Novo Nordisk's Strategic Revamp: New CEO Amidst Obesity Drug Market Challenge
Facing a $70 billion market loss, Novo Nordisk appointed Maziar Mike Doustdar as its new CEO to navigate intensifying competition in the obesity drug market. The company's stock plummeted after lowering its 2025 growth forecast due to challenges from compounded drug competitors. Doustdar aims to revive U.S. sales, countering rivals like Eli Lilly.

In a significant shake-up, Novo Nordisk lost $70 billion in market value after issuing a profit warning and appointing Maziar Mike Doustdar as their new CEO. This pivot comes amidst growing competition within the obesity drug arena, as Novo struggles to maintain its initial industry lead.
Despite Doustdar's appointment, shares continued to plummet, reacting to the drastic forecasted reduction of 2025 sales growth from previous optimistic projections. Compounded drug competition is a key challenge, exacerbating Novo's difficulties as it attempts to navigate the U.S. market under stricter legal constraints.
Novo Nordisk's strategy now focuses on countering compounded variants of its products like Wegovy and Ozempic, particularly in the U.S., where Eli Lilly's competing drugs have recently taken the lead. Doustdar is tasked with restoring investor confidence and ensuring safety amid an ongoing battle against illegal compounding practices.
(With inputs from agencies.)