Speaking to reporters Tuesday after the company’s stock fell nearly 8%, Novo CEO Mike Doustdar defended his diversification strategy as the company mulls M&A opportunities amid increasing competition.
“Let’s see where the gaps are, and let’s go out and see who has produced or is about to introduce better drugs than we are able to do on our own, and when that gap can be filled with M&A, we are actually quite interested about it.”
“I think yesterday we laid out a more clear strategy of the direction we want to take the company at. We talked about diversification of the company, but yet the reaction tells me that there’s still some work to do in convincing some of the investors,” Doustdar said.
Doustdar stated that the company intends to diversify beyond its primary focus on diabetes and obesity. This includes expanding its portfolio to encompass blood and endocrine disorders, liver diseases, and cardiovascular diseases.
“It is the right time now that I feel comfortable about the core to speak about the diversification of the company in adjacent areas that are not new to us either.”
“So it would be more obvious for me to imagine that we will be making more deals in areas outside of the core than in the core.”
Doustdar’s comments follow the company’s announcement of plans to launch over five “multi-blockbuster” drugs by 2030, anticipated to generate over $23 billion in sales by 2035.
The company also projected revenue growth comparable to industry peers like Eli Lilly, AstraZeneca and Merck.
Novo Nordisk shares have declined 34% over the past year.
By CEO NA Editorial Staff
