Novo Nordisk CEO pledges bolt-on deals after pipeline setbacks sink shares

Novo Nordisk ↗ 0.02% CEO Mike Doustdar on Wednesday pledged to accelerate research and pursue bolt-on acquisitions to rebuild the Danish drugmaker's pipeline, as investors expressed frustration over a string of clinical trial setbacks that have overshadowed an upgraded 2026 outlook.

Doustdar Rules Out Large Merger

Speaking to investors and analysts, Doustdar said the company would not pursue a transformative merger to address its pipeline gaps, instead focusing on smaller, targeted deals to add new drug candidates. "Because of the setback, we need to have more shots at goal. We need to be faster and we need to learn from the failures and reinvent ourselves again," Doustdar said, according to Reuters.reuters+1

The CEO said Novo was evaluating several acquisition targets but remained focused on bolt-on deals that avoid the operational distractions of large takeovers. The comments came as Novo's Copenhagen-listed shares fell around 4% in early Wednesday trading, despite the company having raised its full-year profit and sales outlook on Tuesday.aol+1

Pipeline Setbacks Overshadow Guidance Upgrade

Investors largely looked past the upgraded outlook, focusing instead on slightly weaker-than-expected sales for Novo's new oral Wegovy pill and another trial setback for next-generation obesity drug CagriSema, disclosed Tuesday. The company also reported a failed Phase 3 trial for cardiovascular drug ziltivekimab last Friday.reuters+1

Novo is under pressure as it loses ground to U.S. rival Eli Lilly ↘ 0.79% in an obesity drug market analysts expect to exceed $100 billion annually by 2030. The company's core challenge is finding blockbuster successors before semaglutide, the active ingredient in Wegovy and Ozempic, loses patent protection early next decade.aol

Investors Demand Credible Growth Story

"They need to have a strong pipeline to withstand the pressure when semaglutide hits the patent gap," said Morten Gregersen, chief portfolio manager at Danish asset manager Formuepleje. "There is another disappointment from CagriSema, and it probably underlines the biggest strategic problem for Novo."reuters+1

Novo's stock has climbed roughly 30% from a March low but remains at less than a third of its 2024 peak, when the company briefly became Europe's most valuable listed firm. Doustdar noted the Wegovy pill had captured around 90% of the oral obesity market despite competition from Lilly, and said a German launch was planned "soon".aol