Recently Novo Nordisk has faced a numerous amount of setbacks, including intense competition from Eli Lilly, changes in CEO, supply chain issues, and disappointing trial results for new drugs.
This May, Novo’s CEO Lars Jørgensen stepped down as CEO.¹ Novo stated that “recent market challenges” and the decline in the company’s share price were reasons for the change. The new CEO Maziar Doustdar was an insider and had been a longtime executive at Novo. Doustdar announced in September that 9000 jobs would be cut, in order to streamline operations and reallocate resources to weight-loss treatments.² The new CEO’s focus on operational efficiency and core areas such as weight-loss drugs shows Novo is pushing to become more agile and faster in decision making, to regain market leadership from competitors like Eli Lilly.
In 2021 when Wegovy was launched, Novo severely underestimated the huge demand for their drug - they had to ration supplies and even asked doctors to stop new patients from getting prescriptions.³ Eli Lilly took advantage of this and quickly filled the void with Zepbound, gaining significant market share.
Currently, Novo”s market share for the category of drugs that includes GLP-1s is 41.7%, whereas Lilly’s is 57.9%. Shares in Novo have fallen by 41.6% this year.⁴ In order to outcompete Lilly, Novo is currently expanding its portfolio of weight-loss drugs, including the new drugs CagriSema and Amycretin, both of which are currently in advanced clinical trials.⁵ To address the supply chain issues, Novo has acquired manufacturer Catalent and also invested in new production facilities in North Carolina to boost production capacity and increase product supply.
CagriSema is **Novo’s next-generation obesity drug which is meant to rival Eli Lilly’s Zepbound. CagriSema is not yet approved for use, and is intended to cause superior weight loss results compared to Wegovy and Zepbound.⁶
Throughout 2023 and 2024, investors were told that CagriSema should be able to achieve weight loss of at least 25%.⁷ However, in the clinical trial, participants only lost 22.7% of their body weight. Although this figure was higher than in those participants who received the GLP-1 drug semaglutide, investors were extremely disappointed, with Novo’s stock plunging by 26%. This was the biggest stock drop in Novo’s history.
Another problem is that Eli Lilly’s new drug *Orforglipron,*⁸ **which **has already passed Phase III in clinical trials and may soon be available in 2026, introduces a new drug modality to the weight-loss drug market as it is an oral small-molecule drug. This greatly improves accessibility and convenience, and is cheaper to manufacture. There is a strong possibility that Orforglipron will significantly disrupt the weight-loss drug market and give Lilly even more market share.
Novo is working to bounce back from the investor disappointment by adjusting its CagriSema trials. They are currently running a trial directly comparing CagriSema against Lilly’s Zepbound.⁹ If Novo exceeds the bar set by Zepbound, it will clearly show investors that its drug is innovative and delivers effectiveness unmatched by other weight-loss drugs in the market.
Angus Liu, Jul 29 2025. Novo Nordisk names new CEO as the obesity drug maker cuts sales, profit outlook. Available at: https://www.fiercepharma.com/pharma/novo-nordisk-names-new-ceo-obesity-drugmaker-cuts-sales-profit-outlook [Accessed 5 Dec 2025]
Emil Person, 12 Aug 2025. Maziar Mike Doustdar: Novo Nordisk’s New CEO. Available at: https://quartr.com/insights/business-philosophy/maziar-mike-doustdar-novo-nordisks-new- [Accessed 5 Dec 2025]
Jacob Gronholt-Pedersen, Maggie Fick. July 1, 2025. How Novo Nordisk misread the US market for its weight loss sensation. Available at: https://www.reuters.com/sustainability/boards-policy-regulation/how-novo-nordisk-misread-us-market-its-weight-loss-sensation-2025-07-01/#:~:text=“Even though they saw the,comment on market share estimates. [Accessed 5 Dec 2025]
Sean Craig, Oct 31 2025. Eli Lilly’s Sterling Results Highlight Rival Novo Nordisk’s Fading Fortunes. Available at: https://finance.yahoo.com/news/eli-lilly-sterling-results-highlight-103000160.html [Accessed 5 Dec 2025]
Nick Paul Taylor, Nov 25 2025. Novo Nordisk expands pivotal amycretin program after dual agonist shines in diabetes. Available at: https://www.fiercebiotech.com/biotech/novo-nordisk-expands-pivotal-amycretin-program-after-dual-agonist-shines-diabetes [Accessed 5 Dec 2025]
doctoronline.co.uk. What’s the difference between CagriSema and Wegovy? Available at: https://www.doctoronline.co.uk/blog/cagrisema-wegovy/ [Accessed 5 Dec 2025]
Nick Paul Taylor, Dec 20, 2024. Novo Nordisk stock crashes after CagriSema misses phase 3 weight-loss goal. Available at: https://www.fiercebiotech.com/biotech/novo-nordisk-stock-crashes-after-cagrisema-misses-phase-3-weight-loss-goal#:~:text=Novo Nordisk stock crashes after CagriSema misses phase 3 weight-loss goal,-By Nick Paul&text=A phase 3 trial of,%25-to-20%25 drop. [Accessed 5 Dec 2025]
Private Medical Clinic. New Weight-Loss Pill (Orforglipron) Expected In the UK By 2026. Available at: https://www.privatemedicalclinic.com/post/new-weight-loss-pill-orforglipron-expected-in-the-uk-by-2026 [Accessed 5 Dec 2025]
AnnaLee Armstrong, Feb 7 2025. After Unforced Error, Novo Execs Try to Boost CagriSema Sentiment — Without Hard Numbers. Available at: https://www.biospace.com/business/after-unforced-error-novo-execs-try-to-boost-cagrisema-sentiment-without-hard-numbers#:~:text=“It’s perhaps less confusing for,data when we see them.” [Accessed 5 Dec 2025]