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Mint
4 hours ago
- Business
- Mint
Can this under-the-radar company cash in on the $150 bn weight-loss drug boom?
Weight-loss drugs such as Ozempic and Wegovy have shaken up global pharma. With proven outcomes and rising demand, the segment could hit $150 billion by 2035. It's no surprise that companies across the healthcare chain are rushing to get a piece of the action. Onesource Specialty Pharma Ltd, which demerged from Strides Pharma Science Ltd and listed on 24 January 2025, wants it, too. The company is building capacity, developing complex products, and onboarding global customers. Revenue from weight-loss drug supplies is expected to start in 2025-26, with scale-up by 2026-27. So, is this newly listed contract development and manufacturing organization (CDMO) just getting started, or is the rally already pricing it in? Let's break it down. India's first pure-play specialty pharma CDMO Onesource is India's first pure-play specialty pharmaceutical CDMO. It focuses on the development and manufacturing of complex, high-value pharma products and biologics. Also Read: Amrit Bharat boost: Stocks to benefit from station modernisation Its integrated capabilities include biologics, drug-device combinations, complex injectables, and oral technologies like soft gelatin capsules. Currently, it has the capacity to produce over 100 million sterile doses and 2,400 million capsules annually. However, this is expected to grow. The company plans to double its sterile capacity to over 200 million in the next three to four years. Around 90–95% of its sales are consumed in the US and the European Union, with the remaining coming from other global markets. The company benefits from strong customer stickiness, with 75% of its business coming from repeat orders. However, this concentration in regulated developed markets also brings risks—any shifts in regulatory policies, trade tariffs, or pricing controls in the US or the EU could materially impact growth. Riding the miracle weight-loss drug wave Onesource is well-positioned to benefit from three major industry tailwinds. The most prominent is the rapid rise of GLP-1 drugs, known for effectiveness in treating Type 2 diabetes and obesity. The second is the pending Biosecure Act—a proposed US legislation that aims to reduce dependence on Chinese pharma supply chains. If approved, non-China partners like Onesource could benefit from increased demand to manufacture drugs. The third driver is the recent acquisition of a large CDMO player (name undisclosed) by a pharma major, which has further tightened supply for outsourced could allow companies like Onesource to take on more business. Within GLP-1, the loss of exclusivity—patent expiry—presents a long-term opportunity for players like Onesource with drug-device combination (DDC) capacities, which integrate both drugs and medical devices into a single unit. Onesource has strong DDC capabilities, which could help meet the rising demand for fill-finish and assembly services from generic entrants. It has witnessed a notable increase in the request for proposals (RFPs), with over 39 RFPs at various stages of discussion. Building capabilities for next-gen GLP-1 drugs Within business segments, Onesource is a pioneer in DDC (including GLP-1s) solutions with a full-service model. This segment has nine molecules in its portfolio, including GLP-1s, biologics, and small molecules. It has 17 customers, including four out of the top five global generics. Also Read: Four stocks to watch as India's space economy eyes $44 billion by 2033 The DDC, including the GLP-1 drug market, is projected to grow at over 20% CAGR—$5 billion in FY23 to $12 billion in FY28. With marquee global generics as clients and a growing molecule pipeline, Onesource is well-positioned to benefit. Onesource uses automatic machines by Bausch + Ströbel filling lineto fill, close, and package pharma products like vials, syringes, and bottles. This is crucial for ensuring the safety and quality of GLP-1 drugs. In addition, it has over 20 advanced machines that can be customised to handle different types of injectable drugs, like GLP-1. This setup helps the company manufacture drugs as per global quality standards. Doubling DDC capacity to meet rising demand Customer trust is strong across service offerings, particularly in DDCs, where Onesource has executed nearly 50 projects, including GLP-1s and others. It has 10+ DDC projects, which will convert into supply agreements, with approvals expected in H2FY26. In addition, it has 15+ DDC projects, which are expected to be commercialised in a staggered manner during FY26-28. One of these—a DDC product approved in the US and Europe—is expected