Novo outlook hike falls flat as high Wegovy pill hopes unmet

The Danish obesity drugmaker has been getting a boost from its new Wegovy weight-loss pill as its injectable GLP-1 weight-loss treatment lost ground in recent years.

CEO Mike Doustdar, who took the helm at Novo a year ago, has been seeking to steady the group after it was battered by repeated sales shortfalls, a collapse in market value and a wave of job cuts, leaning heavily on the newly launched Wegovy pill to drive a recovery.

Novo sued Eli Lilly in a U.S. federal court last month, accusing its American rival of false advertising. Lilly has denied any wrongdoing, saying it stands by its advertising.

The lawsuit is the latest front in a rivalry that has come to define the obesity drug market, which some analysts expect to be worth more than $100 billion a year by 2030.

Lilly still leads in the U.S. market for injectable weight-loss drugs, and investors are watching for signs Novo can compete beyond its current medicines through new pipeline results, deals or a sustained recovery in prescriptions.