Novo Nordisk's Tumultuous Path Amid Obesity Drug Competition

Novo Nordisk announced a reduction in its full-year profit and sales forecasts due to decelerated sales growth. Despite the initial downturn, shares rebounded following a favorable Medicare pricing deal. This development comes amidst fierce competition in the obesity drug market, particularly from U.S. rival Eli Lilly, which recently recorded robust earnings.

CEO Mike Doustdar, who took office in August, is spearheading a turnaround initiative aimed at regaining market footing. He expressed confidence in expanding Novo's direct-to-consumer sales in the U.S., and in beating Pfizer in acquiring Metsera, a coveted biotech firm focused on obesity drugs.

The revised guidance, the fourth of its kind this year, stems primarily from tempered growth prospects for Novo's flagship treatments, Wegovy and Ozempic. Nonetheless, a newly settled Medicare price for semaglutide—utilized in these treatments—offers a glimmer of hope, mitigating a key concern for investors wary of regulatory price negotiations.