Novo Nordisk, the pharmaceutical company that has become Europe’s most valuable, is facing a significant slowdown in sales of its blockbuster diabetes drugs, including Ozempic. This slowdown is attributed to increased competition, particularly from rival Eli Lilly’s Mounjaro, which has been shown to be more effective.
The company is also grappling with the proliferation of copycat and compounded versions of its drugs. According to Novo Nordisk’s outgoing CEO, the market for these cheaper, unapproved versions is now roughly the same size as the company’s own business.
In response to these challenges, Novo Nordisk is implementing cost-cutting measures and considering potential layoffs. The company has also initiated lawsuits against compounding pharmacies and is expanding its direct-to-consumer platform, NovoCare. Additionally, it has recently scrapped several weight-loss drugs that were in development.
These issues have led to a sharp cut in the company’s full-year sales forecast, causing a significant drop in its stock value. The new CEO, Maziar Mike Doustdar, will also have to contend with potential threats from proposed US tariffs and drug pricing policies that could further impact the company’s profitability.