How Ozempic Maker Novo Nordisk Lost Sheen After Creating Wonder Drug

The pioneering Danish drugmaker was once the most valuable company in Europe, but analysts say a number of missteps reversed its fortunes

- ESHE NELSON

For years, there was no stopping Novo Nordisk, the Danish drugmaker behind Ozempic. Its diabetes drug became a cultural phenomenon for its ability to induce drastic weight loss while also reducing the risk of heart attacks and other serious diseases in people with obesity. Then, suddenly, its fortunes took a turn.

Novo Nordisk's share price has plummeted more than 50 percent this year, pushing it out of the top ten list of Europe's most valuable companies. The company bewildered analysts in May when it abruptly said it would replace its chief executive, and it has seemed unable to keep ahead of competition from the American drugmaker Eli Lilly and the prevalence of cheap copycat versions.

"The market's got no patience for Novo," said Gareth Powell, the head of health care at Polar Capital, a fund manager. "Sentiment is absolutely dire."

On Wednesday, Novo Nordisk reported $24 billion in global sales in the first six months of the year, but reiterated it expects growth to slow the rest of the year, which it first flagged in a profit warning last week.