Editing Novo Nordisk A/S (section)

== Risks ==
'''Risks of operations, competitors and other:'''

<u>Diversification in products</u>

The 3 main products produced by Novo Nordisk all contain the same active ingredient which is Semaglutide. This represents 88% of their revenue from segments of obesity and diabetes drugs, excluding their Insulin products. Semaglutide is patented and was produced by Novo Nordisk in 2012, meaning it is relatively new in terms of medical data. It is FDA approved and approved by governing medical bodies however data is still being collected and trials are still being run as per standards. There is data to show that GLP-1s increase the risk of Thyroid cancer and possibly other types of cancers, and can also cause side effects such as pancreatitis which can lead to hospitalisation and death (although in rare cases). in this perspective Novo Nordisk is not a very well diversified business and may be at risk if Semaglutide is adversely affected or if superior compounds are produced by competitors.<ref name=":3">https://www.euronews.com/next/2023/04/28/mounjaro-the-new-weight-loss-drug-set-to-rival-ozempic-and-wegovy</ref>

<u>Risk from competition</u> 

Eli Lilly, the main competitor of Novo Nordisk and american pharmaceutical giant, is currently in the very late stages of developing and seeking approval of the drug Woujaro which is a direct competitor (Tirzepatide). Tirzepatide is currently only authorised for use for Type 2 Diabetes but will likely soon be approved for weight loss purposes as well. This has also shown to be more effective than Ozempic for weight loss in studies from the worlds leading scientific journal, the New England Journal of Medicine. Studies have shown that Ozempic can lead to weight loss of up to 17% body weight and Wegovy up to 18%, whereas Tirzepatide (Mounjaro) has been shown to reduce body weight of up to 23%. Other next generation weight loss drugs are also in development currently by biotech companies such as Versanis who are developing bimagrumab - a drug that promises to maximise fat loss whilst maintaining muscle mass. These medications are expected to come to market within the medium term (~5 years).<ref name=":3" />

<u>Supply chain issues</u> 

Novo Nordisk has found it difficult to cope with the demand rising so fast for their drugs, with many patients unable to access them. Wegovy was on the market for roughly 6 months before the company announced that they had a short supply at the end of 2021. Both drugs were on the FDA’s list of medications under shortage. The company has since increased capital expenditures and invested into its operations heavily to ensure that this does not happen again.<ref>https://www.theguardian.com/society/2023/may/10/online-uk-pharmacies-prescribing-weight-loss-jabs-to-people-with-healthy-bmi-investigation</ref>

[[File:Ozempic demand increase.png|center|thumb|721x721px]]
<u>Controversial use of medications</u> 

Ozempic is not actually approved for weight loss, so tighter regulatory changes could lead to a drop in demand - Under the terms of their approvals, neither drug, Ozempic or Wegovy, should be taken for casual weight loss. This has however become a trend as demand has soared in the last 2 years following celebrity endorsements by the likes of Elon Musk and the Kardashians. Ozempic has been termed the ‘Hollywood Drug’ as a result of this.<ref>https://www.vogue.co.uk/beauty/article/what-is-ozempic</ref>

<u>Compounding (legal conflicts)</u> 

Medical spas, and clinics were found selling custom made versions of Semaglutide, Novo Nordisk has several lawsuits currently in motion to tackle this issue.<ref>https://edition.cnn.com/2023/06/20/health/novo-nordisk-lawsuits/index.html</ref>