Novo Nordisk 2025 Crisis Explained: The Fall and the Fight Back
Novo Nordisk lost nearly half its value in 2025: a July 29 profit warning wiped out $70 billion in market value in a day, the CEO was pushed out in May, 9,000 jobs were cut, and most of the board was replaced. Here is what happened, and what it means for Ozempic and Wegovy.
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Novo Nordisk went from being Europe’s most valuable listed company to one of its biggest corporate falls in a single year. At its peak in June 2024, the Danish drugmaker was worth as much as $615 billion after the 2021 launch of Wegovy [1]. By the end of 2025, its Copenhagen-listed shares had fallen from DKK 624 to DKK 325, a drop of 48% [6], and in September 2025 they had lost more than half their value over the preceding year [4].
The crisis came from three directions at once: Eli Lilly’s Zepbound overtook Wegovy in US prescriptions, roughly a million Americans stayed on compounded GLP-1 copies instead of switching to branded drugs, and Novo’s own pipeline stumbled [1] [2]. The fallout included a forced CEO exit in May 2025, about 9,000 job cuts in September 2025, and the replacement of most of the board of directors in November 2025 [3] [4] [5]. Even so, the company still grew: full-year 2025 sales came in at DKK 309.064 billion, up 6.4% as reported and 10.3% at constant exchange rates [6] [7]. None of this turmoil is a safety or effectiveness signal for semaglutide itself — it is a business story, not a medical one.
Why is Novo Nordisk stock down so much?
The share price tells the story in one line. Novo’s Copenhagen shares closed 2024 at DKK 624 and closed 2025 at DKK 325, a 48% decline [6]. By September 2025, the stock had lost more than half its value over the previous year [4].
The collapse was remarkable because of where the company had been. After Wegovy launched in 2021, Novo became Europe’s most valuable listed company, and at its peak in June 2024 it was worth as much as $615 billion [1]. One portfolio manager told Reuters the stock had gone “from being a market darling to one of its biggest letdowns” [1].
Here is how the share price moved over the five years covered by the company’s own annual report [6]:
| Year | Closing share price (DKK) | Headcount |
|---|---|---|
| 2021 | 368 | 48,478 |
| 2022 | 469 | 55,185 |
| 2023 | 698 | 64,319 |
| 2024 | 624 | 77,349 |
| 2025 | 325 | 69,505 |
The single worst day was July 29, 2025, when a profit warning erased about $70 billion of market value [1].
What caused the business to deteriorate?
Novo itself named three problems when it cut its 2025 Wegovy outlook for the US: “the persistent use of compounded GLP-1s, slower-than-expected market expansion and competition” [2].
The competition problem is specific. Novo launched Wegovy nearly two and a half years before Eli Lilly launched Zepbound, but in 2025 Zepbound’s weekly US prescriptions surpassed Wegovy’s by more than 100,000 a week, and Reuters reported that Novo lost its first-mover advantage in the United States [1]. In diabetes, Novo’s diabetes value market share fell 3.6 percentage points to 30.1% on a moving annual total basis [7].
The compounded-drug problem was a direct hit to the sales Novo had counted on. When the FDA declared shortages of Wegovy over, a ban on compounded copies took effect on May 22, 2025, and Novo said it expected many of the roughly one million US patients using compounded GLP-1s to switch to branded treatments [1]. That did not happen. On July 29, 2025, Chief Financial Officer Karsten Munk Knudsen told analysts that the company’s latest market research showed one million or more US patients were still using compounded GLP-1s [1]. Novo had filed more than 130 lawsuits against compounders, but as of September 2025 those efforts had little effect on the bottom line [4].
What happened on July 29, 2025?
That was the day of the crash. Novo cut its 2025 sales growth forecast to 8% to 14% at constant exchange rates, down from 13% to 21%, and cut its operating profit growth forecast to 10% to 16%, down from 16% to 24% [2]. These were company forecasts, not final results.
| Date | Sales growth outlook (CER) | Operating profit growth outlook (CER) |
|---|---|---|
| Earlier in 2025 | 13% to 21% | 16% to 24% |
| July 29, 2025 | 8% to 14% | 10% to 16% |
| September 10, 2025 | — | 4% to 10% |
The September 10, 2025 announcement addressed operating profit guidance [4].
