Novo Nordisk Shares Dive 20% as New CEO Announced and Outlook Slashed

Copenhagen, July 29, 2025 – Danish pharmaceutical powerhouse Novo Nordisk saw shares fall as much as 26%, closing down 20%, after the company revealed a surprise CEO change and cut its full-year guidance amid slowing growth in the U.S. for its flagship weight-loss drug Wegovy.

Novo Nordisk faces slowdown as shares drop and CEO shifts.

Maziar Doustdar to Take Helm Amid Strategic Shift

Novo Nordisk has announced that Maziar Mike Doustdar, a 32-year veteran of the company, will become president and CEO effective August 7, replacing Lars Fruergaard Jorgensen, who was unexpectedly ousted in May.

Doustdar, formerly executive vice president of international operations, brings extensive global experience from his roles in Europe and Asia. Chairman Helge Lund described him as "the most suitable person to lead Novo Nordisk into its next growth phase."

Doustdar added, "I come into this role with a sense of urgency, a strong focus on high performance and a firm resolve to set even higher goals for Novo Nordisk than before."

Wegovy and Ozempic Growth Slow Down in the U.S.

The company lowered its full-year 2025 sales growth forecast to 8%-14% from 13%-21%, citing slow market expansion, the continued use of mixed GLP-1s and increasing competition. Operating profit growth is now projected at 10%-16%, down from a previous forecast of 16%-24%, all at constant exchange rates.

The slowdown is particularly pronounced in the US market, where Wegovy faces headwinds from mixed alternatives and regulatory hurdles following the FDA drug shortage decision.

Market Reaction and Long-Term Outlook

The market reacted sharply to the announcement, with shares down more than 42% year-to-date, adding to concerns arising from a previously reported guidance cut in May and disappointing first quarter earnings.

Novo Nordisk is scheduled to release its second quarter earnings on August 6, and analysts are closely watching for signs of improvement or further strategic changes.

Setbacks in Obesity Drug Pipeline Add Pressure

In addition to investor concerns, the company faces challenges related to its next-generation obesity treatment, CagriSema, which has performed disappointingly in clinical trials. With rising competition and declining demand, the road ahead looks uncertain.

Despite the turmoil, Novo Nordisk is optimistic that market pressure will ease in the second half of the year as copycat drugs are phased out.