Novo Shares Plunge on Shock Weight-Loss Drug Forecast скачать в хорошем качестве

Novo Shares Plunge on Shock Weight-Loss Drug Forecast

Novo Nordisk A/S shares plunged after the company shocked investors by forecasting a steep decline in sales, evidence of an intensifying price war in obesity drugs.Sales will fall by as much as 13% this year, the company said Tuesday. Pressure from lower prices for its blockbuster weight-loss drugs, in part due to the US government's push to cut prices, will contribute to the decline. The shares fell as much as 20% in early Copenhagen trading, the biggest intraday decline since July, more than wiping out the previous gains for this year. Sam Fazeli, Director of Research at Bloomberg Intelligence joins Stephen Carroll and Caroline Hepker to discuss.  Novo Nordisk A/S shares plunged after the company shocked investors by forecasting a steep decline in sales, evidence of an intensifying price war in obesity drugs. Sales will fall by as much as 13% this year, the company said Tuesday. Pressure from lower prices for its blockbuster weight-loss drugs, in part due to the US government’s push to cut prices, will contribute to the decline. “It really paints a picture of a challenged Novo,” Lars Hytting, head of trading at ArthaScope, an investor in the Danish drugmaker, said in an interview. “Even the most skeptical analyst” didn’t anticipate this big of a drop, he said.  The shares fell as much as 20% in early Copenhagen trading, the biggest intraday decline since July, more than wiping out the previous gains for this year. The company’s market value has fallen to about $215 billion from more than $600 billion in 2024, when it became Europe’s most valuable company. Novo’s warning reflects mounting competition in the fast-growing market for weight-loss drugs, as it fights for market share with Eli Lilly & Co. and telehealth companies selling cheaper copycat versions of their drugs. It also highlights how drugmakers are under pressure from President Donald Trump to lower pharmaceutical costs for many Americans. The Trump administration in November announced steep discounts for Novo’s blockbuster drugs Ozempic and Wegovy sold to Medicare, the federal health insurance program for the elderly. Those prices go into effect in 2027.  The surprisingly downbeat outlook deepens the challenges facing Chief Executive Officer Mike Doustdar, who has moved to cut jobs and instill a more performance-oriented culture at Novo after it lost its early lead in the market for revolutionary weight-loss treatments that have generated billions of dollars in sales and attracted growing competition. “While today you see negative growth on the financial numbers, I see a lot of positive growth on the other side of the business,” said Doustdar on Bloomberg TV on Tuesday, hailing the success of the recent launch of the Wegovy pill. He said Novo’s main aim is now to stay focused on its transformation and develop new drugs. Management changes are already taking place with Dave Moore, who headed the US business for a year, leaving to be replaced by Jamey Millar, who is currently at UnitedHealth Group and has also worked at GSK Plc. Novo also appointed Hong Chow to lead product and portfolio strategy starting Feb. 15. She most recently oversaw the China and international business for Merck Healthcare, part of Merck KGaA in Germany. Novo’s annual sales last fell in 2017 amid a price war over insulin in the US. The company is trying to fend off competition on multiple fronts, with rival Lilly’s shot Zepbound taking leadership in the US market and generic copies of Ozempic likely to emerge in international markets this year.  The company wil face “unprecedented pricing pressure” this year, Doustdar said on a call with media Wednesday. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X:   / bloombergradio   Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts:    / bloombergpodcasts   Bloomberg Television:    / @markets   Bloomberg Originals:    / bloomberg   Quicktake:    / @bloombergquicktake