Ozempic Maker Novo Nordisk's Market Value Drops $93 Billion
The Danish drugmaker promoted Maziar Mike Doustdar, who has spent more than three decades with the company, to the top spot. The surprise choice disappointed investors who were hoping for a high-profile outsider to lead a fresh challenge to Eli Lilly & Co., which has been pulling ahead of Novo in the obesity market.
The appointment came shortly after Novo slashed its financial forecast, predicting this year's sales will grow 8 to 14 percent, while operating profit expands 10 to 16 percent, based on constant exchange rates. That compares with its previous growth forecasts of as much as 21 and 24 percent, respectively.
Shares of Novo plunged as much as 30 percent in Copenhagen, the biggest intraday drop on record.
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Doustdar said he plans to 'increase the sense of urgency and execute differently,' and his top priorities will be advancing Novo's drug pipeline, innovation and investing to deliver growth.
The new CEO, who takes over on Aug. 7, also said on a call with journalists that he's planning to review the company's cost base, without citing specific targets for cuts. That indicates Novo is preparing for a period of slower growth after the initial surge of demand for its blockbuster obesity drug, Wegovy, that briefly made the company Europe's biggest by market value.
'Analysts will start to question both near-term and longer-term obesity expectations that have ballooned out of control,' said Jared Holz, a health-care strategist at Mizuho Securities USA LLC.
Holz and other analysts questioned whether an insider will be able to restore investor confidence. Given the company's recent struggles, 'we are surprised by the choice of an internal candidate,' said Benjamin Jackson, an analyst at Jefferies LLC.
Novo announced the ouster of former CEO Lars Fruergaard Jorgensen in May, seeking a reset following a string of setbacks. Though Doustdar, 54, is an insider at Novo, he brings a more international background than some of the company's previous leaders. He's Iranian-born, with Austrian citizenship.
Novo's past CEOs have all been Danish and were intertwined with the company prior to taking over. Two were sons-in-law of previous company leaders.
After enjoying an early advantage as a first mover in the obesity drug market, Novo is struggling with competition as Lilly's Zepbound wins market share over Wegovy. Lilly also appears better positioned to dominate for years to come. It has an easy-to-take weight-loss pill that will come to market as soon as early 2026 and it's studying a shot that's shown signs of being as effective as bariatric weight-loss surgery.
Novo's own next-generation candidate, CagriSema, has fallen short of both the company's and analysts' hopes in clinical trials.
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The company is also facing competition from compounding pharmacies that are allowed to make copies of drugs when they are in short supply. Novo estimates about 1 million patients in the US are using compounders in the US market, Chief Financial Officer Karsten Munk Knudsen said on a call. Novo said it will fight compounding in the courts and invest in its own direct-to-patient marketing efforts.
Novo has said a new contract with CVS Health Corp. for Wegovy would drive volume from July 1.
The slashed forecast reflects competition for both Wegovy and its sister drug Ozempic for diabetes, the company said. The drugmaker also cited slower than expected market growth for weight-loss drugs.
Novo's sales climbed 18 percent in constant currencies in the second quarter, the company said, with operating profit rising 40 percent. The company will publish complete second-quarter results on Aug. 6.
The foundation that controls the company pushed for Jorgensen to go and instated his predecessor, Lars Rebien Sorensen, as an observer on Novo's supervisory board. Sorensen is set to return as a full board member next year.
By Naomi Kresge, with assistance from Christian Wienberg, Lisa Pham, Thomas Hall and Marthe Fourcade
Learn more:
Zepbound Beats Wegovy in First Head-to-Head Trial
Eli Lilly's GLP-1 drug Zepbound helped nearly 25 percent more participants lose weight than Novo Nordisk's Wegovy, according to the trial results.
