Weak US demand and competitive disadvantage weaken Novo Nordisk’s position

The decline is due to a decline in demand in the United States. According to the company’s latest forecast, they expect annual sales growth of 8–14%, while they previously expected an expansion of 13–21%. A similar correction was made in operating profit: the expected growth decreased from 16–24% to 10–16%.

The company’s strategy will now be shaped by a new CEO: the suddenly replaced Lars Fruergaard Jørgensen will be replaced by Mike Doustdar Maziar, who has worked for the company since 1992. The new CEO will have a difficult task: he will have to stabilize the competition in the weight-loss drug market, where American rival Eli Lilly has gained the upper hand in recent months – not only in sales figures, but also in terms of clinical results.

The stakes in the competition are high: the industry’s first trillion-dollar company could emerge from the two players, but this will require overcoming not only market but also production capacity obstacles. Currently, both companies are unable to produce as much product as there is demand – while political risks are also increasing, primarily due to the prospect of US tariff measures.

Moreover, the fate of the Danish company goes beyond its own operations: for many years it was the most valuable listed company in Europe and also contributed a significant part of Denmark’s GDP. The current volatility is therefore a warning sign not only for a company, but also for a national economy.