Novo Nordisk A/SNovo is resetting strategy under 'Novo Way' to defend its obesity franchise after losing ground to Eli Lilly, with its Wegovy pill holding ~90% of the U.S. oral-obesity market.
Novo Nordisk CEO Mike Doustdar is resetting the drugmaker's culture and competitive focus under a new "Novo Way" emphasizing customer focus, competitiveness, clarity and care, as the company rebrands to the day-to-day name "Novo" after losing ground to Eli Lilly in obesity drugs. Novo pioneered the modern obesity-drug market with Wegovy in the U.S. in 2021, but Eli Lilly has since gained ground with Zepbound and more aggressive consumer-focused commercialization. Novo has moved into oral obesity treatment with its Wegovy pill, and expects oral drugs to account for more than one-third of GLP-1 obesity-treatment use by 2030; analysts expect the U.S. obesity-treatment market to exceed $100 billion annually by 2030. Novo's Wegovy pill had captured roughly 90% of the U.S. oral-obesity market as of August, although Lilly subsequently said its Foundayo treatment had already captured more than 30% of new U.S. oral-treatment patients. Doustdar's message is that Novo must operate differently to defend and expand its position, and the company's September 21 capital-markets day should show investors how the "Novo Way" will translate into stronger competitive performance.
Novo Nordisk A/SNovo is resetting strategy under 'Novo Way' to defend its obesity franchise after losing ground to Eli Lilly, with its Wegovy pill holding ~90% of the U.S. oral-obesity market.
Eli Lilly and CompanyLilly's Zepbound and Foundayo are gaining ground on Novo, with Foundayo already capturing over 30% of new U.S. oral-treatment patients.