May 7, 2025 • 12 mins
Novo Nordisk CEO Lars Fruergaard Jorgensen discusses earnings as well as the competitive landscape in the pharmaceutical sector. He speaks with Bloomberg's Katie Greifeld and Alix Steel.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. So Novo has been
facing increased competition from compounding pharmacies of your drugs in
the US. The shortage is now over, so those compounded
versions won't be selling after May twenty second, your CFO
Tol Bloomberg earlier today that you expect to see a
step up in business as a result. But at the
(00:24):
same time, you lowered your full year forecast this morning
due to that increased competition, and I wonder how we
should be thinking about squaring that circle.
Speaker 2 (00:35):
Yeah, you're right that we are now in situation where
we can supply the domain in the US and if
they has taken us off the drog shows list, and
that means that it's illegal to do compounding, so that
has to stop, and that creates the opportunity for us
to drive a bigger growth in the scripts for the legitimate,
high quality product from Norman Audis. And when we lower
(00:58):
the guidance for the folio is really because of what
the impact was of compounding in the third quarter and
probably also a bit into the second quarter, and we
have a relative steep compared to in the second half
of the year. So you should see this this guidance
as one of us really stepping up in the second
half of the year and getting to more and more
(01:19):
patients and really moving forward in a business environment with
a much much lower compounded share of the business really
down to the rare cases where personalized is really needed,
no bulk compounding taking place.
Speaker 1 (01:33):
And so I mean, at the same time, this is
good news for Novo, but it's also good news for
your competition, Eli Lilly, who also has been facing increased
competition from compounders. So I mean in terms of the
sort of doopoly that's developed between Eli Lilly and between
Novodoor Risks when it comes to the GLP one market,
how do you see that playing out now that the
era of compounding seems to be ending.
Speaker 2 (01:56):
Yeah, I think it's a good point. It's really important
for no compounding because if you have an environment where
you can compound pattern protected branded products, basically.
Speaker 3 (02:09):
That's the end of innovation.
Speaker 2 (02:10):
So of course this is a benefit for both our
competition ourselves that this is now moving out of the
of the equation and then it's back to really drive
growth of the market. Together will really be only serving
a fraction of the market. Uh, you know, a few
million patients living with obesity. So now it's back to
the classical commercial tactics explaining the value of the brands,
(02:33):
explaining the benefit of being on treatment. Of course, we
encouraged by the fact that we have the only obesient medicine,
will label that it protects for card rescue disease, and
we'll also expect in the second half the year to
have if they approval for a labeled.
Speaker 3 (02:51):
Benefit of mass this fed delivered disease.
Speaker 2 (02:54):
Where we really have the best data, best evidence of
any product in the market, and this is a significant
no medical need somewhere asmissed you about how we can
drive growth of the mark going forward.
Speaker 4 (03:05):
Lars, our own Bloomberg intelligence analyst, take a look that
Eli Lilly has surpassed on Novo Nordisk for the obesity
market share by fifty three percent. Now they're beating you.
How do you compete when your products are relatively the same.
Speaker 2 (03:20):
Well, I think they are different in a number of aspects,
and I would just like to underline that when you
look at the global supply of deal one products, where
we are really serving the mark based on our simple
gluetide molecule. Globally, we have two thirds of the world market,
so two thirds of all patients are on treatment from
low noise, so.
Speaker 3 (03:39):
We are the leader in the globally.
Speaker 2 (03:42):
Of course, short term it's difficult to assess the real
competitiveness when you have compounded products, and we happen to
believe that perhaps compounding has developed in to say a
third of the market, so that is as big as
a business from US, So we of course hope to
get our fair share of that back and that will,
you know, I think, create a stronger and more fair
(04:03):
representation of the underlying competitiveness of the brands in the market.
Speaker 4 (04:06):
Along the same lines, you and Lily are also very
much focused on an oral pill to fight obesity as well.
How are you going to price this product and so
keep it competitive?
Speaker 3 (04:19):
Yeah, you're right.
Speaker 2 (04:20):
We have submitted to the FDA here back in February
the first all obesity medicine of a GP one, so
we are head of competition here. We expect a regulatory
decision around the turn of the years, so we can
launch in the beginning of next year in the US.
And this is a product that basically basically it's a
begovi in a pill, so it comes with the figacy
(04:43):
of Regovy and it comes with the proven safety that
comes from having more than thirty million.
