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The Guardian
10 hours ago
- Business
- The Guardian
Wegovy maker Novo Nordisk's shares plunge as it cuts sales forecast
The obesity drugmaker Novo Nordisk has cut its full-year sales and operating profit forecasts for the second time this year, sending its shares down by more than a fifth on Tuesday. The maker of the weight-loss drug Wegovy is struggling to convince investors it can remain competitive in the obesity drug boom against US rival Eli Lilly. 'The lowered sales outlook for 2025 is driven by lower growth expectations for the second half of 2025,' the company said in a statement. 'This is related to lower growth expectations for Wegovy in the US obesity market, lower growth expectations for Ozempic in the US GLP-1 diabetes market, as well as lower-than-expected penetration for Wegovy in select IO [international operations] markets,' it said. Novo now expects 2025 sales growth of 8%-14% in local currencies, down from its previous 13%-21% forecast range. It also lowered its operating profit growth estimate to 10%-16%, from 16-24% previously. Sales rose 18% year on year in the second quarter and the first half of the year, Novo said. Its operating profit increased by 40% in the April-June quarter and by 29% in the first half, the company added. Shares were down more than 21% at 355.30 Danish kroner (£41.21). Booming sales of Wegovy catapulted Novo to become Europe's most valuable listed company in 2024, peaking at about €615bn (£532bn), but the value has since fallen by more than half. Novo Nordisk also named Maziar Mike Doustdar as its new chief executive on Tuesday, relying on an experienced company insider to revive sales and its share price. The appointment comes after the abrupt removal in May of CEO Lars Fruergaard Jørgensen by Novo and the Novo Nordisk Foundation – the Danish company's controlling shareholder. Doustdar, who joined Novo in 1992, now 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. 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 The new chief executive's most urgent challenge, according to investors and analysts, is to revive Novo's performance in the US, 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. However, 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 Donald Trump threatens to impose tariffs on imports and calls on drugmakers to lower their US prescription prices.
The Guardian
10 hours ago
- Business
- The Guardian
European pharmaceutical firms criticise Trump tariffs on medicines as ‘blunt instrument'
European pharmaceutical firms have condemned the US move to put 15% tariffs on medicines imported from the EU, calling the taxes a 'blunt instrument' that would harm patients on both sides of the Atlantic. They were responding to a White House text of the deal that inferred the 15% baseline rate on imports from the EU would also apply to drugs if the agreement is implemented on the US side on Friday as expected. 'As part of President Trump's strategy to establish balanced trade, the European Union will pay the United States a tariff rate of 15%, including on autos and auto parts, pharmaceuticals, and semiconductors,' the text said. The European Federation of Pharmaceutical Industries (EFPIA) said: 'Tariffs on medicines are a blunt instrument that will disrupt supply chains, impact on investment in research and development, and ultimately harm patient access to medicines on both sides of the Atlantic.' The trade organisation represents drug companies across the bloc including Bayer in Germany, Novo Nordisk in Denmark, and US multinationals with operations in Ireland such as Pfizer and Johnson & Johnson. The US move to impose import duties on pharma is a breach of a 1995 World Trade Organization agreement that medicines and the active ingredients in them are rated at zero tariff. An EU trade spokesperson said pharma imports from the US to the EU would remain duty free. Washington's text also indicated that the EU had confirmed it would not introduce a tech tax. An EU spokesperson said this was not the case and the bloc retained the 'sovereign right to legislate' in the digital space. Trump declared war on US pharmaceutical companies who were manufacturing medicines for US patients, and booking profits on those sales abroad. 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 In March, he repeatedly took aim at Ireland's historical low-tax policies, which helped lure US multinationals including Pfizer, Boston Scientific and Eli Lilly to its shores, claiming the country had looted US businesses. On Monday, Ireland's prime minister, Micheál Martin, said tariffs in general were not ideal but a trade war would have been 'ruinous'. The EFPIA said it strove to 'ensure a fairer distribution of how global pharmaceutical innovation is financed' but there were 'more effective ways' to achieve this that would 'help rather than hinder global advances in patient care and economic growth'. The White House text of the deal has added to existing confusion over the position of pharmaceuticals in the trade deal, given that EU officials said on Monday that pharma exports to the US would remain duty free until the US had completed its section 232 investigation into pharmaceuticals and semiconductors. The text also raises questions over standards of US foods exported to the EU. The EU said the US's reference to commitments to 'address non-tariff barriers affecting trade in food and agricultural products including streamlining requirements for sanitary certificates for US pork and dairy products' did not amount to any lowering of its red-line rules on food standards. It is known that the European Commission has also made a commitment to the UK to streamline veterinary certification processes applying to British food exports post-Brexit. This could include a reduction in the paperwork needed to export products.
