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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. So Novo has been

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Speaker 1: facing increased competition from compounding pharmacies of your drugs in

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Speaker 1: the US. The shortage is now over, so those compounded

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Speaker 1: versions won't be selling after May twenty second, your CFO

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Speaker 1: Tol Bloomberg earlier today that you expect to see a

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Speaker 1: step up in business as a result. But at the

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Speaker 1: same time, you lowered your full year forecast this morning

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Speaker 1: due to that increased competition, and I wonder how we

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Speaker 1: should be thinking about squaring that circle.

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Speaker 2: Yeah, you're right that we are now in situation where

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Speaker 2: we can supply the domain in the US and if

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Speaker 2: they has taken us off the drog shows list, and

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Speaker 2: that means that it's illegal to do compounding, so that

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Speaker 2: has to stop, and that creates the opportunity for us

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Speaker 2: to drive a bigger growth in the scripts for the legitimate,

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Speaker 2: high quality product from Norman Audis. And when we lower

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Speaker 2: the guidance for the folio is really because of what

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Speaker 2: the impact was of compounding in the third quarter and

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Speaker 2: probably also a bit into the second quarter, and we

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Speaker 2: have a relative steep compared to in the second half

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Speaker 2: of the year. So you should see this this guidance

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Speaker 2: as one of us really stepping up in the second

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Speaker 2: half of the year and getting to more and more

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Speaker 2: patients and really moving forward in a business environment with

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Speaker 2: a much much lower compounded share of the business really

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Speaker 2: down to the rare cases where personalized is really needed,

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Speaker 2: no bulk compounding taking place.

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Speaker 1: And so I mean, at the same time, this is

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Speaker 1: good news for Novo, but it's also good news for

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Speaker 1: your competition, Eli Lilly, who also has been facing increased

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Speaker 1: competition from compounders. So I mean in terms of the

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Speaker 1: sort of doopoly that's developed between Eli Lilly and between

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Speaker 1: Novodoor Risks when it comes to the GLP one market,

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Speaker 1: how do you see that playing out now that the

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Speaker 1: era of compounding seems to be ending.

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Speaker 2: Yeah, I think it's a good point. It's really important

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Speaker 2: for no compounding because if you have an environment where

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Speaker 2: you can compound pattern protected branded products, basically.

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Speaker 3: That's the end of innovation.

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Speaker 2: So of course this is a benefit for both our

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Speaker 2: competition ourselves that this is now moving out of the

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Speaker 2: of the equation and then it's back to really drive

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Speaker 2: growth of the market. Together will really be only serving

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Speaker 2: a fraction of the market. Uh, you know, a few

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Speaker 2: million patients living with obesity. So now it's back to

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Speaker 2: the classical commercial tactics explaining the value of the brands,

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Speaker 2: explaining the benefit of being on treatment. Of course, we

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Speaker 2: encouraged by the fact that we have the only obesient medicine,

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Speaker 2: will label that it protects for card rescue disease, and

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Speaker 2: we'll also expect in the second half the year to

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Speaker 2: have if they approval for a labeled.

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Speaker 3: Benefit of mass this fed delivered disease.

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Speaker 2: Where we really have the best data, best evidence of

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Speaker 2: any product in the market, and this is a significant

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Speaker 2: no medical need somewhere asmissed you about how we can

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Speaker 2: drive growth of the mark going forward.

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Speaker 4: Lars, our own Bloomberg intelligence analyst, take a look that

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Speaker 4: Eli Lilly has surpassed on Novo Nordisk for the obesity

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Speaker 4: market share by fifty three percent. Now they're beating you.

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Speaker 4: How do you compete when your products are relatively the same.

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Speaker 2: Well, I think they are different in a number of aspects,

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Speaker 2: and I would just like to underline that when you

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Speaker 2: look at the global supply of deal one products, where

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Speaker 2: we are really serving the mark based on our simple

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Speaker 2: gluetide molecule. Globally, we have two thirds of the world market,

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Speaker 2: so two thirds of all patients are on treatment from

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Speaker 2: low noise, so.

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Speaker 3: We are the leader in the globally.

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Speaker 2: Of course, short term it's difficult to assess the real

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Speaker 2: competitiveness when you have compounded products, and we happen to

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Speaker 2: believe that perhaps compounding has developed in to say a

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Speaker 2: third of the market, so that is as big as

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Speaker 2: a business from US, So we of course hope to

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Speaker 2: get our fair share of that back and that will,

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Speaker 2: you know, I think, create a stronger and more fair

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Speaker 2: representation of the underlying competitiveness of the brands in the market.

