Novo CEO says setbacks demand faster research, acquisitions as investors fret over pipeline

Novo Nordisk CEO Mike Doustdar sought to reassure investors on Wednesday that the drugmaker can rebuild its pipeline, pledging faster research and bolt-on acquisitions after an upgraded 2026 outlook failed to lift sentiment. The Danish drugmaker raised its full-year profit and ‌sales outlook late Tuesday ⁠but investors ⁠focused instead on slightly weaker-than-expected sales for its new Wegovy pill and another setback for next-generation obesity drug CagriSema, sending the shares down 4% in early trade.

Doustdar said Novo ​was evaluating several acquisition targets to complement its internal research but remained focused on smaller bolt-on deals rather than large acquisitions.

"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, referring to recent trial disappointments.


Novo is under pressure after losing ground to U.S. rival Eli Lilly in the obesity drug market analysts expect to be worth over $100 billion a year by 2030. Its new pill ⁠and pipeline of ‌new drugs are a key focus for investors.

Novo needs a strong pipeline as patent cliffs loom

Doustdar, ​a year into the ​top job, is trying to convince investors Novo can find new blockbuster obesity drugs before semaglutide, the ⁠active ingredient in its Wegovy and Ozempic treatments, loses patent protections by early next ​decade. A string of late-stage trial setbacks has intensified investor calls for deals and put scrutiny on ​Novo's R&D.

"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 and Novo shareholder Formuepleje.

"There is another disappointment from CagriSema, and it probably underlines the biggest strategic problem for Novo."

Novo's Copenhagen-listed stock was down some 4% on Wednesday morning. The stock has climbed some 30% from a March low but remains at less than a third of its 2024 peak, when Novo temporarily became Europe's most valuable listed company.

Doustdar said the Wegovy pill, launched ‌this year in the U.S., Britain and the United Arab Emirates, had captured around 90% of the oral obesity market despite competition from Lilly's pill. He said Novo planned to launch the drug in Germany "soon". Chief Financial Officer ​Karsten Munk Knudsen ​said the upgraded outlook was driven by ⁠stronger-than-expected GLP-1 sales and growth outside the U.S., while Novo still expects U.S. sales to decline this year.

Drug pipeline in focus

Doustdar said the failure of cardiovascular drug ziltivekimab in a trial, reported on Friday, and a new trial setback for obesity and diabetes drug CagriSema, ​disclosed on Tuesday, would not change the company's strategy. It would instead lead Novo to accelerate research and look harder for deals rather than become more cautious, he said. The CagriSema results marked the latest setback following earlier trial disappointments for the drug, which Novo plans to launch next year.

"This puts the spotlight on Novo Nordisk's pipeline and its robustness," AL Sydbank said in a note to clients, adding that while Novo's earnings should have prompted a sigh of relief from investors, the data and impairment charges had dented sentiment.