Novo Nordisk Appoints New CEO, Cuts 2025 Sales Growth Target to 8-14% Amid U.S. Market Pressures

Danish drugmaker Novo Nordisk has reshaped its leadership and revised financial targets amid escalating pressures in the U.S. pharmaceutical market. The company announced the appointment of Maziar Mike Doustdar, currently vice president for international operations, as the successor to outgoing CEO Lars Fruergaard Jorgensen, effective immediately [1]. The transition comes as Novo Nordisk cuts its full-year earnings forecasts for the second time this year, citing intensifying competition and regulatory challenges tied to its flagship GLP-1 drugs, Ozempic and Wegovy [1].

The revised guidance reflects a narrowing sales growth range of 8-14 percent for 2025, down from the prior 13-21 percent target. Operating margins are now projected at 10-16 percent, a sharp reduction from the earlier 16-24 percent forecast [1]. These adjustments follow a 18 percent year-on-year sales increase in the first half of 2025, though operating profit growth slowed to 29 percent, lagging the 40 percent expansion recorded in the same period of 2024 [1]. The board attributed the downward revision to “recent market challenges,” including aggressive competition from rivals like Eli Lilly and the proliferation of unapproved compounding practices in the U.S.

A key factor undermining Novo Nordisk’s performance is the U.S. Food and Drug Administration’s (FDA) policy allowing pharmacies to compound copies of Ozempic and Wegovy. While the FDA’s grace period for mass compounding expired in May 2025, the company warned that such activities persist, contributing to supply shortages and eroding revenue [1]. Novo Nordisk emphasized its commitment to addressing these issues through legal and market strategies, though the long-term impact remains uncertain.

Doustdar, a 25-year Novo Nordisk veteran, is positioned to navigate the company through a transformative phase. Helge Lund, board chairman, stated the decision reflects confidence in Doustdar’s ability to “lead Novo Nordisk through its next growth phase” and respond to a “rapidly developing” market [1]. The board highlighted Doustdar’s international experience and operational expertise as critical assets in stabilizing the business.

The leadership shift underscores Novo Nordisk’s acknowledgment of a shifting competitive landscape. GLP-1 therapies, which drove record sales for the company in recent years, now face sustained challenges as competitors roll out alternative treatments and pricing pressures mount. The company’s full first-half financial results, scheduled for release on August 6, will provide further clarity on its path forward [1].

Source: [1] Novo Nordisk selects insider as new CEO to tackle ‘recent market challenges’ (https://fortune.com/europe/2025/07/29/novo-nordisk-selects-insider-new-ceo-to-tackle-recent-market-challenges-maziar-mike-doustdar/)