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Speaker 4: Along the same lines, you and Lily are also very

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Speaker 4: much focused on an oral pill to fight obesity as well.

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Speaker 4: How are you going to price this product and so

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Speaker 4: keep it competitive?

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Speaker 3: Yeah, you're right.

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Speaker 2: We have submitted to the FDA here back in February

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Speaker 2: the first all obesity medicine of a GP one, so

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Speaker 2: we are head of competition here. We expect a regulatory

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Speaker 2: decision around the turn of the years, so we can

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Speaker 2: launch in the beginning of next year in the US.

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Speaker 2: And this is a product that basically basically it's a

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Speaker 2: begovi in a pill, so it comes with the figacy

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Speaker 2: of Regovy and it comes with the proven safety that

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Speaker 2: comes from having more than thirty million.

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Speaker 3: Patient years of data.

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Speaker 2: And I think that's a tremendous body of evidence for

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Speaker 2: clinicians and for patients to really go to ificationous treatment

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Speaker 2: that's also safe. And we've all are submitted again here

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Speaker 2: the CUD of escual protective data, which is something competitions

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Speaker 2: does not have. So if you can see safety, proven

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Speaker 2: track record and CV benefit, those would be key selling

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Speaker 2: points for us.

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Speaker 1: Well, let's talk a little bit more about the competitive

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Speaker 1: landscape because earlier this month you had CVS drop lily

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Speaker 1: zet bound as a preferred drug on one of their lists.

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Speaker 1: You also partnered with CVS to increase the use of

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Speaker 1: way GOVY and I'm interested here, Lars, have any other

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Speaker 1: PBMs beyond CBS Care March approached you with request to

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Speaker 1: do some more of these exclusive access deals. Is this

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Speaker 1: something that you're looking to replicate in the future.

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Speaker 2: Yeah, you're touched on a great point here. We have

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Speaker 2: a long term, stronger partnership with CBS, and I think

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Speaker 2: it's important to note here that is a classical demand

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Speaker 2: from a payer like CVS and other PBMs to ask

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Speaker 2: for exclussivity. But it's important line here that we did

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Speaker 2: not bid for an exclusive position, and I.

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Speaker 3: Think it's it's it's.

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Speaker 2: Not something that's attractive for the manufacturers in the in

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Speaker 2: the market. So it might be that there's a man

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Speaker 2: demand for it, but I don't think PBMs will will

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Speaker 2: actually get bits.

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Speaker 3: That's a link to actressivity.

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Speaker 2: And we did not bid that here either. So I

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Speaker 2: think it's important to to underlign the the partnership we

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Speaker 2: help with SEVERS because I think that's the trusted the

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Speaker 2: relationship and the fact that they actually chose with GOV

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Speaker 2: based on the experience they have in the market of

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Speaker 2: weight loss, the CV benefit and also, as I mentioned,

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Speaker 2: mass is an important new indication for us to potentially

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Speaker 2: get on label later this year, and that's a real

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Speaker 2: health issue. And here you get saying one product the

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Speaker 2: best mass data that's ever been shown, and you get

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Speaker 2: it in the in the price you're already paying for

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Speaker 2: for we GOOB. I think that's a really really good

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Speaker 2: deal for a payer, hitting more birds with one stone,

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Speaker 2: so to say.

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Speaker 1: Appreciate that context there. It's hard to talk to any

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Speaker 1: CEO without talking about politics in this moment, and that's

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Speaker 1: exactly where I'm going to go right now. We've heard

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Speaker 1: from the Trump administration that they're thinking about considering tariffs

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Speaker 1: on farm a broadly, and I'm curious about how that

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Speaker 1: could affect no vote artistic.

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Speaker 3: I know that you have some.

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Speaker 1: US manufacturing presence, of course with the cattle lit deal.

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Speaker 1: Are you thinking about shifting even more production to the

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Speaker 1: US or even potentially stockpiling certain drugs? What does your

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Speaker 1: planning look like right now.

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Speaker 2: Yeah, that's a great topic, and it's one of those

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Speaker 2: that's a bit difficult to predict right now because there

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Speaker 2: are quite a number of different messages coming out. If

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Speaker 2: you look at our all manuffacting footprint, that's one of

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Speaker 2: having invested significantly in the US. You know, specifically, we

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Speaker 2: invested twenty four billion dollars in the US say operations

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Speaker 2: over the past ten years. We have moderntier thousand people

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Speaker 2: working for US in the US, and we actually produce

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Speaker 2: and export more from the US than we import to

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Speaker 2: the US. So when other companies were moving manufacturing out

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Speaker 2: of the US to perhaps save tax, that was actually

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Speaker 2: a time where we started dropping down and investing in

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Speaker 2: the US. So we have api manufacturing in the US.