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Resilience under pressure: Iran's leasing sector faces war, sanctions, and inflation
Iran's economy faces a turbulent path ahead in the aftermath of a 12-day war with Israel, compounding the pressure of longstanding Western sanctions, soaring inflation, and a deeply devalued currency. The conflict, which began on June 13 with Israeli airstrikes targeting senior military officials and nuclear scientists, escalated when the United States launched its own strikes on Iran's nuclear facilities. Although a ceasefire was reached on 24 June, the economic fallout is already being felt. Iran's projected economic growth has plummeted from 3.5% in 2024 to a forecast of just 0.3% for 2025, according to the International Monetary Fund. Inflation is expected to surge to 43.3% this year, and the Iranian rial continues to weaken sharply, particularly following renewed US sanctions. Against this backdrop of heightened economic and geopolitical uncertainty, Leasing Life spoke with Mohammad Hadi Moghaei, a key figure in Iran's leasing industry. With nine years of experience as Secretary General of both the Iranian Leasing Companies Association and the National Leasing Association of Iran (a post he held until July 2021), Moghaei is now CEO of Razi Leasing Company — a member of the National Leasing Association. He is also an active member of the Money and Capital Market Commission at the Tehran Chamber of Commerce. Alejandro Gonzalez (AG), the editor of Leasing Life, spoke to Moghaei (MHM) to understand how Iran's leasing sector is adapting to ongoing economic pressures. AG: During the recent 12-day conflict with Israel, several major cities saw residents evacuating due to airstrikes and safety concerns. Could you share how this affected you? MHM: Before addressing your questions, I'd like to express my gratitude to you, Leasing Life and your editorial team. The 12-day war came as a shock to many of us. The conditions didn't seem to point toward imminent conflict, so when it happened, it felt abrupt — almost surreal. It was an imposed situation that none of us had anticipated, and the initial reaction was disbelief, confusion, and concern. War, no matter where it happens, brings with it both visible destruction and invisible wounds — mental and emotional stress that can deeply affect people and businesses alike. As someone involved in economic activity, my first thoughts were not only for personal safety but for the sustainability of our business operations and the well-being of our teams. During those days, many companies temporarily shut down to protect their employees. While evacuations were limited, some residents, especially in Tehran, chose to leave for nearby cities, though most returned after a few days as the situation stabilised. Fortunately, business activity began to resume shortly after the ceasefire, and markets are gradually returning to a state of normalcy. However, the war has left a lasting impression. Personally, it made me more aware of the types of risks we've often overlooked — geopolitical and regional conflict being one of them. It's clear now that we in the Middle East must expand our risk assessments to include such scenarios. As business leaders, we need to be more proactive in designing strategies to mitigate these evolving risks. The experience has been a wake-up call — a reminder that resilience today also means preparing for the unthinkable. AG: What has been the general sentiment among leasing companies in recent months, especially with the intensifying geopolitical tensions? MHM: The prevailing sentiment has been one of deep unease — an overall sense that we've entered into a situation we neither expected nor desired. The uncertainty surrounding the possibility of war escalating or recurring has created anxiety at every level of the leasing sector. Employees are naturally worried about job security. Managers are under pressure, concerned about how to adjust business strategies and operations that were carefully planned under entirely different assumptions. Shareholders, meanwhile, are watching market values decline and facing the risk of financial losses. And perhaps most critically for our industry, there is a growing fear around rising default rates, as both individuals and businesses struggle to maintain their financial obligations under such strained conditions. Confidence in the short term is understandably shaken, but there's a collective effort to adapt and safeguard operations as best as possible. AG: Sanctions have impacted Iran for over a decade. From your perspective, how have 14 years of restrictions shaped the leasing sector's role in supporting SMEs, and what long-term effects are you now seeing? MHM: While sanctions are often described in terms of the past decade, the truth is that Iran has lived under various forms of sanctions for over 30 years. What we are witnessing now is the cumulative impact of those restrictions, which are becoming more visible and more deeply entrenched over time. During the sanctions period, leasing companies saw increased demand, particularly for credit-based purchases and rentals. This demand, however, was not as diverse or balanced as we would have liked. It was largely concentrated in consumer goods — such as household appliances, computers, digital products, and personal vehicles — rather than in the types of equipment