More than 60 billion euros (£52 billion) has been wiped off the stock market value of Ozempic and Wegovy weight loss drug firm Novo Nordisk after it warned over sales and profits as competition ramps up in the US.
Novo Nordish saw shares plunge by over a fifth following the alert, with the group slashing its guidance for sales growth to 8% to 14%, down from the previous range of 13% to 21% given in May.
It now expects earnings to rise by between 10% and 16%, down from guidance for 16% to 24% in May.
Investors took little comfort from the Danish group’s announcement also on Tuesday that it has appointed a new chief executive, with current executive vice-president of international operations, Maziar Mike Doustdar, taking on the top job next week.
Mr Doustdar, who will also become president, takes over from Lars Fruergaard Jorgensen, who announced in May he would step down after the firm’s shares had plummeted in value.
Novo Nordisk, said the profit warning came as a result of “persistent use” of compounded – or copycat – versions of its drugs, as well as “slower-than-expected market expansion and competition”.
It has faced intense competition from Eli Lilly’s rival weight loss jab Mounjaro, as well as what it blasted as “unsafe and unlawful mass compounding” in the market as weight loss and diabetes drugs have soared in popularity.
The group said it was taking action, including litigation, against “knockoff” semaglutide drugs.
Wegovy and Ozempic are semaglutide drugs, while Mounjaro is another weight loss treatment called tirzepatide.
“Novo Nordisk is deeply concerned that, without aggressive intervention by federal and state regulators and law enforcement, patients will continue to be exposed to the significant risks posed by knockoff ‘semaglutide’ drugs made with illicit or inauthentic foreign active pharmaceutical ingredients,” Novo said.
The group will publish half-year results on August 6.
