Novo Nordisk Struggles to Rebuild Confidence Amid Weight‑Loss Success and Cardio Trial Setback

In 2023, Novo Nordisk briefly eclipsed LVMH as Europe’s most valuable firm, driven by soaring sales of its GLP‑1 weight‑loss drugs Ozempic and Wegovy. Yet the Danish drugmaker has yet to translate that momentum into sustained investor confidence.

The company’s U.S. rival, Eli Lilly, has eroded Novo’s market share with its own GLP‑1 therapy, Mounjaro, and plans to launch a weight‑loss pill in Europe and the U.K. in early 2027. Since 2024, Lilly’s shares have nearly doubled, while Novo’s have fallen 70 %. CFO Karsten Munk Knudsen admitted the firm’s journey has been "rocky".

In September 2025 Novo announced a 9,000‑job cut aimed at trimming costs by $1.2 billion, leaving the workforce 12,000 below the previous year’s level. Knudsen said the company would not pursue further blanket layoffs but would focus on investing in growth assets such as Wegovy and on R&D to secure future winners.

A key growth bet was the cardiovascular candidate ziltivekimab. Goldman Sachs analysts had noted the drug could diversify Novo’s portfolio beyond obesity. However, last week the phase‑III trial failed to reduce heart attacks, strokes or cardiovascular deaths, sending the stock down 10 %. Knudsen acknowledged the setback as part of the inherent risk of drug development.

Investor unease deepened after Novo’s first‑half results on August 4. The shares fell almost 6 % even as the company lifted its full‑year outlook and reported a 7 % rise in adjusted sales to DKK 78.5 billion ($12.1 billion). More than 90 % of revenue still comes from obesity and diabetes products.

CEO Mike Doustdar remains optimistic about the obesity market, noting that Wegovy will launch in Germany soon and that additional European launches are expected following EU approval in July. He highlighted the potential for 80 % volume growth worldwide.

With the cardio trial failure and a sharp decline in share price, Novo Nordisk must prove that its weight‑loss strategy and R&D pipeline can sustain long‑term growth and restore investor trust.