According to the Zhitong Finance APP, after a surprising decline in the sales growth of weight loss drugs led to a profit warning and the company's market value evaporating by over $90 billion, the Danish pharmaceutical giant Novo Nordisk A/S has promoted its head of international business to the new CEO.
As this Danish pharmaceutical company faces fierce competition from its strongest rival in the weight loss drug market, the American pharmaceutical giant Eli Lilly and Company (LLY.US), internal veteran Maziar Mike Doustdar, who has over thirty years of corporate management experience, will be tasked with reversing the continuous decline in market share for weight loss drugs. Novo Nordisk's latest announcement indicates that the sales growth of its blockbuster weight loss drug Wegovy, once dubbed the &#34;miracle weight loss drug,&#34; has become increasingly weak and has underperformed market expectations, leading to a significant unexpected reduction in overall profit forecasts. This also means that the company's market share in the weight loss drug sector is being increasingly eroded by Eli Lilly's weight loss drug tirzepatide (brand name Zepbound).
Just before this latest personnel announcement, Novo Nordisk unexpectedly lowered its financial forecast in a performance preview on Tuesday, stating that at fixed exchange rates, the company expects its sales to grow only 8% to 14% this year, with operating profit expected to grow 10% to 16%. Previously, the company's highest expectations were 21% and 24%, respectively.
As a result of the significant downward adjustment in performance, Novo Nordisk's stock price plummeted by 30% on the Copenhagen Stock Exchange, with the company's total market value evaporating by over $93 billion at one point. Novo Nordisk's (NVO.US) stock price also fell by more than 28% in pre-market trading in the U.S. The stock price of Novo Nordisk has been continuously sluggish since its historical peak in 2024, mainly due to the increasingly fierce competition faced by weight loss drugs.
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&#34;It must be acknowledged that Wall Street analysts will begin to question the market's short-term and long-term expectations for obesity drugs, which have been overly inflated,&#34; said Jared Holz, a U.S. healthcare strategist at Mizuho Securities.
As the world's first globally popular injectable weight loss drug provider, the actual efficacy of the &#34;miracle weight loss drug&#34; Wegovy has been shown in numerous studies to be inferior to Eli Lilly's tirzepatide (brand name Zepbound) and certain potential products focused on &#34;next-generation weight loss drugs.&#34; The driving effect of the &#34;miracle weight loss drug&#34; on Novo Nordisk's performance is no longer magical.
However, the company is clearly unwilling to see its market share in weight loss drugs eroded by Eli Lilly and competitors focusing on next-generation weight loss drugs, hoping that internal veteran Maziar Mike Doustdar can lead the weight loss drug business back to its peak. Earlier this year in May, Novo Nordisk announced the dismissal of CEO Lars Fruergaard Jørgensen in an effort to seek a growth curve after consecutive setbacks in the weight loss drug market
Novo Nordisk AS previously stated that a new contract with CVS Health Corp. will drive sales of its star weight loss drug Wegovy starting July 1, but it still faces fierce competition from Eli Lilly's strongest weight loss drug competitor, Zepbound.
Novo Nordisk's management pointed out in its earnings forecast that the latest downward revision of performance growth expectations reflects the increasingly intense competitive pressure faced by Wegovy and its sister weight loss drug Ozempic in the market.
The company also mentioned that the U.S. market continues to use the cheaper compounded version of Wegovy, and the overall market demand growth is below expectations under the heavy pressure of Trump's tariff policy, which are important factors contributing to the downward revision of performance expectations. Novo Nordisk stated that it will combat illegal compounded drugs through legal means and increase marketing investment directly targeting patients.
Novo Nordisk expects sales to grow by 18% at constant exchange rates in the second quarter, with operating profit expected to increase by 40%. Novo Nordisk will announce its complete second-quarter financial report on August 6

Novo Nordisk AS's market value has evaporated by over $90 billion due to declining sales of the weight loss drug Wegovy, and it has announced the promotion of Maziar Mike Dousta as the new CEO. The company has lowered its financial forecast, expecting sales growth of only 8% to 14% and operating profit growth of 10% to 16%. The stock price plummeted 30% in the European market and fell over 28% in pre-market trading in the U.S. Analysts have expressed doubts about the market expectations for obesity drugs

- Novo Nordisk A/S has appointed Maziar Mike Doustdar as CEO following a significant drop in sales growth of its weight loss drug Wegovy, leading to a profit warning and a market value loss of over $90 billion.  
- The company faces intense competition from Eli Lilly's weight loss drug Zepbound, which has impacted its market share and financial forecasts, with expected sales growth revised down to 8% to 14%.  
- Novo Nordisk plans to combat illegal compounding drugs and increase marketing efforts, anticipating a 40% rise in operating profit for the second quarter, with full results to be announced on August 6.

"Weight Loss Miracle Drug" Loses Its Luster! Wegovy Demand Plummets, Novo Nordisk's Market Value Plummets by Over $90 Billion