and infrastructure that small and medium-sized enterprises (SMEs) truly need to grow and thrive. One major challenge is that Iranian leasing companies are not permitted to provide working capital. Our role is limited to financing high-value assets, meaning SMEs looking for flexible credit lines or operational funding often fall outside our scope. This creates a mismatch between what the sector can offer and what SMEs actually require. There's also a broader issue at play. In many countries, SMEs struggle to attract financing unless they already have strong credit histories or substantial collateral. As the old saying goes: 'Those who have credit, get credit.' But that leaves us with a critical question — what about those who don't? This is where alternative finance models, like crowdfunding and inclusive financial platforms, have started to emerge, both globally and in Iran. I believe leasing companies can and should become instruments of financial inclusion, helping bridge the gap for underbanked businesses. Unfortunately, the lack of enabling legal frameworks, infrastructure, and public awareness has slowed this progress in Iran. If we want leasing to play a more transformative role, especially for SMEs, we must invest in building the necessary ecosystem: clear regulations, risk-sharing mechanisms, digital infrastructure, and a shift in how leasing is understood by the market. AG: The transport sector appears to have been hit hard recently, with nationwide lorry drivers' strikes (22 May to 4 June), and the explosion and fire earlier at Bandar Abbas port (26 April). How significantly are leasing companies exposed to the disruptions in logistics and transportation infrastructure? MHM: The recent truck drivers' strikes were relatively short-lived and did not cause significant disruption to business activity. Similarly, the fire at Bandar Abbas port, while concerning, did not occur in the area handling imported consumer goods, so the broader impact on domestic supply chains was limited. [The Iranian authorities said the explosion was caused by "hazardous goods and chemical materials" stored in the port]. That said, the incident did briefly affect the internal transit of goods within the country. However, I would like to address another deeper point that is hidden in your question — the limited role leasing companies currently play in Iran's transport and logistics sectors. The share of leasing contracts used to finance equipment for ports, road freight, and rail transport is minimal. In some segments, like rail, leasing plays virtually no role at all. This is largely because Iran's asset financing model remains heavily bank-centric. Banks provide loans for large-scale transportation assets, but typically only for a small portion of the purchase price. Leasing companies, constrained by their limited access to capital and relatively low market penetration in fixed asset finance, are unable to compete in this space effectively. As a result, disruptions in the transport and logistics sectors — while important to the economy as a whole — have little direct impact on the leasing industry. The exposure is minimal simply because leasing hasn't yet been integrated meaningfully into the financing of infrastructure or heavy transportation assets. To change this, Iran would need a more diversified and supportive financial ecosystem — one where leasing can complement bank financing, particularly in capital-intensive sectors like transport and logistics. AG: With the annual inflation rate expected to surpass 43% and the rial's devaluation continuing, how are leasing companies' currency risks, and what portion of them do you consider vulnerable to further depreciation? MHM: Iranian leasing companies face limited direct exposure to currency risk, primarily because sanctions have severely restricted their ability to engage in cross-border leasing or hold foreign currency assets and liabilities. Regulatory constraints further prevent them from importing equipment to meet customer demand. That said, there's an important missed opportunity: if leasing companies were allowed to import machinery or equipment, they could potentially benefit from inflation and currency devaluation by offering credit-based sales or rentals, generating strong returns on financed assets. But under current conditions, their role remains domestically confined, and thus only indirectly affected by exchange rate volatility. AG. Given the current climate of deep economic uncertainty, how is the leasing sector adapting to ensure the continued financing of essential assets? Is asset diversification and alignment with central bank policy proving critical for leasing companies' resilience? MHM: Business continuity is inversely related to uncertainty — the more unpredictable the environment, the harder it becomes to plan or sustain operations. In Iran, the only real constant in recent years has been rising inflation and a weakening currency. In this climate, leasing companies are adapting by prioritising short-term contracts, liquid assets, and low-risk clients backed by strong collateral. However, this risk-averse approach often clashes with customer behaviour: in uncertain economies, clients seek capital assets, longer-term agreements, and often avoid providing substantial collateral. This creates a difficult balancing act. Interestingly, demand for certain assets — like