Novo Nordisk Fights to Reclaim Obesity Drug Market Amid Declining Sales

Novo Nordisk anticipates a sales decline in 2023, facing competition from Eli Lilly's Zepbound in the obesity drug market. Under new CEO Mike Doustdar, the company plans to regain market share with its new Wegovy pill and strategic advertising, despite a 50% drop in its share price.

Novo Nordisk, the pharmaceutical powerhouse behind Wegovy, forecasts a challenging year ahead with expected sales declines amidst stiff competition. On Tuesday, the company announced its ongoing battle to reclaim its stature in the obesity drug sector from competitor Eli Lilly.

The Danish firm, under the leadership of newly appointed CEO Mike Doustdar, is redoubling efforts to restore its commanding position in the market. This comes after Eli Lilly's Zepbound surpassed Wegovy in U.S. prescriptions, contributing to a staggering 50% drop in Novo Nordisk's share value. The company is optimistic about its latest Wegovy pill and aims to leverage aggressive advertising strategies to regain lost ground.

"Projected pricing challenges loom for Novo Nordisk by 2026 in a fiercely competitive environment," Doustdar stated, emphasizing confidence in volume growth driven by the promising U.S. launch of the Wegovy pill. Nevertheless, Novo anticipates a sales decline of between 5% and 13% at constant exchange rates this year, contrasting with the 10% growth observed last year.

(With inputs from agencies.)