The dramatic story of Novo Nordisk
How did the company that led the weight loss revolution fall into a crisis of confidence?
In the last decade, Novo Nordisk was one of the strongest stocks in the market.
It became a global leader in obesity and diabetes drugs, thanks to breakthrough medications like Ozempic and Wegovy, and became the new symbol of growth in medical science. But in 2025, something broke.
Over 50% drop in stock price since its peak
While in the summer of 2024 Novo's stock touched a peak of around $150, today it trades at only around $70.
What caused such a sharp decline and what is happening behind the scenes at the company?
Exclusive review
The latest move: surprise CEO dismissal. On May 17, 2025, Novo fired CEO Lars Fruergaard Jørgensen after 8 years in the role.
Not only did Novo fire the CEO, it did so even before finding or even beginning to look for a new CEO.
The meaning of this is clear: the move was made quickly and under pressure.
This move caused shock in the market; Novo is known as a stable organization, almost sterile from scandals.
The assessment is that the dismissal stemmed from an accumulation of frustrations:
Weak management of market expectations
Lack of competitive response against Lilly
Erosion of investor confidence
The hype around the Cagrisema drug, and the fall. The direct trigger for the price drop was the publication of results from the Cagrisema trial, a new weight-loss drug that was supposed to be the next generation of Wegovy.
This happened in December 2024 when it was reported that Cagrisema led to a 22.7% weight loss, a good result, but it did not meet the exaggerated expectations of over 25%.
The result: the stock crashed by 20% in one day.
Analysts cut future revenue forecasts, and the impression was created that Novo was failing to meet the new standards it had set for itself.
Bottlenecks, competitors, and a correlation of disappointments
Amidst all the hype, Novo failed to meet demand.
Production issues and operational inflexibility opened the market to generic compounds and competitors like Eli Lilly ($LLY), which surged ahead with Zepbound and aggressive campaigns.
At the same time, Novo's communication with investors was weak, quiet, and at times confusing. This led many investors to wonder if management was truly in control of the situation, and disappointment grew.
Breaking point: March 27, pressure from the chairman, followed by dismissal. During the shareholders' meeting in March, company chairman Helge Lund began to exert public pressure.
Shortly thereafter, on May 16, the dramatic dismissal of the CEO occurred, indicating pressure from Novo Holdings, the founding entity and main shareholder of the company.
In summary: 4 main reasons for the stock's collapse. 1. Exaggerated expectations for Cagrisema and the collapse of those expectations.
2. Production chain issues leading to competitor penetration.
3. Lilly took control of the narrative and the market.
4. Communication failure, internal and external.
But Novo is not in an existential crisis
Despite everything, Novo maintains a very solid foundation: 1. A rich product portfolio.
2. The oral Wegovy tablet is expected to hit the market as early as 2025 (6–9 months before Lilly).
3. FDA approval is close.
4. Rating agency S&P raised its credit rating from AA- to AA.
5. Forecasts for over 10% annual net income growth, with debt reduced to almost zero by 2027.
But there is one problem, and it is deep
The real problem is not medical or business, but perceptual:
Novo lost control of the narrative.
In today's market, whoever holds the narrative controls the multiple. Lilly succeeded in creating a sense of control, innovation, and momentum.
Novo, in contrast, conveyed confusion, slowness, and uncertainty.
A final word: in the stock market, patience is sometimes required
The company is looking for a new CEO. This may be an opportunity for refreshment and rethinking. The next important report, the first-half 2025 results, is expected on August 6 and will be a key test of confidence.
Novo is still a key player in the weight loss race; the current crisis is a management and expectations problem, not scientific bankruptcy
This story is far from over, but this time, Wall Street demands proof, not just dreams
We will continue to follow