Novo CEO defends diversification, eyes M&A beyond obesity — SkimNews
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- Novo Nordisk CEO Mike Doustdar told CNBC the company is interested in M&A to fill gaps where external developers have "better drugs" than what Novo can produce internally, particularly outside its core diabetes and obesity areas.
- Novo shares fell nearly 8% on Monday—its worst trading day since February—after the Capital Markets Day turnaround plan disappointed investors; shares are down 34% over the past year while rival Eli Lilly is up 54%.
- Novo targets more than five "multi-blockbuster" drugs by 2030, guiding for over 150 billion Danish kroner ($23 billion) in sales by 2035.
- Doustdar said diversification will extend into blood and endocrine disorders, liver disease, and cardiovascular disease—adjacent areas that are "not new to us."
- Eli Lilly CEO David Ricks said a third of new GLP-1 patients are now taking Lilly's oral weight loss pill Foundayo, which launched years after Novo's Wegovy.
- Wegovy is set to lose key exclusivity in the early 2030s, sharpening competitive pressure on Novo to find new growth engines.
Why it matters: With Wegovy losing exclusivity in the early 2030s, Novo's diversification push and M&A hunt are aimed at building a post-blockbuster future. Investors punished the Capital Markets Day because the targets merely matched peer growth rather than exceeding it—Novo's 34% one-year slide against Eli Lilly's 54% gain shows the market has already priced in a competitive gap.
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