Finance
Wegovy-maker Novo Nordisk starts 'fight back' as investors return
Published by Global Banking and Finance Review
Posted on September 18, 2025
4 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 18, 2025
4 min readLast updated: January 21, 2026
Novo Nordisk's shares rise as new CEO implements a restructuring plan to regain investor confidence in its Wegovy strategy.
By Maggie Fick and Stine Jacobsen
VIENNA (Reuters) - Novo Nordisk might be down but it's not out of the weight-loss drug race.
The Danish maker of blockbuster drug Wegovy has had a miserable year with stalling sales growth, profit warnings and a $400 billion share price plunge, but the company hit the right notes at a diabetes conference in Vienna this week, despite not unveiling any breakthrough clinical data.
The company's shares rose more than 6% on Thursday, taking the stock up more than a third since a low in early August, shortly before new CEO Mike Doustdar took over and ushered in a restructuring plan to streamline and focus the business.
The drugmaker is starting to win investors back to its rapid weight loss growth story that drove its heady rise to become Europe's most valuable company last year, and to claw back lost ground to rival Eli Lilly.
Last week, Doustdar announced a sweeping restructuring plan to cut 9,000 jobs, a bold early move that analysts saw as a sign he is serious about sharpening execution and cutting costs.
"That's an easy move to make out of the gate, but it's also unusual at Novo, and it's piqued investor interest," said Berenberg analyst Kerry Holford, who upgraded her Novo rating from "hold" to "buy" on Wednesday.
"There's a sense of realignment happening."
Shares of smaller Danish drugmaker Zealand Pharma, which also focuses on diabetes and obesity, climbed 8% on Thursday, buoyed by Novo's rise. Eli Lilly was up around 0.5%.
A LOT TO PROVE BUT STILL IN THE RACE
At the European Association for the Study of Diabetes in Vienna, Novo's branding was splashed boldly across the conference venue. The company was promoting new research into semaglutide, the active ingredient in diabetes medicine Ozempic and obesity medicine Wegovy, for a range of related health conditions.
Some investors said Novo appeared more energised and engaged than it had in some time - projecting renewed confidence as it looks to reclaim ground lost.
"We're seeing the beginning of a potential fight-back with Wegovy," added Holford. "Investors fell out of love with it, and the company still has a lot to prove. But they're still in the race."
MOOD SLOWLY TURNING
Investors want proof that the company is improving its commercial execution in the United States, where Lilly has been faster and more aggressive amid the rise of compounded copycat versions of GLP-1 drugs and surging consumer demand.
Novo's chief scientific officer Martin Holst Lange told investors in Vienna the company was looking to become more nimble.
"We're making faster decisions, progressing faster in terms of not only our research but also our clinical pipeline and obviously having the new organisation in place already," he said.
Barclays noted that while there was no "groundbreaking" data from Novo presented in Vienna, the company received a generally positive reception, especially around its restructuring plans.
"Collectively, these moves suggest Novo is positioning itself to sharpen execution and more effectively compete with Eli Lilly," it said.
Analysts at Baader said that the steep share price slide since mid-2024 looked "overdone" and was an opportunity for contrarian investors. Swift moves by management should stem market share erosion and turn around the group's prospects.
"The sentiment around the stock has gone from being very negative," Jyske Bank analyst Henrik Hallengreen Laustsen told Reuters. "It may well be that we are starting to see that the mood has slowly started to turn."
(Reporting by Maggie Fick and Stine Jacobsen, Editing by Terje Solsvik, Adam Jourdan, Jane Merriman and Susan Fenton)
Novo Nordisk announced a sweeping restructuring plan to cut 9,000 jobs, signaling a serious commitment to improving execution and reducing costs.
Investors have shown renewed interest in Novo Nordisk, with shares rising more than 6% recently, indicating a potential recovery in confidence.
Novo Nordisk is facing competition from Eli Lilly, which has been more aggressive in the diabetes and obesity drug market, particularly with compounded versions of GLP-1 drugs.
Analysts believe that while Novo Nordisk has a lot to prove, there is a sense of a potential fight-back with Wegovy, as the company is starting to regain investor confidence.
Novo Nordisk received a generally positive reception at the European Association for the Study of Diabetes, particularly regarding its restructuring plans, despite no groundbreaking data being presented.
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