Mint
13 hours ago
- Business
- Mint
Meta's smartwatch with built-in camera is reportedly launching in September 2025
Meta is reportedly reviving its smartwatch project with a brand-new device expected to be revealed at the Meta Connect conference, scheduled for September 17–18, 2025, says a report from Business Today. The wearable is said to feature a built-in camera and AI capabilities that could become a key companion for Meta's growing range of smart glasses and virtual reality (VR) headsets. This isn't Meta's first attempt at launching a smartwatch. The company initially began development back in 2021 under the codename 'Milan,' with prototypes featuring dual cameras and a curved display. One of the versions even had a gold finish and side buttons. But the project was paused in 2022 due to hardware issues and challenges with a nerve-signal control system the company was testing. According to multiple reports citing supply chain sources, including a story by DigiTimes, the device is being manufactured by Chinese company Huaqin Technology. This time, the focus appears to be more on AI tools and camera functions, rather than fitness tracking or health features like other popular smartwatches from Apple or Samsung. What can we expect from the new Meta wearable? The new smartwatch is expected to work closely with Meta's upcoming smart glasses, which are also rumoured to include a built-in display for the first time. Combined, these wearables could allow users to capture images, interact with digital assistants and control their environment using gesture-based or camera-powered tools. While detailed specs are still under wraps, the smartwatch is not expected to rival devices like the Apple Watch or Samsung Galaxy Watch in terms of health tracking. Instead, it may serve more as an intelligent companion to Meta's broader hardware ecosystem, including its Ray-Ban Meta smart glasses and Quest VR headsets. There's no confirmation yet on pricing, battery life or exact features, and it's unclear if the device will launch this year or be teased as a concept at Meta Connect. What's clear is that Meta is trying to create a more unified wearable experience that blends AI, smart glasses and real-time camera interaction into something more ambitious than a traditional wristwatch. We'll likely learn more in the weeks leading up to Meta Connect in September.
India.com
16 hours ago
- Business
- India.com
8th Pay Commission: Reports Hint At Expected Timeline Of Implementation; Check Comparison Between 6th And 7th CPC Timeline
photoDetails english 2938407 Amidst heightened anticipation around the setting up of pay panel under the 8th Pay Commission, Terms Of Reference (ToR) and appointment of chairman and member, the government has officially responded on ToR in Parliament. Minister Of State In The Ministry Of Finance Pankaj Chaudhary responded saying that it has received suggestions from the National Council of Joint Consultative Machinery (NC-JCM), as part of the stakeholder consultation. Chaudhary added that Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from States. Updated:Jul 29, 2025, 11:46 AM IST 8th Pay Commission: Expected Timeline 1 / 11 The Central Pay Commission is anticipated to be implemented later in 2026 or in the first part of 2027, according to a Business Today report that cited a Kotak projection. According to a study released by Kotak Institutional Equities said on Monday, the 8th Pay Commission will be put into effect. 8th Pay Commission Minimum Pay 2 / 11 According to the Business Today report citing the Kotak projection, the 8th Pay Commission is expected to raise the minimum pay from the current Rs 18,000 to around Rs 30,000. 8th Pay Commission Probable Fitment Factor 3 / 11 The CPC may also take into account the fitment factor of 1.8, the Kotak report said. Accordingly, the real pay hike will be approximately 13 percent, the report added. Additionally, the fiscal impact of the 8th CPC on the national exchequer is likely to be around 0.8 percent of the GDP, the Kotak report said. This amounts to an extra expenditure approximately between Rs 2.4 and Rs 3.2 lakh crore. 8th Pay Commission: ToR, Chairman Appointment Awaited 4 / 11 More than 1.2 crore central government employees and pensioners are eagerly awaiting the formation of the 8th Pay Commission which will revise their salaries and pensions. The Staff Side has appealed to the government to issue clear guidelines on the finalized ToRs of the 8th CPC at the earliest, to dispel any ambiguity and restore confidence among the workforce. The Staff Side further requested the government to clarify that the benefits of pay fixation and revision under the 8th CPC shall also be extended to all central government pensioners, thereby removing doubts and ensuring parity and fairness in treatment. 8th Pay Commission: Timelines Of 6th, 7th CPC Giving Jitters 5 / 11 Despite the government's approval on January 16, 2025, the Pay Commission has not been formally constituted. The ToR and the appointment of the chairman and other important members have also not yet been completed. The anxiety of central government employee is further accentuated by the past comparisons of timelines of 6th and 7th Pay Commissions. 7th Pay Commission Vs 8th Pay Commission Delay? 