The manufacturer of Ozempic is considering entering the hair loss treatment market

Novo Nordisk, the Danish manufacturer of the weight-loss drugs Ozempic and Wegovy, is considering entering the hair loss treatment market, according to Bloomberg, citing the company’s chief scientific officer, Martin Lange. The agency notes that the company is exploring this area as part of its expansion into direct-to-consumer sales of medications.

According to Lange, some scientific research in this field draws on endocrinology—the branch of medicine that studies hormones—an area in which Novo has many years of experience.

Hair loss is just one of several areas the company can expand into thanks to its scientific expertise and the skills in direct-to-consumer sales of prescription drugs that Novo has developed in recent years. This list also includes addiction treatment and menopause, according to Bloomberg.

"We could use our scientific knowledge to potentially enter this field. It's not necessarily what we'll focus on first, but it's a very real possibility," Lange said at a Bloomberg roundtable.

Novo, which rose to prominence thanks to the success of Ozempic, has lost its leadership position in the weight-loss market to its American competitor, Eli Lilly. Now, the European pharmaceutical giant is looking for new applications for its GLP-1 drugs and opportunities for diversification, according to Bloomberg. Meanwhile, the patents for Ozempic and Wegovy in Europe and the U.S. are set to expire in the early 2030s.

According to estimates by VeraDermics, a company developing new treatment methods, androgenetic alopecia affects about 80 million people in the United States alone. This includes approximately 50 million men and about 30 million women, for whom there is currently no approved oral medication, the agency reports.

Some of the consumer projects Novo is considering may have shorter development timelines and be launched by the end of this decade, Lange noted. He added that the company may also enter into deals to acquire compounds that are closer to the commercialization stage. However, hair loss is not included in the list of eight diseases for which Lange expects to advance treatments to mid-stage trials by the end of this year or early next year.

The company is also searching for new treatments for cardiovascular diseases, liver diseases, and blood disorders.

Since the beginning of this year, Novo's stock has fallen by more than 20% on the Danish market, while the stock of its main competitor in the weight-loss drug market, Eli Lilly, has risen by 9% in the U.S.

The day before, the company announced plans to release more than five blockbusters by 2030 and generate over $23 billion in new revenue by 2035. These promises failed to impress investors, who were expecting more concrete plans for overcoming the crisis, according to Bloomberg. Following the presentation on September 21, the stock fell 8% and continued to decline the next day.

“Confidence has been shaken, as yesterday’s market reaction clearly demonstrated, and it will take time and hard work to restore it,” Novo CEO Mike Dustdar acknowledged during the roundtable discussion.

The Wall Street consensus on the company's stock is currently neutral: 16 of the 24 analysts covering Novo's stock recommend holding it. Four advise buying Novo's stock, and the same number advise selling it.

This article was AI-translated and verified by a human editor