Medical bottles and a syringe are seen with the Novo Nordisk brand displayed on a display within the background.
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Danish pharmaceutical large Novo Nordisk on Tuesday named its new CEO whereas concurrently slashing its full-year steering, citing weaker development expectations for its blockbuster Wegovy weight problems drug in the important thing U.S. market.
The drug maker mentioned firm veteran Maziar Mike Doustdar would take over as president and CEO following the shock ousting in Could of Lars Fruergaard Jørgensen. The appointment is efficient Aug. 7.
Shares fell as a lot as 26% earlier than paring losses barely to commerce down 20% by 1:26 p.m. London time (8:26 a.m. ET).
The corporate mentioned it now expects full-year gross sales development of 8% to 14% at fixed change charges, down from a previous goal of 13% to 21%.
It expects annual working revenue development of 10% to 16% versus the beforehand estimated goal of 16% to 24%, additionally at fixed change charges.
Novo Nordisk mentioned Tuesday that the decrease outlook was pushed by weaker second-half U.S. gross sales development forecasts for its Wegovy weight-loss drug and Ozempic diabetes therapy.
“For Wegovy within the US, the gross sales outlook displays the persistent use of compounded GLP-1s, slower-than-expected market growth and competitors,” it added in a press release.
Novo Nordisk.
It comes after the corporate beforehand downgraded its 2025 outlook in Could, because it reported lower-than-expected first-quarter gross sales. The corporate is because of report its full second-quarter gross sales on Aug. 6.
Doustdar, who joined Novo Nordisk in 1992, has held a number of government capabilities throughout Europe and Asia, serving most not too long ago as government vice chairman of worldwide operations.
In a press release accompanying the announcement, chairman Helge Lund described Mike Doustdar as “the perfect particular person to steer Novo Nordisk by way of its subsequent development part.”
“I come to this position with a way of urgency, a laser give attention to excessive efficiency, and a fierce willpower for Novo Nordisk to purpose larger than it is ever performed, and to ship to many extra sufferers the innovation they want,” Doustdar added.
The Copenhagen-headquartered pharma large has been battling softer U.S. Wegovy gross sales as competitors from compounded drug makers ramped up within the wake of a Meals and Drug Administration drug scarcity ruling.
Its share value has shed over 42% this yr.
It nonetheless beforehand mentioned that it anticipated these pressures to ease within the second half of the yr as the supply of copycat medicine was phased out.
Meantime, the agency has struggled to shake unfavourable sentiment following a collection of disappointing trial outcomes for its next-generation weight problems drug candidate CagriSema amid elevated market competitors.
