On July 29th, Danish pharmaceutical giant Novo Nordisk announced the downgrade of its sales and profit growth expectations for the first half of 2025 (both calculated at constant exchange rates - CER) and updated its full-year performance outlook.
Novo Nordisk expects its sales to grow by 18% and operating profit to increase by 29% in the first half of 2025. For the full year of 2025, the sales growth rate is projected to be 8%-14%, and the operating profit growth rate is anticipated to be 10%-16%.
Affected by this news, Novo Nordisk's stock price plummeted by 21.83%. Currently, its market value is less than $240 billion, a drop of more than 60% compared to over $600 billion in July last year.
Novo Nordisk expects its sales to grow by 18% and operating profit to increase by 29% in the first half of 2025. For the full year of 2025, the sales growth rate is projected to be 8%-14%, and the operating profit growth rate is anticipated to be 10%-16%.
Affected by this news, Novo Nordisk's stock price plummeted by 21.83%. Currently, its market value is less than $240 billion, a drop of more than 60% compared to over $600 billion in July last year.
Novo Nordisk stated in its announcement that the downgrade of performance expectations is mainly due to the slowdown in sales growth of its core product semaglutide:
Slowing growth of Wegovy, a weight-loss drug in the US: It is affected by the continued use of unsafe and illegal compounded GLP-1, slower-than-expected market expansion, and intensified competition. On one hand, Novo Nordisk's market research shows that although the FDA's grace period for illegal compounding has ended, many institutions are selling compounded GLP-1 drugs under the guise of "personalized customization". The company is adopting multiple strategies such as litigation to protect patients from the harm of counterfeit "semaglutide" drugs and calling on federal and state regulatory authorities to strengthen law enforcement. On the other hand, despite the launch of new commercial activities in the first half of 2025, the penetration rate is still lower than expected. However, the change in CVS's national template formulary took effect on July 1, 2025, making Wegovy the only GLP-1 drug included in obesity coverage, which is expected to have a positive impact.
Slowing growth of Ozempic, a diabetes drug in the US: Market competition pressure is increasing.
Lower-than-expected penetration rate of Wegovy in the International Operations (IO) market.
Semaglutide is Novo Nordisk's flagship product. The total sales of its three brands were close to $30 billion in 2024, and the sales in the first quarter of this year reached $7.9 billion, successfully surpassing Keytruda to become the new "king of drugs".
However, as Novo Nordisk has stated, both the weight-loss and blood sugar-lowering versions of semaglutide are facing fierce competition. On one hand, they are being strongly pursued by similar innovative drugs such as Eli Lilly's tirzepatide; on the other hand, they are squeezed by the market of illegal counterfeit drugs. As a result, the sales growth rate has not been as rapid as expected.
Under the dual pressure of performance and stock price, in May this year, Lars Fruergaard Jørgensen, who had been in charge of Novo Nordisk as CEO for eight years, announced that he would step down soon. On July 29th, Novo Nordisk announced the appointment of Maziar Mike Doustdar as President and Chief Executive Officer, which took effect on August 7, 2025.
It is reported that Maziar Mike Doustdar took up the position of Senior Vice President of Novo Nordisk's International Operations in 2013, overseeing all 80 of Novo Nordisk's subsidiaries except those in the US. He has an outstanding track record in creating value and driving growth. Over the past decade, the sales of the international business under his leadership have more than doubled, reaching approximately DKK 112 billion in 2024.
Novo Nordisk's organizational structure adjustment, which took effect on August 7th, also includes: the two business areas of Research & Early Development and Development will be merged into a unified R&D department. Martin Holst Lange, MD, the current Executive Vice President of Development, will serve as Chief Scientific Officer (CSO). Marcus Schindler, Executive Vice President of Research & Early Development and CSO, has decided to retire. Emil Kongshøj Larsen, the current Senior Vice President of the Europe and Canada region (EUCAN), will join the executive team and succeed Mike Doustdar as Executive Vice President of International Operations.
Under the new organizational structure, whether Novo Nordisk can regain its strength and lead the field of diabetes and obesity treatment, the global capital market is waiting to see.
It is reported that Maziar Mike Doustdar took up the position of Senior Vice President of Novo Nordisk's International Operations in 2013, overseeing all 80 of Novo Nordisk's subsidiaries except those in the US. He has an outstanding track record in creating value and driving growth. Over the past decade, the sales of the international business under his leadership have more than doubled, reaching approximately DKK 112 billion in 2024.
Novo Nordisk's organizational structure adjustment, which took effect on August 7th, also includes: the two business areas of Research & Early Development and Development will be merged into a unified R&D department. Martin Holst Lange, MD, the current Executive Vice President of Development, will serve as Chief Scientific Officer (CSO). Marcus Schindler, Executive Vice President of Research & Early Development and CSO, has decided to retire. Emil Kongshøj Larsen, the current Senior Vice President of the Europe and Canada region (EUCAN), will join the executive team and succeed Mike Doustdar as Executive Vice President of International Operations.
Under the new organizational structure, whether Novo Nordisk can regain its strength and lead the field of diabetes and obesity treatment, the global capital market is waiting to see.
Sources:
1.https://www.novonordisk.com/news-and-media/news-and-ir-materials/news-details.html?id=916407
2. https://www.novonordisk.com/news-and-media/news-and-ir-materials/news-details.html?id=916408