Latest news with #LarsFruergaardJørgensen
Globe and Mail
a day ago
- Business
- Globe and Mail
2 Top Stocks to Buy With Less Than $100
When investing on a budget, buying fractional shares of top companies is one option. Another is to find stocks with relatively affordable price tags per share. Although it's sometimes the case that the most attractive companies quickly draw attention, which bids up their share prices, it's still possible to find promising stocks for well under $100. Two great options right now are Novo Nordisk (NYSE: NVO) and Exelixis (NASDAQ: EXEL). Here's why these healthcare companies are worth investing in today. 1. Novo Nordisk Novo Nordisk had been flying high since the beginning of the decade, until it ran into significant clinical and regulatory headwinds last year. Its challenges eventually came to a boiling point and the company parted ways with its longtime CEO, Lars Fruergaard Jørgensen, a decision it announced in mid-May. It's worth noting that Jørgensen led Novo Nordisk through a period of rapid clinical advancements, particularly within its GLP-1 segment. Novo Nordisk's top medicines, Wegovy for weight management and Ozempic for diabetes, continue to deliver excellent results. Jørgensen leaves a solid foundation for the next head of the company to build upon. Given Novo Nordisk's lineup, pipeline, and track record, the stock is likely to recover eventually. Here's one reason why. Despite recent challenges, Novo Nordisk's revenue continues to grow faster than that of almost every similarly sized pharmaceutical company. In the first quarter, net sales totaled 78.1 billion Danish kroner ($11.9 billion), a 19% increase compared to the same period last year. And on the bottom line, earnings per share were 6.53 DKK ($1), up 15% year over year. Meanwhile, Novo Nordisk should continue making moves to remain competitive in the fast-growing anti-obesity market, despite incurring some losses recently to its biggest rival, Eli Lilly. Novo Nordisk recently submitted an application to U.S. regulators requesting approval for an oral version of semaglutide, the active ingredient in Wegovy and Ozempic. Current GLP-1 therapies are typically administered by injection. Novo Nordisk also has several early-stage assets in this field, including a potential triple agonist -- a GLP-1 medicine that also mimics the action of two other gut hormones. Elsewhere, the FDA (U.S. Food and Drug Administration) accepted the company's regulatory application for Wegovy in treating metabolic dysfunction-associated steatohepatitis (MASH) and granted it priority review; it's also under review by regulatory authorities for this indication in Europe. There is only one FDA-approved medicine for MASH, despite the millions of patients affected and the condition's growing prevalence. Lastly, Novo Nordisk is making progress across its pipeline, including in other therapeutic areas, such as Alzheimer's disease, where it has upcoming data readouts. Recent headwinds notwithstanding, the company remains well- positioned to lead in diabetes and obesity care for the long term, while also making strides in other areas. The stock could still deliver superior returns to patient investors. And with shares trading for just under $71 each, $100 can get you one of them. 2. Exelixis Exelixis is an oncology specialist; its most important medicine, Cabometyx, treats some forms of liver and kidney cancer. Some investors have long been worried about Exelixis' overreliance on this drug, and with good reason. In the first quarter, Exelixis' revenue came in at $555.4 million, up 30% year over year; Cabometyx's sales came in at $510.9 million. If something were to happen to this medicine -- like generic competition -- it would be a disaster for the company. Fortunately, Exelixis fended off this threat last year with a significant win in a legal battle against a generic-drug manufacturer, which should keep its cheaper competitor off the market until 2030. Still, Exelixis has continued to grind out indications for its crown jewel. One of the latest was in treating metastatic, well-differentiated pancreatic neuroendocrine tumors, a nod it received in March. Cabometyx has long been one of the top-prescribed cancer medicines of its kind in renal cell carcinoma (kidney cancer), and additional indications have helped it continue to grow its sales. Exelixis should maintain that momentum through the end of the decade. Meanwhile, it's developing other cancer medicines. It tends to target