Ozempic maker Novo Nordisk sets sights on hair-loss market

Novo Nordisk is eyeing the hair-loss market as the maker of Ozempic seeks to expand its direct-to-consumer pharmaceutical business.

The condition is part of a list of areas, including addiction and menopause, where Novo sees potential overlap with either its core scientific expertise or the skills it's recently built in selling prescription drugs directly to consumers.

Some of the science being pursued now for treatment of hair loss is rooted in endocrinology, the branch of medicine focused on hormones, a field where Novo has a long history, chief scientific officer Martin Lange said in a Bloomberg roundtable on Tuesday.


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"We could leverage our scientific knowledge potentially moving into that space," Lange said. "It's not necessarily what we'll pursue first, but that would be a clear possibility."

Novo lost its lead in the booming obesity market to Eli Lilly and wants to find more uses for its GLP-1 drugs, as well as growth areas for diversification, as the blockbusters Ozempic and Wegovy face patent expiry in the US and Europe towards the beginning of the next decade. The company's shares slumped this week in response to the lack of concrete details in the turnaround plan presented at an investor meeting.

"Confidence is gone, as shown yesterday by the reaction, and it takes time and hard work to build that back," chief executive officer Mike Doustdar said at roundtable.

The drugmaker wants to pursue areas where its expertise in selling directly to consumers - as it increasingly does with weight-loss drugs - would give it an opportunity "to win," Doustdar said.

The company is also seeking new potential treatments for heart disease, liver and blood disorders and has said it will look at both bolt-on deals and push forward its internal drug pipeline more quickly.

Novo's move into hair loss could take time. The condition isn't on a list of eight illnesses where Lange anticipates to move new treatments into mid-stage trials by late this year or early next year.