Novo Nordisk CEO Mike Doustdar sits down with Jim Cramer

>> ALL RIGHT. WHAT HAPPENED TO THE STOCK IN NOVO NORDISK? THE DANISH DRUG COMPANY, YOU KNOW, IS THE INVENTOR OF OZEMPIC AND WEGOVY. LAST WEEK, THEY REPORTED A BEAT AND RAISE QUARTER. YET THE STOCK FELL NEARLY 6% THE DAY THOSE NUMBERS WERE RELEASED. SINCE THEN, WELL, IT MADE UP MOST OF ITS LOSSES, BUT THAT WAS A STUNNING REACTION. HEY, KEEP IN MIND, NOVO NORDISK HELPED INVENT THE GLP ONE CATEGORY, AND THEIR OBESITY AND DIABETES BUSINESSES ARE NOW PRINTING MONEY. IN JANUARY, THEY LAUNCHED A PILL VERSION OF WEGOVY. IT'S ALREADY BEEN PRESCRIBED MORE THAN 5 MILLION TIMES, MOSTLY TO PEOPLE WHO NEVER TRIED THE INJECTIONS. IN THE END, THOUGH, THIS IS A TURNAROUND STORY, ONE THAT REDUCES HEADCOUNT BY ABOUT 15% BUT STILL DON'T GET MUCH LOVE FROM WALL STREET. EARLIER TODAY, I GOT A CHANCE TO CHECK IN WITH MIKE DUSTER. HE'S THE PRESIDENT AND CEO OF NOVO NORDISK. TAKE A LOOK. EVERYONE KNOWS YOU BECAUSE YOU'RE THE PERSON THAT INTRODUCED THE GLP ONE TO THE WORLD. AND I'M SO GLAD YOU'RE HERE. WE HAVEN'T SEEN EACH OTHER SINCE THE J.P. MORGAN CONFERENCE. I THOUGHT YOU JUST TELL US. FILL US IN. FIRST OF ALL, WHAT'S HAPPENED SINCE THEN? BECAUSE I KNOW THAT THERE'S BEEN KIND OF A RESET OF YOUR COMPANY. >> THANKS SO MUCH. YES. SO A LOT HAS HAPPENED. MORE AND MORE PEOPLE ARE GETTING USED TO EITHER TAKING A PILL OR INJECTING THEMSELVES. AND MORE IMPORTANTLY, I THINK WE'RE TRYING TO UNDERSTAND MORE AND MORE AROUND THE BENEFITS OF GLP ONE. SO IF YOU GO BACK ACTUALLY COMPARED TO ABOUT 12 MONTHS AGO WHEN I GOT MY JOB, WE HAVE 70% MORE PEOPLE IN US USING OUR PRODUCTS TO A LARGE EXTENT BECAUSE OF THE INTRODUCTION OF THE PILL. RIGHT. SO, SO THIS HAS BEEN SURPRISING. MOST OF THE INVESTORS. I WOULD ALSO TELL YOU, IT HAS BEEN SURPRISING US, THE THE OVERWHELMING NUMBER OF THE PEOPLE THAT HAVE COME TO THE PILL. WE HAVE NOW GLOBALLY, 1.5 MILLION PEOPLE ON THE PILL IN A VERY SHORT PERIOD OF TIME. THE NUMBER OF PRESCRIPTIONS THAT ARE WRITTEN HERE IN THE US HAVE SURPASSED 5 MILLION. JIM, THIS MAKES THIS LAUNCH THE BEST PRODUCT LAUNCH IN THE HISTORY OF PHARMACEUTICALS. >> OF PHARMACEUTICALS, NOT, NOT NOT OF NOVO. >> SO ONE OF MY COLLEAGUES TOLD ME THAT MAYBE THERE IS ONE VACCINE. YOU CAN IMAGINE WHICH ONE MAYBE THAT DID BETTER THAN THAT. BUT YES, THIS HAS BEEN A PHENOMENAL LAUNCH. >> OKAY. EXPLAIN TO ME WHY ON YOUR MOST RECENT CONFERENCE CALL THAT YOU ACTUALLY GUIDED DOWN WHEN I THOUGHT YOU MIGHT HAVE GUIDED UP, YOU TALKED ABOUT FLAT TO DOWN 6%. I WAS THINKING ABOUT THE PILL