areas of the field with high unmet need, such as metastatic colorectal cancer. Despite being the second leading cause of cancer death worldwide, colorectal cancer is highly treatable when caught early -- but once it has metastasized, five-year survival rates drop. Exelixis is developing zanzalintinib to address this problem. The medicine is being tested in other clinical trials as well. Exelixis' revenue and earnings should maintain a solid upward trajectory as it secures more clinical and regulatory wins. That's how the stock can deliver strong returns. Shares are trading for about $43, so you can grab two of them with $100. Should you invest $1,000 in Novo Nordisk right now? Before you buy stock in Novo Nordisk, 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 Novo Nordisk 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 $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%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 May 19, 2025
Yahoo
a day ago
- Business
- Yahoo
2 Top Stocks to Buy With Less Than $100
Novo Nordisk should perform well thanks to new leadership and a strong underlying business. Exelixis' main oncology franchise is safe for now even as it seeks to develop newer products. 10 stocks we like better than Novo Nordisk › When investing on a budget, buying fractional shares of top companies is one option. Another is to find stocks with relatively affordable price tags per share. Although it's sometimes the case that the most attractive companies quickly draw attention, which bids up their share prices, it's still possible to find promising stocks for well under $100. Two great options right now are Novo Nordisk (NYSE: NVO) and Exelixis (NASDAQ: EXEL). Here's why these healthcare companies are worth investing in today. Novo Nordisk had been flying high since the beginning of the decade, until it ran into significant clinical and regulatory headwinds last year. Its challenges eventually came to a boiling point and the company parted ways with its longtime CEO, Lars Fruergaard Jørgensen, a decision it announced in mid-May. It's worth noting that Jørgensen led Novo Nordisk through a period of rapid clinical advancements, particularly within its GLP-1 segment. Novo Nordisk's top medicines, Wegovy for weight management and Ozempic for diabetes, continue to deliver excellent results. Jørgensen leaves a solid foundation for the next head of the company to build upon. Given Novo Nordisk's lineup, pipeline, and track record, the stock is likely to recover eventually. Here's one reason why. Despite recent challenges, Novo Nordisk's revenue continues to grow faster than that of almost every similarly sized pharmaceutical company. In the first quarter, net sales totaled 78.1 billion Danish kroner ($11.9 billion), a 19% increase compared to the same period last year. And on the bottom line, earnings per share were 6.53 DKK ($1), up 15% year over year. Meanwhile, Novo Nordisk should continue making moves to remain competitive in the fast-growing anti-obesity market, despite incurring some losses recently to its biggest rival, Eli Lilly. Novo Nordisk recently submitted an application to U.S. regulators requesting approval for an oral version of semaglutide, the active ingredient in Wegovy and Ozempic. Current GLP-1 therapies are typically administered by injection. Novo Nordisk also has several early-stage assets in this field, including a potential triple agonist -- a GLP-1 medicine that also mimics the action of two other gut hormones. Elsewhere, the FDA (U.S. Food and Drug Administration) accepted the company's regulatory application for Wegovy in treating metabolic dysfunction-associated steatohepatitis (MASH) and granted it priority review; it's also under review by regulatory authorities for this indication in Europe. There is only one FDA-approved medicine for MASH, despite the millions of patients affected and the condition's growing prevalence. Lastly, Novo Nordisk is making progress across its pipeline, including in other therapeutic areas, such as Alzheimer's disease, where it has upcoming data readouts. Recent headwinds notwithstanding, the company remains well- positioned to lead in diabetes and obesity care for the long term, while also making strides in other areas. The stock could still deliver superior returns to patient investors. And with shares trading for just under $71 each, $100 can get you one of them. Exelixis is an oncology specialist; its most important medicine, Cabometyx, treats some forms of liver