Novo Nordisk is trying to convince the market that it can still maintain growth even after losing its key market exclusivity for semaglutide. However, following this week's capital market events, investors are not fully convinced of the Danish pharmaceutical company's new strategy, and the focus has shifted to whether the company can rebuild trust through subsequent performance and research and development results.

The market is concerned about the ability to continue after the patents expire.

Novo Nordisk has become a global leader in weight loss medications thanks to Ozempic and Wegovy, but the core ingredient of these two products, semaglutide, will gradually lose its exclusive rights in some key markets in the early 2030s. In recent years, the company has invested billions of dollars in expanding production on one hand, and on the other hand, it has accelerated the development of its next generation of product lines.

The company's CEO, Mike Doustdar, stated that the market reaction indicates that the company still needs to continue building investor trust, and this process must be accomplished through financial and research results quarter after quarter.

Jefferies pointed out that despite the company's proposal for a diversified product portfolio, its product mix remains heavily reliant on the obesity treatment business. Against the backdrop of semaglutide facing patent pressures, this concentration remains a major concern for the market.

From Focusing on the Core to Expanding the Territory Again

After taking office last year, Doustdar emphasized streamlining operations and focusing resources on the areas of diabetes and obesity. Now, the company has proposed to expand into areas such as cardiovascular diseases, liver diseases, and blood disorders, which has led to doubts from the outside world about whether there has been a shift in its strategy.

Doustdar denied that this was a "u-turn." He stated that upon taking office, he found that aside from diabetes and obesity, the early-stage research and development assets had grown rapidly over the past few years, while the progress of the core pipeline was relatively stable. Therefore, it was necessary to re-focus the company on its core therapeutic areas at that time. With the unveiling of a new batch of early-stage projects this week, the company believes that it can now expand its scope of operations once again.

He also stated that mergers and acquisitions may play a greater role in addressing weaknesses in non-core areas in the future. The company has not ruled out further acquisitions in the areas of obesity or diabetes, but is more likely to look for transaction opportunities outside of its traditional strengths.

Oral medications and multi-product lines become the focus of investment.

Novo Nordisk believes that in the future, the weight loss drug market may not be dominated by a single product. In addition to the degree of weight loss, side effects, muscle preservation, additional benefits for other diseases, convenience of use, and whether it is taken orally or by injection, all of these factors will influence the choices of patients and doctors.

The company's R&D director stated that truly competitive enterprises need a broader product line, rather than relying on a single drug. Novo Nordisk is currently developing products with milder weight loss effects and fewer side effects, as well as more potent drugs, and treatment plans for muscle preservation and obesity-related diseases.

• CagriSema is scheduled to be launched in 2027.
• The monotherapy version cagrilintide is being advanced.
• The new generation of oral medications includes zenagamtide.

Management also emphasized that oral weight loss drugs are an underappreciated aspect of the company's offerings. The company stated that among patients in the United States who have started using the oral version of Wegovy, over 80% had not previously used GLP-1 therapy, indicating that the oral form is clearly attractive to new users.

According to the company's plan, by 2030, the production capacity of its weight loss oral medications is intended to cover ten times the current number of people, and it also plans to launch four additional oral obesity treatment projects before that time.

However, the market is still waiting for these ideas to be transformed into verifiable results. Citibank believes that the performance of Wegovy oral medications in markets outside the United States will become an important test of this strategy. The bank also remains cautious about long-term pricing and competitive landscape, and maintains a neutral rating on Novo Nordisk's stock.