Danish pharmaceutical giant Novo Nordisk suffered a significant blow on Tuesday as its shares plummeted by 20% following a reduction in full-year financial guidance and the announcement of a new CEO. The company’s stock initially dropped by as much as 26% before recovering slightly.
The downward revision in expectations comes amid weaker-than-anticipated sales growth in the U.S. market for Novo Nordisk’s blockbuster drugs Wegovy, a weight-loss treatment, and Ozempic, a diabetes medication.
New Leadership Amid Uncertainty
The company announced that Maziar Mike Doustdar, a Novo Nordisk veteran with over three decades of experience, will officially take over as president and CEO on August 7. Doustdar replaces Lars Fruergaard Jørgensen, who was unexpectedly ousted in May.
In a statement, Novo Nordisk Chairman Helge Lund expressed confidence in Doustdar, describing him as “the best person to lead Novo Nordisk through its next growth phase.” Doustdar himself highlighted his commitment to innovation and growth, stating, “I come to this role with a sense of urgency, a laser focus on high performance, and a fierce determination for Novo Nordisk to aim higher than it’s ever done.”
Revised Financial Outlook
Novo Nordisk has now lowered its full-year sales growth forecast to between 8% and 14% at constant exchange rates, a significant reduction from its prior target of 13% to 21%. Similarly, the company’s operating profit growth projection has been cut to 10% to 16%, down from the previously estimated range of 16% to 24%.
The company cited several factors for the weaker outlook, including:
- Persistent use of compounded GLP-1 drugs in the U.S.
- Slower-than-expected market expansion for Wegovy.
- Increased competition in the weight-loss and diabetes drug markets.
Challenges Facing Wegovy and Ozempic
Wegovy, one of Novo Nordisk’s most high-profile weight-loss drugs, has faced headwinds from competition and compounded drug alternatives, especially after a recent FDA ruling addressing drug shortages. The company noted that these pressures are expected to ease in the second half of the year as copycat drugs are phased out.
Novo Nordisk has also struggled with disappointing trial results for its next-generation obesity drug candidate, CagriSema, further dampening investor sentiment.
Market Reaction and Broader Impact
The company’s shares have shed over 42% of their value in 2025, reflecting ongoing challenges in maintaining growth amid increasing competition and market dynamics. Tuesday’s announcement marked another blow to investor confidence, as the stock fell sharply during early trading in London.
Despite these setbacks, Novo Nordisk remains optimistic about its long-term growth trajectory, with plans to expand its market presence and deliver innovative therapies to more patients worldwide. The company is scheduled to report its full second-quarter sales figures on August 6.
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