and kidney cancer. Some investors have long been worried about Exelixis' overreliance on this drug, and with good reason. In the first quarter, Exelixis' revenue came in at $555.4 million, up 30% year over year; Cabometyx's sales came in at $510.9 million. If something were to happen to this medicine -- like generic competition -- it would be a disaster for the company. Fortunately, Exelixis fended off this threat last year with a significant win in a legal battle against a generic-drug manufacturer, which should keep its cheaper competitor off the market until 2030. Still, Exelixis has continued to grind out indications for its crown jewel. One of the latest was in treating metastatic, well-differentiated pancreatic neuroendocrine tumors, a nod it received in March. Cabometyx has long been one of the top-prescribed cancer medicines of its kind in renal cell carcinoma (kidney cancer), and additional indications have helped it continue to grow its sales. Exelixis should maintain that momentum through the end of the decade. Meanwhile, it's developing other cancer medicines. It tends to target areas of the field with high unmet need, such as metastatic colorectal cancer. Despite being the second leading cause of cancer death worldwide, colorectal cancer is highly treatable when caught early -- but once it has metastasized, five-year survival rates drop. Exelixis is developing zanzalintinib to address this problem. The medicine is being tested in other clinical trials as well. Exelixis' revenue and earnings should maintain a solid upward trajectory as it secures more clinical and regulatory wins. That's how the stock can deliver strong returns. Shares are trading for about $43, so you can grab two of them with $100. Before you buy stock in Novo Nordisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Novo Nordisk 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 $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has positions in Eli Lilly, Exelixis, and Novo Nordisk. The Motley Fool has positions in and recommends Exelixis. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. 2 Top Stocks to Buy With Less Than $100 was originally published by The Motley Fool
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Business Standard
2 days ago
- Business
- Business Standard
Why Ozempic maker Novo Nordisk is losing its lead in weight-loss drugs
In 2023, Novo Nordisk overtook Louis Vuitton Moët Hennessy (LVMH) to become Europe's most valuable company, riding the meteoric rise of its weight-loss and diabetes drugs, Wegovy and Ozempic. But soon after, the Danish firm has seen its dominance slip as rival Eli Lilly surged ahead in drug efficacy, manufacturing, and marketing. Despite controlling 62 per cent of the GLP-1 agonist market, drugs that mimic gut hormones to suppress appetite, Novo Nordisk's share prices have tumbled over 50 per cent in the past year. Internal struggles, product shortages, and clinical trial disappointments have raised doubts about the company's long-term prospects in a market expected to be worth $150 billion annually by 2035, reported The Wall Street Journal (WSJ). Earlier this month, these concerns culminated in a surprise leadership shakeup. The company's controlling foundation forced the ouster of CEO Lars Fruergaard Jørgensen, signalling a growing urgency to course-correct. How Wegovy's underestimation hurt Novo Nordisk's momentum Novo Nordisk's early misstep was a critical underestimation of demand for Wegovy, launched in 2021 as a weight-loss version of its blockbuster diabetes drug Ozempic. Based on the limited uptake of an earlier weight-loss drug, Saxenda, the company prepared for modest sales and used a cautious manufacturing model, blending internal and contract production. But five weeks post-launch, prescriptions for Wegovy exceeded what Saxenda had taken five years to achieve. Instead of scaling up rapidly, Novo responded by limiting supply, urging doctors not to start new patients and rationing lower-dose starter kits to protect supplies for existing users, according to WSJ. This decision had serious consequences. Shortages pushed consumers toward compounded, copycat versions of semaglutide sold at lower prices through US compounding pharmacies. Telehealth platforms capitalised on this gap, offering cheaper alternatives and eating into Novo Nordisk's market share. It is important to note that the firm has recently announced that it plans to bring Wegovy to Indian markets as well. How Eli Lilly capitalised