Shares fell as much as 26% and closed down 23% by 4:30 p.m. London time [2]. Reuters reported the stock plunged nearly 30% early in the session before paring losses to trade down more than 20% by mid-afternoon [1]. About $70 billion of market value was wiped out in a day [1]. By that point the shares were down 44% for the year to date, according to Reuters, with CNBC putting the decline at over 42% [1] [2].
The same day, Novo named Maziar Mike Doustdar as its new CEO [1] [2]. Markus Manns, a portfolio manager at Union Investment, a mutual fund firm that holds Novo stock, told Reuters that “the magnitude of the guidance cut is a shocker” and that Novo’s problems ran deeper than compounded copycats [1].
Why did the CEO step down?
Lars Fruergaard Jørgensen agreed to leave on May 16, 2025, in what the company described as a mutual agreement with the board [3]. The company’s stated reasons were the recent market challenges, the share price decline since mid-2024, and “the wish from the Novo Nordisk Foundation” [3].
The Foundation’s role matters because it controls the company. Through its investment company Novo Holdings, the Novo Nordisk Foundation owns 28% of the share capital and 77% of the votes [3]. The Foundation’s board initiated a dialogue about accelerating the CEO succession and said it wanted more representation on Novo Nordisk’s board [3].
Jørgensen’s departure was not about performance over his whole run. He joined Novo Nordisk in 1991 and became CEO in January 2017, and during his eight years as CEO the company’s sales, profits and share price nearly tripled [3]. At the same time his exit was announced, Lars Rebien Sørensen — the Foundation’s chair and Novo Nordisk’s CEO from 2000 to 2016 — joined the company’s board as an observer [3].
Who is the new CEO?
Maziar Mike Doustdar, an Iranian-born Austrian national who grew up in the United States, took over as CEO on August 7, 2025 [1] [2]. He joined Novo in 1992 and most recently served as executive vice president of international operations, after earlier stints leading the company’s businesses in the Middle East and then Southeast Asia [1] [2].
His message on taking the job was blunt. “We need to increase the sense of urgency and execute differently,” he told investors and analysts [1]. In the company’s announcement, he said he came to the role with “a sense of urgency, a laser focus on high performance, and a fierce determination for Novo Nordisk to aim higher than it’s ever done” [2].
What happened to the board of directors?
On October 21, 2025, Novo Nordisk said its board and the Novo Nordisk Foundation had failed to agree on the board’s future composition. Chair Helge Lund said the board wanted to add select new members while keeping continuity, while the Foundation “wanted a more extensive reconfiguration” [5]. Copenhagen-listed shares closed 1.3% lower that day [5].
Seven directors did not stand for re-election: chair Helge Lund, vice chair Henrik Poulsen, and independent members Laurence Debroux, Andreas Fibig, Sylvie Grégoire, Christina Law and Martin Mackay [5]. Kasim Kutay stayed on, along with employee-elected members Elisabeth Dahl Christensen, Liselotte Hyveled, Mette Bøjer Jensen and Thomas Rantzau [5].
The Foundation proposed Lars Rebien Sørensen as the new chair, with Cees de Jong as vice chair and Britt Meelby Jensen, Mikael Dolsten and Stephan Engels as new members [5]. Sørensen said the board had been too slow to recognize market changes in the US, and there was also disagreement over the CEO succession process — the Foundation wanted a quick appointment while the board wanted a fuller search [5]. An Extraordinary General Meeting was held on November 14, 2025 to vote on the changes [5].
How many employees were laid off, and where?
On September 10, 2025, Novo announced about 9,000 job cuts — roughly 11% of its 78,400 employees — with 5,000 of the cuts in Denmark [4]. The company said the restructuring should save DKK 8 billion, about $1.26 billion, annually by the end of 2026, and it cut its operating profit growth forecast again, to 4% to 10% from 10% to 16% [4].
