Novo Nordisk Faces Profit Downgrade Amid Competitive Obesity Market

Wegovy-maker Novo Nordisk has reduced its profit and sales forecasts as it faces intense competition and market challenges. New CEO Mike Doustdar is spearheading a turnaround and layoffs. Despite strong sales from Wegovy, the company's value has plunged. Novo competes with U.S. rival Pfizer for biotech Metsera.

Wegovy-maker Novo Nordisk has revised its full-year profit and sales forecasts downward, as announced on Wednesday. This early setback presents a challenge for new CEO Mike Doustdar, who joined in August, amid fierce competition in the obesity drug market.

The Danish drug company has been navigating turbulent times, characterized by a significant drop in share price and stagnated sales growth, leading to a management overhaul. Doustdar's leadership coincides with a bidding competition against U.S. rival Pfizer for Metsera, a biotech firm.

Rapid sales of Wegovy had previously propelled Novo to the status of Europe's most valuable firm, but this growth has slowed considerably. The company now anticipates a 4% to 7% growth in operating profit for 2025, down from its earlier projection of 4% to 10%.

(With inputs from agencies.)