on Novo Nordisk's supply and trial delays Eli Lilly, once trailing in the weight-loss space, quickly filled the supply void. It launched Mounjaro for diabetes in 2022 and followed up with Zepbound, a weight-loss version, in 2023. Zepbound's clinical data showed over 20 per cent body weight reduction, surpassing Wegovy's results. While Lilly also faced supply constraints, it managed to resolve them faster than Novo Nordisk. Today, weekly US prescriptions for Zepbound have overtaken Wegovy's, and Mounjaro is closing in on Ozempic's numbers. Lilly also moved faster on consumer engagement. It launched a direct-to-patient service offering discounted weight-loss drugs and was first to partner with telehealth firm Ro. Novo Nordisk only rolled out similar initiatives months later. Lilly's drug pipeline surges while Novo Nordisk stumbles in trials While Lilly has emerged with a promising R&D pipeline, Novo Nordisk has faced disappointing results. In December, lacklustre trial data for its experimental combination drug CagriSema triggered a 20 per cent plunge in its share value, erasing nearly $100 billion in market capitalisation. Although CagriSema is still in phase 3 trials and has demonstrated weight-loss benefits, it has failed to distinguish itself from existing therapies in head-to-head comparisons. Meanwhile, Eli Lilly's Orforglipron, a once-daily oral GLP-1 agonist, has cleared initial phase 3 trials. Analysts see this as a significant development, as small-molecule oral drugs are typically cheaper and easier to manufacture compared to injectables. Novo Nordisk hopes to bring an oral form of semaglutide (Wegovy) to market by the end of 2025, but it is already perceived as lagging in the next-generation obesity drug race. Eli Lilly, meanwhile, announced earlier this month that a head-to-head clinical trial showed that its obesity drug tirzepatide (sold as Mounjaro) led to greater weight loss in adults than semaglutide (sold as Wegovy). India's anti-obesity drug market quadruples in five years India's anti-obesity drug market has expanded more than fourfold over the past five years, driven by a surge in lifestyle-related diseases, greater affordability, and a growing willingness among affluent consumers to pay for weight-loss treatments. Data from PharmaTrac, an industry tracker, shows the market reached ₹576 crore as of March 2025, up from ₹133 crore in March 2021. The growth has been spearheaded by GLP-1 receptor agonists, particularly semaglutide, which accounts for 69 per cent of the market at ₹397 crore. Novo Nordisk's oral semaglutide pill, Rybelsus, launched in 2022, has emerged as the key growth driver, overtaking older molecules such as orlistat and liraglutide. Also read: However, price remains a key barrier to wider access. Eli Lilly's Mounjaro is priced between ₹14,000 to ₹17,500 per month in India, depending on the dosage, making it unaffordable for most patients outside the top-income bracket. Analysts estimate that even if just 0.5 per cent of India's 101 million diabetics adopt these injectable therapies, the market could generate $1.5 billion in annual revenue. Despite the premium pricing, market experts expect significant expansion post-2026, when semaglutide goes off-patent and generic versions become available. According to Vishal Manchanda, senior vice-president of institutional research at Systematix Group, generics are likely to be priced up to 95 per cent lower, triggering a dramatic rise in volumes. Meanwhile, non-GLP-1 weight-loss drugs continue to maintain a limited footprint. Orlistat holds a market value of ₹72 crore, followed by dulaglutide (₹72 crore) and liraglutide (₹34 crore), according to Pharmarack data. Additionally, scientists have found that certain weight-loss drugs, originally developed to treat type 2 diabetes, might not only help people shed kilos but also significantly lower the risk of obesity-related cancers. Can Novo Nordisk regain its global weight-loss drug dominance? Despite its setbacks, Novo Nordisk is not out of the picture. It has ramped up investment in production, including a $16 billion deal through its foundation to acquire contract manufacturer Catalent. In the US, it recently partnered with CVS to make Wegovy the preferred weight-loss drug under the pharmacy chain's benefit plans. The battle between Novo Nordisk and Eli Lilly is far from over. Both companies dominate the GLP-1 market, and the cost, efficacy, and safety of future therapies will determine how market share evolves.
