New CEO Takes the Helm at Novo Nordisk Amidst Share Price Plunge and Guidance Cut
On August 7, Danish pharmaceutical titan Novo Nordisk welcomed Maziar Mike Doustdar as its new CEO. This announcement coincided with a significant cut in the company’s full-year sales and profit guidance, which led to a dramatic drop in share prices.
Shares plummeted by as much as 26% before regaining some ground. Doustdar, who currently holds the position of executive vice president of international operations, will step in for Lars Fruergaard Jørgensen. Jørgensen’s unexpected exit was made public in May.
The company has adjusted its 2025 sales growth forecast, bringing it down to 8-14% from a previous 13-21%. This change is attributed to the slower than expected growth of its blockbuster drugs, Wegovy and Ozempic, in the U.S. market. The presence of increased competition from compounded versions has also been a factor. Operating profit growth projections have likewise been lowered to 10-16% from an initial 16-24%.
This guidance cut was announced as Novo reported an 18% sales increase for the first half of 2025. Doustdar, a seasoned company veteran with 33 years of service who joined in 1992, has successfully managed international operations. Under his leadership, sales more than doubled to approximately $13 billion in 2024, serving 35 million patients across 80 affiliates outside the U.S.
“I come to this role with a sense of urgency, a laser focus on high performance,” Doustdar stated, emphasizing his determination to deliver innovation to more patients.
The change in leadership comes at a time when the company faces growing challenges in the competitive obesity and diabetes treatment market. Rivals such as Eli Lilly are gaining ground, and unauthorized compounding continues despite FDA restrictions.
Source: CNBC