Novo Nordisk (NVO.US) considers entering the hair loss market, “post-Wegovy” strategy seeks new growth points

The Zhitong Finance App learned that Novo Nordisk (NVO.US) is setting its sights on the hair loss market — the Ozempic producer is seeking diversification as part of its “post-Wegovy” growth strategy. “We can use our scientific knowledge to potentially enter this field,” said Novo Nordisk Chief Scientific Officer Martin Lange (Martin Lange), adding, “This may not necessarily be the direction we will advance first, but it will be a clear possibility.”

A day before these remarks, Novo Nordisk had just unveiled its “post-Wegovy” growth strategy — at a time when the GLP-1 market was becoming increasingly crowded. Shares of hair loss drug developers Veradermics (MANE.US) and Absci (ABSI.US) rose after the remarks.

The Danish pharmaceutical company's shares fell on Monday — despite its long-term goals showing that the company plans to launch more than five drugs with “multi-pound bomb” potential by 2030 and generate more than $23 billion in risk-adjusted pipeline sales by 2035.

“Confidence is gone, and yesterday's market reaction illustrates this; it takes time and hard work to rebuild confidence,” CEO Mike Doustdar said, adding, “We need to start somewhere and then we need to look everywhere.”

Despite its first-mover advantage, Novo Nordisk lost to its main competitor LLY.US (LLY.US) in the injectable GLP-1 market; while the impending patent cliff after 2030 threatens its best-selling drug semaglutide (semaglutide) — sold under the Ozempic (diabetes) and Wegovy (weight loss) brands, respectively.

According to Dusdal, the company hopes to target areas where Novo Nordisk's expertise in direct-to-consumer (DTC) sales — a style that is increasingly being used to sell its major weight loss drugs — can provide it with an opportunity to “win.”

Lange said that in view of the shorter development cycle, Novo Nordisk is evaluating some consumer-facing projects that may be launched before the end of this decade; the company may also sign introduction deals for late-stage compounds.

The FDA hasn't approved a new treatment for pattern hair loss since the 1990s; it is estimated that 50 million men and 30 million women in the US suffer from it. However, hair loss is not among the eight indications Novo Nordisk plans to conduct mid-term trials later this year or early next year.

The company has previously stated that it will seek bolt-on deals (bolt-on deals) and use its internal drug pipeline more quickly — Novo Nordisk intends to advance new treatments for conditions such as heart, liver and blood system diseases. Lange said that the cardiology program will take longer.