Novo Nordisk's Battle for Dominance in the Competitive Weight-Loss Drug Market

Novo Nordisk, Europe's most valuable company last year, is facing increasing competition in the weight-loss drug market. The Danish firm is cutting costs and replaced its CEO following a profit warning, impacting its sales forecast for 2025. New leadership will address ways to compete against Eli Lilly and copycat drugs.

Novo Nordisk, renowned for its blockbuster weight-loss drug, is implementing cost-cutting measures as it confronts intensified competition from Eli Lilly and a surge of copycat drugs. The Danish drugmaker, which enjoyed peak valuation as Europe's most valuable company last year, anticipates reduced growth in its treatments.

Following a profit warning that slashed its 2025 sales outlook, the company saw a staggering $95 billion wiped off its market value. Last week, Novo replaced its CEO, appointing veteran insider Maziar Mike Doustdar to navigate these challenging waters.

Sales of Wegovy showed a remarkable 67% rise in the second quarter year-on-year. However, profitability concerns persist as Novo Nordisk confirmed a revised 2025 sales growth forecast, now sitting between 8% and 14%. As Doustdar steps into his new role, investors are eager to see strategic plans to maintain competitiveness amid industry challenges.

(With inputs from agencies.)