Novo Nordisk CEO Warns About Patent Risk for Wegovy and Ozempic
On September 21, Novo Nordisk's CEO Mike Doustdar addressed a key risk during the company’s Capital Markets Day in London. He openly discussed the potential loss of exclusivity (LOE) for semaglutide, the active ingredient in Wegovy and Ozempic—two blockbuster drugs that account for about 75% of Novo Nordisk's revenue. The U.S. patent on semaglutide is set to expire in 2032, raising concerns among investors over future earnings growth. The CEO’s candid remarks led to a sharp market reaction: the company’s stock dropped nearly 8%, marking its largest single-day decline in six months and adding to an annual loss of about 22%. The drop reflects investor anxiety given Novo Nordisk's heavy reliance on these two products, particularly in the U.S. market which contributed more than half of global sales last year. Analysts noted that while some of Doustdar’s comments were expected—such as a projected annual revenue growth rate of 3.6% until 2030—the lack of clarity around next-generation medicines and competitive pressures from rivals like Eli Lilly further weighed on investor confidence.
Topics: Investor relations Patent expiration Pharmaceuticals Semaglutide