by By Maggie Fick and Jacob Gronholt-Pedersen
London/Copenhagen (Reuters) -Danish drug maker Novo Nordisk faces a major challenge for his Blockbuster Weight loss Medicine Wegovy.
The flourishing sale of Wegovy ensured that the company becomes the most valuable in Europe, but since half past year it has lost more than $ 400 billion in market capitalization if competition from the American rival Eli Lilly and Co and Copycat Rivals has hardened.
The company, which reports results in the second quarter on Wednesday, has appointed a new CEO, veteran Insider Maziar Mike Doustdar, who will take the reins on Thursday, and now it must be skeptical to turn over the company’s fortune.
Here are some of the challenges that the company is confronted with, because it seems to strengthen the sale and to ward off challengers after a profit warning led to a share price routed last week.
Wegovy vs Zepbound
Novo has brought Eli Lilly’s rival medicine Zepbound this year in terms of recipes in the most important American market. With Wegovy, Novo was the first-market with a very effective obesity treatment, which was approved in the US in 2021. Lilly launched Zepbound at the end of 2023.
Loss of land
NOVO has seen its stock price valleys versus rivals in the past year.
PLIDE VALUE PLAY
That has reduced its price ratio in line with colleagues. It had previously ordered a wide premium.
Rise
The drug maker has seen the costs because it has spent billions to expand production and sales capacity.
No longer top dog
NOVO, valued at $ 650 billion in June last year, has since dropped more than two -thirds of its value. The latest market capitalization is around $ 212 billion.
(Reporting by Maggie Fick and Jacob Gronholt-Pedersen; Edit by Adam Jourdan and Nick Zieminski)
