From CNBC: 2025-05-19 14:52:00

Novo Nordisk is facing challenges in the weight loss drug market as CEO Lars Fruergaard Jørgensen steps down amidst competition from Eli Lilly’s Zepbound. The market could be worth $150 billion by the early 2030s. Novo Nordisk’s new CEO must launch new drugs, navigate Medicare negotiations, and manage Trump’s tariffs.

Eli Lilly’s Zepbound has gained market share over Novo Nordisk’s Wegovy, with Zepbound capturing 40% of the U.S. weight loss drug market. Real-world data shows Zepbound causes more weight loss than Wegovy. Novo Nordisk’s pipeline struggles, with its CagriSema shot failing to meet weight loss expectations, sending shares plunging.

Novo Nordisk has filed for U.S. approval of an oral weight loss drug. Analysts estimate convenient weight loss pills could make up $50 billion of the market. Novo Nordisk faces challenges in its oral obesity drug portfolio, while Eli Lilly’s small-molecule pill shows promise. Novo Nordisk must address these challenges to maintain its position in the market. Novo Nordisk faces delays in launching a new drug, with approval expected in several years. The pharmaceutical industry is dealing with Trump’s push to lower drug prices and bring manufacturing to the U.S., with plans to tie drug prices to international rates.

Despite CEO change, Novo Nordisk maintains its strategy with a strong product portfolio. Investors see potential shifts towards oral small molecule solutions for obesity, with recent licensing deals for experimental pills. However, these products are still in early development and pose risks.

Novo Nordisk’s recent agreements, including a $2 billion deal for an experimental drug from a Chinese company, signal a pivot towards obesity treatments. Competition with Eli Lilly’s drug is expected, with potential delays in Novo Nordisk’s drug entering the market.



Read more at CNBC: Novo Nordisk bets on new CEO to regain weight loss drug edge over Eli Lilly