Latest news with #Wegovy
Economic Times
an hour ago
- Business
- Economic Times
Wegovy maker Novo's profit warning triggers $70 billion share rout
Investors wiped $70 billion off Novo Nordisk's market value on Tuesday after the maker of weight-loss drug Wegovy issued a profit warning and named a new CEO, as it battles rising competition in the obesity drug market. ADVERTISEMENT Novo named Maziar Mike Doustdar as its new chief executive, turning to a veteran insider to revive sales and reassure investors rattled by fears the Danish drugmaker is losing ground in the obesity drug race it started. Doustdar's appointment failed to stem a stock market rout sparked by Novo slashing its outlook for 2025 sales growth to between 8% and 14%, from between 13% and 21% previously. Its shares plunged nearly 30% before paring some losses to trade down over 20% by mid-afternoon. The shares are now down 44% this year. "The magnitude of the guidance cut is a shocker," Markus Manns, a portfolio manager at mutual fund firm Union Investment, a Novo shareholder, told Reuters, adding that Novo's issues went deeper than "compounded" copycats to Wegovy. Compounded drugs are custom-made medicines that are based on the same ingredients as branded drugs. Novo has been hit by copycats of its GLP-1 drugs Wegovy for weight-loss and Ozempic for diabetes. U.S. law bars pharmacies from replicating approved drugs, but has allowed 'compounding' for patients needing custom doses or formulations. ADVERTISEMENT The company said in a statement that it cut its 2025 sales outlook due to lower growth expectations in the second half in the U.S., both for Wegovy and Ozempic in the GLP-1 diabetes market. The drugmaker, which became Europe's most valuable listed company following the launch of Wegovy in 2021, is now facing a reckoning as it looks to turn things around after the abrupt removal in May of CEO Lars Fruergaard Jorgensen. ADVERTISEMENT At its peak in June 2024, Novo was worth as much as $615 billion, but its shares have plunged on investor concerns about the company's experimental drug pipeline and its ability to navigate challenges in the U.S. market. "The stock has gone from being a market darling to one of its biggest letdowns," said Angelo Meda, portfolio manager and head of equities at Banor SIM in Milan, which has a small Novo stake. "The biggest concern is the illegal channel siphoning away market share - something that's hard to quantify. Rebuilding trust will take time." ADVERTISEMENT Novo Nordisk share price in Danish krone Doustdar, an Iranian-born, Austrian national, who grew up in the United States, joined Novo in 1992 and will take on the new role on August 7. ADVERTISEMENT He currently serves as vice president for international operations, a role he took after leading the company's businesses first in the Middle East and then in Southeast Asia, Novo said. "We need to increase the sense of urgency and execute differently," Doustdar told investors and analysts on a call. "The fact that my announcement comes right after the guidance update, just makes the mandate ahead even more clear." Some analysts and investors had argued that Novo should select an American, or a person with extensive experience working in the United States as its next CEO. Novo has lost its first-mover advantage in the United States this year to U.S. rival Eli Lilly. The new chief executive's most urgent challenge, according to investors and analysts, is to revive Novo's performance in the United States, the largest market by far for weight-loss drugs and where they are most profitable. Novo launched its weight-loss drug Wegovy nearly two and a half years before Eli Lilly's Zepbound. But Zepbound prescriptions surpassed those of Wegovy this year by more than 100,000 a week. In May, Novo said it expected many of the roughly one million U.S. patients using compounded GLP-1 drugs to switch to branded treatments after a U.S. Food and Drug Administration ban on compounded copies of Wegovy took effect on May 22. "Unfortunately, our latest market research indicates that has not happened," Chief Financial Officer Karsten Munk Knudsen said on a call with analysts on Tuesday. One million or more U.S. patients are still using compounded GLP-1s, he said. Novo has stepped up its dialogue with the U.S. FDA to limit unlawful compounding of its drugs, the head of U.S. operations David Moore added on the call. "Compounding continues to be an issue that we have to address," Moore said. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
an hour ago
- Business
- Time of India
Wegovy maker Novo's profit warning triggers $70 billion share rout
Investors wiped $70 billion off Novo Nordisk 's market value on Tuesday after the maker of weight-loss drug Wegovy issued a profit warning and named a new CEO, as it battles rising competition in the obesity drug market . Novo named Maziar Mike Doustdar as its new chief executive, turning to a veteran insider to revive sales and reassure investors rattled by fears the Danish drugmaker is losing ground in the obesity drug race it started. Explore courses from Top Institutes in Please select course: Select a Course Category Others Management Data Science Technology Data Analytics Leadership Digital Marketing others Cybersecurity Public Policy Finance Degree Project Management healthcare CXO MBA PGDM Healthcare MCA Product Management Design Thinking Data Science Operations Management Artificial Intelligence Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details Doustdar's appointment failed to stem a stock market rout