Novo Nordisk has named its head of international operations, Maziar Mike Doustdar, as its new chief executive officer. The appointment follows a recent profit warning due to slumping sales of its weight-loss drugs, which resulted in a significant $US93 billion ($143 billion) loss in market value for the Danish drugmaker. Doustdar, a company veteran with over three decades of experience at Novo Nordisk, steps into the role as the company navigates a challenging period. Novo Nordisk is a global pharmaceutical company focused on diabetes care and the development of innovative treatments for chronic diseases.
The selection of Doustdar as CEO was unexpected, reportedly disappointing some investors who had anticipated a high-profile external candidate to spearhead a renewed challenge to Eli Lilly & Co in the competitive obesity market. Eli Lilly has been gaining ground on Novo Nordisk in this sector, intensifying the pressure on the company to innovate and regain market share. The leadership change comes at a crucial time as Novo aims to address its recent setbacks and reaffirm its position in the pharmaceutical industry.
The announcement of the new CEO coincided with Novo Nordisk revising its financial outlook. The company now projects sales growth of 8 per cent to 14 per cent for the year, and operating profit growth of 10 per cent to 16 per cent, based on constant exchange rates. These figures are lower than previous forecasts, which estimated growth of up to 21 per cent and 24 per cent, respectively. The revised projections reflect the impact of the reduced weight-loss drug sales on the company’s overall performance.
Following the profit warning, shares of Novo Nordisk experienced a sharp decline on the Copenhagen stock exchange. The stock plunged as much as 30 per cent during the trading session, marking the largest intraday drop on record for the company. By the end of the session, shares closed 23 per cent lower, bringing the year-to-date loss to 45 per cent. The market’s reaction underscores the significance of the challenges facing Novo Nordisk and the importance of the new CEO’s role in steering the company forward.
