Wegovy maker Novo Nordisk’s shares plunge as it cuts sales forecast
Guardian2 days
Novo Nordisk Cuts Forecasts, Names New CEO Amid Competition
Above: Still life of Wegovy. Image copyright: Michael Siluk/UCG/Getty Images
The Spin
Narrative A
Novo Nordisk faces legitimate competitive pressures from illegal compounding pharmacies that continue operating despite FDA restrictions. These copycat drugs undermine fair competition and patient safety while allowing competitors like Eli Lilly to gain market share through aggressive direct-to-consumer strategies.
Narrative B
The company's problems run much deeper than US competition, with analysts noting Novo underestimated the self-pay obesity market and was too slow to focus on cash-paying patients. The appointment of an internal CEO candidate suggests lack of fresh strategic thinking needed for this challenging period.