Consortium led by Nordic Capital, Permira to acquire Bavarian Nordic
($1 = 6.3677 Danish crowns)
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The Guardian
an hour ago
- The Guardian
Sales of Novo Nordisk's diabetes drugs including Ozempic slow sharply
Sales of Novo Nordisk's injectable diabetes drugs including Ozempic have slowed sharply amid fierce competition and the threat of US tariffs, prompting it to cut costs and sharpen its commercial focus. The Danish drugmaker, whose booming sales of GLP-1 diabetes and obesity drugs in recent years had turned it into Europe's most valuable company, has lost nearly $100bn (£75bn) in market value since cutting its full-year sales forecast last week, when its share price slid 30% in its worst week in more than two decades. It fell a further 3% on Wednesday. On Wednesday, Novo Nordisk said sales of medications such as Ozempic – which mimic the GLP-1 gut hormone that regulates blood sugar levels and appetite – grew by 8% in the first half of the year, down from 21% last year. Sales of obesity drugs including Wegovy increased by 56%, taking total sales 16% higher to 155bn Danish kroner (£18bn). Profit before tax climbed by 24% to 70.8bn kroner. The company has lost market share to its US rival Eli Lilly's Mounjaro, which studies have shown to be more effective, as well as cheaper versions made by generic drugmakers. It has also been hit by 'compounding' in the US, where pharmacies make up medications from ingredients, even though the US regulator declared an end to the practice recently. Novo Nordisk's outgoing chief executive, Lars Fruergaard Jørgensen, said that the copycat market had 'equal size to our business' and that compounded versions of Wegovy were sold at a 'much lower price point'. Its finance chief, Karsten Munk Knudsen, said the company was pursuing various strategies, including lawsuits against compounding pharmacies and expanding its US direct-to-consumer platform, NovoCare, launched in March. The company might also pursue 'cash sales' directly to patients elsewhere. Jørgensen said Novo Nordisk was taking measures to 'sharpen our commercial execution further, and ensure efficiencies in our cost base while continuing to invest in future growth'. He said it would probably not be able to avoid layoffs, but that no decision had been made. He said it would be up to Maziar Mike Doustdar, who takes over as CEO on Thursday, to make such a decision. The company is now expecting sales growth of between 8% and 14% at constant exchange rates in 2025, down sharply from its previous estimate of 13% to 21%. Novo Nordisk also disclosed that it had ditched several weight-loss drugs in development, including one that has just completed an intermediate (phase II) clinical study, 'due to portfolio considerations'. The company faces a class action lawsuit in the US from investors, who claim that it misled them with optimistic growth forecasts in the lucrative weight loss market. The UBS analyst Matthew Weston said: 'We expect GLP-1 compounders to remain in the US, which limits cash-pay uptake and leaves an uncertain outlook for US Wegovy. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'President Trump's proposal to reimburse GLP-1 obesity in Medicare could add significant volume uplift, but most-favoured-nation demands to offer US cash sales at European prices could significantly reduce value.' Derren Nathan, the head of equity research at Hargreaves Lansdown, said: 'Tariffs and drug pricing policy are another threat Mike Doustdar will need to tackle head-on if one of Denmark's greatest success stories is to regain its crown as Europe's most valuable company. 'The 15% blanket rate on EU imports is not necessarily the end of the story as Donald Trump dangles the prospect of levies of up to 250% on pharmaceutical imports under a separate section 232 investigation.'
