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Novo Nordisk shares fell by over 20% on Tuesday after the firm slashed its full-year guidance, blaming weaker US sales expectations for its obesity drug Wegovy and Ozempic diabetes treatment.
In the wake of the sell-off, the pharma giant said long-time employee Maziar Mike Doustdar would take over as president and CEO, replacing Lars Fruergaard Jørgensen — who unexpectedly stepped down in May.
Doustdar, the first non-Dane to lead the company, will take over on 7 August.
Novo cut its financial guidance for the year on Tuesday, expecting yearly sales to grow by 8% to 14%, compared to a previous forecast of up to 21%. Operating profit is now expected to grow 10% to 16%, compared to a previously predicted upper limit of 24%.
Depressed sales expectations for Wegovy and Ozempic are linked to rival products from drug maker Eli Lilly, as well as other, cheaper dupes of the pharmaceuticals.
“For Wegovy in the US, the sales outlook reflects the persistent use of compounded (drugs), slower-than-expected market expansion and competition,” said Novo.
The firm’s sales rose 18% in constant currencies in the first six months of the year, while operating profit was up 29%.
In 2024, Wegovy’s popularity helped Novo to become Europe’s most valuable listed company, but its value has since plummeted.
The company previously downgraded its outlook in May due to intensifying competition in the weight-loss drug markets.
Novo is due to report its full second-quarter sales on 6 August.