Mint
3 days ago
- Business
- Mint
How Ozempic's maker lost its grip on the obesity market it created
In 2023, Novo Nordisk was the most valuable company in Europe, surpassing LVMH on the back of soaring demand for Ozempic and Wegovy. Today, the Danish company has lost its grip on the anti-obesity market it carved out. The company has lost market share amid production missteps and a bungled rollout of Wegovy that led to shortages. Its U.S. rival Eli Lilly—initially in the rearview mirror—has been proven to have the more effective weight-loss drug and a more promising pipeline of next-generation treatments. Novo Nordisk's research-and-development machine has disappointed, and a key marketing strategy was slow to get off the ground. Novo Nordisk's ability to stay atop a market that analysts see growing to $150 billion in annual sales is now in doubt. Its controlling shareholder this month forced a surprise ouster of the company's chief executive, Lars Fruergaard Jørgensen. And while it is still generating multibillion-dollar sales for Ozempic and Wegovy, shares have tumbled more than 50% over the past year. If Novo Nordisk doesn't turn things around, it could join a long list of companies that blew a first-mover advantage, from Sunshine Biscuits—whose Hydrox cookies were overtaken by now-iconic Oreos—to the Myspace social network. 'Everyone wants to be the first footprints on the empty beach," said Americus Reed, marketing professor at the Wharton School of the University of Pennsylvania. 'But it depends on how you land on that first move. The second mover is watching them make mistakes. You're able to identify those and not make those mistakes." Lars Fruergaard Jørgensen, who was pushed out as CEO of Novo Nordisk earlier this Nordisk lost market share after miscalculating demand in the launch of weight-loss drug Wegovy. A Novo Nordisk spokeswoman said the company remains the global-volume market leader in GLP-1 drugs, serving nearly two-thirds of patients taking them for diabetes and obesity. Some investors and industry watchers say Novo Nordisk's troubles stem from a cautious, reactive approach starting when the market first burst onto the scene, in contrast with a faster, more aggressive tack in production and marketing by Lilly. 'Novo is always a step behind," said Yuri Khodjamirian, chief investment officer at Tema ETFs, which owns Novo Nordisk shares. One of Novo Nordisk's early stumbles was underestimating the demand for Wegovy—the weight-loss version of semaglutide, the same compound as diabetes drug Ozempic—ahead of its 2021 launch. The company's planning was informed by its experience generating modest sales for an earlier weight-loss drug, Saxenda. Doctors were skeptical of it, and many health-insurance plans in the U.S. didn't cover weight-loss drugs. Novo Nordisk thought Wegovy might run into the same market constraints as Saxenda, so the company planned modest production levels, using a combination of in-house and contract manufacturing capacity. It wasn't enough. It took only five weeks for the prescription rate of Wegovy to exceed the level that Saxenda had taken five years to reach. Jørgensen recalled later, in an interview in 2024, that he initially thought: ''That's patients who've been lined up, there's pent-up demand, it will normalize.' It didn't. It just kept growing." The company responded by limiting demand—the last thing a drugmaker wants to do with a new product. Sales representatives asked doctors not to start new patients. The company resorted to rationing by withholding the lower, starter doses for new patients, to conserve supplies for existing patients taking the higher doses. The shortages opened the door for competition. They made it legal for special pharmacies in the U.S. to make compounded, copycat versions of semaglutide that sold for much less than list prices for Ozempic and Wegovy. Telehealth firms capitalized on the new, lower-cost supply by hawking the compounded versions, taking away market share from Novo Nordisk. Eli Lilly activated a manufacturing plant in Concord, N.C., to keep up with a surge in demand for Mounjaro and Zepbound. The shortages gave rival Eli Lilly time to catch up. Lilly introduced Mounjaro for diabetes in 2022, followed by Zepbound, a weight-loss version of the same drug, in 2023. Zepbound has been shown in studies to induce greater weight loss than Wegovy, more than 20% of body weight. Although Lilly also encountered shortages due to high demand, it was able to resolve them more quickly than Novo Nordisk. Now, weekly U.S. prescriptions for Lilly's Zepbound have surpassed Wegovy's. Mounjaro still trails Ozempic but is closing the gap. Novo Nordisk has spent billions of dollars trying to expand manufacturing capacity, including an unusual deal last year for its controlling foundation to acquire the contract manufacturer Catalent for $16 billion. The R&D race for future weight-loss drugs also has tilted in Eli Lilly's direction. Lilly has reported favorable clinical-trial