to go commercial in FY26. To capitalise on the opportunity, Onesource is doubling its DDC capacity from 40 million units to over 90 million by Q3FY26. Capacity is being scaled up in line with customer forecasts and expected patent expiry over the next 2-3 years. A second plant is planned by end-FY26, which will again double capacity. These products have higher per-unit realisations, though volumes may not match GLPs. However, even with moderate volumes, these high-value projects are expected to contribute meaningfully to near-term revenue growth. While DDC volumes remain modest, GLP-1 drugs are expected to scale rapidly. Morgan Stanley estimates that obesity drug penetration could rise to 10% by 2035, from just 1% currently, translating to a $70 billion opportunity. Three GLP-1 molecules lined up for commercial supply Here's where it gets interesting. Onesource has lined up three GLP-1 molecules—Molecule A, Molecule B, and Molecule C—each with signed Master Service and Clinical Supply Agreements. Also Read: This luggage leader is staging a turnaround. But can it overcome its baggage? For Molecule A, key customers include three of the top five global generic players. Commercial supplies began in Q4FY25, and full revenues will start flowing from FY26. Meanwhile, Molecule B—with two of the top three generics as key clients—will begin production in FY26. Revenue contribution will start after the launch in various markets. In contrast, Molecule C will come into play only after exclusivity ends in 2036. Even so, Onesource has already secured supply agreements for it with the top three generics—a strong signal of future demand. Global launch potential from patent expiry is a key trigger The big trigger is the expiry of the Semaglutide patent—a key GLP-1 molecule used in weight-loss drugs such as Ozempic and Wegovy—in over 100 countries, including Canada, Brazil, Saudi Arabia, and India. Patent expiries are expected in Q4FY25 and Q4FY26, enabling commercial supplies in these markets. FY27 is likely to be the first full year of sales for Semaglutide in many of these regions. Many clients have already paid reservation fees and entered into take-or-pay agreements—a sign of confidence in execution and like Brazil and Canada are underpenetrated, with less than 1% penetration in Brazil and 4-5% in Canada. According to management, generics entering these markets could drive market expansion by 10–12 times in Brazil and 4–5 times in Canada. With Molecule A expected to contribute fully from FY26, this ongoing fiscal could be a pivotal year for Onesource. Capex-led capacity ramp-up on track With supply agreements already secured with the top generic players, the company is investing about ₹850 crore in expanding capacity for DDC-related development and commercialisation. This will be funded via internal accruals, partner contributions, and debt. Clients are also paying advances to reserve capacity, which also reduces execution risk. Most of this expansion is expected to be completed within 12–18 months, aligned with the timeline of supply agreements. Current projects are based in India, though the company is evaluating overseas expansion, both organically and inorganically. Profitability and margin boost in FY25 The numbers speak for themselves. Revenue rose 33% from last year to ₹1,445 crore in FY25, driven by 16 new DDC projects, expansion into softgel CDMO services, and new product launches. Ebitda more than doubled, up 104% to ₹466 crore, with a product mix shift towards high-value biologics and DDCs. Margins expanded by 11.6 percentage points to 32%, aided by better capacity utilisation and operational synergies. It also posted a net profit of ₹93 crore, its first profitable year. With 15 new customer additions and strong repeat business, the company expects growth from FY26 onwards to be significant. With new capacity expected to go live in FY26, asset turnover is expected to increase from 1.9 (FY25) to 2.5 in the near term and 3.0 in steady state. With strong asset turnover, the company expects revenue to grow at a compounded annual growth rate (CAGR) of over 30%, from ₹1,445 crore in FY25 to ₹3,378 crore in FY28. As economies of scale kick in with higher production, Ebitda is expected to grow at a 40% CAGR—from ₹466 crore to ₹1,331 crore. With higher operational efficiency, the company estimates margin to expand from 32% to 40%, and return on capital employed from 23% to 50% in steady state. In addition to DDCs and GLP-1s, Onesource is also perfectly placed to tap other emerging drug markets. Biologics, a fast-growing class of medicines derived from living organisms, is expected to grow at 14% CAGR from $20 billion (in FY23) to $38 billion in FY28. Similarly, the soft gelatin market