Novo Nordisk's Fightback: Reclaiming Market Dominance in Weight-Loss Pills

Novo Nordisk has received U.S. approval for its weight-loss pill in a bid to regain its standing after losing significant market value. The Danish company is focusing on driving sales and reducing costs under new CEO Mike Doustdar amid strong competition from rivals like Eli Lilly's Zepbound.

Novo Nordisk has secured important U.S. regulatory approval for its new weight-loss pill, positioning the Danish pharmaceutical giant to regain market ground lost to rivals. This move is crucial as it follows a period of significant financial decline, including a $400 billion reduction in market capitalization since mid-2024.

The approval comes amid fierce competition, especially from Eli Lilly's Zepbound, which has surpassed Novo's Wegovy in prescriptions in the vital U.S. market. Despite being the first with an effective obesity treatment, Novo has encountered setbacks, urging the company to reconsider its strategies under the leadership of new CEO Mike Doustdar.

Doustdar has taken decisive actions, such as announcing 9,000 global job cuts to streamline operations. Novo is also facing challenges with rising costs that have affected its once-premium market status. The company's valuation has drastically fallen from $650 billion in June last year to just above $240 billion currently.

(With inputs from agencies.)