Wegovy-maker Novo Nordisk (NOVOb.CO), opens new tab said on Wednesday it will sharpen its commercial focus and reduce costs, after a major profit warning and new CEO announcement last week wiped some $95 billion of value from the company’s stock.
The Danish drugmaker, which boomed to become Europe’s most valuable firm worth some $650 billion last year on the back of sales of its blockbuster weight-loss drug, is facing a pivotal moment as it battles rising competition that is denting sales.
The company repeated its full-year guidance, days after slashing its 2025 sales outlook and replacing CEO Lars Fruergaard Jorgensen with veteran insider Maziar Mike Doustdar. Its market cap has fallen since peak to some $212 billion.
“We are taking measures to sharpen our commercial execution further, and ensure efficiencies in our cost base while continuing to invest in future growth,” outgoing CEO Jorgensen said in a statement.
Doustdar will take the helm on Thursday, with the firm facing tough questions from investors about how it can stay competitive in the booming weight-loss drug market against U.S. rival Eli Lilly (LLY.N), opens new tab and a wave of compounded copycat versions.
Novo has been hit by copycats of its GLP-1 drugs Wegovy for weight-loss and Ozempic for diabetes. U.S. law bars pharmacies from replicating approved drugs, but has allowed ‘compounding’ for patients needing custom doses or formulations.
Novo reported second-quarter sales of 76.86 billion Danish crowns ($11.92 billion), up 18% from last year, below analysts initial expectations.
It confirmed a 2025 sales growth forecast of between 8% and 14%, which was cut in a profit warning last week from the previous 13%-21%. It was the second time this year that the company cut its sales forecast.
Second-quarter earnings before interest and taxation (EBIT) stood at 33.45 billion crowns, up 29% from a year ago.
