Wegovy maker Novo's profit warning wipes out $70B in market value after shares plunge 30%

Core Viewpoint - Investors have reacted negatively to Novo Nordisk's profit warning and the appointment of a new CEO, resulting in a $70 billion loss in market value as the company faces increased competition in the obesity drug market [1][2]. Company Overview - Novo Nordisk has appointed Maziar Mike Doustdar as the new CEO to address declining sales and investor concerns following the abrupt removal of the previous CEO [1][6][9]. - The company has seen its stock price drop nearly 30% after cutting its 2025 sales growth outlook from 13%-21% to 8%-14% [2][4]. Market Competition - Novo Nordisk is facing significant competition from copycat drugs in the GLP-1 category, particularly from Eli Lilly's Zepbound, which has surpassed Wegovy prescriptions by over 100,000 per week [5][13][15]. - The company has struggled with compounded versions of its drugs, which are still being used by over one million patients in the U.S., despite expectations that they would switch to branded treatments after a recent FDA ban [16]. Financial Performance - Novo Nordisk's shares have declined by 44% this year, reflecting investor concerns about its drug pipeline and market challenges [2][8]. - The company became Europe's most valuable listed company after the launch of Wegovy in 2021, but is now facing a significant downturn in its market valuation [6][8].