Novo Nordisk only expects revenue growth of 8 to 14 percent for this year against constant exchange rates, while previously aimed at 13 to 21 percent. Due to the weakening of the dollar rate, growth in Danish crowns will be a lot lower. Perhaps even more shocking, the reduction of the prognosis for the operational profit margin is from 16 to 24 percent to 10 to 16 percent.
Eli Lilly catches on Novo Nordisk with weight loss drugs: ‘worrying that there is no successor to Ozempic yet’
The profit warning is mainly related to the deteriorated prospects for the sale of its weight loss drugs Wegovy and Ozempic in the US. Novo Nordisk suffers from the growing competition of Mounjaro and Zepbound, which are sold by the American giant Eli Lilly. Moreover, smaller competitors with less effective but clearly cheaper medicines try to conquer a piece of this lucrative market.
New top man
NOVO Nordisk announced the appointment of a new CEO at the same time as the profit warning. Maziar Mike Doustdar replaces Lars Fruildaard Jørgensen on August 7, who had recently announced his departure. The company is making various other personnel changes and organizational changes in its research branch.
Popularity slimming agents causes explosive rise healthcare costs: “Are we going to give a large group of lifelong expensive medication?”
Racing
The stock market of the Danish and American stock market Navo Nordisk has been halved since last year because of its disappointing operational performance and his inability to develop improved versions of his weight loss agents. Due to today’s profit warning, more than a fifth of the stock price is going. Eli Lilly loses more than 4 percent on Wall Street, which indicates that investors fear that the market leader will also lower his expectations.