Novo Nordisk Shares Plunge After Unveiling 2030 Growth Strategy

Shares of Novo Nordisk fell as much as 9% on Monday following a capital markets day in London where the company unveiled a long-term strategic plan for 2026 through 2030. The decline reflects investor skepticism regarding the company's ability to maintain its lead in the obesity market against Eli Lilly and Company, whose Zepbound treatment is expected to outsell Wegovy by more than $7 billion this year.

Chief Executive Mike Doustdar announced a goal to launch more than five blockbuster medicines by 2030 and generate over 150 billion Danish kroner ($23 billion) in pipeline sales by 2035. To address the upcoming loss of patent exclusivity for semaglutide in the early 2030s, the company is diversifying into cardiovascular, liver, and endocrine diseases. Doustdar also announced a rebranding of the consumer-facing business as Novo and a restructuring effort that resulted in approximately 13,000 job cuts.

Despite these ambitions, analysts expressed concern over clinical trial setbacks for the obesity drug CagriSema and the heart drug ziltivekimab. The company aims to reach 60 million patients globally by 2030 by expanding manufacturing for oral GLP-1 treatments. While the company targets revenue growth consistent with peers like Pfizer, investors remain cautious following a 27% decline in share price over the last year.