Shares of Danish pharmaceutical company Novo Nordisk fell sharply by 20% on Tuesday after the company cut its full-year sales and profit outlook and named a new chief executive officer. The market reaction came amid ongoing challenges in the U.S. market for the company’s widely used obesity and diabetes drugs.
Novo Nordisk now expects full-year 2025 sales growth of 8% to 14%, down from its previous projection of 13% to 21%. Operating profit growth is expected to range between 10% and 16%, also lower than the prior estimate of 16% to 24%. The company cited slower-than-anticipated sales of its weight-loss drug Wegovy and diabetes treatment Ozempic in the second half of the year as key drivers of the revised outlook.
The company also announced that Maziar Mike Doustdar will take over as president and CEO, effective August 7. A Novo Nordisk veteran since 1992, Doustdar most recently served as executive vice president for international operations. His appointment follows the unexpected departure of Lars Fruergaard Jørgensen, whose removal was announced in May after a prolonged decline in the company’s stock performance.
Wegovy and Ozempic sales pressure second-half performance
Despite reporting a 40% increase in second-quarter operating profit and an 18% rise in sales year-on-year, Novo Nordisk warned of slower momentum for the remainder of the year. It noted that compounded GLP-1 drugs continue to impact demand for Wegovy in the U.S., even after the expiration of a temporary exemption granted by the U.S. Food and Drug Administration (FDA) earlier in 2025.
Competition in the weight-loss drug market has also intensified. Prescriptions for rival Eli Lilly’s weight-loss drug Zepbound surpassed those of Wegovy in March. In addition, Novo Nordisk has faced negative sentiment following disappointing clinical trial results for its next-generation obesity candidate, CagriSema.
Stock price falls over 50 percent year-to-date
The company is actively pursuing legal and regulatory strategies to combat the impact of unauthorized compounded drugs in the U.S. market. Executives have indicated that they expect availability of copycat drugs to decline in the second half of the year, but uncertainty remains regarding the pace of recovery in U.S. sales. Novo Nordisk’s stock has declined more than 50% over the past year.
Tuesday’s selloff erased significant gains made during the prior year’s Ozempic-driven rally, which had briefly made Novo Nordisk the most valuable listed company in Europe. Analysts say investors will be watching closely for the company’s full second-quarter earnings report, scheduled for release on August 6, as well as updates on its product pipeline and regulatory developments. – By Eurowire News Desk.