Novo CEO signals M&A opportunities to strengthen drug pipeline

Novo CEO Mike Doustdar told CNBC that the pharmaceutical giant is considering M&A opportunities as it faces growing competition in the crowded weight-loss market.

"Let's see where the gaps are, and let's go out and see who has produced or is about to introduce better drugs than we are able to do on our own, and when that gap can be filled with M&A, we are actually quite interested about it," Doustdar told CNBC's Steve Sedgewick, Karen Tso, and Ben Boulos on "Squawk Box Europe" on Tuesday.

He was speaking after the company faced investor pressure at its Capital Markets Day event on Monday, where it unveiled a turnaround plan that failed to convince markets it was ready to compete when the active ingredient in its weight-loss medication Wegovy starts losing key exclusivity in the early 2030s.

Novo was last seen trading just below the flatline, down 0.75%, after falling nearly 8% on Monday, its worst trading day since February.

"I think yesterday we laid out a more clear strategy of the direction we want to take the company at. We talked about diversification of the company, but yet the reaction tells me that there's still some work to do in convincing some of the investors," Doustdar said.

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