Novo Nordisk's Wegovy Showdown: Navigating Market Pressures and Potential Layoffs

Novo Nordisk, facing fierce competition from Eli Lilly, announced that the company might undergo job cuts as it grapples with increasing pressure on its obesity drug, Wegovy. Previously a top investment story, Novo is evaluating cost options due to slowed growth from compounded drug rivals.

The Danish pharmaceutical company, a former European stock market leader, revealed last week a cut in its annual forecasts, resulting in a $95 billion decrease in market value. This downturn reflects challenges from copycat versions of Wegovy and volatile market dynamics in the United States, its primary market.

Despite second-quarter sales growth, Novo Nordisk is adopting strategic adjustments, like pursuing legal actions against compounding pharmacies and expanding direct-to-consumer strategies. Incoming CEO Maziar Mike Doustdar is set to navigate these challenges, leaving investors questioning the company's ability to remain competitive in the obesity drug sector.

(With inputs from agencies.)