The Novo Nordisk weight loss challenge in five tables

By Maggie Fick, Jacob Gronholt-Pedersen and Bhanvi Satija

LONDON/COPENHAGEN, Dec 23 (Reuters) – Novo Nordisk has won U.S. regulatory approval for its diet pill, giving the Danish maker a chance to regain lost ground to rival Eli Lilly.

Wegovy’s booming sales helped the company become Europe’s most valuable publicly traded company, but it has lost more than $400 billion in market capitalization since mid-2024 due to intensifying competition from Lilly and its copycat rivals.

The pill’s approval, which came late Monday, could spark a much-needed rebound for Novo ⁠after a bruising year‌of falling stocks, profit warnings and slowing Wegovy sales.

Novo aims to turn around its fortunes under new CEO Mike Doustdar, who took the helm in August, and has since announced 9,000 job cuts worldwide to cut costs and refocus the company.

Here are some of the challenges Novo faces as it seeks to strengthen sales and fend off competitors:

WEGOVY AGAINST ZEPBOUND

Eli Lilly’s rival drug Zepbound has overtaken Novo’s Wegovy in prescriptions in the key U.S. market this year. With Wegovy, Novo was the first to market with a highly effective obesity treatment, which was approved in the United States in 2021. Lilly launched Zepbound in late 2023.

LOSE GROUND

Novo’s share price has fallen sharply relative to its competitors over the past year.

PREMIUM VALUE SLIP

This brought the company’s price-to-earnings ratio in line with its peers. He had previously demanded a significant bonus.

RISING COSTS

The drugmaker’s costs rose as it spent billions to expand its manufacturing and sales capacity.

NO LONGER THE BEST DOG

Novo, valued at $650 billion in June last year, has since lost more than half its value. Its latest market capitalization is over $240 billion, including both listed and unlisted shares.

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(Reporting by Maggie Fick, Bhanvi Satija and ‌Jacob Gronholt-Pedersen; editing by Mark Potter, Kirsten Donovan)