Novo Nordisk plans to launch at least five new "multi-blockbusters" by the end of the decade as part of an ambitious plan to stoke growth and counter slowing sales. Wall Street wasn't buying it.
The Danish drugmaker, which shortened its brand name to Novo last week, laid out its vision at its capital markets day on Monday. In addition to the "multi-blockbusters"-drugs generating over $1 billion each in peak annual sales-Novo aims to have around a dozen candidates in late-stage trials by 2030.
Weight-loss medications remain central to that strategy. Novo has slated the launch of its CagriSema injectable for early next year, followed in 2028 by high-dose CagriSema and standalone cagrilintide-one half of the combination therapy alongside semaglutide. The company then plans to advance another candidate, zenagamtide. Chief Scientific Officer Martin Holst Lange noted that Novo intends to launch both oral and injectable versions of zenagamtide simultaneously rather than staggering the rollouts.
Still, the updates failed to reassure investors. Skeptics questioned whether next-generation treatments could command premium prices after semaglutide loses major patent protection in the early 2030s.
The company indicated it plans to lean on dealmaking to stoke growth. Novo said Monday that its balance sheet could support larger acquisitions rather than the small, bolt-on deals typical of the industry.
Management also clarified that its target to deliver over 150 billion Danish kroner (roughly $23 billion) in pipeline drug sales by 2035 excludes any potential contributions from future acquisitions. Total sales last year were 309.06 billion kroner.
Chief Financial Officer Karsten Munk Knudsen admitted to Barron's last month that the company was exiting a "rough patch." The 2021 arrival of Wegovy propelled Novo's market capitalization above $600 billion. Then, in 2024, shares peaked above $140 as demand for Novo's GLP-1 medications surged.
However, the stock has declined steadily since then, driven partly by competition from Zepbound maker Eli Lilly. Analysts widely consider Lilly the leader in a two-player weight-loss market. Faced with slowing sales growth, Novo has enacted sweeping restructuring and cost-cutting measures under CEO Mike Doustdar including 13,000 layoffs.
The drugmaker's U.S.-listed shares slid 4.6% in premarket trading Monday to $41.25. Lilly stock was down 0.7%.