Novo Nordisk stock dropped sharply Tuesday after the pharmaceutical giant cut its 2025 outlook. The company also named a new chief executive.
Novo Nordisk projects sales growth of 8% to 14%, down from an earlier forecast of 13% to 21%. The company also cut its operating profit growth outlook to 10% to 16% from an earlier target of 16% to 24%.
The company also named Maziar Mike Doustdar, currently executive vice president of international operations, as the company's new CEO and president. The company announced in May that it was replacing CEO Lars Fruergaard Jorgensen, which triggered a stock sell-off.
Novo Nordisk cited the sharp drop of NVO shares amid growing competition for its popular diabetes and obesity drugs Ozempic and Wegovy.
"This is an important moment for Novo Nordisk," Novo Nordisk Chair Helge Lund said in a statement about the company's new CEO. "The market is developing rapidly, and the company needs to address recent market challenges with speed and ambition.
Novo Nordisk stock shed 22% to close at 53.94. It has fallen around 20% year to date. Its stock has a Relative Strength rating of 11, down from 83 a year ago, according to IBD MarketSurge.