is also expected to grow at a 9% CAGR from $12 billion to $18 billion. With one of the largest installed capacities in the top five globally, Onesource is well placed to capture this growth. Valuation reflects growth potential The company trades at an EV/Ebitda multiple of 43, which is higher than peers—Neuland Labs (41), Piramal Pharma (19), and Blue Jet Healthcare (36). On FY27E EV/EBITDA of 15x, the stock appears more reasonably priced. However, much of the near-term valuation hinges on the execution of its expansion plans and actual earnings delivery. Having said that, the opportunity comes with risk. Most of the CDMO revenue in FY25 came from services provided during the pre-approval or filing phases before the product is commercialised. Therefore, risks such as products being dropped and the lack of approvals can derail the growth story. Other risks include higher competition and a long gestation period. About the author: Madhvendra has over seven years of experience in equity markets and has cleared the NISM-Series-XV: Research Analyst Certification Examination. He specialises in writing detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. Disclosure: The writer does hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
CNBC
4 hours ago
- Business
- CNBC
A ‘perfect storm' has set this sector up to benefit if Trump's tariffs go ahead, Bank of America says
U.S. President Donald Trump's tariffs regime has rocked international markets in recent weeks, sparking massive selloffs and rallies in stocks across the globe. Certain tariff-sensitive stocks, such as those in the autos, mining and pharmaceuticals sectors, have seen particularly volatile trade. In a Wednesday ruling , however, the U.S. Court of International Trade blocked the Trump administration from imposing his so-called reciprocal tariffs . Still, many experts expect that the government will manage to circumvent the ruling – which it has already appealed against – and forge ahead with its trade policies. One European sector could be poised for upside even if the new import duties are enacted, according to Sebastian Raedler, Bank of America's head of European equity strategy. "The main contrarian trade right now is to be overweight [on] pharma in Europe," he told CNBC's "Squawk Box Europe" on Thursday. "This is a defensive sector that hasn't participated at all in the defensive outperformance we saw earlier [this year]." While some sectors typically seen as safe investments amid market turbulence – like utilities – have seen huge gains in Europe this year, the regional Stoxx Pharmaceuticals index has shed almost 5%. Raedler told CNBC that European pharmaceuticals had "collapsed on the basis of … a perfect storm" – but he argued investors had significantly overpriced the risk Trump's tariffs posed to the sector. " Novo [Nordisk] collapsed . The [U.S.] dollar was weak. You had the fear of sector-specific tariffs . You had the fear of lower drug prices in the U.S.," he said. "As a consequence, you now have the lowest valuations since 2009." However, he said that for the region's pharma sector to outperform, there needed to be "some form of global growth slowdown." "So we will see whether the tariffs still come through. If there's any damage from the tariffs, if there's any slowdown, pharma is miles away from pricing that," he said. "Investors have really given up on the sector." Tariffs aside, Raedler argued that investors were underestimating major industry player Novo Nordisk . "You're effectively pricing for them not even to get the cash flow from the existing product, let alone any upgrade that they can do in terms of oral product," he said, referring to the company's blockbuster weight loss drugs like Wegovy. "You're basically pricing a scenario where [U.S. competitor] Eli Lilly eats the whole market, and Novo doesn't get anything." Copenhagen-listed shares of Novo Nordisk have lost almost 30% of their value since the beginning of the year. 'Rich pickings' in Switzerland Elsewhere, Swiss stocks could be well-positioned for upside, Raedler said, noting that the country's equities were "close to a record low relative to the European market." This was, in part, because of the country's large pharmaceuticals industry, he added. "Over the past month, cyclical as well as defensives in Europe are at a 30-year high, that means it's not just pharma that weighs on the Swiss market. It's also food and beverages," he said. "Risk premia are back to the lows, plus you've got the idiosyncratic pharma story. So the key question is, [we've] had for three years a global cycle that hasn't slowed. Will you finally get the slowdown? If so, there are very rich pickings in the Swiss market, in pharma and in food and beverage."