6 / 11 The 7th CPC was announced in September 2013 and its chairman and ToR were notified in February 2014. However, since the announcement of the 8th Pay Commission on January 16, 2025, the ToR of the Commission are still pending. The government has also not officially announced the appointment of the chairman and other members of the commission. This indicates a delay in the formation of the 8th CPC. 6th Pay Commission Vs 8th Pay Commission Delay? 7 / 11 6th Pay Commission was formed in October 2006. The report/recommendation was sent in March 2008 and it got approval in August 2008. The Implementation of 6th pay commission was from January 1, 2006 retrospectively. 8th Pay Commission: 1 January 2026 Expected Implementation 8 / 11 The prospects for the Commission's implementation on January 1, 2026, appear bleak. While the tenure of the 7th Pay Commission ends on 31 December 2025 and the constitution of the new Commission is in limbo. Now, comparing the timeline of 6th and the 7th pay commission the central government employees and pensioners are increasingly becoming anxious since there is no official word yet on the set up of pay panel. 8th Pay Commission: 3rd Extension Of Filling Up Of 4 Posts Of Under Secretary 9 / 11 In its latest circular, issued on 3 July 2025, DoPT has decided to extend the last date for submission of applications till 31.07.2025. This is the third extension that DoPT has proposed, thus possibly meaning that the applications from eligible candidates for these key posts in the pay panel has yet not been received yet. 8th Pay Commission: Under Secretary Post Previous Extensions 10 / 11 Earlier it DoPT had proposed to fill up the 4 posts of Under Secretary (Level 11) in the 8th Central Pay Commission (CPC) on deputation basis under the Central Staffing Scheme under D/o Expenditure. The applications were invited for the post vide circular of even number dated 22.04.2025. 8th Pay Commission: Pay, Pension Revision In Offing 11 / 11 The 8th Pay Commission will revise the pensions, allowances and salaries of central government employees and pensioners. It will also revise the Dearness Allowance as per inflation. The 8th Pay Commission benefits about 50 lakh central government employees, including defence personnel. It will also benefit around 65 lakh central government pensioners, including defence retirees.
The Guardian
5 days ago
- Automotive
- The Guardian
Volkswagen takes €1.3bn hit from ‘high costs' of Trump tariffs
The German car manufacturer Volkswagen has said Donald Trump's US import tariffs have cost it more than £1bn in the first half of the year. Volkswagen said it had made strong progress realigning the company, which is considering cutting 35,000 jobs by 2030, but that it had suffered a €1.3bn (£1.13bn) 'decline in operating result primarily due to high costs from increased US import tariffs'. The company has also reduced its profit margin range to be between 4% and 5% for the year, based on an assumption that tariffs of between 10%, at best, and the current 27.5%, at worst, will be made permanent by the US president. The group, emblematic of German industry, also makes the Audi, Seat and Skoda brands as well as the luxury marques Lamborghini and Bentley, and commercial vehicles including Scania trucks. Its reduced revenues underline the German chancellor Friedrich Merz's continued appeal to Trump to urgently sign a deal on tariffs with concessions for the EU car industry. On Monday, the Vauxhall maker, Stellantis, said Trump's tariffs had already cost it €300m, while last week the Chinese-owned Swedish brand Volvo said it had paused sales of some models to the US and experienced a substantial fall in revenues in the second quarter of the year. German car exports to the US fell sharply in April and May as import tariffs imposed by Trump hit automakers' sales in their most important foreign market, the VDA industry association said on Thursday. Auto exports to the US fell by 13% in April and 25% in May from the same months the previous year, the VDA said. It added that 64,300 vehicles were shipped to the US over both months. Before Trump's return to the White House, the US charged a 2.5% tariff on European-made cars, while the EU had a 10% duty on vehicles imported from the US. The Volvo chief executive, Håkan Samuelsson, last week called on the EU to drop its 10% tariff, saying it was 'absolutely unnecessary' in an effort to accelerate a deal with the US. However, the EU is now closing in on a deal with the US for blanket tariffs of 15% on most goods with no special exemption for the automotive industry if a deal is struck before Trump's 1 August deadline. 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 On Thursday, the EU said it thought a deal was within reach but Trump is not expected to imminently sign any executive orders as he begins a private visit to his luxury golf resorts at Turnberry in Ayrshire and Menie in Aberdeenshire. Separately, shares in German-owned Puma dropped by more than 18% on Friday morning after it said it expects US trade tariffs to cost it €80m in gross profit this year, and that it now expects to make a loss in adjusted earnings before interest and taxes. Much of the sportswear industry faces higher costs because of the US trade tariffs, as they rely on manufacturing in China, Vietnam, Cambodia and Bangladesh.