The cuts reversed years of rapid hiring. Headcount had climbed from 48,478 at the end of 2021 to 77,349 at the end of 2024, then fell 10% to 69,505 by the end of 2025 [6]. The transformation cost about DKK 8 billion in 2025; without those one-off costs, the company said, 2025 operating profit would have risen 6% in Danish kroner and 13% at constant exchange rates, instead of falling 1% in kroner and rising 6% at CER [7].
What went wrong in the drug pipeline?
Beyond the US market problems, several high-profile trial results disappointed investors.
On November 24, 2025, Novo announced that the evoke phase 3 trials of semaglutide in Alzheimer’s disease did not demonstrate a statistically significant reduction in disease progression [12] [7]. On February 23, 2026, the stock fell again after Novo’s next-generation obesity drug CagriSema failed to beat Eli Lilly’s drug in a head-to-head study [13]. On July 31, 2026, the ZEUS phase 3 trial of ziltivekimab in people with cardiovascular disease, chronic kidney disease and inflammation did not meet its primary endpoint [14] [8], and on September 7, 2026, two further ziltivekimab cardiovascular trials were stopped for futility [22] [23].
The pipeline setbacks also showed up in the accounts: Novo took non-cash impairments of DKK 6.3 billion on intangible pipeline assets in the second quarter of 2026, including DKK 4.0 billion related to monlunabant [8].
Did Novo lose the bidding war for Metsera?
Yes. Pfizer won the bidding war for the obesity biotech Metsera with an offer of about $10 billion, and Novo lost [9]. Legal analysis of the deal noted that regulatory and antitrust closing risk was central to the superior-proposal determination in Novo’s bid for Metsera [10].
What is Novo doing to turn things around?
The biggest move was getting an obesity pill to market. The FDA approved oral semaglutide 25 mg — the Wegovy pill, the first oral GLP-1 for obesity — on December 22, 2025, and it launched in the US on January 5, 2026 [7]. The company reported about 50,000 total weekly prescriptions by January 23, 2026, driven mainly by the 1.5 mg starter dose in the self-pay channel [7]. By the week ending July 17, 2026, the company reported more than 265,000 weekly prescriptions for the pill, a Wegovy franchise total of around 575,000 weekly prescriptions, and more than 5 million pill prescriptions since launch — figures Novo reports itself, not independent third-party data [8].
Other pieces of the turnaround:
- Wegovy HD (7.2 mg) was approved and launched in the US in April 2026 [8]. Separately, the Wegovy 7.2 mg single-dose pen received EMA approval in July 2026 based on the STEP UP data, which the company says showed up to 20.7% mean weight loss [8].
- The Wegovy pill received European approval in July 2026 based on the OASIS 4 trial, with up to 16.6% mean weight loss, and launched in the UAE in June 2026 and the UK in July 2026 [8]. Wegovy is now sold in around 60 countries [8].
- In November 2025, the Trump administration announced deals with Eli Lilly and Novo Nordisk to cut obesity drug prices [11]. In February 2026, Novo announced a significant reduction in the US list price for Wegovy, Ozempic and Rybelsus [17].
- Novo’s US advertising spend on Wegovy and Ozempic was roughly double Eli Lilly’s, according to Reuters data reported in January 2026 [18].
- On March 9, 2026, Novo ended its legal proceedings against Hims & Hers over compounded weight-loss drugs [20].
Is the company recovering?
It depends on which numbers you read, and it is worth being careful here.
Novo’s initial 2026 guidance, issued February 3, 2026, called for adjusted sales growth of -5% to -13% at constant exchange rates and the same range for adjusted operating profit — company forecasts, not results [7]. At its half-year report on August 4, 2026, the company raised both ranges to 0% to -6% at CER, citing increased expectations for GLP-1 product sales [8].
One big number needs a warning label. Reported 2026 sales and operating profit get a boost from a one-time reversal of USD 4.2 billion in 340B Drug Pricing Program rebate provisions in the US [7] [15] [8]. That is why first-half 2026 reported sales grew 18% at CER while adjusted sales grew only 2% at CER [8]. In the second quarter of 2026, net sales were DKK 78,488 million, up 3% at CER as reported and 7% at CER on an adjusted basis, with adjusted operating profit of DKK 33,389 million, up 11% at CER [8].
