra recipes for Zepbound than for Wegovy, and the distinction is increasing, in line with the IQVIia knowledge supplier.
Eli Lily additionally develops new weight reduction medication together with pillthat are anticipated to create years of blockbuster gross sales for the corporate. Novo Nordisk has a Hazer path ahead.