Business Times
8 hours ago
- Health
- Business Times
Singapore chef of Michelin-starred restaurant sheds over 30kg: How he and others sustain their weight loss
[SINGAPORE] Han Li Guang, chef of Michelin-starred restaurant Labyrinth, is used to eating good food. A lot of it. 'In the past, my wife would always scold me when we went overseas. I'd book two fine-dining meals a day. We'd barely finish one, and go for dinner already. And I always over-ordered – rich, fatty food,' he says. 'Nowadays, I book only one fine-dining meal once every two or three days while on holiday.' And for a top chef, his meals today are downright repetitive – revolving around rice, chicken breast, eggs and prawns. His commitment to his cause – triggered just before his 2022 wedding – led to his weight falling from a peak of 94 kg to a low of 62.5 kg earlier this year. Hitting the gym six days a week, he also brought his body fat down to just 9.5 per cent, but he is now on a bulking phase to gain more muscle mass. It may sound like too much of a challenge, but for Han and others like him, traditional weight-loss methods involving diet, exercise and sheer determination beat any quick fixes. Chef Han Li Guang when his weight loss was stagnating at around 80 kg (left), and after he started working out with a personal trainer. PHOTO: MATTHEW LU/ABDUL TSAQIF/INSTAGRAM/HAN_LG Feeling healthier, happier and mentally stronger are just some of the benefits these adherents gain. They also learn about nutrition and correct common misconceptions about food and exercise. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up Injectables good, lifestyle changes better The Singapore 2021/2022 National Population Health Survey found that about one in nine residents (11.6 per cent of the population) aged 18 to 74 were obese, up from about one in 10 (10.5 per cent) in 2019/2020. Obesity was more common among males, and highest among adults aged 40 to 49. Injectables using glucagon-like peptide 1 agonists (GLP-1s) – Ozempic is an example – are drugs for treating Type 2 diabetes, but have been making headlines for successfully kickstarting weight loss by suppressing appetite. GLP-1s such as Saxenda and Wegovy have been approved for weight-loss treatment in Singapore. But patients have to meet certain criteria and can get these drugs only through prescriptions from licensed medical professionals. Boxes of Ozempic and Wegovy. PHOTO: REUTERS It is important to know that these are not lifestyle products or quick fixes for those seeking to slim down. The findings of a meta analysis of 11 studies of older and newer GLP-1 weight loss drugs by the University of Oxford, presented at the European Congress on Obesity this month, noted that users regained all the weight they lost within two years of cessation. Of course, there is still an important role for these medications. There is now a better understanding of how complex weight loss is and why certain individuals are more susceptible to being overweight, making weight-loss for them an uphill battle, says Dr Joel Foo, medical director at ATA Medical. This is why drugs like GLP-1s are game-changers for patients, especially in the control of blood sugar levels in diabetics. 'Weight loss at its crux is really about the treatment of metabolic syndrome, nothing more,' says Dr Foo. After some time, drug-induced weight loss typically plateaus. To make weight loss sustainable, behavioural changes involving exercise and eating habits are pivotal, especially when the patient is coming off GLP-1s. 'That's why the use of such medications really requires a lot of hand-holding,' adds the doctor, who says he used to be 'a fat kid' put through the now-defunct weight-loss Trim and Fit programme in school. What is unknown about the use of GLP-1s is how exactly they affect muscle loss and changes in body composition, says Dr Naras Lapsys, chief clinical officer and senior dietitian at Chi Longevity. He has a doctorate in molecular genetics and spent the first decade of his career studying obesity before becoming a consultant dietitian. 'Taking these medications alone without thinking about your resistance exercise, protein intake and the risks they may have on your body composition are probably some of the many issues that need to be addressed,' he says, noting that losing muscle mass is detrimental. Personal trainer Titus Toh points out that a calorie-deficit diet will cause weight loss, but an 80 kg male with 5 per cent body fat looks 'wildly different' from one with 25 per cent body fat. 