AND SAID, WOW, THIS IS GOING TO GENERATE HUGE NUMBERS, BUT IT'S NOT TRANSLATING INTO EARNINGS PER SHARE. >> WELL, WE IMPROVED GUIDANCE ACTUALLY, AND BEAT THE CONSENSUS QUITE A BIT. YOU MIGHT RECALL WE CAME TO THE YEAR WITH A PROJECTION THAT OUR MIDPOINT THIS YEAR WILL BE AT -9% SALES. IN Q1, WE IMPROVED ON THAT MIDPOINT TO MINUS EIGHT. AND NOW IN QUARTER TWO, WE IMPROVED AGAIN, MOVING THE MIDPOINT NOW TO -3%. >> I THINK PEOPLE SAY WHY IS IT NEGATIVE AT ALL WHEN YOU'VE GOT THIS PILL THAT'S TAKING THE WORLD BY STORM? >> EXCELLENT QUESTION. MAJORITY OF OUR SALES IS ON THE INJECTABLE SIDE. AND LAST YEAR ON THE BACK OF MFN AND PRICE PRESSURE, WE REDUCED THE PRICES OF OZEMPIC AND WEGOVY TREMENDOUSLY. >> OKAY. >> WE DID THAT BECAUSE WE WANT PEOPLE TO GET ACCESS TO THESE MEDICATIONS. WE DID THAT BECAUSE WE WERE THINKING ABOVE AND BEYOND JUST THE QUARTER. I'M THINKING THAT WHILE I HAVE TO DELIVER NUMBERS ON A QUARTERLY BASIS, WE NEED TO BUILD THIS COMPANY FOR DECADES LONG. IT IS NOT CONCEIVABLE THAT PEOPLE CAN PICK UP A BOX OF OZEMPIC OR WEGOVY FOR $1,000, FRANKLY SPEAKING. SO WE NEEDED TO TAKE THE THE HARD PILL. WE HAD TO BASICALLY REDUCE THE PRICE QUITE A BIT. AND YOU KNOW THIS FROM A MATH, IF YOU HAVE THE PRICE, YOU HAVE TO DOUBLE THE VOLUME TO MAKE IT EVEN, BUT YOU CAN BREAK, YOU CAN HALVE THE PRICE ON DAY ONE. YOU CANNOT DOUBLE THE VOLUME ON DAY ONE. >> BUT LET ME PUSH BACK. ELI LILLY'S HAD SOME FABULOUS NUMBERS. THEY ARE COMPETITIVE WITH YOU. THEY ARE NOT AS STRONG YET ON THE PILL, AND YET THEY'RE GENERATING NUMBERS THAT ARE SUPERIOR TO NOVO'S. >> BECAUSE ELI LILLY HAS BEEN GAINING MARKET SHARE AND THERE ARE MORE DIVERSIFIED THAN NOVO NORDISK. SO IF YOU TAKE A LOOK AT ELI LILLY, I BELIEVE SOME 60% OF THEIR BUSINESS IS GLP ONE. OURS IS AROUND 90. AND ON TOP OF IT, THERE IS NO SECRET THAT LILLY HAS BEEN QUITE SUCCESSFUL ACTUALLY IN HAVING VOLUME UPTAKE AND MARKET SHARE UPTAKE ABOVE AND BEYOND NOVO. >> NOW, DO YOU THINK THAT I KNOW THAT YOU SUED ELI LILLY? DO YOU THINK THAT THEY'VE MADE REPRESENTATIONS THAT ARE NOT ACCURATE? >> I AM A BIG FAN OF COMPETITION. I THINK COMPETITION HAS TO BE FIERCE. BUT I ALSO THINK COMPETITION HAS TO BE FAIR. I BELIEVE THAT PATIENTS DESERVE TO KNOW THE FULL TRUTH TOGETHER WITH THEIR PHYSICIANS, BEFORE THEY MAKE A CHOICE OF WHAT PRODUCT TO TAKE. WE BELIEVE THAT THE ADVERTISEMENTS THAT THEY HAVE BEEN DOING, WHILE TRUTHFUL, IS NOT THE COMPLETE PICTURE. IT'S BUILT ON OLDER GENERATIONS OF OF THESE PRODUCTS AT ALL DOSES. WE HAVE SOMETHING CALLED THE WEGOVY HD WEGOVY HIGH