sparked by Novo slashing its outlook for 2025 sales growth to between 8% and 14%, from between 13% and 21% previously. Its shares plunged nearly 30% before paring some losses to trade down over 20% by mid-afternoon. The shares are now down 44% this year. "The magnitude of the guidance cut is a shocker," Markus Manns, a portfolio manager at mutual fund firm Union Investment, a Novo shareholder, told Reuters, adding that Novo's issues went deeper than "compounded" copycats to Wegovy. Compounded drugs are custom-made medicines that are based on the same ingredients as branded drugs. Live Events Novo has been hit by copycats of its GLP-1 drugs Wegovy for weight-loss and Ozempic for diabetes. U.S. law bars pharmacies from replicating approved drugs, but has allowed 'compounding' for patients needing custom doses or formulations. The company said in a statement that it cut its 2025 sales outlook due to lower growth expectations in the second half in the U.S., both for Wegovy and Ozempic in the GLP-1 diabetes market. The drugmaker, which became Europe's most valuable listed company following the launch of Wegovy in 2021, is now facing a reckoning as it looks to turn things around after the abrupt removal in May of CEO Lars Fruergaard Jorgensen. At its peak in June 2024, Novo was worth as much as $615 billion, but its shares have plunged on investor concerns about the company's experimental drug pipeline and its ability to navigate challenges in the U.S. market. "The stock has gone from being a market darling to one of its biggest letdowns," said Angelo Meda, portfolio manager and head of equities at Banor SIM in Milan, which has a small Novo stake. "The biggest concern is the illegal channel siphoning away market share - something that's hard to quantify. Rebuilding trust will take time." Reuters Novo Nordisk share price in Danish krone New CEO An Insider Doustdar, an Iranian-born, Austrian national, who grew up in the United States, joined Novo in 1992 and will take on the new role on August 7. He currently serves as vice president for international operations, a role he took after leading the company's businesses first in the Middle East and then in Southeast Asia, Novo said. "We need to increase the sense of urgency and execute differently," Doustdar told investors and analysts on a call. "The fact that my announcement comes right after the guidance update, just makes the mandate ahead even more clear." Some analysts and investors had argued that Novo should select an American, or a person with extensive experience working in the United States as its next CEO. Novo has lost its first-mover advantage in the United States this year to U.S. rival Eli Lilly. The new chief executive's most urgent challenge, according to investors and analysts, is to revive Novo's performance in the United States, the largest market by far for weight-loss drugs and where they are most profitable. Novo launched its weight-loss drug Wegovy nearly two and a half years before Eli Lilly's Zepbound. But Zepbound prescriptions surpassed those of Wegovy this year by more than 100,000 a week. In May, Novo said it expected many of the roughly one million U.S. patients using compounded GLP-1 drugs to switch to branded treatments after a U.S. Food and Drug Administration ban on compounded copies of Wegovy took effect on May 22. "Unfortunately, our latest market research indicates that has not happened," Chief Financial Officer Karsten Munk Knudsen said on a call with analysts on Tuesday. One million or more U.S. patients are still using compounded GLP-1s, he said. Novo has stepped up its dialogue with the U.S. FDA to limit unlawful compounding of its drugs, the head of U.S. operations David Moore added on the call. "Compounding continues to be an issue that we have to address," Moore said.
Globe and Mail
2 hours ago
- Business
- Globe and Mail
Why Eli Lilly Stock Was Looking Sickly Today
Key Points Investors were spooked by a peer's notable reduction in sales and profitability guidance. This peer was Novo Nordisk, which like Eli Lilly sells a popular drug approved specifically for obesity. 10 stocks we like better than Eli Lilly › One of the more popular stocks in the pharmaceutical sector of late got the cold shoulder from investors on Tuesday. Eli Lilly (NYSE: LLY) closed today's trading session down by almost 6% in value, which was notably worse than the 0.3% drop of the bellwether S&P 500 index. That decline wasn't necessarily Eli Lilly's fault, though. Reducing weight, reducing guidance Eli Lilly's recent popularity is due in no small measure to its plunge into the highly lucrative weight-loss drug market. In late 2023, its Zepbound -- essentially the same treatment as its diabetes drug Mounjaro -- was approved to treat obesity, and the company was off to the races. On Tuesday, though, the standard-bearer for the segment took quite a tumble. That was Novo Nordisk, which this morning lowered its guidance for both full-year sales and operating profit. The growth forecast for the former was reduced to 8% to 14% over the 2024 tally (previous guidance range: 13% to 21%). Ditto for operating profit, which is now expected to rise in a range of 10% to 16%. That would be encouraging, if it weren't for the fact that management's preceding prediction was 16% to 24%. Novo Nordisk is known for developing and selling Wegovy, the first GLP-1 drug approved by the U.S. Food and Drug Administration specifically for weight loss. The company has flown to renown and admiration on the wings of that drug, which remains a key product. Investors probably fear that Eli Lilly's Zepbound will also perform worse than expected. Not an emergency I don't think anyone should push the panic button on Eli Lilly due to this (or Novo Nordisk, while I'm at it). Demand for obesity drugs remains strong and nearly unlimited, so both Zepbound and Wegovy -- which still benefit from a lack of competitors, at least for now -- should continue to be growth drivers. Also, in the case of Eli Lilly, the sprawling pharmaceutical company has a vast portfolio and a very wide development pipeline, so it's hardly dependent on one drug -- no matter how currently popular that drug might be. Should you invest $1,000 in Eli Lilly right now? Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