'You lose fat by building muscle and there are many benefits to that, but the obvious one is that metabolism is increased, so the body can sustain itself better. People always look for the quickest or most convenient method, but whatever is built to last is often not achieved quickly.' Slow and steady – with accountability Han admits the first three months of his weight-loss journey were the hardest, especially when it came to eating: 'Fifty per cent of the battle is won in the gym, and the other 50 per cent, outside of it.' But once he got the hang of his diet – planned by Toh – and understood the science behind food, 'it was easy' building it into his lifestyle. And that includes handling dinner invitations and the 'many good meals' that come his way. No matter how late his day ends, Chef Han Li Guang exercises first thing the next morning. PHOTO: INSTAGRAM/HAN_LG 'There's a lot of discipline on my end,' he says, noting that he still tastes his restaurant's food, does research and development, and often travels for work. So he stays accountable by tracking his caloric intake with the popular MyFitnessPal app, looks for hotels with gyms and brings protein shakes along. And no matter how late his day ends, he exercises first thing the next morning. 'I'm 40, I'm married. Why am I doing all this? To feel good about myself. I want to be fit mentally and physically, I want it natural and sustainable, so my lifestyle can incorporate what I'm doing as a chef and restaurant owner. Health should be a long-term decision.' Similarly, it was a slow and arduous journey for Bernard Soh, who was overweight for most of his life. Soh weighed 99 kg and had high blood pressure and sugar levels before the Covid pandemic struck. His doctor offered him Saxenda, but he declined, wary of possible side effects and other complications. Instead, the senior manager at Dolby Laboratories chose to exercise. 'During the pandemic, there's only so much Netflix you can watch, so I tried walking a bit just to get some fresh air.' The walking became running, and Soh was soon challenging himself. 'Once you start dropping a few kilos, it really motivates you to do even more.' He read up on nutrition, learning how to eat better and exercise right, tracking his progress as he went along. Like Han, his biggest challenge was food – or lack thereof. He was hungry every night and struggled to fall asleep. 'I was really messed up because my blood sugar level was very low ,and I'd wake up extremely moody.' So he drank tea to fill his 'very big' stomach and contain his hunger. 'These are psychological things, and I needed to accept the hunger and refrain from snacking. This took a long time, six to nine months for me. It was very, very hard.' But in time, his body adjusted to the lower caloric intake. He began to feel better. This is a huge contrast to the past, when he ate whatever he could conveniently get his hands on. 'It's like 'I'm going to settle a hunger problem now'. So, anything goes. I don't know how many dinners and suppers I used to have (every night).' Today, the 46-year-old tracks his diet and exercise six days a week, even though his regional role requires him to travel two to three weeks in every month. At his thinnest, he weighed 66.7 kg, but he is now 75 kg, bulking up for muscle growth. He enjoys running, something he could never imagine himself saying before. 'I used to take taxis everywhere. But now, I'd gladly walk 2 km home from my gym.' It helps that staying accountable and tracking calorie-consumption has become easier and more convenient. Financial-services consultant Desmond Fu worked out at least five days a week and shed some 20 kg from his 78 kg frame in 2009. Realising he could lose weight, the 49-year-old began focusing on building muscle, which he needed to do to reduce his level of body fat. That was when he turned to Welling AI, an app by a Singapore-based startup which works like a virtual nutrition coach powered by artificial intelligence. Financial-services consultant Desmond Fu at his heaviest. PHOTO: DESMOND FU The 49-year-old is now at a healthier weight. PHOTO: DESMOND FU Having used it since Chinese New Year, Fu, who says he puts on weight easily, discovered how 'very innocent-looking snacks' can be extremely calorie-dense. By actively adjusting his food choices to stay within his calorie count, the father-of-four now weighs 61.5 kg. Welling AI's co-founder, technopreneur Philip Man, says the app – launched in August 2024 – was trained on Asian food data. Users log meals via photos, voice or text and get calorie and macronutrient estimates. Personalised feedback, aligned with the user's goals, takes the form of 'positive reinforcement' and meal suggestions. Welling AI's app is trained on Asian food data. PHOTO: WELLING Users of Welling AI get personalised feedback in the form of 'positive reinforcement' and meal suggestions. PHOTO: WELLING The app now has a few thousand paid subscribers and is averaging 50 to 60 per cent month-on-month growth. 