Novo Nordisk trims outlook as obesity drug maker loses ground to Eli Lilly

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ground to U.S. peer Eli Lilly and copycat rivals.Novo's shares whipsawed through the day, sliding and then rising on a better-than-expected Medicare pricing deal in the U.S., before eventually falling back as its new CEO struggled to win investors over to his plans to claw back lost market share."Lilly is winning quite meaningfully at the moment," Jefferies analyst Michael Leuchten told Reuters, adding that management's message had not been strong enough after a weak quarter with sales and profits just below forecast."It's obviously, blatantly clear in that top-line miss."NOVO NORDISK FACING 'A LOT OF HEADWINDS'CEO Mike Doustdar, who took over in August, is driving a turnaround plan to fight back against Eli Lilly, which posted far stronger results last week and raised its 2025 guidance.Surging demand for Wegovy - the first in a new class of GLP-1 weight-loss drugs - propelled Novo to become Europe's most valuable firm, worth as much as $650 billion in June 2024.But sales growth has slowed sharply amid competition from Lilly's Zepbound and compounded copycat drugs made from the same ingredients, prompting Novo's shares to plunge about 70%, a change of CEO, and a board shake-up. Novo is also in a takeover battle with U.S. rival Pfizer for biotech Metsera.Doustdar said the Danish company was expanding its direct-to-consumer sales in the U.S. and was confident it would win the bidding with Pfizer for Metsera. Novo has bid $10 billion for the firm to help bolster its obesity drug pipeline."Overall, I didn't find management's tone to be overly optimistic," said Markus Manns, portfolio manager at Novo shareholder Union Investment, citing challenges over pricing, tighter U.S. insurance budgets, and patent expiries."If you add it up, that's a lot of headwinds over the next two years."'WHEN THERE'S A LION CHASING YOU'Novo said unlawful mass compounding of GLP-1 drugs expanded in the third quarter, and there were now "well above" a million patients using the copycat versions in the United States, its U.S. chief Dave Moore said on a call with analysts.The firm had said in May it expected Wegovy sales to begin to recover once a ban on compound copycats was enforced that month, but said on Wednesday this had still not happened.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,720.32 -75.97 (-1.12%)Dow 3046,912.30 -398.70 (-0.84%)Nasdaq23,053.99 -445.80 (-1.90%)Russell 20002,418.82 -45.96 (-1.86%)VIX19.50 +1.49 (+8.27%)Gold3,990.20 -0.80 (-0.02%)PortfolioSign in to access your portfolioSign inTop gainersHAE Haemonetics Corporation 67.11 +16.39 (+32.31%)APPN Appian Corporation 38.36 +9.03 (+30.79%)LFST LifeStance Health Group, Inc. 6.25 +1.44 (+29.94%)BHF Brighthouse Financial, Inc. 65.70 +13.90 (+26.83%)DDOG Datadog, Inc. 190.82 +35.84 (+23.13%)Top losersELF e.l.f. 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