Business Recorder
4 hours ago
- Business
- Business Recorder
European stocks close up; Novo Nordisk logs its biggest drop
FRANKFURT: European stocks closed higher on Tuesday, buoyed by financials and defence stocks, though Danish stocks logged their biggest one-day drop of the year as Novo Nordisk's shares slid after the weight-loss drug maker issued a profit warning. The Wegovy producer, once a market darling, logged its biggest one-day drop on record of 23%, wiping about $57.5 billion off its market value, as it slashed its outlook for 2025 sales growth and named a new CEO as it battles rising competition in the obesity drug market. The stock weighed on Denmark's Copenhagen OMX index , which lost 11.9%, while the broader STOXX pharmaceutical sector slid 1.6%. 'It's doubly disappointing for investors when you find a company that had been anticipated to be a real star in a booming sector, and they don't seem to be able to capitalize on what was a really good competitive position,' said Danni Hewson, head of financial analysis at AJ Bell. The stock 'seems to be getting pummeled' by its US rival, Eli Lilly, Hewson said. 'Now we are seeing a change in CEO, but investors are not going to give the new guy an awful lot of time to get the house in order.' Eli Lilly also lost 5% in afternoon trading. More broadly the pan-European STOXX 600 index finished 0.3% higher, with banks gaining 1.7% to hit their highest since September 2008 as investors bet on improved profits and resilience in a sector broadly insulated from tariff turmoil. In a relief for investors, the US and EU signed an agreement to lower US tariffs to 15%, ending weeks of negotiations earlier this week and offering investors some clarity on the trade front. Analysts said the corporate earnings landscape has markedly improved following the deal, and they now project European companies to deliver 1.8% growth in second-quarter earnings compared to a 0.3% decline just a week earlier, according to LSEG I/B/E/S data. Aerospace and defence stocks added 2.2% after three straight days of losses. The new framework trade deal offered zero-for-zero tariffs on aircraft and parts. Airbus and Safran SA gained 1.7% and 2.1%, respectively. Franco-Italian eyewear group EssilorLuxottica shares jumped 6.9% after the company reported an increase in first-half operating profit despite a tariff hit. Dutch company Philips rose 9.2% to the top of the index after the healthcare technology group lowered its tariff impact estimates following the US-EU trade deal. Attention now turns to Wednesday's second-quarter GDP releases from both the euro zone and the US, followed by the Federal Reserve's highly anticipated rate decision and Friday's US employment report.
Qatar Tribune
5 hours ago
- Business
- Qatar Tribune
Leadership change at Novo Nordisk
Agencies Danish pharma giant Novo Nordisk named Maziar Mike Doustdar as its new chief executive on Tuesday, relying on an experienced company insider to revive sales and a share price hit by concerns that the Wegovy maker is falling behind in the weight-loss drug race it initiated. The appointment comes after the abrupt removal in May of CEO Lars Fruergaard Jorgensen by Novo and the Novo Nordisk Foundation – the Danish company's controlling shareholder – and follows a growth warning earlier on Tuesday. Doustdar, who joined Novo in 1992, currently serves as vice president for international operations, a role he assumed after leading the company's businesses first in the Middle East and then in Southeast Asia, Novo said. The new chief executive's most urgent challenge, according to investors and analysts, is to revive Novo's performance in the U.S., the largest market by far for weight-loss drugs and where they are most profitable. Novo launched its weight-loss drug Wegovy nearly two and a half years before U.S. rival Eli Lilly's Zepbound. But Zepbound prescriptions surpassed those of Wegovy this year by more than 100,000 a week. The appointment comes at a challenging time for the global pharmaceutical industry as U.S. President Donald Trump threatens to impose tariffs on imports and calls on drugmakers to lower their U.S. prescription prices. Jorgensen led Novo through a period of meteoric growth as it led the weight-loss drug boom, becoming Europe's most valuable listed company following the launch of Wegovy in 2021. At its peak in June 2024, Novo was worth as much as $615 billion. But Novo shares have plunged since then due to investors' concerns about the company's experimental drug pipeline and its ability to navigate challenges in the U.S. market, such as the threat to its sales from compounded copies of Wegovy and Lilly's Zepbound. On Tuesday, the company also reduced its full-year sales and operating profit forecasts for the second time this year, causing its shares to decline as much as 17%.
