Novo Nordisk Faces Challenges Amidst Patent Expirations and Competition

BOGOTÁ, Colombia – Novo Nordisk, the Danish pharmaceutical company, may soon face intense competition as several patents on its blockbuster diabetes and obesity treatments, Ozempic and Wegovy, are set to expire next year. The expiration of these patents comes as competitors, such as Eli Lilly‘s Mounjaro, begin to capture market attention.

In their third-quarter financial report, released on Nov. 5, Novo Nordisk projected sales growth for the year of 8% to 11% at constant exchange rates. This is a significant decrease compared to last year’s predictions of 24% sales growth and 22% operating profit growth, prompting a notable decline in its share price over the past year.

Karsten Munk Knudsen, CFO of Novo Nordisk, acknowledged the looming threat of generic competition. “The ultimate defense in our industry is in innovation,” he stated in a recent interview. Novo plans to launch a Wegovy pill in the U.S. next year and aims to submit a third-generation product, CagriSema, in the coming months. “Innovation is really the silver bullet here,” he added.

Despite these losses, Knudsen remains optimistic about adapting strategies to maintain market position, stating that the company expects only a minimal negative impact in markets where patents expire. “We do not intend to leave these markets whatsoever,” he said.

However, the company is also dealing with several legal challenges, including an antitrust lawsuit related to its attempts to acquire obesity startup Metsera. “We are confident this transaction does not raise any antitrust issues,” commented Knudsen on the lawsuit. He further expressed confidence in the safety of their products, acknowledging patient reach showed the trust in Novo Nordisk.

Looking ahead, Knudsen highlighted the timeline of patent expirations in the U.S., which represent a significant portion of the company’s sales. “The true battle begins in the early 2030s,” he noted. The company’s ability to innovate and navigate these challenges will be crucial as it strives to maintain its leading position in a fiercely competitive market.