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Will New CEO's Leadership Propel Novo Nordisk's Next Growth Wave?
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Key Takeaways
Novo Nordisk appoints Maziar Mike Doustdar as president and CEO after a leadership search.
Doustdar has over a decade of senior leadership experience within NVO's International Operations.
NVO faces stiff GLP-1 competition from Lilly and emerging rivals like Viking Therapeutics.
Novo Nordisk (NVO - Free Report) recently underwent a major leadership transition, as Lars Fruergaard Jørgensen stepped down as CEO on Aug. 7, 2025, after leading the company since 2017. His tenure saw remarkable growth fueled by the surging demand for GLP-1 agonist medicines, including Ozempic and Rybelsus for diabetes and Wegovy for weight management, which helped the company secure a dominant position in the obesity market. The decision to change leadership followed a steep share price decline since mid-2024, driven by intensifying competition from Eli Lilly (LLY - Free Report) , including from compounded GLP-1 alternatives, slower-than-expected market expansion, and pipeline and regulatory hurdles.
Following a comprehensive search of internal and external candidates, Novo Nordisk appointed Maziar Mike Doustdar as its new president and CEO, a move fully endorsed by the Novo Nordisk Foundation.
Doustdar brings over a decade of senior leadership experience within Novo Nordisk’s International Operations to his new role as president and CEO. Since being appointed senior vice president of the division in 2013, he has overseen a network of 80 affiliates outside the United States, serving roughly 35 million patients. Under his stewardship, NVO’s International Operations sales more than doubled to about DKK 112 billion in 2024. His career at Novo Nordisk has also spanned leadership roles across multiple geographies, including heading the Southeast Asia and Oceania commercial area from Malaysia and managing operations in the Middle East.
Before rising to the company’s executive ranks, Doustdar served as general manager in Turkey and held leadership roles in finance and IT. He was appointed executive vice president in 2015, continuing to expand the reach and performance of International Operations. His broad exposure to diverse markets and his track record of delivering sustained growth positioned him as a natural choice to succeed Lars Fruergaard Jørgensen. Doustdar also serves on the board of directors of Orion Corporation, further reflecting his standing in the global pharmaceutical industry.
Competition Heating Up in the Obesity Space
Eli Lilly is Novo Nordisk’s fierce competitor in the obesity space, which markets its tirzepatide medicines as Mounjaro for diabetes and Zepbound for obesity. Despite being on the market for less than three years, both drugs have become LLY’s key top-line drivers. In the first half of 2025, they generated combined sales of $14.7 billion, accounting for 52% of Lilly’s total revenues. Following strong second-quarter results, Lilly raised its full-year sales guidance to $60-$62 billion from its prior expectation of $58-$61 billion in 2025.
Several other companies, like Viking Therapeutics (VKTX - Free Report) , are also making rapid progress in the development of GLP-1-based candidates in their clinical pipeline. Recently, Viking Therapeutics started two late-stage studies evaluating the subcutaneous formulation of its investigational obesity drug, VK2735. A mid-stage study is currently ongoing, evaluating an oral version of this obesity drug, with a data readout expected later this year.
NVO’s Stock Price, Valuation & Estimates
Year to date, Novo Nordisk shares have lost 40.8% compared with the industry’s 5.8% decline. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below. The stock is currently trading below its 50 and 200-day moving averages.
NVO Stock Underperforms the Industry, Sector & the S&P 500
Image Source: Zacks Investment Research
Novo Nordisk is trading at a premium to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 12.40 forward earnings, which is lower than 14.05 for the industry. The stock is trading much below its five-year mean of 29.25.
NVO Stock Valuation
Image Source: Zacks Investment Research
Earnings estimates for 2025 have improved from $3.86 to $3.89 per share over the past seven days. During the same time frame, Novo Nordisk’s 2026 earnings per share estimates have improved from $4.20 to $4.24.
