Novo Nordisk shares a decline in the challenges of the supply of obesity medications Reuters

COPENHAGEN (Reuters) – Shares of Novo Nordisk fell 16% on Monday as Danish medicine announced on Friday night that it would not be able to meet its demand for a weight loss drug after a supply problem in the United States.

The obesity market has been difficult for pharmaceutical companies, but Novo has made a breakthrough with the Wegovy drug, which has helped it lose weight by an average of 17% in almost two years.

The Danish pharmaceutical company said in a stock announcement on Friday that a contract manufacturer filling wegovy pen injection syringes had temporarily stopped deliveries and manufacturing after problems with good manufacturing practices.

As a result, fewer new patients will begin treatment with the drug in the first half of next year. Novo hopes to be able to respond to U.S. demand in the second half of next year.

JP Morgan analysts who downgraded Novo Nordisk (NYSE 🙂 to neutral on Monday said supply problems would also allow them to take less time to establish themselves in the drug market before their rival Eli Lilly (NYSE 🙂 was marketed in 2024. “Tirzepatide drug obesity.

“We believe the overall potential of the market is great and we remain committed and very confident in the full potential of Wegovy,” said Karsten Munk Knudsen, chief financial officer of Novo Nordisk, in a call for investors.

“There should be enough room for two agents in the market.”

Shares of the company fell nearly 13% at 0818 GMT, with a year-on-year gain of 76% on Friday.