Novo Nordisk's Weight-Loss Challenge in Five Charts

Novo Nordisk's Weight-Loss Pill Faces Competitive Challenges

By Maggie Fick, Jacob Gronholt-Pedersen and Bhanvi Satija

LONDON/COPENHAGEN, Dec 23 (Reuters) - Novo Nordisk secured U.S. regulatory approval for its weight-loss pill, giving the Danish drugmaker a shot at reclaiming ground lost to rival Eli Lilly.

Booming sales of Wegovy powered the firm to become Europe's most valuable listed company, but it has lost over $400 billion in market capitalisation since the middle of 2024 as competition from Lilly and copycat rivals intensified.

The pill approval, which came late on Monday, could spur a much-needed rebound for Novo after a bruising year of sliding shares, profit warnings and slowing Wegovy sales.

Novo is aiming to turn around its fortunes under new CEO Mike Doustdar, who took the helm in August, and has since announced 9,000 job cuts globally to reduce costs and refocus the firm.

Here are some of the challenges facing Novo as it looks to bolster sales and fend off rivals:

WEGOVY VS ZEPBOUND

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

LOSING GROUND 

Novo's share price has fallen steeply versus rivals over the last year.

VALUE PREMIUM SLIPPING

That has brought the company's price-earnings ratio back in line with peers. It had previously commanded a wide premium.

RISING COSTS

The drugmaker's costs have risen as it spent billions to expand manufacturing and sales capacity.

NO LONGER TOP DOG

Novo, valued at $650 billion in June last year, has shed more than half of its value since. Its latest market capitalisation is above $240 billion, including both listed and unlisted stock.

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