'Becoming mindful about what you're eating is a much better long-term habit that will get you into general health than a quick fix,' says Man. A cause greater than weight-loss It is often the struggle with sticking to a diet and exercise plan that leads many to give up. 'First of all, acknowledge that making changes is often difficult,' suggests Dr Lapsys. 'Weight loss is a long and slow process. So it's better to make one or two changes and bed them down as successful habits before taking on more. Frame the small changes you make not as sacrifices, but as alternatives that are compelling, or find upsides to the changes you've made. That's a very good starting point.' For Toh, it is most important to keep purpose in mind. 'Understand why you're doing what you're doing,' he emphasises. 'If you put the aesthetic part aside, it's more about leading a healthy lifestyle. Shouldn't it be a norm to know what and exactly how much you're putting into your body, instead of being judged for bringing your own home-prepped meal when eating out? It's funny how when you choose to take control of your health and diet, you get criticised, when it should be the other way round.' Besides, when one knows how to track food consumption and incorporate different food sources, there is still flexibility within meal plans, he says. Indeed, a common refrain is that one should not be too harsh on oneself. 'If you're consistent 80 per cent of the time, I think it's fine,' says Fu. 'It retains your sanity. I mean, I still eat ice cream. I just make up for it and work within my calorie budget.' Adds Soh: 'I used to be very precise about the metrics. And sometimes, it's very hard to track when you're travelling. But after a while, you roughly know the correct portions. I try to meet the goal and sometimes, I fluctuate a bit, but it's fine.' The good thing is, the health benefits of weight loss also come with less-obvious perks. For instance, his blood work results are now good; he feels more confident and enjoys buying clothes. 'Previously, I had to look for XL- or XXL-sized clothes, and felt very discouraged. But now, size M is big enough. These are the small victories people don't know about.' The physical change has also given him greater mental strength. 'I have become more focused and determined. I used to look for the easiest way out of every situation and avoided making difficult decisions, especially when I was tired. But today, I think 'Whether it's good or bad, I'll see this through'. So it has really helped me in terms of changing my mentality.' At the end of the day, Han says weight loss 'doesn't have to be painful'. 'You just have to be very disciplined and mindful about what you're eating. I'm a chef. I'm exposed to all this good food. So the good news is: if I can do it, others can too.'
Reuters
10 hours ago
- Business
- Reuters
Wegovy maker Novo faces fee demand after losing copycat drug lawsuit
May 29 (Reuters) - (Billable Hours is Reuters' weekly report on lawyers and money. Please send tips or suggestions to opens new tab) Danish drugmaker Novo Nordisk ( opens new tab is facing a request for hundreds of thousands of dollars in attorney fees after a judge dismissed its lawsuit against a Florida pharmacy for selling products containing semaglutide, the active ingredient in its blockbuster weight-loss and diabetes drugs Wegovy and Ozempic. U.S. District Judge William Jung in Tampa, Florida, dismissed Novo's lawsuit, opens new tab against Brooksville Pharmaceuticals earlier this month, dealing the company a setback in a wave of similar lawsuits against compounding pharmacies that sold semaglutide-containing drugs. Brooksville's lawyers this week asked the judge to award them more than $439,000 in attorney and expert fees, opens new tab and costs after fighting off Novo's claims that it violated a state law barring sales of adulterated and misbranded drugs. Compounded drugs are custom-made medicines that are based on the same ingredients as branded drugs. Federal regulations allow compounded versions to be sold to meet demand if a drug is in short supply. Both Wegovy and Ozempic were on the U.S. Food and Drug Administration's drug shortage list from March 2022 to February 2025. Jung ruled in part that the Danish drugmaker's claims were rendered moot after the FDA declared that the shortages for Ozempic and Wegovy were over. The judge also found that Novo failed to find any patient who was