Latest news with #Ozempic-maker
Yahoo
2 days ago
- Business
- Yahoo
The Ozempic boom could be bad news for restaurants as more than half of GLP-1 users report cutting back on dining out, report finds
GLP-1 users taking drugs like Ozempic and Wegovy are spending less on eating at restaurants and on take-out dinners, according to a new report from Bloomberg Intelligence. Changing eating habits add to a growing number of headwinds the hospitality industry is facing as a result of slow pandemic recovery and tariff-induced economic uncertainty. As restaurants grapple with how diners are responding to economic uncertainty, they may also have to contend with consumer pull-backs as a result of the rise of drugs like Ozempic and Wegovy. GLP-1 users are significantly cutting back on dining in and ordering takeout, according to a report published this week by Bloomberg Intelligence. A survey of 1,000 GLP-1 users in the U.S. found 54% of respondents said they dined out 'significantly less' or 'less' frequently since starting the medication. Nearly the same percentage reported ordering less take-out. Respondents instead are choosing to eat at home, with 70% of them reporting they're cooking at home 'significantly more' or 'more' frequently since taking GLP-1 drugs, and about half reported purchasing more groceries. GLP-1 drugs, with the ability to help some users lose weight quickly, have skyrocketed in popularity. About 4% of Americans are taking some form of GLP-1 drug for weight-loss or to treat type 2 diabetes, a 600% increase in usage from six years ago, according to May data from FAIR Health. The drugs increase insulin levels and decrease glucose levels, slowing how quickly food is digested and suppressing users' appetites. Suppressed hunger has led to some users cutting down portion sizes or needing to focus on eating nutrient-dense foods, which may deter them from dining in restaurants. Bloomberg Intelligence's research adds to growing evidence of GLP-1 users losing their appetite for dining out. A Morgan Stanley survey from April 2024 found nearly two-thirds of GLP-1 users said they spent less money at restaurants, while 31% said they cut back on groceries. The trends have led to some food companies making changes to products to account for GLP-1 users' changing appetites. In October 2024, Smoothie King added a line of high-protein and fiber products particularly for those on the medication. The year before, Nestle announced it would develop 'companion products' for GLP-1 users, should those consumers need to cut calories. GLP-1 drugmakers have taken note of some companies' anxiety. In February 2024, Lars Fruergaard Jørgensen, the CEO of Ozempic-maker Novo Nordisk, said he was fielding calls from 'scared' food company executives about the impact of the drug on the industry. The Bloomberg Intelligence report notes the dining out slowdown among GLP-1 users could be exacerbated by other economic pressures. The decrease in away-from-home dining was reported significantly across incomes, from those earning less than $50,000 to those with $150,000 or greater annual salaries, indicating a broader shift in dining trends. The report also posited that restaurants serving fewer healthy options like fast-food could be most impacted by changing eating habits. Indeed, it's not just evolving dining habits that the restaurant industry has had to contend with. The hospitality sector has had to navigate the impact of greater economic headwinds, including a widespread labor shortage that never quite recovered from the pandemic, as well as growing uncertainty about tariffs, which have led consumers confidence to plunge. Campbell's CEO Mick Beekhuizen said in an earnings call this week canned soup sales are soaring, likely a result of tighter food budgets and consumers deciding to cook at home instead of going out to eat. 'We started to see consumer sentiment softening in January,' he said. 'This continued throughout [the quarter] with consumers making more deliberate choices with their spending on food. A key outcome is a growing preference for home-cooked meals, leading to the highest levels of meals prepared at home since early 2020.' Hospitality industry experts have noted that Gen Z is also cutting back on their order sizes bysplitting appetizers, ordering kids' meals, and skipping out on alcohol to save money. Despite evidence that GLP-1 users are significantly cutting back on restaurant dining, some restaurateurs have shrugged off concerns about the drug's impact on business. Michael Osanloo, president and CEO of Portillo's Restaurant Group told Bloomberg TV last year GLP-1 use taking a bite out of the restaurant business could be a coastal problem, not one for the U.S. Midwest. 'It's totally overblown,' Osanloo said. 'I think it's a fun narrative to propose, but I don't see any impact on our business.' This story was originally featured on
Yahoo
16-05-2025
- Business
- Yahoo
From insulin to Ozempic, history of Novo Nordisk's CEOs