DOSE IN THE MARKET, WITH EFFICACY ON PAR WITH OUR COMPETITOR. WE WOULD LIKE THE PATIENTS TO KNOW THIS WHEN THEY'RE MAKING THEIR CHOICE. AND AND THAT'S WHY WE'RE DOING WHAT. >> THEY DID MAKE A TRUE CLAIM. IT'S JUST YOU'RE SAYING IT MAY HAVE BEEN VERSUS IT MAY NOT HAVE BEEN APPLES TO APPLES. >> THEY DID A TRIAL CORRECTLY ON A HEAD TO HEAD TRIAL ON WEGOVY 2.4MG DOSE. AND WE BELIEVE THAT PEOPLE NEED TO KNOW VERY VISIBLY THAT THERE IS A MORE ADVANCED VERSION OF WEGOVY IN THE MARKET WITH DIFFERENT PROFILES, AND THEN THEY CAN MAKE THEIR CHOICE AND DECIDE WHICH PRODUCT IS THE BEST. >> WELL, LET'S TALK ABOUT THIS LAUNCH BECAUSE IT'S QUITE EXCITING. I KNOW THAT LILLY HAS A PILL TOO. THEY'VE STARTED TO SEE SOME UPTICK IN PRESCRIPTIONS. THEY DO HAVE DIFFERENCES. YOU DO HAVE RESTRICTIONS. I DON'T THINK THE RESTRICTIONS ARE ALL THAT MEANINGFUL. BUT OBVIOUSLY TO HAVE NO RESTRICTIONS LIKE WE HEAR FROM LILLY IS BETTER THAN YOUR PROFILE. BUT IT DOESN'T SEEM TO MATTER. YOUR YOUR THINGS. JUST A BAT OUT OF HELL. WHAT'S HAPPENING? BECAUSE DO YOU THINK IT'S WORD OF MOUTH? AND ARE THERE SIDE EFFECTS THAT ARE MORE SERIOUS THAN ANYTHING THAT HAPPENS WITH THE SHOT? >> YEAH. SO I THINK THE US MARKET AND THE CONSUMERS HAVE BEEN INCREDIBLY HONEST ABOUT WHAT PREFERENCE WINS, RIGHT? WHEN YOU THINK ABOUT WHAT HAPPENED TO NOVO NORDISK INJECTABLE BUSINESS, IT WAS PREDOMINANTLY BECAUSE A LOT OF PATIENTS FELT THAT OUR COMPETITOR HAS A MORE EFFICACIOUS WEIGHT LOSS PROFILE. ON THE BACK OF THE OLDER VERSION I JUST MENTIONED TO YOU. AND THEREFORE WE STARTED LOSING WEIGHT. ALMOST EXACTLY THE SAME THING HAS HAPPENED ON THE PILL. WE HAVE INTRODUCED A PILL THAT REDUCES YOUR WEIGHT BY 17%. LILLY'S PILL REDUCES YOUR WEIGHT BY 12% BASED ON NOT HEAD TO HEAD TRIALS, BUT OUR INDIVIDUAL TRIALS THAT WE HAVE DONE. THE CONSUMER IS VERY HONEST ABOUT THAT. THEY WANT THE 17% WEIGHT LOSS OVER 12, BUT INITIALLY WE THOUGHT ACTUALLY THERE COULD BE SOME UPTAKE FOR OUR COMPETITOR BECAUSE THE CONSUMERS MIGHT THINK THAT BECAUSE YOU DON'T NEED TO WAIT BEFORE, YOU DON'T NEED TO WAIT WITH YOUR FOOD BEFORE YOU TAKE THIS PILL. THEY WILL CONSIDER OUR COMPETITORS PRODUCT AS A MORE EASIER TO USE. >> I DO BELIEVE THEY WILL. >> THE WORLD HAS SEEN IT DIFFERENTLY, FRANKLY SPEAKING, BECAUSE A DOCTOR EXPLAINS TO THEIR PATIENTS, GET UP IN THE MORNING, BRUSH YOUR TEETH, TAKE THE PILL, BRUSH YOUR TEETH, GO TAKE A SHOWER, AND THEN GO HAVE BREAKFAST. THAT'S QUITE EASY. ON THE OTHER HAND, THE SAME DOCTOR HAS TO EXPLAIN TO THE PATIENT TRYING TO TAKE LILLY'S PRODUCT. ARE YOU ON