Underneath the accounting noise, the volume picture improved. Adjusted obesity care sales grew 19% at CER in the first half of 2026, and the company reported treating 4.9 million people for obesity and 41.6 million for diabetes [8]. For all of 2025, obesity care sales were DKK 82.3 billion, up 31% at CER, while GLP-1 diabetes sales grew 6% at CER [7]. CEO Doustdar has described himself as optimistic about the turnaround [19].
What is happening at the company right now?
On September 14, 2026, the company announced a rebrand to simply “Novo” along with an updated corporate culture [21]. Novo has scheduled a Capital Markets Day for September 21, 2026, where it plans to introduce new Strategic Aspirations to replace the 2025 set [7].
The outgoing 2025 Strategic Aspirations, introduced in 2019, concluded with sales of DKK 309 billion at a 17% compound annual growth rate, treatment provided to 46 million people, and DKK 306 billion returned to shareholders from 2020 to 2025 [7].
What does this mean for people taking Ozempic or Wegovy?
For patients, the practical picture is mostly unchanged. The US GLP-1 shortages have been declared over and the FDA has reinstated its restrictions on compounded copies, as of September 2025 [4]. The company says it expects the global GLP-1 market to keep expanding and plans to reach more patients through the Wegovy pill and higher Wegovy doses [7].
The business turmoil has not stopped the company from paying shareholders: the 2025 total dividend was DKK 11.70 per share, and the board initiated a new share repurchase program of up to DKK 15 billion [6] [7].
Two things are worth keeping straight. First, a falling share price and layoffs are business events — they are not evidence of anything about how well semaglutide works or how safe it is. Second, questions about which medicine, which dose, or what your insurance covers are for your prescriber and your health plan, not for a stock chart. Compounded GLP-1s are not FDA-approved copies of Wegovy or Ozempic, and the FDA’s restrictions on them are back in force [4].
Sources
- Reuters. Wegovy maker Novo’s profit warning triggers $70 billion share rout. July 29, 2025.
- CNBC. Novo Nordisk shares plunge 23% after Wegovy maker names new CEO, cuts full-year guidance. July 29, 2025.
- Novo Nordisk. Novo Nordisk A/S: Lars Fruergaard Jørgensen to step down as CEO of Novo Nordisk. May 16, 2025.
- BioPharma Dive. Novo Nordisk to lay off 9,000 workers in major restructuring.
- CNBC. Novo Nordisk chair and directors quit after boardroom rift. October 21, 2025.
- Novo Nordisk. Five-year overview. Novo Nordisk Annual Report 2025.
- US Securities and Exchange Commission. Novo Nordisk A/S Form 6-K. February 4, 2026.
- US Securities and Exchange Commission. Novo Nordisk A/S Form 6-K. August 4, 2026.
- BioPharma Dive. Pfizer wins bidding war for Metsera with $10B offer.
- White & Case LLP via JD Supra. Superior Until It Was Not: Regulatory Closing Risk And The Superior-Proposal Determination In Novo Nordisk’s Bid For Metsera. September 11, 2026.
- CNBC. Trump announces deals with Eli Lilly, Novo Nordisk to slash weight loss drug prices, offer some Medicare coverage. November 6, 2025.
- Novo Nordisk via GlobeNewswire. Novo Nordisk A/S: Evoke phase 3 trials did not demonstrate a statistically significant reduction in Alzheimer’s disease progression. November 24, 2025.
- CNBC. Novo Nordisk sinks 16% after weight loss drug fails to match Eli Lilly’s in trial. February 23, 2026.
- Novo Nordisk via GlobeNewswire. Novo Nordisk provides update on the ZEUS phase 3 trial in people with ASCVD, CKD and inflammation. July 31, 2026.
- CNBC. Wegovy pill sales smash forecasts, sending Novo Nordisk stock higher. May 6, 2026.
- Fierce Pharma. The Oral GLP-1 Tracker: Novo’s Wegovy pill, Lilly’s Foundayo continue prescription climb. September 11, 2026.