(Reuters) -Ozempic-maker Novo Nordisk on Friday ousted its CEO Lars Fruergaard Jorgensen over concerns the company is losing its first-mover advantage in the competitive obesity drug market to American rival Eli Lilly. The company has had five CEOs in its more than 100 years of history. Jorgensen, who joined in 2017, has had the shortest tenure of all. Here is a timeline of the company with respect to its CEOs: - 1920s-2000 Danish couple August and Marie Krogh founded Nordsik Insulinlaboratorium in 1923 and commercialized the production of insulin. The company competed with Novo Terapeutisk Laboratorium, which was founded by brothers Harald and Thorvald Pedersen, until the two merged in 1989. Knud Hallas Molle was Novo's second CEO from 1961 to 1981. During that time, both companies pursued and developed techniques to produce pharmaceutical products using fermentation. Mads Ovlisen served as CEO of Novo and Novo Nordisk after its merger from 1981 to 2000. In 1982, Novo marketed Human Monocomponent Insulin, and in 1987, the first human insulin products were made using genetically engineered yeast cells. Novo launched the NovoPen - the first insulin pen device in 1985. 2000–2017 Lars Rebien Sorensen becomes CEO after serving as the head of Novo's healthcare business. The company's enzymes business was spun off as a separate company, Novozymes A/S in 2000. In 2004, Levemir – a long-acting modern insulin – was launched. Under Sorensen, the company develops its first GLP-1 drug, a precursor to Ozempic and Wegovy. Liraglutide, a GLP-1 product for treatment of type 2 diabetes, enters phase 3 trials. Novo Nordisk launches its first GLP-1 product, liraglutide, branded as Victoza in 2009 in Europe and in 2010 in the U.S. In 2013, Novo Nordisk's semaglutide starts global phase 3 trials. In December 2016, it files semaglutide for regulatory approval in the U.S. and the EU, based on the results from the six trials. 2017-present In January 2017, Lars Fruergaard Jorgensen became CEO decades after joining the company as a graduate. In December 2017, Ozempic, also known as semaglutide, gets approved in the U.S. for diabetes, the first once-weekly GLP-1 drug. Wegovy, which uses the same active ingredient as Ozempic, gets approved in the U.S. as a treatment for obesity in June 2021. In November 2023, U.S. and UK regulators approved Eli Lilly's rival weight-loss treatment Zepbound, after the company's diabetes drug was launched in 2022. In December 2024, Novo Nordisk's next-generation obesity drug shows lower-than-expected weight loss in a late-stage study, dealing a blow to its ambitions for a successor to Wegovy that is more powerful than rival Lilly's Zepbound. On May 16, Novo Nordisk says Jorgensen will step down, citing recent market challenges and a slide in the stock since mid-2024. Jorgensen says in an interview with Danish broadcaster TV2 that he did not see the decision coming and was only informed very recently.
Yahoo
16-05-2025
- Business
- Yahoo
From insulin to Ozempic, history of Novo Nordisk's CEOs
(Reuters) -Ozempic-maker Novo Nordisk on Friday ousted its CEO Lars Fruergaard Jorgensen over concerns the company is losing its first-mover advantage in the competitive obesity drug market to American rival Eli Lilly. The company has had five CEOs in its more than 100 years of history. Jorgensen, who joined in 2017, has had the shortest tenure of all. Here is a timeline of the company with respect to its CEOs: - 1920s-2000 Danish couple August and Marie Krogh founded Nordsik Insulinlaboratorium in 1923 and commercialized the production of insulin. The company competed with Novo Terapeutisk Laboratorium, which was founded by brothers Harald and Thorvald Pedersen, until the two merged in 1989. Knud Hallas Molle was Novo's second CEO from 1961 to 1981. During that time, both companies pursued and developed techniques to produce pharmaceutical products using fermentation. Mads Ovlisen served as CEO of Novo and Novo Nordisk after its merger from 1981 to 2000. In 1982, Novo marketed Human Monocomponent Insulin, and in 1987, the first human insulin products were made using genetically engineered yeast cells. Novo launched the NovoPen - the first insulin pen device in 1985. 2000–2017 Lars Rebien Sorensen becomes CEO after serving as the head of Novo's healthcare business. The company's enzymes business was spun off as a separate company, Novozymes A/S in 2000. In 2004, Levemir – a long-acting modern insulin – was launched. Under Sorensen, the company develops its first GLP-1 drug, a precursor to Ozempic and Wegovy. Liraglutide, a GLP-1 product for treatment of type 2 diabetes, enters phase 3 trials. Novo Nordisk launches its first GLP-1 product, liraglutide, branded as Victoza in 2009 in Europe and in 2010 in the U.S. In 2013, Novo Nordisk's semaglutide starts global phase 3 trials. In December 2016, it files semaglutide for regulatory approval in the U.S. and the EU, based on the results from the six trials. 2017-present In January 2017, Lars Fruergaard Jorgensen became CEO decades after joining the company as a graduate. In December 2017, Ozempic, also known as semaglutide, gets approved in the U.S. for diabetes, the first once-weekly GLP-1 drug. Wegovy, which uses the same active ingredient as Ozempic, gets approved in the U.S. as a treatment for obesity in June 2021. In November 2023, U.S. and UK regulators approved Eli Lilly's rival weight-loss treatment Zepbound, after the company's diabetes drug was launched in 2022. In December 2024, Novo Nordisk's next-generation obesity drug shows lower-than-expected weight loss in a late-stage study, dealing a blow to its ambitions for a successor to Wegovy that is more powerful than rival Lilly's Zepbound. On May 16, Novo Nordisk says Jorgensen will step down, citing recent market challenges and a slide in the stock since mid-2024. Jorgensen says in an interview with Danish broadcaster TV2 that he did not see the decision coming and was only informed very recently.
