Novo Nordisk's Strategic Overhaul Amid Fierce Competition

Novo Nordisk, renowned for its weight-loss drug Wegovy, announced significant job cuts amounting to 9,000 positions to spark growth and counter stiff competition from U.S. rival Eli Lilly. This strategic adjustment aims to save the company 8 billion Danish crowns annually amid a decline in its obesity and diabetes ventures.

The Danish pharmaceutical company also disclosed its third profit warning this year, detailing 9 billion crowns in one-time costs due to this organizational overhaul. Under the leadership of newly appointed CEO Mike Doustdar, Novo Nordisk seeks to streamline operations and reallocate resources to invigorate its core focus on obesity and diabetes, rather than purely pursue cost-cutting measures.

Despite the layoffs, Novo Nordisk is gearing up to meet rising market demand, planning to expand its GLP-1 portfolio and launch a pill version of Wegovy. This move coincides with resurfacing competition from Eli Lilly's Zepbound, which recently surpassed Wegovy in U.S. prescriptions. However, Novo Nordisk remains committed to investing in research and development while enhancing patient access globally.