Reuters
an hour ago
- Reuters
Trump announces $100 billion new investment pledge from Apple
WASHINGTON, Aug 6 (Reuters) - President Donald Trump announced on Wednesday that Apple (AAPL.O), opens new tab will invest an additional $100 billion in the United States, a move which will expand the company's domestic investment commitment and could help it sidestep potential tariffs on iPhones. The new pledge brings Apple's total investment commitment in the U.S. to $600 billion. Earlier this year, the company had announced it would invest $500 billion and hire 20,000 workers across the country over the next four years. The announcement centers on expanding Apple's supply chain and advanced manufacturing footprint in the U.S., but still falls short of Trump's demand that Apple begin making iPhones domestically. "Companies like Apple, they're coming home. They're all coming home," Trump told reporters in the Oval Office, moments after Apple CEO Tim Cook gave him a U.S.-made souvenir with a 24-karat gold base. "This is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America," Trump added. Asked if Apple could eventually build entire iPhones in the U.S., Cook noted that many components such as semiconductors, glass and Face ID modules are already made domestically, but said that final assembly will remain overseas "for a while." While the investment pledge is significant, analysts say the numbers align with Apple's typical spending patterns and echo commitments made during both the Biden administration and Trump's previous term. In May, Trump had threatened Apple with a 25% tariff on products manufactured overseas, a sharp reversal from earlier policy when his administration had exempted smartphones, computers and other electronics from rounds of tariffs on Chinese imports. Trump's effort to reshape global trade through tariffs cost Apple $800 million in the June quarter. "Today is a good step in the right direction for Apple, and it helps get on Trump's good side after what appears to be a tension-filled few months in the eyes of the Street between the White House and Apple," said Daniel Ives, an analyst with Wedbush Securities. Apple has a mixed track record when it comes to following through on investment promises. In 2019, for instance, Cook toured a Texas factory with Trump that was promoted as a new manufacturing site. But the facility had been producing Apple computers since 2013 and Apple has since moved that production to Thailand. Apple continues to manufacture most of its products, including iPhones and iPads, in Asia, primarily in China, although it has shifted some production to Vietnam, Thailand and India in recent years. Despite political pressure, analysts widely agree that building iPhones in the U.S. remains unrealistic due to labor costs and the complexity of the global supply chain. "The announcement is a savvy solution to the president's demand that Apple manufacture all iPhones in the U.S.," said Nancy Tengler, CEO and CIO of Laffer Tengler Investments, which holds Apple shares. Partners on Apple's latest U.S. investment effort include specialty glass maker Corning (GLW.N), opens new tab, semiconductor manufacturing equipment supplier Applied Materials (AMAT.O), opens new tab, and chipmakers Texas Instruments (TXN.O), opens new tab, GlobalFoundries (GFS.O), opens new tab, and Broadcom (AVGO.O), opens new tab. Apple shares closed up 5% on Wednesday. Shares of Corning rose nearly 4% in extended trading, while Applied Materials gained almost 2%.
The Sun
an hour ago
- The Sun
Future of chain Claire's on UK high streets uncertain after US parent firm files for bankruptcy
FASHION accessories chain Claire's is facing an uncertain future on UK high streets, after its US parent firm filed for bankruptcy. It is the second time the ear-piercing favourite has declared itself bust, after previously filing for bankruptcy in 2018. 1 Its finances are now under pressure from weak consumer demand and supply chain uncertainty. The filings showed that the parent business reported liabilities of up to $10billion (£7billion) and owed between 25,000 and 50,000 creditors. Claire's operates 2,750 stores worldwide, including 280 in the UK. While British stores remain unaffected for now, the UK arm has lost £25million over the past three years and is at risk of collapsing into administration later this month. It has been working with advisers to explore a sale or restructuring. However, potential buyers, such as Hilco Capital, are understood to have walked away. Retail experts say Claire's is struggling to stay relevant. Julie Palmer, from Begbies Traynor, said: 'Claire's low-price offering is clearly not strong enough to win over its core customers — teens and young adults — as they now have access to a vast array of affordable and convenient products online through platforms like Amazon and Temu.' Claire's boss Chris Cramer said: 'We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.' Nostalgic 90's retailer files for bankruptcy after chain misses rent payments for June and July 'CORE BLIMEY! MINING giant Glenciore has decided to stick with its London stock listing, scrapping plans to shift to New York, in a win for the City. It has been listed on the FTSE since 2011, when it was valued at £37billion — at the time the exchange's largest float. However, the Swiss-based firm has announced plans to slash £753million in costs by 2026, including job cuts across its 150,000-strong workforce. METRO BANK ON THE UP METRO BANK has bounced back, posting a £43.1million pre-tax profit for the first half of 2025 — up from a £33.5million loss reported in the same period last year. The lender doubled new corporate and small business loans to £1billion, and cut 8 per cent from its costs by axing a third of its workforce and reducing branch hours. Boss Daniel Frumkin said: 'Our strong performance reflects the decisive actions we have taken.' Elsewhere, Sabadell shareholders have approved the £2.65billion sale of TSB to Santander.