Yahoo
16-05-2025
- Business
- Yahoo
Ozempic boss sacked after falling behind in weight-loss race
The boss of the drugs giant Novo Nordisk has been sacked after falling behind in the global race to develop weight-loss medication. Lars Fruergaard Jørgensen said he was 'surprised' that the Ozempic-maker's largest shareholder, the Novo Nordisk Foundation, had decided to remove him. 'I did not see this coming,' he told told Danish broadcaster TV2. Under Mr Jørgensen's leadership, Novo Nordisk for a time became Europe's most valuable company amid sky-rocketing sales of its treatments, which include Wegovy. Its fast-paced growth also saw it give a significant boost to Denmark's gross domestic product (GDP). However, shares in the business have fallen more than 50pc over the past year, wiping around 2.2 trillion Danish krone (£244bn) off its market valuation, amid intensifying competition in the obesity drug market. Shares fell as much as 4.6pc on Friday after the announcement of Mr Jørgensen's impending departure. This embedded content is not available in your region. The company said: 'Considering the recent market challenges, the share price decline, and the wish from the Novo Nordisk Foundation, the Novo Nordisk board and Lars Fruergaard Jørgensen have jointly concluded that initiating a CEO succession is in the best interest of the company and its shareholders.' Mr Jørgensen will continue in the job to 'support a smooth transition to new leadership', with the search for a successor under way. Lukas Leu, portfolio manager at Novo shareholder Bellevue Asset Management, said the chief executive's departure was 'unexpected and not too good'. Evan Seigerman, an analyst at BMO Capital Markets, said he was 'not surprised' by the move after the decline in Novo's share prices but warned it was 'less clear on how a new CEO will be able to address these challenges'. Novo Nordisk has been rocked by a series of setbacks in recent months, including underwhelming results in a trial for its next-generation obesity drug. It emerged in December that a late-stage trial for its CagriSema drug showed lower-than-expected weight loss, dealing a blow to its attempts to release a more effective successor to its Wegovy weight-loss jab. Meanwhile, on Sunday US rival Eli Lilly revealed its drug Zepbound was superior to Wegovy across five weight-loss targets such as reducing waist circumference, following a head-to-head trial. Zepbound helped nearly 25pc more participants lose more than 15pc of their weight compared to Wegovy, Lilly said. Novo Nordisk responded by saying 'obesity is about more than just a number on a scale', adding that Wegovy is the only medicine in its class that is approved to prevent major cardiovascular events such as heart attack. The obesity drug market is estimated to reach more than $150bn (£113bn) annually by the next decade. Mr Jørgensen first joined Novo Nordisk as a graduate in 1991 before being made chief executive in January 2017. Novo Nordisk initially developed semaglutide, the active ingredient in both Ozempic and Wegovy, as a treatment for diabetes, before discovering its effectiveness as a weight-loss drug. It came as Denmark's business minister warned of the effect of Donald Trump's attempts to force down US pharmaceutical prices on drug companies. Morten Bodskov said: 'There is no doubt that what Donald Trump has said about pharmaceuticals is just another step in the wrong direction. 'It creates more uncertainty, it creates new barriers to our trade and it is in every way the wrong way to go.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
RTÉ News
16-05-2025
- Business
- RTÉ News
Novo Nordisk's CEO to step down amid market struggle
Wegovy and Ozempic-maker Novo Nordisk said today its CEO Lars Fruergaard Jorgensen will step down over concerns the company is losing its first-mover advantage in the highly competitive obesity drug market. Under Jorgensen's leadership, Novo Nordisk became a world leader in the weight-loss drug market, with sky-rocketing sales of its Wegovy and Ozempic treatments which propelled its share price to become Europe's most valuable listed company. However, its shares have plunged since hitting a record-high in June last year as competition, particularly from US rival Eli Lilly, makes inroads into its market share and as its pipeline of new drugs has failed to impress investors. "The changes are made in light of the recent market challenges Novo Nordisk has been facing, and the development of the company's share price since mid-2024," Novo said in a statement. Eli Lilly's US prescriptions for its Zepbound obesity shot have surpassed Wegovy since mid-March in its biggest market. Jorgensen, 58, who has been CEO since 2017, will remain in the role until a new CEO has been appointed, the company said. Former CEO of Novo Nordisk for 16 years and current chair of the Novo Nordisk Foundation, Lars Rebien Sorensen, will join the board as an observer with immediate effect with the aim of taking a seat at the next annual general meeting, Novo said. Novo Nordisk is controlled by the Novo Nordisk Foundation through its investment arm which owns 77% of the voting shares. "Considering the recent market challenges, the share price decline, and the wish from the Novo Nordisk Foundation, the Novo Nordisk Board and Lars Fruergaard Jorgensen have jointly concluded that initiating a CEO succession is in the best interest of the company and its shareholders," Novo Nordisk said. Novo Nordisk's share price fell on the news, trading 3% lower this lunchtime, after trading 4% higher earlier in the day. The shares are down 32% year-to-date and 59% from the all-time high in June last year.
