Novo Nordisk's Leadership Shift in Weight-Loss Drug Market

Novo Nordisk witnessed a sharp decline in its market value by $70 billion after issuing a profit warning and announcing a leadership change. The pharmaceutical giant, known for its weight-loss drug Wegovy, battles increasing competition in the obesity drug market, facing pressure to revive sales and market confidence.

Veteran insider Maziar Mike Doustdar has been named as the new CEO, following the abrupt exit of former CEO Lars Fruergaard Jorgensen. The firm's decision to alter its 2025 sales outlook sparked a stock market turmoil, as its shares plummeted before partially recovering by afternoon trading. The rise of copycat drugs compounded by pharmacies remains a significant challenge for Novo.

Doustdar's immediate task will focus on regaining Novo's market position, particularly in the U.S., where rival Eli Lilly has surpassed Novo's Wegovy prescriptions. Despite its previous lead, Novo faces a critical period to rebuild trust and navigate the complex U.S. market dynamics effectively.

(With inputs from agencies.)