Novo Shares Drop 5.4% as 2032 Semaglutide Patent Cliff Overshadows $23 Billion Growth Plan
Updated
Updated · CNBC · Sep 21
Novo Shares Drop 5.4% as 2032 Semaglutide Patent Cliff Overshadows $23 Billion Growth Plan
3 articles · Updated · CNBC · Sep 21
Summary
Novo shares traded 5.4% lower in Copenhagen after investors judged its new long-term targets too weak to offset worries about future competition and slowing growth.
More than 150 billion Danish kroner in risk-adjusted pipeline sales by 2035 and over five potential blockbuster launches by 2030 failed to calm concern over semaglutide losing key U.S. patent protection in 2032.
The U.S. generated more than half of Novo's sales last year, and CEO Mike Doustdar said the company must prepare for price pressure as rivals crowd into the weight-loss market Novo helped create.
Novo is now broadening beyond obesity and diabetes into blood and endocrine disorders, liver disease and cardiovascular disease, a strategic shift from the tighter core focus Doustdar outlined after taking over last year.
Investor skepticism has deepened after clinical setbacks and leadership upheaval: Novo stock is down 27% over 12 months, while Eli Lilly shares have risen 52% and its GLP-1 drugs have taken majority injectable market share.