Novo Nordisk (NYSE:NVO) is considering acquisitions to strengthen its weight-loss drug pipeline and expand into related therapeutic areas as competition increases, Chief Executive Mike Doustdar said on Tuesday.
Speaking to CNBC’s Squawk Box Europe, Doustdar said the Danish pharmaceutical company was examining opportunities to address gaps in its portfolio, including acquiring medicines that could complement or outperform treatments developed internally.
“Let’s see where the gaps are, and let’s go out and see who has produced or is about to introduce better drugs than we are able to do on our own,” he said.
Shares Decline Following Capital Markets Day
Doustdar’s comments followed Novo Nordisk’s capital markets day on Monday, which failed to ease investor concerns about the company’s competitive position and approaching patent expiries.
Novo shares fell nearly 8% on Monday, their largest daily decline since February, before slipping a further 0.23% on Tuesday.
Investors remain concerned about the expiration of key patents covering the active ingredient in Wegovy and Ozempic in the United States and Europe during the early 2030s.
The two medicines account for approximately three-quarters of Novo Nordisk’s sales, making the development of additional revenue sources an important part of its strategy.
Doustdar acknowledged that the company’s presentation had not fully addressed investor concerns.
“We talked about diversification of the company, but yet the reaction tells me that there’s still some work to do in convincing some of the investors,” he said.
Novo Targets New Blockbuster Medicines and Sales Growth
Novo Nordisk has set a goal of developing more than five new blockbuster medicines by 2030 and generating over $23 billion in additional sales by 2035.
However, investors broadly regarded those targets as consistent with existing expectations, limiting their impact on sentiment following the capital markets presentation.
In a separate interview with Bloomberg TV, Doustdar acknowledged the need to rebuild confidence in the company’s ability to deliver on its commitments.
“What we have learned the last couple of years is overpromising and underdelivering loses trust very quickly,” he said.
He added that investors “want to know what happens next.”
Cardiovascular Treatments Among Potential Acquisition Targets
Doustdar identified therapeutic areas adjacent to obesity, particularly cardiovascular disease, as potential opportunities for acquisitions.
The comments followed a setback for Novo’s experimental drug ziltivekimab, which failed to reduce the risk of heart attacks in a clinical study earlier this year.
“We just had a setback in one of our own assets,” Doustdar said.
He explained that Novo was assessing whether an external transaction could address the resulting gap in its pipeline.
The company sees fewer attractive acquisition opportunities in obesity treatments themselves, according to Doustdar.
CagriSema Trial Results Remain in Focus
Investors are also awaiting further clinical trial results for Novo Nordisk’s next-generation medicines, including CagriSema.
Doustdar said he expects CagriSema to be among the company’s strongest product launches next year.
However, expectations for the treatment have declined after a trial earlier this year showed that it produced less weight loss than Eli Lilly’s Zepbound.
The forthcoming clinical results will provide additional information about CagriSema’s potential as Novo Nordisk seeks to strengthen its position in the weight-management market.