On Tuesday, Danish drugmaker Novo Nordisk announced a major leadership change while cutting its annual forecast, citing reduced sales expectations for its popular weight-loss drug, Wegovy, in the U.S.
The company revealed that Maziar Mike Doustdar, a long-time executive at Novo Nordisk, will step into the role of CEO and president starting August 7. His appointment follows the unexpected departure of Lars Fruergaard Jørgensen in May.
Following the announcement, Novo Nordisk’s shares took a sharp hit, plunging as much as 26% before closing the day 23% lower on the London exchange.
The pharmaceutical firm now expects its sales for the full year to grow between 8% and 14%—a downward revision from its previous estimate of 13% to 21%. Operating profit projections were also scaled back to a range of 10% to 16%, compared to the earlier forecast of 16% to 24%.
The company attributed the revised outlook to slower-than-expected momentum for Wegovy in the U.S., combined with growing competition and continued reliance on compounded versions of GLP-1 medications. Novo Nordisk’s diabetes drug Ozempic also contributed to the tempered expectations for the second half of the year.
This marks the second time the company has lowered its 2025 guidance. The first revision came in May after first-quarter figures came in below projections. Novo Nordisk is scheduled to release its second-quarter results on August 6.
Doustdar, who has been with the company since 1992, has held several senior roles in both Europe and Asia, most recently serving as executive vice president of international operations.
Chairman Helge Lund expressed strong confidence in the leadership transition, calling Doustdar the ideal person to guide the company through its next phase of development.
Doustdar, in turn, emphasized his commitment to driving performance and delivering meaningful progress for patients, stating that he is determined to help the company reach new heights.
Despite its global success, Novo Nordisk has faced challenges in the American market. Demand for Wegovy has been undermined by an influx of compounded alternatives after the FDA declared a shortage, allowing pharmacies to produce their own versions. The company’s share value has already dropped more than 42% this year as a result.
While Novo Nordisk believes that some of these market pressures may ease later this year, the drugmaker is also contending with mixed feedback from clinical trials of its next-generation obesity treatment, CagriSema, amid intensifying competition in the sector.