Beyond obesity drugs: Ozempic maker Novo Nordisk sees hair loss as potential new market

Ozempic maker Novo Nordisk is exploring the hair-loss market as it looks for new areas of growth beyond its obesity-drug business, Bloomberg reported on Tuesday.

Hair loss is among several areas the Danish drugmaker sees as potential opportunities, along with addiction and menopause, according to the report.

The areas either overlap with Novo's scientific expertise or its growing experience in selling prescription drugs directly to consumers.

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'A clear possibility'

Some of the science being pursued in hair-loss treatment is rooted in endocrinology, the branch of medicine focused on hormones. Novo has a long history in the field, Chief Scientific Officer Martin Lange said at a Bloomberg roundtable.

"We could leverage our scientific knowledge, potentially moving into that space," Lange said. "It’s not necessarily what we’ll pursue first, but that would be a clear possibility."

The company's move into hair loss could take time. Lange does not include the condition among eight illnesses where he expects Novo to move new treatments into mid-stage trials by late this year or early next year, Bloomberg reported.

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Looking beyond obesity

Novo has lost its lead in the booming obesity market to Eli Lilly & Co. It is now looking for more uses for its GLP-1 drugs and new areas where it can diversify.

That push comes as Ozempic and Wegovy face patent expiry in the US and Europe toward the beginning of the next decade.

Novo's shares slumped this week after investors saw a lack of concrete details in the turnaround plan presented at an investor meeting.

"Confidence is gone, as shown yesterday by the reaction, and it takes time and hard work to build that back," Chief Executive Officer Mike Doustdar said, adding that Novo wants to focus on areas where its expertise in selling medicines directly to consumers, as it increasingly does with weight-loss drugs.

The company is also looking for potential treatments for heart disease, liver and blood disorders.