Speaker 3 (04:48):
Patient years of data.
Speaker 2 (04:50):
And I think that's a tremendous body of evidence for
clinicians and for patients to really go to ificationous treatment
that's also safe. And we've all are submitted again here
the CUD of escual protective data, which is something competitions
does not have. So if you can see safety, proven
track record and CV benefit, those would be key selling
(05:11):
points for us.
Speaker 1 (05:12):
Well, let's talk a little bit more about the competitive
landscape because earlier this month you had CVS drop lily
zet bound as a preferred drug on one of their lists.
You also partnered with CVS to increase the use of
way GOVY and I'm interested here, Lars, have any other
PBMs beyond CBS Care March approached you with request to
do some more of these exclusive access deals. Is this
(05:35):
something that you're looking to replicate in the future.
Speaker 2 (05:39):
Yeah, you're touched on a great point here. We have
a long term, stronger partnership with CBS, and I think
it's important to note here that is a classical demand
from a payer like CVS and other PBMs to ask
for exclussivity. But it's important line here that we did
(06:01):
not bid for an exclusive position, and I.
Speaker 3 (06:04):
Think it's it's it's.
Speaker 2 (06:06):
Not something that's attractive for the manufacturers in the in
the market. So it might be that there's a man
demand for it, but I don't think PBMs will will
actually get bits.
Speaker 3 (06:17):
That's a link to actressivity.
Speaker 2 (06:19):
And we did not bid that here either. So I
think it's important to to underlign the the partnership we
help with SEVERS because I think that's the trusted the
relationship and the fact that they actually chose with GOV
based on the experience they have in the market of
weight loss, the CV benefit and also, as I mentioned,
mass is an important new indication for us to potentially
(06:40):
get on label later this year, and that's a real
health issue. And here you get saying one product the
best mass data that's ever been shown, and you get
it in the in the price you're already paying for
for we GOOB. I think that's a really really good
deal for a payer, hitting more birds with one stone,
(07:02):
so to say.
Speaker 1 (07:03):
Appreciate that context there. It's hard to talk to any
CEO without talking about politics in this moment, and that's
exactly where I'm going to go right now. We've heard
from the Trump administration that they're thinking about considering tariffs
on farm a broadly, and I'm curious about how that
could affect no vote artistic.
Speaker 3 (07:20):
I know that you have some.
Speaker 1 (07:22):
US manufacturing presence, of course with the cattle lit deal.
Are you thinking about shifting even more production to the
US or even potentially stockpiling certain drugs? What does your
planning look like right now.
Speaker 2 (07:36):
Yeah, that's a great topic, and it's one of those
that's a bit difficult to predict right now because there
are quite a number of different messages coming out. If
you look at our all manuffacting footprint, that's one of
having invested significantly in the US. You know, specifically, we
invested twenty four billion dollars in the US say operations
(07:56):
over the past ten years. We have moderntier thousand people
working for US in the US, and we actually produce
and export more from the US than we import to
the US. So when other companies were moving manufacturing out
of the US to perhaps save tax, that was actually
a time where we started dropping down and investing in
(08:16):
the US. So we have api manufacturing in the US.
We have field finished products. And when you talk about
an all businity treatment like THEGOVI in a pill, that's
actually one hundred percent produced in the US. The API
is made in the US, the tableting is done in
the US, the packaging is done in the US, so
it's really a US made product to Americans. So I
(08:37):
think we have a good setup. Like all global companies.
Of course, we are products moving forth and back. But
the underlying basis is that we export more from the
US than we import through the US.
Speaker 4 (08:49):
So lars, does that imply that the ingredients also that
you use to manufacture them are also made in the
US or is that going to be a risk?
Speaker 3 (08:56):
Yes?
Speaker 2 (08:57):
Yes, So if you take again we go in a pill,
all of that is produced in the US.
Speaker 3 (09:03):
We don't know.
Speaker 2 (09:04):
We do mainly biological manufacturing, so we don't import chemicals
from China, India or other places in the world. It's
biologic manufacturing done in the US. But of course we
also have cases where we explore API from the US
to Europe and we export from Europe to the US,
so there are products crossing the border. But again, as
(09:27):
I mentioned, we export more from the US than we
import to the US, and that also means that over
time we could localize more and more in the US,
and we are also expanding and investing more in the US.
