Novo Nordisk (NVO) shares nosedived more than 21% on Tuesday after the company drastically cut its full-year sales and profit outlook, citing mounting competitive pressures and disappointing momentum for its flagship weight-loss and diabetes drugs.
In its updated guidance, the Danish drugmaker lowered its full-year sales growth forecast to 8%–14%, down from 13%–21% projected in May. Operating profit growth was also revised to 10%–16%, a steep drop from the prior 16%–24% estimate.
The company pointed to softening demand in the U.S. as the main driver behind the weaker outlook. “For Wegovy in the US, the sales outlook reflects the persistent use of compounded GLP-1s, slower-than-expected market expansion and competition,” Novo Nordisk said. “For Ozempic, the updated outlook is negatively impacted by competition in the US.”
Investors reacted swiftly, sending the stock to its lowest level in over a year. The announcement also dragged down Eli Lilly (LLY), which makes competing drugs, by over 5%, while Hims & Hers Health (HIMS) gained 2.7% on the day.
This marks the second guidance cut for Novo Nordisk in 2025. The company had already reduced its full-year forecast in May after weaker-than-expected Q1 performance. U.S. prescriptions for Eli Lilly’s Zepbound overtook Wegovy back in March, and a head-to-head trial released in May favored Zepbound across multiple metrics.
In a parallel announcement, Novo Nordisk revealed that Mike Doustdar, executive vice president of international operations, will step in as the new CEO starting August 7. He will replace Lars Fruergaard Jørgensen, whose planned exit was announced in May amid the stock’s prolonged slide.
Mike Doustdar, currently Novo Nordisk’s executive vice president of International Operations, has a strong track record of creating value and driving growth. Under his leadership over the past decade, Novo Nordisk’s International Operations have more than doubled sales to approximately DKK 112 billion in 2024. The business includes all of Novo Nordisk’s affiliates outside of the US and employs nearly 20,000 people.
Novo Nordisk Chair, Helge Lund, said: “Mike is an exceptional leader and has the unanimous support of the Board. We are confident that he is the best person to lead Novo Nordisk through its next growth phase. Mike has consistently demonstrated the ability to drive growth through strong commercial execution and building high-performing teams. This is an important moment for Novo Nordisk. The market is developing rapidly, and the company needs to address recent market challenges with speed and ambition. I believe Novo Nordisk will build on its strengths as a global leader in obesity and diabetes, and Mike has a clear vision of how to unlock the full potential of the opportunities ahead.”
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