Novo Nordisk chooses insider as new CEO to tackle “recent market challenges”

The company has faced an increase in headwinds in the major US drug market, which has seen two drugs known as GLP-1 injections challenge rivals, including Eli Lilly.

Regulations by the U.S. Food and Drug Administration have made drug versions of so-called “compounds” and are heavily revenues after high demand and shortages have led to shortages, Novo said.

“Despite the expiration of the mass compound FDA Grace period on May 22, 2025, Novo Nordisk market research shows that dangerous and illegal mass compound continues,” the statement said.

We currently expect full-year sales growth of 8-14%, down from 13-21% after the initial forecast downgrade earlier this year.

Rather than forecasting 16-24%, the operating profit margin reached 10-16%.

The low forecast was generated as NOVO reported an increase in annual sales of 18% on Tuesday, but operating profit growth fell to 29% after 40% growth in the same period last year.

“Market Challenges” have prompted Novo to announce the departure of CEO Lars Fruergaard Jorgensen in May.

“We are confident that he is the perfect person to lead Novo Nordisk through the next stage of growth,” board chair Hell Rand said in a statement.

“This is a key moment for Novo Nordisk,” Lund said. “The market is developing rapidly and the company needs to address recent market challenges with speed and ambition.”

The full first half of Novo Nordisk results will be released on August 6th.