NVO Estimate Movement
Image Source: Zacks Investment Research
The stock’s return on equity on a trailing 12-month basis is 78.64%, which is higher than 34.32% for the large drugmaker industry, as seen in the chart below.
Image: Shutterstock
Will New CEO's Leadership Propel Novo Nordisk's Next Growth Wave?
Key Takeaways
Novo Nordisk (NVO - Free Report) recently underwent a major leadership transition, as Lars Fruergaard Jørgensen stepped down as CEO on Aug. 7, 2025, after leading the company since 2017. His tenure saw remarkable growth fueled by the surging demand for GLP-1 agonist medicines, including Ozempic and Rybelsus for diabetes and Wegovy for weight management, which helped the company secure a dominant position in the obesity market. The decision to change leadership followed a steep share price decline since mid-2024, driven by intensifying competition from Eli Lilly (LLY - Free Report) , including from compounded GLP-1 alternatives, slower-than-expected market expansion, and pipeline and regulatory hurdles.
Following a comprehensive search of internal and external candidates, Novo Nordisk appointed Maziar Mike Doustdar as its new president and CEO, a move fully endorsed by the Novo Nordisk Foundation.
Doustdar brings over a decade of senior leadership experience within Novo Nordisk’s International Operations to his new role as president and CEO. Since being appointed senior vice president of the division in 2013, he has overseen a network of 80 affiliates outside the United States, serving roughly 35 million patients. Under his stewardship, NVO’s International Operations sales more than doubled to about DKK 112 billion in 2024. His career at Novo Nordisk has also spanned leadership roles across multiple geographies, including heading the Southeast Asia and Oceania commercial area from Malaysia and managing operations in the Middle East.
Before rising to the company’s executive ranks, Doustdar served as general manager in Turkey and held leadership roles in finance and IT. He was appointed executive vice president in 2015, continuing to expand the reach and performance of International Operations. His broad exposure to diverse markets and his track record of delivering sustained growth positioned him as a natural choice to succeed Lars Fruergaard Jørgensen. Doustdar also serves on the board of directors of Orion Corporation, further reflecting his standing in the global pharmaceutical industry.
Competition Heating Up in the Obesity Space
Eli Lilly is Novo Nordisk’s fierce competitor in the obesity space, which markets its tirzepatide medicines as Mounjaro for diabetes and Zepbound for obesity. Despite being on the market for less than three years, both drugs have become LLY’s key top-line drivers. In the first half of 2025, they generated combined sales of $14.7 billion, accounting for 52% of Lilly’s total revenues. Following strong second-quarter results, Lilly raised its full-year sales guidance to $60-$62 billion from its prior expectation of $58-$61 billion in 2025.
Several other companies, like Viking Therapeutics (VKTX - Free Report) , are also making rapid progress in the development of GLP-1-based candidates in their clinical pipeline. Recently, Viking Therapeutics started two late-stage studies evaluating the subcutaneous formulation of its investigational obesity drug, VK2735. A mid-stage study is currently ongoing, evaluating an oral version of this obesity drug, with a data readout expected later this year.
NVO’s Stock Price, Valuation & Estimates
Year to date, Novo Nordisk shares have lost 40.8% compared with the industry’s 5.8% decline. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below. The stock is currently trading below its 50 and 200-day moving averages.
NVO Stock Underperforms the Industry, Sector & the S&P 500
Novo Nordisk is trading at a premium to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 12.40 forward earnings, which is lower than 14.05 for the industry. The stock is trading much below its five-year mean of 29.25.
NVO Stock Valuation
Earnings estimates for 2025 have improved from $3.86 to $3.89 per share over the past seven days. During the same time frame, Novo Nordisk’s 2026 earnings per share estimates have improved from $4.20 to $4.24.
NVO Estimate Movement
The stock’s return on equity on a trailing 12-month basis is 78.64%, which is higher than 34.32% for the large drugmaker industry, as seen in the chart below.
NVO Return on Equity
Novo Nordisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.