Novo Nordisk Faces Challenges in Diabetes and Obesity Market, New CEO Outlines Turnaround Strategy

Novo Nordisk, a leading player in the diabetes and obesity treatment space, is grappling with market challenges as it seeks to maintain its position against fierce competition. The company's new CEO, Maziar Mike Doustdar, has outlined a comprehensive strategy to address recent setbacks and restore growth in key therapeutic areas.

Q3 Financial Results and Market Dynamics

Novo Nordisk reported third-quarter sales of 74.9 billion Danish kroner ($11.5 billion), marking a 5% increase from the same period last year. However, the company's performance paled in comparison to its chief rival, Eli Lilly, which reported combined sales of $10.1 billion for its GIP/GLP-1 drugs in the same quarter.

The Danish drugmaker's total GLP-1 sales, primarily from Wegovy in obesity and Ozempic in type 2 diabetes, reached 36.7 billion kroner ($5.6 billion), a modest 5% increase year-over-year. In response to these results, Novo Nordisk has narrowed its 2025 guidance, now expecting revenue growth between 8% and 11%, down from the previous forecast of 8% to 14%.

CEO's Turnaround Strategy

During his first quarterly conference call since taking the helm, CEO Maziar Mike Doustdar emphasized that expanding access to Novo's GLP-1 medicines and unlocking novel sales channels are crucial to addressing the company's recent growth slowdown in diabetes and obesity.

Doustdar stated, "It is really not about market share when you're dealing with obesity at this point of time. It is about market access and expanding the market." He highlighted the vast potential of the obesity market, noting that there are a billion people suffering from the condition, yet current treatments only reach a fraction of that population.

Key elements of Novo Nordisk's turnaround strategy include:

1. Focusing on market expansion rather than market share
2. Enhancing direct-to-consumer sales channels, such as NovoCare Pharmacy
3. Addressing access barriers for insured patients
4. Leveraging the company's R&D pipeline and manufacturing infrastructure
5. Engaging in pricing discussions with the U.S. government to improve medication access

Leadership Changes and Organizational Restructuring

Doustdar's appointment as CEO in August 2025 marked the beginning of significant changes within Novo Nordisk. The company has initiated a cost-savings drive that will result in approximately 9,000 layoffs worldwide. Additionally, Novo Nordisk made a surprise counteroffer in Pfizer's attempt to purchase obesity biotech Metsera, signaling its commitment to strengthening its position in the obesity market.

Further leadership changes include the departure of Henrik Wulff, Executive Vice President of Chemistry, Manufacturing and Controls (CMC) and Product Supply, effective January 1, 2026. Kasper Bødker Mejlvang, currently Senior Vice President for the Japan region, will assume Wulff's role.

As Novo Nordisk navigates these challenges, Doustdar remains confident in the company's ability to maintain its leadership in diabetes and obesity treatments. He emphasized, "There is no doubt that right now we are seeing some headwinds—competitor headwinds. But this is also when we are at our best and strongest."