- Novo Nordisk via PR Newswire. Novo Nordisk announces significant reduction in US list price for Wegovy, Ozempic, and Rybelsus (semaglutide medicines), building on continued efforts to expand access.
- Reuters. Novo’s Wegovy and Ozempic US advertising spend doubles rival Eli Lilly, data shows. January 28, 2026.
- Fierce Pharma. ‘I’m a lot more optimistic today’: Mike Doustdar tells Fierce about pivotal first year as Novo Nordisk CEO. June 11, 2026.
- CNBC. Hims & Hers shares surge after Novo Nordisk drops patent infringement case over compounded weight loss drugs. March 9, 2026.
- Novo Nordisk via GlobeNewswire. Novo Nordisk enters next chapter to bring better health to more people supported by Novo rebrand and updated corporate culture. September 14, 2026.
- STAT. Novo Nordisk stops two cardiovascular trials of drug aimed at lowering inflammation. September 7, 2026.
- Endpoints News. Updated: Novo Nordisk cans two more trials of IL-6 heart drug for futility. September 7, 2026.
Frequently asked questions
Why did Novo Nordisk's stock crash in 2025?
On July 29, 2025, Novo cut its 2025 sales growth forecast to 8% to 14% at constant exchange rates from 13% to 21%, and its profit forecast to 10% to 16% from 16% to 24%. Shares closed down 23% that day, wiping out about $70 billion in market value. The company blamed persistent compounded GLP-1 use, slower US market growth, and competition.
Who is Novo Nordisk's CEO now, and why did the last one leave?
Maziar Mike Doustdar became CEO on August 7, 2025. His predecessor, Lars Fruergaard Jørgensen, agreed to step down on May 16, 2025, citing market challenges, the share price decline, and the Novo Nordisk Foundation's wish for change. The Foundation controls 77% of the votes through Novo Holdings.
How many employees did Novo Nordisk lay off, and where?
About 9,000 jobs were cut on September 10, 2025 — roughly 11% of 78,400 employees — with 5,000 of the cuts in Denmark. The company targeted DKK 8 billion, about $1.26 billion, in annual savings by the end of 2026. Headcount fell from 77,349 at the end of 2024 to 69,505 at the end of 2025.
Who actually controls Novo Nordisk?
The Novo Nordisk Foundation, through its investment company Novo Holdings, owns 28% of the share capital and 77% of the votes. The Foundation pushed out the CEO in May 2025 and forced a board overhaul in October 2025, proposing its own chair, Lars Rebien Sørensen, to lead the company's board.
Is Eli Lilly beating Novo Nordisk in weight-loss drugs?
In 2025, Lilly's Zepbound surpassed Wegovy in weekly US prescriptions by more than 100,000 a week, and Reuters reported Novo lost its first-mover advantage in the US. Novo's diabetes value market share also fell 3.6 percentage points to 30.1%. The company says the Wegovy franchise still leads in new patient starts among branded US obesity drugs.
Did compounded semaglutide hurt Novo Nordisk's sales?
Yes. Novo expected about one million US patients on compounded GLP-1s to switch to branded drugs after the FDA ban on compounded Wegovy copies took effect on May 22, 2025. CFO Karsten Munk Knudsen said on July 29, 2025 that the switch did not happen and a million or more patients were still on compounded drugs.
Are Ozempic and Wegovy still in shortage?
No. As of September 2025, the US GLP-1 shortages had been declared over and the FDA had reinstated restrictions on compounded copies. The company expects the global GLP-1 market to keep expanding and plans to grow volumes through the Wegovy pill and higher Wegovy doses.
What is the Wegovy pill and how is it selling?
The FDA approved oral semaglutide 25 mg, the first oral GLP-1 for obesity, on December 22, 2025, and it launched in the US on January 5, 2026. The company reported about 50,000 weekly prescriptions by January 23, 2026, and more than 265,000 weekly prescriptions by the week ending July 17, 2026 — company-reported figures, not independent data.
This article summarizes FDA labeling, published research and company information current as of September 14, 2026. It is not medical advice and does not replace a conversation with your own healthcare provider. How we research and verify.