Novo Nordisk is considering upgrading its New York listing from American Depositary Receipts (ADRs) to a direct listing on the New York Stock Exchange. CEO Mike Doustdar indicated that this move would aim to increase the Danish weight-loss drugmaker's profile in the United States, acknowledging the advantages such a change could bring. Doustdar highlighted that the company's investor community has increasingly shifted outside of Scandinavia over the past two decades, with a growing focus on US investors.
The US market is crucial for Novo Nordisk, accounting for more than 50% of its revenue and the majority of sales for its diabetes and obesity medications, including popular drugs like Wegovy. The company, which became Europe's most valuable listed firm in 2023 with a market capitalization exceeding $600 billion following the success of Wegovy, is now facing intense competition from rivals such as Eli Lilly.
Despite the potential benefits, Doustdar clarified that while the idea of a direct US listing has been discussed over the last decade, there have been no active dialogues or discussions about it since he became CEO last year. He emphasized that he is open to exploring the pros and cons but stressed that the company is not currently actively pursuing the idea. This consideration comes as Novo Nordisk faces market challenges, with its stock having fallen significantly from its peak, while Eli Lilly's rival weight-loss treatment, Zepbound, is projected to surpass Wegovy in sales by more than $7 billion this year, according to LSEG data.
Other sources indicate that Novo Nordisk's stock has recently fallen nearly 8%, bringing its total drop to over 20% this year and reducing its market value to approximately $176 billion. The potential upgrade is seen as a strategic move to regain momentum and enhance visibility in a competitive market, similar to a move made by UK rival AstraZeneca earlier this year.
