Novo Nordisk shares plunge as company appoints new CEO and reduces profit expectations

In Denmark, Novo Nordisk announced significant changes in leadership and revised its financial outlook on Tuesday, July 29, 2025. The company named Maziar Mike Doustdar as the new CEO, taking over on August 7, replacing Lars Fruergaard Jorgensen. The decision to appoint a new CEO comes in the wake of a steep decline in the company’s stock price, which has dropped nearly 37% since the start of the year. The restructured leadership is a response to recent challenges in the market, particularly concerning their weight-loss drug, Wegovy. The announcement was accompanied by a significant adjustment in their sales projections for the future. Novo Nordisk indicated that they expect sales growth of Wegovy to weaken, estimating growth for 2025 at 8%-14%, down from an earlier forecast of 13%-21%. This revision reflects the impact of increased competition, particularly from compounded GLP-1 drugs, which have entered the market and are competing with Wegovy. The company also lowered its operating profit growth expectations to 10%-16%, down from 16%-24%. Additionally, the presence of copycat and compounded GLP-1s has raised concerns about the safety and efficacy of such alternatives. The FDA had previously ordered the cessation of these compounded versions due to a lack of regulation and oversight in that segment. Novo Nordisk has expressed serious concerns about patient safety, emphasizing the importance of actions against illegal or subpar alternatives to its products. To combat these issues, the company is pursuing legal avenues to protect patients and maintain the integrity of its brand. The strategic moves made by Novo Nordisk signal a crucial phase for the company as it navigates a more challenging marketplace and attempts to reclaim investor confidence after a significant drop in share value. The upcoming earnings call on August 6 is anticipated to provide further insights into the company’s strategies moving forward.