In a recent interview on Dubai Eye 103.8, Mads Bo Larsen, Vice President and General Manager of Novo Nordisk UAE, discussed the company’s operations, volume, and growth. Here are the key points from the interview:
Significant Growth
Novo Nordisk is experiencing remarkable growth, with demand increasing by 20 to 30 percent. This growth extends beyond specific products like Wegovy and Ozempic, encompassing Novo Nordisk’s entire product portfolio, including insulin. The surge in demand is partly related to the COVID-19 pandemic.
Impact of COVID-19 and Challenges in Product Delivery
The pandemic heightened awareness of the importance of treating diabetes to prevent severe complications from COVID-19. Consequently, demand for Novo Nordisk’s products has risen significantly. During 2022 and 2023, Novo Nordisk faced challenges in meeting product demand. However, the company has since scaled up production, ensuring effective delivery.
Communication Strategy
There are concerns about off-label usage of Ozempic for weight loss. Balancing weight loss benefits with proper diabetes treatment remains a priority. Novo Nordisk emphasizes clear communication with healthcare professionals and pharmacies. Ensuring appropriate Ozempic use for diabetes treatment (rather than weight loss) is crucial.
UAE Market Prioritisation & Manufacturing Considerations
Discussions about local manufacturing have arisen, but the biotechnological complexity and scale required pose challenges. Establishing local facilities remains a topic of interest. The UAE stands out as a prioritised market for Novo Nordisk due to its rapid adoption of new treatments and innovations in healthcare.
Market Reception and Competitor Interest
Market Reception:
- The market received Novo Nordisk’s announcements positively, with analysts noting the strategic importance of the MENA region for the company’s growth (Medriva) (MedXpress) (Fierce Pharma).
- Novo Nordisk’s strategic moves, such as its recent share buyback program and significant investments in production capacity, reflect its strong financial position and confidence in future prospects (Medriva) (MarketScreener).
- The expansion and new investments have been well-received, contributing to an optimistic outlook among investors and stakeholders (MedXpress) (Fierce Pharma).
Competitor Reaction:
- Competitors like Eli Lilly are closely monitoring Novo Nordisk’s expansion. Eli Lilly, for instance, has also been aggressively expanding its manufacturing capabilities to meet rising demand for similar products (Fierce Pharma).
- Increased competition is expected as other pharmaceutical companies respond by bolstering their presence and forming local partnerships in the MENA region (Fierce Pharma).
Conclusion
Novo Nordisk’s growth in the UAE is driven by increased demand and effective market strategies. Despite challenges in local manufacturing, the UAE remains a priority due to its rapid adoption of new treatments.
