Novo Nordisk (NVO.US) is setting its sights on the hair loss market, as the manufacturer of Ozempic seeks to diversify its portfolio under a post-Wegovy growth strategy. "We can potentially enter this area using our scientific expertise," said Martin Lange, the company's Chief Scientific Officer, adding that "it is not necessarily the area we would advance first, but it is a definite possibility."

The comments came just one day after Novo Nordisk unveiled its post-Wegovy growth plan, at a time when the GLP-1 market is becoming increasingly crowded. Following the remarks, shares of hair loss drug developer Veradermics (MANE.US) and Absci (ABSI.US) moved higher.

On Monday, shares of the Danish pharmaceutical giant declined, despite long-term targets showing plans to launch more than five drugs with multi-billion dollar blockbuster potential by 2030, and to generate over $23 billion in risk-adjusted pipeline sales by 2035. "Confidence has faded, and yesterday's market reaction says it all; rebuilding that trust will take time and considerable effort," said CEO Mike Doustdar, adding that "we need to start somewhere, and then we need to look everywhere."

Despite its first-mover advantage, Novo Nordisk has lost ground to its primary competitor Eli Lilly (LLY.US) in the injectable GLP-1 market. Meanwhile, an approaching patent cliff after 2030 threatens its best-selling drug semaglutide, marketed as Ozempic for diabetes and Wegovy for weight loss. According to Doustdar, the company aims to target areas where its expertise in direct-to-consumer (DTC) sales, a tactic increasingly used to market its blockbuster weight loss medications, could give it a winning edge.

Lange noted that some consumer-focused projects under evaluation could potentially launch before the end of this decade, given shorter development timelines, and the company may also sign in-licensing deals for late-stage compounds. The FDA has not approved a new treatment for pattern hair loss since the 1990s, a condition estimated to affect 50 million men and 30 million women in the United States.

However, hair loss is not among the eight indications Novo Nordisk plans to advance into mid-stage trials later this year or in early next year. The company has previously stated it would pursue bolt-on acquisitions and move faster in leveraging its internal drug pipeline, with plans to advance new therapies for conditions including heart, liver, and blood system diseases. Lange indicated that cardiology programs would involve longer development timelines.