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Yahoo
3 hours ago
- Yahoo
Novo Nordisk outgoing CEO blames compounded GLP-1s for decline in 2025 outlook
Novo Nordisk's (NVO) downward guidance Tuesday sent its stock diving 20%, even as new leadership remains bullish on the company's ability to maintain a market lead in the obesity drug space. The maker of GLP-1 drugs Ozempic and Wegovy cut sales grown from 13%-21% down to 8%-14% for the year. That's about half, on the higher end, of the 26% growth seen in 2024. Outgoing CEO Lars Jøregensen told reporters Tuesday that the compounding, or copycat, market in the US is to blame. That is one of two key issues that appear to have taken the company by surprise. First was the shortage of both its GLP-1 drugs after they unexpectedly zoomed to popularity, creating a new weight-loss drug market. Jørgensen said that the prevalence of compounded products, which are now restricted after the FDA declared an end to the shortage, is to blame. "Despite the fact that it is now illegal ... it's still happening. And that's one of the assumptions in the prior guidance, that that would be reduced significantly. And we see, actually, that is actually the same volume as we saw earlier in the year, around a million patients using a compounded product," Jørgensen said. The compounded products include those from Novo's ex-partner, Hims & Hers (HIMS), which continues to sell the products based on a loophole in FDA rules that allows it to sell "personalized" products for patients who might have negative reactions or side effects to branded drugs — such as common GLP-1 side effects like nausea or dizziness. Novo recently ended its direct-to-consumer sales deal with Hims after the telehealth firm declined to stop selling compounded semaglutide vials. The result has been a loss in the company's first-to-market position, with competitor Eli Lilly (LLY) taking a harder stance, most recently lobbying Congress to help enforce the FDA rules and rid the market of compounding. Jørgensen said Tuesday, "Ultimately, compounding will disappear. But it will take some time before it's completely out of the market and we have a fair chance of regaining our fair share (of the market)." Incoming CEO Mike Doustdar, who has served as Novo's executive vice president of international operations, said the decline of the company's stock, and therefore shareholder value, is disappointing. "I don't like it as an employee ... as a CEO-elect, and I certainly don't like it as a shareholder myself. But setbacks don't define companies, our response does," Doustdar said, adding that the guidance cut reinforces his mandate to put the company back onto a growth path. Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Click here for in-depth analysis of the latest health industry news and events impacting stock prices
Forbes
4 hours ago
- Forbes
Novo Nordisk Shares Plummet Toward Worst Day In 40 Years
Shares of Wegovy and Ozempic maker Novo Nordisk fell more than 21% Tuesday, pacing what would be the stock's largest plunge since the 1980s after the Danish pharmaceutical firm cut its full-year guidance for sales and profit, as growth for its obesity and weight loss treatments are expected to slow in the U.S. The Danish firm said weaker Wegovy and Ozempic sales are expected as competition ramps up and ... More compounded options become more available. Copyright 2023 The Associated Press. All rights reserved. Novo Nordisk's shares plummeted about 21% to just above $54 as of around 10:50 a.m. EDT, marking what would be the company's largest loss since a 19% decline in April 2002 and nearing its next-largest decline of 23% in October 1984. The pharmaceutical firm said Tuesday expectations for its full-year sales growth in 2025 were lowered to between 8% to 14%, down from an earlier target of 13% to 21%, and profit growth lowered to between 10% to 16%, down from estimates of 16% to 24%. Novo Nordisk said it expects sales growth for Wegovy and Ozempic in the U.S. to decline amid 'slower-than-expected market expansion and competition' and 'persistent use' of compounded alternatives. The sale of 'unsafe and unlawful' compounded drugs—generic drugs altered to meet a patient's needs—has continued despite the Food and Drug Administration indicating it would take action against distributors by April 22, Novo Nordisk claims. Novo Nordisk is 'deeply concerned' that, without 'aggressive intervention' by federal and state regulators and law enforcement, patients will be exposed to the "significant risks by knockoff' drugs, the company said. Novo Nordisk will release its Q2 earnings report on Aug. 6. Tangent Maziar Mike Doustdar was announced Tuesday as Novo Nordisk's new president and CEO, after Lars Fruergaard Jorgensen was abruptly ousted in May. Doustdar's appointment will take effect Aug. 7. He previously served as the company's vice president of international operations, a unit Novo Nordisk said had sales more than double to about $17.3 billion in 2024 under Doustdar. Key Background Shares of Copenhagen-based Novo Nordisk have dropped 37% on the year, as the company has battled increased availability of compounded Ozempic and Wegovy. The FDA allowed pharmacies to compound and sell copies of both drugs amid shortages, and production of these drugs was granted a period during which the agency would not take action. The FDA has since declared shortages of Novo Nordisk's weight loss and obesity drugs as 'resolved' and removed the drugs from its shortage list, though the company has claimed compounded drugs—which are unapproved by the FDA—are still on the market. Novo Nordisk has asked the FDA to outright ban compounded Ozempic and Wegovy, as the agency has noted various 'concerns' about the drugs as they do not meet the agency's requirements for safety, effectiveness or quality. The FDA has warned of counterfeit Ozempic on the market in recent months, and said the products could cause adverse reactions like nausea, vomiting, diarrhea and abdominal pain. Forbes Ozempic-Maker Novo Nordisk Sues Pharmacies And Weight Loss Clinics For Allegedly Selling Impure Drugs By Ty Roush
Yahoo
5 hours ago
- Yahoo
Stifel Maintains Buy Rating on Lexeo Therapeutics (LXEO)
Lexeo Therapeutics, Inc. (NASDAQ:LXEO) is one of the 11 Best New Penny Stocks to Buy Right Now. On July 7, Stifel reiterated its 'Buy' rating for Lexeo Therapeutics, Inc. (NASDAQ:LXEO) with a price target of $21. This decision came after the company announced that the FDA gave Breakthrough Therapy Designation to its treatment called LX2006. A scientist in a laboratory examining a test tube filled with a medication used to treat hypertension and cardiovascular diseases. The FDA granted Breakthrough Therapy Designation for LX2006 in both cardiac and neurologic measures of Friedreich ataxia (FA). Lexeo Therapeutics, Inc. (NASDAQ:LXEO) also shared that LX2006 has been selected to participate in the FDA Chemistry, Manufacturing, and Controls (CMC) Development and Readiness Pilot (CDRP) program, which is designed to expedite clinical development timelines. Stifel sees the Breakthrough Therapy Designation as a good sign for Lexeo Therapeutics, Inc.'s (NASDAQ:LXEO) regulatory prospects. The firm noted that this designation suggests that the FDA may be more flexible for rare disease gene therapies. Lexeo Therapeutics, Inc. (NASDAQ:LXEO) is a clinical-stage genetic medicine company focused on developing therapies for cardiovascular diseases. While we acknowledge the potential of LXEO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