data for two closely watched experimental drugs, including a pill version that analysts think could be appealing to people who don't want injections. Novo Nordisk, meanwhile, has had some R&D disappointments, including studies of an experimental combination weight-loss drug dubbed CagriSema. The less-than-expected results of one study sent Novo Nordisk shares plunging more than 20% in one day in December, wiping out nearly $100 billion in stock-market capitalization for the company. Some analysts have cut their sales forecasts for the drug. Novo Nordisk's Wegovy has been surpassed in weekly U.S. prescriptions by Lilly's Zepbound. Lilly has gained an edge on the marketing front as well. The company beat Novo Nordisk to the punch in launching a direct-to-consumer, online service selling weight-loss drugs at discounted cash prices, aimed at people who don't have insurance coverage. And it was first to strike a deal with a big telehealth firm, Ro, to sell a discounted weight-loss drug. Novo Nordisk eventually made similar moves, but months after Lilly. 'They seem to be missing a lot of these kinds of strategic endeavors to help sell into a market that is different from a lot of pharma markets," said BMO Capital Markets analyst Evan David Seigerman. The Novo Nordisk spokeswoman said the company resolved its shortages before announcing its direct-to-patient service and striking telehealth deals. Novo Nordisk isn't out of the race. The company can still turn things around by leaning into CagriSema, which generated solid weight-loss data even if it missed expectations, and by developing other new drugs that target various segments of the growing market, Seigerman said. More recently, Novo Nordisk has shown signs of being more aggressive. It signed a deal with CVS to make Wegovy the preferred weight-loss drug for members of its drug-benefit plans. Author Hanne Sindbæk, who has written two books about Novo Nordisk, says there has been an eternal tug of war inside the company between those who are guided by values—the idea that the company works for the common good rather than simply to make a profit—and those who run the business. If Novo Nordisk wants to stay in the game, it may have to lean toward the latter in choosing its next CEO. Jørgensen, the outgoing CEO, is still in his role while the company searches for a new chief. His predecessor as CEO, Lars Rebien Sørensen, who is chairman of the foundation that has voting control of the drugmaker's shares, will join the Novo Nordisk board of directors. 'Now they need somebody more business-driven," Sindbæk said. Write to Peter Loftus at and Noemie Bisserbe at
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
How Ozempic's Maker Lost Its Grip on the Obesity Market It Created
In 2023, Novo Nordisk NVO -2.61%decrease; red down pointing triangle was the most valuable company in Europe, surpassing LVMH on the back of soaring demand for Ozempic and Wegovy. Today, the Danish company has lost its grip on the anti-obesity market it carved out. The company has lost market share amid production missteps and a bungled rollout of Wegovy that led to shortages. Its U.S. rival Eli Lilly LLY -0.80%decrease; red down pointing triangle—initially in the rearview mirror—has been proven to have the more effective weight-loss drug and a more promising pipeline of next-generation treatments. Novo Nordisk's research-and-development machine has disappointed, and a key marketing strategy was slow to get off the ground. Novo Nordisk's ability to stay atop a market that analysts see growing to $150 billion in annual sales is now in doubt. Its controlling shareholder this month forced a surprise ouster of the company's chief executive, Lars Fruergaard Jørgensen. And while it is still generating multibillion-dollar sales for Ozempic and Wegovy, shares have tumbled more than 50% over the past year. If Novo Nordisk doesn't turn things around, it could join a long list of companies that blew a first-mover advantage, from Sunshine Biscuits—whose Hydrox cookies were overtaken by now-iconic Oreos—to the Myspace social network. 'Everyone wants to be the first footprints on the empty beach,' said Americus Reed, marketing professor at the Wharton School of the University of Pennsylvania. 'But it depends on how you land on that first move. The second mover is watching them make mistakes. You're able to identify those and not make those mistakes.' A Novo Nordisk spokeswoman said the company remains the global-volume market leader in GLP-1 drugs, serving nearly two-thirds of patients taking them for diabetes and obesity. Some investors and industry watchers say Novo Nordisk's troubles stem from a cautious, reactive approach starting when the market first burst onto the scene, in contrast with a faster, more aggressive tack in production and marketing by Lilly. 