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Speaker 2: We have field finished products. And when you talk about

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Speaker 2: an all businity treatment like THEGOVI in a pill, that's

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Speaker 2: actually one hundred percent produced in the US. The API

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Speaker 2: is made in the US, the tableting is done in

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Speaker 2: the US, the packaging is done in the US, so

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Speaker 2: it's really a US made product to Americans. So I

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Speaker 2: think we have a good setup. Like all global companies.

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Speaker 2: Of course, we are products moving forth and back. But

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Speaker 2: the underlying basis is that we export more from the

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Speaker 2: US than we import through the US.

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Speaker 4: So lars, does that imply that the ingredients also that

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Speaker 4: you use to manufacture them are also made in the

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Speaker 4: US or is that going to be a risk?

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Speaker 3: Yes?

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Speaker 2: Yes, So if you take again we go in a pill,

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Speaker 2: all of that is produced in the US.

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Speaker 3: We don't know.

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Speaker 2: We do mainly biological manufacturing, so we don't import chemicals

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Speaker 2: from China, India or other places in the world. It's

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Speaker 2: biologic manufacturing done in the US. But of course we

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Speaker 2: also have cases where we explore API from the US

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Speaker 2: to Europe and we export from Europe to the US,

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Speaker 2: so there are products crossing the border. But again, as

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Speaker 2: I mentioned, we export more from the US than we

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Speaker 2: import to the US, and that also means that over

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Speaker 2: time we could localize more and more in the US,

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Speaker 2: and we are also expanding and investing more in the US.

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Speaker 2: And you know, we also have a big number we

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Speaker 2: can mention if need be. But I think the proof

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Speaker 2: point is that we did not leave the US. We

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Speaker 2: actually stayed and we double it down to today's situation

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Speaker 2: where we export more from the US than we import

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Speaker 2: to the US. I think that's a great story and

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Speaker 2: I think it's aligned with what the Dedminstration is looking for.

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Speaker 4: Ending it out here. When it comes to M and

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Speaker 4: A and building out your obesity portfolio externally, are there

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Speaker 4: gaps you need to fill and what kind of company,

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Speaker 4: what kind of biotech company would be interesting?

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Speaker 2: Yeah, you know, we're pursuing a leadership position when it

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Speaker 2: comes to obesity and including diabetes and fuel disease areas,

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Speaker 2: and we have a very very strong internal pipeline. But

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Speaker 2: as you say, there are also some gaps we have

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Speaker 2: We have instance in licensed true early deals since our

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Speaker 2: last report UH in the small molecule space, So there

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Speaker 2: are examples of areas we would like to fill, and

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Speaker 2: we do that by complementing and ideally do that with

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Speaker 2: early assets from biotech company where we can still use

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Speaker 2: our capabilities to really add value to it and thereby

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Speaker 2: enhance both the quality to patients in terms of what

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Speaker 2: they get in the figacy and safety, but also an

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Speaker 2: attractive return to our shareholders and lats before we.

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Speaker 3: Let you go.

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Speaker 1: We're expecting a pretty significant out when it comes to

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Speaker 1: oral sema glue tide in the second half of the

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Speaker 1: year about sort of the efficacy for Alzheimer's, And I'm

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Speaker 1: curious what you're confident is around that. Obviously Alzheimer's has

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Speaker 1: been a not that it seems like the former industry

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Speaker 1: just can't crack.

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Speaker 3: Yeah, you're right, this is a devastating disease.

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Speaker 2: I think we all know of family members who are

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Speaker 2: suffering from that. I can talk to that myself, having

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Speaker 2: family members diagnosed with Alzheimers. So it's a devastating disease.

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Speaker 2: Some call it type three diabetes. Having lived with type

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Speaker 2: two diabetes, you alt risk of developing Alzheimer's. So of

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Speaker 2: course the hypothesis of using semaglutide is an intrust wrong

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Speaker 2: because it has this anti inflammatory properties.

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Speaker 3: But as you say, it has been a very.

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Speaker 2: Difficult clug development space so we have intentionally guided very cautious,

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Speaker 2: cautiously on this because we don't want to create false hopes.

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Speaker 2: Data will be coming end of this year. So let's

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Speaker 2: let's just have a look at the data and uh

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Speaker 2: and decide on the level of excitement when we see that.

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Speaker 2: But for sure they really need and also space where

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Speaker 2: I think the medicines already there are not you know,

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Speaker 2: maybe clear court stand up for care ob chances and

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Speaker 2: we could potentially be that