actually harmed by Brooksville's compounded drug, a point that was emphasized by the pharmacy's lawyers at Frier Levitt in their Tuesday fee request. "Novo was not aware of any instances of patient harm caused by Brooksville's semaglutide compounds. And yet, Novo continued to pursue litigation even after it became clear that its case was without merit," the fee motion said. Novo said in a statement that its lawsuit against Brooksville Pharmaceuticals was dismissed "as a legal matter," and asserted that U.S. law prohibits compounders from making or selling "knockoff 'semaglutide drugs' with rare exceptions." "Moving forward, any compounder that mass produces or sells knockoff drugs is breaking the law and compromising patient safety," the company said. A spokesperson for Novo did not immediately respond to a request for comment. Matthew Modafferi, a lawyer for the pharmacy at Frier Levitt, declined to comment on the fee petition. Analysts forecast that the obesity drug market could be worth as much as $150 billion by the early 2030s. Both Novo and Eli Lilly (LLY.N), opens new tab have waged an active campaign to crack down on medical spas, weight-loss clinics, compounding pharmacies and online sellers in a bid to stop them from selling products claiming to contain the active ingredients in their drugs. Novo said it has filed nearly 120 lawsuits across 34 states, and obtained 28 final judgments and permanent injunctions. The case before Jung is at least the fourth lawsuit Novo has filed and lost over compounded versions of its weight-loss drug in the Middle District of Florida. One of the defendants, Wells Pharmacy Network, sought more than $250,000 in attorney fees and costs for winning its case in the lower court. But U.S. Magistrate Judge Philip Lammens denied the request, opens new tab, finding it was premature for Wells Pharmacy to seek attorney fees while Novo was pursuing an appeal. – Alphabet's Google (GOOGL.O), opens new tab and chipmaker Qualcomm (QCOM.O), opens new tab are keeping teams of lawyers who have defected from large U.S. law firm Paul Weiss, court records show. Karen Dunn, Jeannie Rhee, William Isaacson and Jessica Phillips split from Paul Weiss last week, after it struck a deal with the Trump White House in March to lift an executive order targeting the firm's legal business operations. The four attorneys and their new firm Dunn Isaacson Rhee are defending Google in the U.S. government's lawsuit accusing it of illegally monopolizing digital advertising markets. Other Paul Weiss attorneys are still on the matter, as are teams from law firms Freshfields and Axinn Veltrop. Google declined to comment, and it has denied any wrongdoing. Dunn and Isaacson separately are continuing to represent Qualcomm in a lawsuit in the federal court in Delaware, court records show. A group of Paul Weiss lawyers are also on that case. Isaacson and Phillips remain on the defense team for Ultimate Fighting Championship in an antitrust lawsuit with Latham & Watkins and other Paul Weiss lawyers, a filing, opens new tab showed this week. The attorneys declined to comment. Paul Weiss did not immediately respond to a request for comment. – Outdoor advertising giant Clear Channel (CCO.N), opens new tab has asked a federal judge in Manhattan to award it $3.1 million in fees following a five-year legal battle with the city of New Rochelle, New York over the ownership of its 16 billboards within the city limits. Clear Channel said its lawyers from Chicago-founded Sidley Austin spent roughly 3,800 hours litigating its 2020 lawsuit against New Rochelle's "attempted, unconstitutional taking" of its billboards. The lawsuit, filed in 2020, alleged that New Rochelle sought to remove the company's billboards without due process or compensation and gave those licenses to one of Clear Channel's competitors, which paid New Rochelle millions for exclusivity rights. Sidley said in a court filing, opens new tab that its requested hourly rates of up to $1,400 for senior partners are "significantly below" the firm's standard rates for work in the Southern District of New York. A Clear Channel spokesperson did not immediately respond to a request for comment, nor did the city of New Rochelle's lawyers at New York law firm Harris Beach Murtha. Read more: US agencies face fees over faulty cases, Ford seeks $300 million from lemon law lawyers Settlements mount against law firm caught up in bankruptcy judge's secret romance Amazon, Apple seek legal fees as sanction in US consumer lawsuit
Yahoo
10 hours ago
- Business
- Yahoo
Novo Nordisk's 52% Plunge: Is the Company Fumbling Its Leadership in the $150 Billion Weight Loss Market?