'Novo is always a step behind,' said Yuri Khodjamirian, chief investment officer at Tema ETFs, which owns Novo Nordisk shares. One of Novo Nordisk's early stumbles was underestimating the demand for Wegovy—the weight-loss version of semaglutide, the same compound as diabetes drug Ozempic—ahead of its 2021 launch. The company's planning was informed by its experience generating modest sales for an earlier weight-loss drug, Saxenda. Doctors were skeptical of it, and many health-insurance plans in the U.S. didn't cover weight-loss drugs. Novo Nordisk thought Wegovy might run into the same market constraints as Saxenda, so the company planned modest production levels, using a combination of in-house and contract manufacturing capacity. It wasn't enough. It took only five weeks for the prescription rate of Wegovy to exceed the level that Saxenda had taken five years to reach. Jørgensen recalled later, in an interview in 2024, that he initially thought: ''That's patients who've been lined up, there's pent-up demand, it will normalize.' It didn't. It just kept growing.' The company responded by limiting demand—the last thing a drugmaker wants to do with a new product. Sales representatives asked doctors not to start new patients. The company resorted to rationing by withholding the lower, starter doses for new patients, to conserve supplies for existing patients taking the higher doses. The shortages opened the door for competition. They made it legal for special pharmacies in the U.S. to make compounded, copycat versions of semaglutide that sold for much less than list prices for Ozempic and Wegovy. Telehealth firms capitalized on the new, lower-cost supply by hawking the compounded versions, taking away market share from Novo Nordisk. The shortages gave rival Eli Lilly time to catch up. Lilly introduced Mounjaro for diabetes in 2022, followed by Zepbound, a weight-loss version of the same drug, in 2023. Zepbound has been shown in studies to induce greater weight loss than Wegovy, more than 20% of body weight. Although Lilly also encountered shortages due to high demand, it was able to resolve them more quickly than Novo Nordisk. Now, weekly U.S. prescriptions for Lilly's Zepbound have surpassed Wegovy's. Mounjaro still trails Ozempic but is closing the gap. Novo Nordisk has spent billions of dollars trying to expand manufacturing capacity, including an unusual deal last year for its controlling foundation to acquire the contract manufacturer Catalent for $16 billion. The R&D race for future weight-loss drugs also has tilted in Eli Lilly's direction. Lilly has reported favorable clinical-trial data for two closely watched experimental drugs, including a pill version that analysts think could be appealing to people who don't want injections. Novo Nordisk, meanwhile, has had some R&D disappointments, including studies of an experimental combination weight-loss drug dubbed CagriSema. The less-than-expected results of one study sent Novo Nordisk shares plunging more than 20% in one day in December, wiping out nearly $100 billion in stock-market capitalization for the company. Some analysts have cut their sales forecasts for the drug. Lilly has gained an edge on the marketing front as well. The company beat Novo Nordisk to the punch in launching a direct-to-consumer, online service selling weight-loss drugs at discounted cash prices, aimed at people who don't have insurance coverage. And it was first to strike a deal with a big telehealth firm, Ro, to sell a discounted weight-loss drug. Novo Nordisk eventually made similar moves, but months after Lilly. 'They seem to be missing a lot of these kinds of strategic endeavors to help sell into a market that is different from a lot of pharma markets,' said BMO Capital Markets analyst Evan David Seigerman. The Novo Nordisk spokeswoman said the company resolved its shortages before announcing its direct-to-patient service and striking telehealth deals. Novo Nordisk isn't out of the race. The company can still turn things around by leaning into CagriSema, which generated solid weight-loss data even if it missed expectations, and by developing other new drugs that target various segments of the growing market, Seigerman said. More recently, Novo Nordisk has shown signs of being more aggressive. It signed a deal with CVS to make Wegovy the preferred weight-loss drug for members of its drug-benefit plans. Author Hanne Sindbæk, who has written two books about Novo Nordisk, says there has been an eternal tug of war inside the company between those who are guided by values—the idea that the company works for the common good rather than simply to make a profit—and those who run the business. If Novo Nordisk wants to stay in the game, it may have to lean toward the latter in choosing its next CEO. Jørgensen, the outgoing CEO, is still in his role while the company searches for a new chief. His predecessor as CEO, Lars Rebien Sørensen, who is chairman of the foundation that has voting control of the drugmaker's shares, will join the Novo Nordisk board of directors. 'Now they need somebody more business-driven,' Sindbæk said. Write to Peter Loftus at and Noemie Bisserbe at
