Novo Nordisk Faces Profit Forecast Cut Amidst Obesity Drug Market Struggles

Novo Nordisk has revised its full-year profit and sales forecast, a move that introduces a fresh challenge for the new CEO in the competitive obesity drug market. This adjustment comes as the Danish drugmaker battles declining share prices and decelerating sales growth, resulting in leadership changes.

The company's rapid sales growth from its obesity drug, Wegovy, positioned Novo as Europe's top-valued firm last year. However, this year has seen a slowdown in sales expansion. The latest projections indicate operating profit growth between 4% and 7% by 2025, lowering the previous forecast.

CEO Mike Doustdar credits the forecast reduction to tempered growth expectations for Novo's GLP-1 treatments. Facing the pressure from competitors like U.S.-based Eli Lilly, Doustdar delivers his first quarterly report amid growing investor scrutiny as compounding issues continue to challenge the company.