And you know, we also have a big number we
can mention if need be. But I think the proof
point is that we did not leave the US. We
(09:49):
actually stayed and we double it down to today's situation
where we export more from the US than we import
to the US. I think that's a great story and
I think it's aligned with what the Dedminstration is looking for.
Speaker 4 (10:01):
Ending it out here. When it comes to M and
A and building out your obesity portfolio externally, are there
gaps you need to fill and what kind of company,
what kind of biotech company would be interesting?
Speaker 2 (10:12):
Yeah, you know, we're pursuing a leadership position when it
comes to obesity and including diabetes and fuel disease areas,
and we have a very very strong internal pipeline. But
as you say, there are also some gaps we have
We have instance in licensed true early deals since our
last report UH in the small molecule space, So there
(10:32):
are examples of areas we would like to fill, and
we do that by complementing and ideally do that with
early assets from biotech company where we can still use
our capabilities to really add value to it and thereby
enhance both the quality to patients in terms of what
they get in the figacy and safety, but also an
(10:54):
attractive return to our shareholders and lats before we.
Speaker 3 (10:56):
Let you go.
Speaker 1 (10:57):
We're expecting a pretty significant out when it comes to
oral sema glue tide in the second half of the
year about sort of the efficacy for Alzheimer's, And I'm
curious what you're confident is around that. Obviously Alzheimer's has
been a not that it seems like the former industry
just can't crack.
Speaker 3 (11:15):
Yeah, you're right, this is a devastating disease.
Speaker 2 (11:18):
I think we all know of family members who are
suffering from that. I can talk to that myself, having
family members diagnosed with Alzheimers. So it's a devastating disease.
Some call it type three diabetes. Having lived with type
two diabetes, you alt risk of developing Alzheimer's. So of
course the hypothesis of using semaglutide is an intrust wrong
(11:42):
because it has this anti inflammatory properties.
Speaker 3 (11:46):
But as you say, it has been a very.
Speaker 2 (11:49):
Difficult clug development space so we have intentionally guided very cautious,
cautiously on this because we don't want to create false hopes.
Data will be coming end of this year. So let's
let's just have a look at the data and uh
and decide on the level of excitement when we see that.
(12:09):
But for sure they really need and also space where
I think the medicines already there are not you know,
maybe clear court stand up for care ob chances and
we could potentially be that
Bloomberg Audio Studios, podcasts, radio news. So Novo has been
facing increased competition from compounding pharmacies of your drugs in
the US. The shortage is now over, so those compounded
versions won't be selling after May twenty second, your CFO
Tol Bloomberg earlier today that you expect to see a
step up in business as a result. But at the
(00:24):
same time, you lowered your full year forecast this morning
due to that increased competition, and I wonder how we
should be thinking about squaring that circle.
Speaker 2 (00:35):
Yeah, you're right that we are now in situation where
we can supply the domain in the US and if
they has taken us off the drog shows list, and
that means that it's illegal to do compounding, so that
has to stop, and that creates the opportunity for us
to drive a bigger growth in the scripts for the legitimate,
high quality product from Norman Audis. And when we lower
(00:58):
the guidance for the folio is really because of what
the impact was of compounding in the third quarter and
probably also a bit into the second quarter, and we
have a relative steep compared to in the second half
of the year. So you should see this this guidance
as one of us really stepping up in the second
half of the year and getting to more and more
(01:19):
patients and really moving forward in a business environment with
a much much lower compounded share of the business really
down to the rare cases where personalized is really needed,
no bulk compounding taking place.
Speaker 1 (01:33):
And so I mean, at the same time, this is
good news for Novo, but it's also good news for
your competition, Eli Lilly, who also has been facing increased
competition from compounders. So I mean in terms of the
sort of doopoly that's developed between Eli Lilly and between
Novodoor Risks when it comes to the GLP one market,
how do you see that playing out now that the
era of compounding seems to be ending.
Speaker 2 (01:56):
Yeah, I think it's a good point. It's really important
for no compounding because if you have an environment where
you can compound pattern protected branded products, basically.
Speaker 3 (02:09):
That's the end of innovation.
Speaker 2 (02:10):
So of course this is a benefit for both our
competition ourselves that this is now moving out of the
of the equation and then it's back to really drive
growth of the market. Together will really be only serving
a fraction of the market. Uh, you know, a few
million patients living with obesity. So now it's back to
the classical commercial tactics explaining the value of the brands,
(02:33):
explaining the benefit of being on treatment. Of course, we
encouraged by the fact that we have the only obesient medicine,
will label that it protects for card rescue disease, and
we'll also expect in the second half the year to
have if they approval for a labeled.