cars — has increased, not for usage but as a hedge against inflation. Customers are turning to leasing as a way to preserve the value of their money, expecting that the market value of the asset will exceed its book value even after depreciation. This is in contrast to non-inflationary economies, where leasing is primarily used for cash flow management and operational efficiency. Another challenge is the lack of contract diversity in Iran. Currently, most leasing contracts follow a lease-to-own model, where ownership transfers to the lessee at the end. In an inflationary environment, this model benefits the lessee, while operating leases — which leave the asset with the lessor — are more advantageous to leasing companies. Yet, such options are limited by regulation. To build resilience, greater alignment with the Central Bank is essential. This means creating flexibility in contract types, pricing structures, asset categories, and delivery mechanisms. The leasing industry needs regulatory support that reflects market realities and allows it to adapt to shifting demand. AG: What is the role of digital transformation in the Iranian leasing industry? MHM: This is a very important question, but before diving into the state of digital transformation in Iran's leasing industry, I want to briefly reflect on something that had a strong personal impact on me. In July 2022, Bill F. Stephenson, now CEO of PEAC Solutions and formerly CEO of DLL, spoke about his desire to create one of the world's largest independent asset finance providers. Stephenson was clear — the future of leasing lies in moving away from dependence on banks and toward a model focused on the asset lifecycle, value-added services, and pay-per-use. That message sparked something in me. It made me realise that digital transformation isn't just about automating existing processes — it's about rethinking the entire business model. And if Stephenson was embracing this shift at 70, I told myself I could do the same at 60, my current age. In Iran, digital transformation has so far been limited. Most efforts have focused on process digitisation — online forms, faster onboarding, small-ticket consumer financing. Banks led the way, and leasing companies followed, but only in areas like household goods and electronics. Sectors like vehicles, machinery, and industrial equipment have seen limited innovation. That's now beginning to change. Personally, I've started building a platform to support digital leasing in these more complex areas — one that connects lessors, customers, and sellers in a scalable, efficient ecosystem. Our goal is to create not just a digital process, but a digitally enabled leasing model that supports long-term asset use, customer value, and financial inclusion. From revolution to pandemic: Iran's path to leasing Where are the global Islamic finance hubs? "Resilience under pressure: Iran's leasing sector faces war, sanctions, and inflation" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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US and China prepare to extend tariff pause after Stockholm talks
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'A stable, healthy and sustainable China-US economic and trade relationship serves not only the two countries' respective development goals but also contributes to global economic growth and stability,' said China's Vice Premier He Lifeng, who led the Chinese side, according to a statement from China's Ministry of Commerce. He did not say how the extension would work. Bessent added that the two sides touched on US concerns over China's purchase of Iranian oil, supply of dual-use tech to Russia that could be used on the battlefield, and the manufacturing of goods at a rate beyond what is sustained by global demand. 'We just need to de-risk with certain, strategic industries, whether it's the rare earths, semiconductors, medicines, and we talked about what we could do together to get into balance within the relationship,' Bessent said. 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Novo Nordisk Tumbles on Weaker Insulin Sales and New CEO Appointment
July 29 - Novo Nordisk (NOVO?B) shares plunged about 20% Tuesday after the Danish drugmaker warned of weaker-than?expected profit and named a new chief executive. Warning! GuruFocus has detected 1 Warning Sign with NVO. The company said operating profit for full?year 2025 will fall more than 10% versus prior guidance. It cited slowing insulin and obesity drug sales in its key U.S. and European markets. Investors also reacted to the board's appointment of longtime insider Maziar Mike Doustdar as its new chief executive, succeeding Lars Fruergaard Jorgensen effective August 7, 2025. Jorgensen steps down after nine years at the helm, handing the reins to Doustdar in hopes of reviving U.S. market performance amid intensifying competition Analysts noted the profit warning reflects tougher competition and pricing pressure in the insulin market, as well as the impact of U.S. reimbursement changes. Novo Nordisk faces a challenging backdrop for its core products, said Jefferies analyst Mark Hanson. Despite recent setbacks, the company reaffirmed its long-term strategy to diversify into rare diseases and weight?loss treatments. It expects to unveil updated mid?term targets at its capital markets day in November. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
