Novo Nordisk's New CEO Sharpens Focus on Obesity and Diabetes, Trims Pipeline

Novo Nordisk, the Danish pharmaceutical giant, is set to undergo a strategic shift as newly appointed CEO Maziar Mike Doustdar takes the helm. In a recent second-quarter earnings call, Doustdar outlined his vision for the company, emphasizing a renewed focus on the firm's core strengths in obesity and diabetes treatments while streamlining its pipeline.

Execution-Driven Leadership and Resource Reallocation

Doustdar, who previously served as Novo's executive vice president of internal operations, begins his tenure as CEO with a clear mandate: "Execution, execution, execution." The new chief executive plans to leverage his track record of outcompeting rivals to steer Novo Nordisk back to a leadership position in the incretin market.

"We're going to focus more on diabetes and obesity as this is our main core and has always been," Doustdar stated during the earnings call. He emphasized the need to reallocate resources and optimize the company's cost base to "put the money where the growth is" and maintain competitiveness in key markets.

Pipeline Trimming and Product Performance

As part of this strategic realignment, Novo Nordisk has announced the discontinuation of several investigational assets. Notable among these is zalfermin, a long-acting FGF21 analog that was being developed for metabolic dysfunction-associated steatohepatitis (MASH). Martin Holst Lange, executive vice president of development, explained that the decision was based on efficacy results that did not show significant improvement over existing treatments.

Other discontinued assets include an antisense oligonucleotide for acute myocardial infarction, the oral CB1 receptor blocker INV-347 for obesity, and ANGPTL3i, a monoclonal antibody for dyslipidemia.

Despite these pipeline adjustments, Novo Nordisk reported strong performance in its core products. The GLP-1 injection Ozempic, indicated for type 2 diabetes, remains the company's best-selling asset, generating revenue of 31.8 billion Danish krone ($4.94 billion) in Q2, representing a 15% year-on-year growth. Wegovy, approved for chronic weight management, saw a 67% year-on-year increase, earning 19.5 billion Danish krone ($3 billion) in the second quarter.

Financial Outlook and Leadership Transition

Alongside Doustdar's appointment, Novo Nordisk has revised its full-year 2025 outlook. The company now expects sales growth to be between 8% and 14% at constant exchange rates, down from the previous forecast of 13% to 21%. Operating profit growth projections have also been adjusted to 10% to 16%, below the prior guidance of 16% to 24%.

Outgoing CEO Lars Fruergaard Jørgensen addressed the guidance reduction, stating, "We don't take our guidance reduction lightly. We treat it with utmost seriousness." Jørgensen expressed confidence in Doustdar's ability to provide the "execution power needed" to drive growth in the coming years.

As Doustdar takes over, the pharmaceutical industry will be watching closely to see how Novo Nordisk's renewed focus on its core metabolic disease portfolio and streamlined approach to R&D will shape its future in the competitive global pharmaceutical landscape.