Novo Nordisk Shakes Up Leadership and Lowers Outlook Amid GLP-1 Market Challenges

Novo Nordisk, the Danish pharmaceutical giant, has announced significant changes to its leadership structure and revised its financial outlook for 2025, reflecting ongoing challenges in the highly competitive GLP-1 drug market. These developments come as the company grapples with slower-than-expected growth in its semaglutide franchise and persistent competition from rival Eli Lilly and compounded GLP-1 products.

New CEO Appointed as Novo Nordisk Faces Market Pressures

Maziar Mike Doustdar has been named the new President and CEO of Novo Nordisk, effective August 7, 2025. Doustdar, currently serving as Executive Vice President of International Operations, will succeed Lars Fruergaard Jørgensen, whose sudden departure was announced in May. The leadership change comes at a critical juncture for Novo Nordisk as it seeks to address recent market challenges with "speed and ambition," according to Board Chair Helge Lund.

Doustdar brings over three decades of experience with Novo Nordisk to his new role, having started as an office clerk in Vienna in 1992 and rising through the ranks to lead the company's international operations. Under his leadership, the international operations division has more than doubled its sales and now employs nearly 20,000 people.

In conjunction with the CEO appointment, Novo Nordisk announced organizational changes aimed at streamlining its R&D efforts. The company is merging its early R&D and development units under a single leadership, with Martin Holst Lange, M.D., Ph.D., set to become Chief Scientific Officer on August 7.

Revised Financial Outlook Reflects Market Headwinds

Novo Nordisk has lowered its 2025 sales and profit outlook, citing slower growth of its semaglutide products—Wegovy for obesity and Ozempic and Rybelsus for diabetes—in the U.S. market. The company now expects full-year sales growth between 8% and 14%, down from the previous forecast of 13% to 21%. Operating profit expectations have also been reduced to a growth range of 10% to 16%, compared to the earlier projection of 16% to 24%.

The revised outlook reflects several challenges faced by Novo Nordisk in the U.S. market, including:

1. Persistent use of compounded GLP-1 products
2. Slower-than-expected market expansion
3. Increased competition, particularly from Eli Lilly's Zepbound (tirzepatide)
4. Lower penetration of Wegovy in certain international markets

These factors have contributed to a significant drop in Novo Nordisk's share price, which plunged more than 20% in early trading following the announcement.

Ongoing Challenges in the GLP-1 Market

The GLP-1 drug market, which includes treatments for obesity and diabetes, continues to evolve rapidly. Novo Nordisk is facing stiff competition from Eli Lilly, whose Zepbound has shown promising results in clinical trials. A recent Phase IIIb study demonstrated that patients on Zepbound lost more weight than those taking Wegovy, with comparable safety profiles.

Additionally, the issue of compounded GLP-1 products remains a significant concern for Novo Nordisk. Despite the FDA deeming that shortages of approved GLP-1 drugs have ended, the company reports that unlawful mass compounding of these products has continued. Novo Nordisk is pursuing multiple strategies, including litigation, to protect patients from what it terms "knockoff 'semaglutide' drugs."

To combat these challenges, both Novo Nordisk and Eli Lilly have launched direct-to-consumer options for their GLP-1 products, allowing patients to pay with cash at a discount. However, Novo Nordisk reports that the penetration of Wegovy within the cash channel has been lower than expected due to competition from compounders.

As the GLP-1 market continues to evolve, Novo Nordisk's leadership changes and revised outlook signal a period of adjustment for the company as it seeks to maintain its position in this highly competitive and rapidly growing segment of the pharmaceutical industry.