Ozempic maker struggles as it loses ground to rivals in weight-loss market
The maker of Ozempic and Wegovy has cut its sales and profit forecasts as it continues to fall behind in the competitive market for obesity and diabetes treatments,Novo Nordisk’s chief executive, Mike Doustdar, who took the reins in August, said the reduced guidance was because of “the lower growth expectations for our GLP-1 treatments”,“The market is more competitive than ever more,” Doustdar said in a video message accompanying the company’s third-quarter results,The Danish pharmaceutical firm’s rate of profit growth has slowed and its share price has slid after losing ground to its US rival Eli Lilly, which makes the Mounjaro and Zepbound weight-loss injections,Clinical studies have shown that Mounjaro is more effective in causing weight loss than Wegovy.
Novo Nordisk said it now expected full-year operating profit to grow by a maximum 7% in 2025, compared with an earlier forecast of up to 16%.In addition, the company forecasted sales to grow by no more than 11%, at constant exchange rates, compared with a previous forecast of up to 16%.It has cut forecasts four times this year.The company said its third-quarter sales increased by 5% to 75bn Danish kroner (£8.9bn), below the 76.
2bn forecast by analysts, while its sales grew by 11% during the period.Last month, Novo said its chair, Helge Lund, and six other board members were stepping down in a surprise shake-up, after a row with the company’s majority shareholder.In May, it announced Lars Fruergaard Jørgensen would be stepping down as chief executive.The Danish drugmaker is also locked in a tussle with the drugmaker Pfizer to buy the US obesity-focused biotech firm Metsera.In late October, Novo launched a surprise $9bn (£6.
9bn) offer, which threatened an existing bid from Pfizer.Both companies have since submitted improved offers for Metsera as the two companies fight for dominance in the lucrative weight-loss market.Pfizer previously requested a temporary restraining order in a US court, looking to stop Novo’s bid.This was rejected by a judge in Delaware.A further hearing has been scheduled for Wednesday.
Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionMetsera is considered a desirable takeover target in part because of its promising pipeline of obesity drugs.The company has four ongoing clinical trials, including a weight-loss pill, a monthly injection, and two drugs that promote the sensation of feeling full.Derren Nathan, the head of equity research at the investment platform Hargreaves Lansdown, said: “Novo Nordisk’s CEO Mike Doustdar’s first set of results in the hot seat have come with slimmed down guidance for the full year.Hardly an ideal start but better for him to cut now while fingers can still be pointed at legacy issues.“The contrast in these results to knockout third-quarter numbers from arch-rival Eli Lilly highlights the scale of the task for the new captain to turn the ship around.
”Novo’s share price has halved this year and the drugmaker, which remains one of Europe’s largest companies, has cut 9,000 jobs.
Drax power plant to go on earning ‘over £1m a day’ from burning wood pellets
Britain’s biggest power plant will continue to earn more than £1m a day from burning wood pellets under a new government subsidy contract designed to halve its financial support, according to analysts.The Drax power plant in North Yorkshire is in line to earn £458.6m a year between 2027 and 2031 after the government agreed to extend its subsidies beyond 2026, according to analysts at Ember, a climate thinktank.The earnings are well below the £869m in subsidies handed to the Drax power plant last year for generating about 5% of the UK’s electricity from burning biomass after the government promised to curb the use of biomass in Britain’s power system.Under the contract, Drax will be paid to run just over a quarter of the time, down sharply from almost two-thirds of time currently
European markets down and Asian chipmakers tumble in global stock sell-off amid worries over AI bubble – as it happened
Jim Reid, analyst at Deutsche Bank, said there is talk of whether we are “on the verge of an equity correction”.The last 24 hours have brought a clear risk-off move, as concerns over lofty tech valuations have hit investor sentiment. Markets compounded these losses in the early hours of Asian trading but have been rallying back in the couple of hours prior to going to print with US futures clawing back towards flat with the Kospi rallying back a couple of percentage points from early -5% plus losses.On Wall Street yesterday, the S&P 500 closed down 1.17%, losing ground because of sharp losses among tech stocks, and there was a big slump for Palantir (-7
Elon Musk’s $1tn Tesla pay deal to be rejected by huge Norway wealth fund
Norway’s sovereign wealth fund has said it will vote against a $1tn (£765bn) pay package for the Tesla chief executive, Elon Musk.The fund, which is the biggest national wealth fund in the world, said that while it appreciated the “the significant value created under Mr Musk’s visionary role” it would vote against his performance award.“We are concerned about the total size of the award, dilution and lack of mitigation of key person risk – consistent with our views on executive compensation,” it said. “We will continue to seek constructive dialogue with Tesla on this and other topics.”The warning from Norges Bank, which is the seventh biggest single shareholder in Tesla with a stake worth $17bn, comes two days before the carmaker hosts its annual shareholder meeting
Apple Watch SE 3 review: the bargain smartwatch for iPhone
Apple’s entry level Watch SE has been updated with almost everything from its excellent mid-range Series 11 but costs about 40% less, making it the bargain of iPhone smartwatches.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.The new Watch SE 3 costs from £219 (€269/$249/A$399), making it one of the cheapest brand-new fully fledged smartwatches available for the iPhone and undercutting the £369 Series 11 and the top-of-the-line £749 Apple Watch Ultra 3
Who is Joe Marler? From hair-raising rugby antics to breakout star of Celebrity Traitors
Viewers have been won over by the quick-witted and quirky former England international. But do they all know about the groin-grabbing and that ‘horse’ of his?It’s difficult to know where to begin with a not-so-quick guide to Celebrity Traitors’ breakout star, Joe Marler. The BBC series has introduced a wider public to the tattooed, 18-stone-plus former England rugby union player – fans won over by his quick-witted humour, allied to a direct, confrontational form of questioning and an uncanny knack for detective work.Not all viewers, though, will be au fait with his backstory; the 35-year-old dungaree-wearing ex-prop forward admitted he was mistaken for a sound technician by his fellow celebrities when first on set, and then asked whether he played rugby league when he revealed his previous 15-year career. For those who know rugby union, however, Marler’s style on the show has come as little surprise, save it being slightly toned down for a wider public audience
Fast-rising Fiji carry a nation’s pride in redemption match with England | Luke McLaughlin
True, they are the lowest-ranked team England will play this month, but it would be highly dangerous to underestimate Fiji. Coming between an opening victory against Australia and a box‑office encounter with the All Blacks, it might be easy to regard the Twickenham game on Saturday as a relatively straightforward assignment. Easy, but foolish.You don’t have to go back far – two years or so, to an autumn afternoon in Marseille and England’s 2023 Rugby World Cup quarter-final – to remember how potent Fiji can be.Picture the scene: with 10 minutes to play at Stade Vélodrome, Vilimoni Botitu’s attractive try has levelled the score at 24-24
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