Novo Nordisk has implemented a hiring freeze in non-business critical areas and is considering layoffs amid mounting financial pressure. The company reached a $604 billion market cap in March 2024 but then experienced about 18 months of declining profitability as compounding pharmacies sold cheaper off-brand Ozempic and Eli Lilly advanced with Mounjaro, Zepbound, and promising orforglipron pill results. CEO Lars Fruergaard Jørgensen stepped down in May 2025 citing recent market challenges. The company issued a profit warning in late July and shares fell sharply after the announcement of successor Maziar Mike Doustdar, while the workforce exceeds 77,000.
Despite ushering in the weight-loss injectable craze and reaching a whopping $604 billion market cap in March 2024, Novo has for the past 18 months suffered hit after financial hit as compounding companies cut into its profit margin by selling cheaper, off-brand Ozempic - and as Eli Lilly, the makers of rival jabs Mounjaro and Zepbound, surged ahead thanks to promising news about its orforglipron GLP-1 pill.
After months of plummeting sales, the company in late July issued a profit warning, or notice to the stock market that its profits were projected to be lower than previously expected. With news that its outgoing CEO was being replaced by Maziar Mike Doustdar - a former executive vice president at the company whose internal hiring seemingly spooked investors - Novo shares plummeted 21 percent to a low of $46.90, its lowest price in three years.
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