Speaker 3 (02:51):
Benefit of mass this fed delivered disease.
Speaker 2 (02:54):
Where we really have the best data, best evidence of
any product in the market, and this is a significant
no medical need somewhere asmissed you about how we can
drive growth of the mark going forward.
Speaker 4 (03:05):
Lars, our own Bloomberg intelligence analyst, take a look that
Eli Lilly has surpassed on Novo Nordisk for the obesity
market share by fifty three percent. Now they're beating you.
How do you compete when your products are relatively the same.
Speaker 2 (03:20):
Well, I think they are different in a number of aspects,
and I would just like to underline that when you
look at the global supply of deal one products, where
we are really serving the mark based on our simple
gluetide molecule. Globally, we have two thirds of the world market,
so two thirds of all patients are on treatment from
low noise, so.
Speaker 3 (03:39):
We are the leader in the globally.
Speaker 2 (03:42):
Of course, short term it's difficult to assess the real
competitiveness when you have compounded products, and we happen to
believe that perhaps compounding has developed in to say a
third of the market, so that is as big as
a business from US, So we of course hope to
get our fair share of that back and that will,
you know, I think, create a stronger and more fair
(04:03):
representation of the underlying competitiveness of the brands in the market.
Speaker 4 (04:06):
Along the same lines, you and Lily are also very
much focused on an oral pill to fight obesity as well.
How are you going to price this product and so
keep it competitive?
Speaker 3 (04:19):
Yeah, you're right.
Speaker 2 (04:20):
We have submitted to the FDA here back in February
the first all obesity medicine of a GP one, so
we are head of competition here. We expect a regulatory
decision around the turn of the years, so we can
launch in the beginning of next year in the US.
And this is a product that basically basically it's a
begovi in a pill, so it comes with the figacy
(04:43):
of Regovy and it comes with the proven safety that
comes from having more than thirty million.
Speaker 3 (04:48):
Patient years of data.
Speaker 2 (04:50):
And I think that's a tremendous body of evidence for
clinicians and for patients to really go to ificationous treatment
that's also safe. And we've all are submitted again here
the CUD of escual protective data, which is something competitions
does not have. So if you can see safety, proven
track record and CV benefit, those would be key selling
(05:11):
points for us.
Speaker 1 (05:12):
Well, let's talk a little bit more about the competitive
landscape because earlier this month you had CVS drop lily
zet bound as a preferred drug on one of their lists.
You also partnered with CVS to increase the use of
way GOVY and I'm interested here, Lars, have any other
PBMs beyond CBS Care March approached you with request to
do some more of these exclusive access deals. Is this
(05:35):
something that you're looking to replicate in the future.
Speaker 2 (05:39):
Yeah, you're touched on a great point here. We have
a long term, stronger partnership with CBS, and I think
it's important to note here that is a classical demand
from a payer like CVS and other PBMs to ask
for exclussivity. But it's important line here that we did
(06:01):
not bid for an exclusive position, and I.
Speaker 3 (06:04):
Think it's it's it's.
Speaker 2 (06:06):
Not something that's attractive for the manufacturers in the in
the market. So it might be that there's a man
demand for it, but I don't think PBMs will will
actually get bits.
Speaker 3 (06:17):
That's a link to actressivity.
Speaker 2 (06:19):
And we did not bid that here either. So I
think it's important to to underlign the the partnership we
help with SEVERS because I think that's the trusted the
relationship and the fact that they actually chose with GOV
based on the experience they have in the market of
weight loss, the CV benefit and also, as I mentioned,
mass is an important new indication for us to potentially
(06:40):
get on label later this year, and that's a real
health issue. And here you get saying one product the
best mass data that's ever been shown, and you get
it in the in the price you're already paying for
for we GOOB. I think that's a really really good
deal for a payer, hitting more birds with one stone,
(07:02):
so to say.
Speaker 1 (07:03):
Appreciate that context there. It's hard to talk to any
CEO without talking about politics in this moment, and that's
exactly where I'm going to go right now. We've heard
from the Trump administration that they're thinking about considering tariffs
on farm a broadly, and I'm curious about how that
could affect no vote artistic.