A BIRTH CONTROL PILL? IF YOU ARE, IT'S GOING TO BE PROBLEMATIC. >> BUT LILLY COULD OBVIOUSLY COME BACK WITH A MORE EFFICACIOUS. BUT RIGHT NOW YOU'VE GOT A REALLY GOOD RUNWAY, WHICH IS WHAT MAKES ME INTRIGUED BY THE STOCK, BECAUSE I THINK THAT YOU MAY BE ABLE TO HAVE BETTER NUMBERS THAN YOU THINK. BUT I SAY THAT AS A AS A PERSON WHO FOLLOWS YOUR COMPANY CLOSELY, WHO IS, HAS, WHO IS, HAS TO THINK A LITTLE MORE FORWARD IN ORDER TO BE ABLE TO SAY, THIS STOCK IS TOO CHEAP. I MEAN, I JUST DON'T AFTER TODAY, I JUST DON'T SEE ANY. WELL, THERE'S ALWAYS DOWNSIDE, BUT I DID WANT TO ASK YOU. AND THIS IS REALLY IMPORTANT. YOU HAVE A HUGE NUMBER OF STUDIES. THERE'S A MAZE STUDIES NOW. YOU DIDN'T WIN ON THAT HEART ONE BUT THAT ALSO HAD KIDNEY PROBLEMS. ARE YOU GOING DO YOU ARE YOU CONFIDENT THAT THERE'S SOME THINGS DOWN THE ROAD, INCLUDING A PILL THAT GETS RID OF FAT BUT NOT MUSCLE BECAUSE THAT'S THE HOLY GRAIL. >> SO WE DO NOT CHANGE STRATEGY BASED ON A RESULT OF A SINGLE TRIAL. OKAY? WE ARE IN A BUSINESS TOGETHER WITH OUR PEERS OF FAILURES, TRIALS AND ERRORS. HOPEFULLY, THE NUMBER OF SUCCESSFUL TRIALS AND THE SUCCESSFUL INTRODUCTIONS OF MEDICATIONS OUTWEIGHS THE NUMBER OF FAILURES. THAT'S WHY WE ARE MOST. >> DRUGS FAIL MOST DRUGS. >> WELL, I THINK THE REASON YOU BECOME 100 YEARS OLD, LIKE OUR COMPANY IS BECAUSE WE'VE HAD MORE SUCCESSES THAN FAILURES. RIGHT NOW, WE WORK QUARTER BY QUARTER, BUT WE DO BUILD THIS COMPANY FOR DECADE LONG GOING FORWARD. AND YES, I FEEL INCREDIBLY CONFIDENT. AND COMING BACK TO YOUR COMMENT ABOUT THE STOCK PRICE, THE STOCK MARKET IS ALWAYS RIGHT, BUT WITH A BIT OF A TIME DIFFERENCE. IT'S FAIR. WHAT WHAT I THINK WE NEED TO DO IS AGAIN, CONTINUE THE RESULTS, LIKE WE HAVE SHOWN IN THE LAST TWO QUARTERS OVER A PERIOD OF TIME. AND THEN THIS MOMENT TURNS INTO A TREND. AND HOPEFULLY THE STOCK MARKET WILL ALSO FOLLOW. >> WELL, I THINK THE PILL'S DOING INCREDIBLY WELL. AND THAT'S KIND OF A REALLY IMPORTANT TAKEAWAY. IF SOMETHING'S GOING TO BE THE BEST LAUNCH OF ALL TIME EXCEPT FOR MAYBE A VACCINE, AS WE ALL KNOW, THAT'S QUITE EXCITING TO OUR VIEWERS, PARTICULARLY BECAUSE THE STOCK I CAN SAY YOU DON'T YOU DON'T I DO IS LOW. MIKE STARR IS THE PRESIDENT AND CEO OF NOVO NORDISK. COMES ON GOOD TIMES AND BAD. I LIKE THAT, AND I THINK THAT THIS PILL IS WORTH FOLLOWING BECAUSE IT CAN CHANGE. I BELIEVE IT CAN CHANGE THE DIRECTION OF THE COMPANY. >> THANK YOU VERY MUCH, JIM. THANK YOU, THANK YOU. >> COMING UP WITH SHARES OF ZOOM CLIMBING HIGHER. CRAMER'S ZOOMING INTO THE DATA TO SEE WHAT'S BEHIND