Novo Nordisk's upcoming weight loss drugs could struggle to stand out among an increasingly competitive field. Investors should be careful not to assume anything. The pharmaceutical industry is unpredictable. Novo Nordisk is still the industry leader, and its lower share price offsets a lot of the risks investors see today. 10 stocks we like better than Novo Nordisk › Nothing attracts competition like the opportunity for profits, and the weight loss drug market has become arguably the healthcare industry's hottest opportunity in recent memory. Novo Nordisk (NYSE: NVO) has enjoyed tremendous success with semaglutide, the proprietary drug in Ozempic and Wegovy. However, competition is picking up with multiple next-generation drugs working through clinical testing. The market is worried about Novo Nordisk's grip on the weight loss market, evidenced by the stock plummeting over 52% from its mid-2024 high. Does Wall Street have it wrong, or is Novo Nordisk fumbling a generational growth opportunity? Here is what you need to know. Research by Morgan Stanley estimates the weight loss market could grow from roughly $15 billion last year to approximately $150 billion by 2035. GLP-1 agonists are currently the drug of choice, which slow digestion and suppress the patient's appetite. Novo Nordisk has an estimated 62% market share of the GLP-1 agonist market, with archrival Eli Lilly accounting for another 35%. Investors are looking ahead to next-generation drugs that could deliver better results with fewer side effects. That includes next-generation injectable treatments and pill-form drugs, which most patients probably prefer to a needle. Novo Nordisk hopes to receive regulatory approval to market and sell its semaglutide weight loss drug Wegovy in pill form by year-end. Meanwhile, CagriSema, currently in phase 3 clinical trials, is the company's next-generation injectable drug. However, it has struggled to stand out from existing treatments in late-stage clinical tests. Will these products maintain Novo Nordisk's weight loss leadership? It's hard to tell. Eli Lilly's orforglipron has performed well in its initial phase 3 clinical testing. It's an oral pill and the first small-molecule GLP-1 agonist to pass a phase 3 study, which is potentially significant because small-molecule drugs are generally easier and cheaper to manufacture. There are dozens of weight loss drugs in various development stages across the industry, so competition is coming. Novo Nordisk's competitors were never going to stand and watch it dominate a $150 billion opportunity, but that doesn't necessarily mean Novo Nordisk will lose its crown. Investors have grown afraid of competition, but the drug development process is extremely daunting. Far more drugs fail the regulatory process than reach the market. Pfizer, a fellow pharmaceutical heavyweight, had hopes to crack the weight loss market with its oral GLP-1 agonist danuglipron, but it abandoned development in April after it potentially caused a liver injury in a patient during clinical tests. Several factors ultimately decide which treatments patients choose, including efficacy, price, and side effects. In other words, it's probably unfair to conclude what will happen until these new and upcoming drugs have been on the market for a while. Novo Nordisk and Eli Lilly may continue to dominate market share, though they could trade blows, and the balance between them could shift. Still, investors and the market have assumed that Novo Nordisk will ultimately cede market share. Analysts have dramatically lowered their long-term earnings growth estimates for Novo Nordisk. But here is the good news -- the stock already reflects these lower expectations. Novo Nordisk trades at a price-to-earnings (P/E) ratio of 20 today, down from roughly 50 over the summer. Even if the market is correct and Novo Nordisk grows by an average of 14% annually, today's valuation is still attractive for that growth. That wouldn't be the case at 50 times earnings, but its current PEG ratio of 1.4 is an attractive price tag for an industry leader in a high-growth industry like this. There are always risks in the pharmaceutical business. Novo Nordisk could suffer an unexpected setback or drug failure, or a competitive drug could be so good that it tilts the balance of the weight loss market away from Novo Nordisk. Still, Novo Nordisk is a proven industry leader and probably deserves some more faith until proven otherwise. Barring a worst-case scenario, the stock has a good shot to work out well for long-term investors from these discounted prices. 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The Motley Fool has a disclosure policy. Novo Nordisk's 52% Plunge: Is the Company Fumbling Its Leadership in the $150 Billion Weight Loss Market? was originally published by The Motley Fool Effettua l'accesso per consultare il tuo portafoglio
