Medical bottles and a syringe are seen with the Novo Nordisk emblem displayed on a display screen within the background.
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Danish pharmaceutical big Novo Nordisk on Tuesday named its new CEO whereas concurrently slashing its full-year steering, citing weaker progress 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 Might 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 progress of 8% to 14% at fixed alternate charges, down from a previous goal of 13% to 21%.
It expects annual working revenue progress of 10% to 16% versus the beforehand estimated goal of 16% to 24%, additionally at fixed alternate charges.
Novo Nordisk mentioned Tuesday that the decrease outlook was pushed by weaker second-half U.S. gross sales progress 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 enlargement and competitors,” it added in an announcement.
Novo Nordisk.
It comes after the corporate beforehand downgraded its 2025 outlook in Might, 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 govt features throughout Europe and Asia, serving most not too long ago as govt vice chairman of worldwide operations.
In an announcement accompanying the announcement, chairman Helge Lund described Mike Doustdar as “the very best particular person to guide Novo Nordisk by means of its subsequent progress section.”
“I come to this function with a way of urgency, a laser give attention to excessive efficiency, and a fierce dedication for Novo Nordisk to intention larger than it is ever completed, and to ship to many extra sufferers the innovation they want,” Doustdar added.
The Copenhagen-headquartered pharma big 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 however 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 adverse sentiment following a collection of disappointing trial outcomes for its next-generation weight problems drug candidate CagriSema amid elevated market competitors.