Speaker 3 (07:20):
I know that you have some.
Speaker 1 (07:22):
US manufacturing presence, of course with the cattle lit deal.
Are you thinking about shifting even more production to the
US or even potentially stockpiling certain drugs? What does your
planning look like right now.
Speaker 2 (07:36):
Yeah, that's a great topic, and it's one of those
that's a bit difficult to predict right now because there
are quite a number of different messages coming out. If
you look at our all manuffacting footprint, that's one of
having invested significantly in the US. You know, specifically, we
invested twenty four billion dollars in the US say operations
(07:56):
over the past ten years. We have moderntier thousand people
working for US in the US, and we actually produce
and export more from the US than we import to
the US. So when other companies were moving manufacturing out
of the US to perhaps save tax, that was actually
a time where we started dropping down and investing in
(08:16):
the US. So we have api manufacturing in the US.
We have field finished products. And when you talk about
an all businity treatment like THEGOVI in a pill, that's
actually one hundred percent produced in the US. The API
is made in the US, the tableting is done in
the US, the packaging is done in the US, so
it's really a US made product to Americans. So I
(08:37):
think we have a good setup. Like all global companies.
Of course, we are products moving forth and back. But
the underlying basis is that we export more from the
US than we import through the US.
Speaker 4 (08:49):
So lars, does that imply that the ingredients also that
you use to manufacture them are also made in the
US or is that going to be a risk?
Speaker 3 (08:56):
Yes?
Speaker 2 (08:57):
Yes, So if you take again we go in a pill,
all of that is produced in the US.
Speaker 3 (09:03):
We don't know.
Speaker 2 (09:04):
We do mainly biological manufacturing, so we don't import chemicals
from China, India or other places in the world. It's
biologic manufacturing done in the US. But of course we
also have cases where we explore API from the US
to Europe and we export from Europe to the US,
so there are products crossing the border. But again, as
(09:27):
I mentioned, we export more from the US than we
import to the US, and that also means that over
time we could localize more and more in the US,
and we are also expanding and investing more in the US.
And you know, we also have a big number we
can mention if need be. But I think the proof
point is that we did not leave the US. We
(09:49):
actually stayed and we double it down to today's situation
where we export more from the US than we import
to the US. I think that's a great story and
I think it's aligned with what the Dedminstration is looking for.
Speaker 4 (10:01):
Ending it out here. When it comes to M and
A and building out your obesity portfolio externally, are there
gaps you need to fill and what kind of company,
what kind of biotech company would be interesting?
Speaker 2 (10:12):
Yeah, you know, we're pursuing a leadership position when it
comes to obesity and including diabetes and fuel disease areas,
and we have a very very strong internal pipeline. But
as you say, there are also some gaps we have
We have instance in licensed true early deals since our
last report UH in the small molecule space, So there
(10:32):
are examples of areas we would like to fill, and
we do that by complementing and ideally do that with
early assets from biotech company where we can still use
our capabilities to really add value to it and thereby
enhance both the quality to patients in terms of what
they get in the figacy and safety, but also an
(10:54):
attractive return to our shareholders and lats before we.
Speaker 3 (10:56):
Let you go.
Speaker 1 (10:57):
We're expecting a pretty significant out when it comes to
oral sema glue tide in the second half of the
year about sort of the efficacy for Alzheimer's, And I'm
curious what you're confident is around that. Obviously Alzheimer's has
been a not that it seems like the former industry
just can't crack.
Speaker 3 (11:15):
Yeah, you're right, this is a devastating disease.
Speaker 2 (11:18):
I think we all know of family members who are
suffering from that. I can talk to that myself, having
family members diagnosed with Alzheimers. So it's a devastating disease.
Some call it type three diabetes. Having lived with type
two diabetes, you alt risk of developing Alzheimer's. So of
course the hypothesis of using semaglutide is an intrust wrong
(11:42):
because it has this anti inflammatory properties.
Speaker 3 (11:46):
But as you say, it has been a very.
Speaker 2 (11:49):
Difficult clug development space so we have intentionally guided very cautious,
cautiously on this because we don't want to create false hopes.
Data will be coming end of this year. So let's
let's just have a look at the data and uh
and decide on the level of excitement when we see that.
(12:09):
But for sure they really need and also space where
I think the medicines already there are not you know,
maybe clear court stand up for care ob chances and
we could potentially be that
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