Copenhagen: Novo Nordisk’s new chief executive, Mike Doustdar, has found himself thrust into a high-stakes corporate storm just months after taking charge. As the Danish pharmaceutical powerhouse undergoes a sweeping board overhaul and enters a heated battle with U.S. rival Pfizer, Doustdar faces what many analysts are calling a “baptism of fire” in the company’s modern history.
When Doustdar assumed leadership in August, he inherited a company that had seen its market value slashed nearly in half within a year. Once Europe’s most valuable publicly listed company, Novo Nordisk now stands at a crossroads pressured by shrinking profits, rising competition, and waning investor confidence. The new CEO’s first major test will come this week when Novo releases its third-quarter earnings, a crucial moment that could define the trajectory of his leadership.
Investors are eager for clarity on how Doustdar plans to stabilize the company’s performance amid turbulence in the obesity drug sector a field that has both made and haunted Novo Nordisk. The company’s blockbuster weight-loss and diabetes medications, built around the semaglutide molecule, have driven record sales in recent years. However, slowing demand growth and intensifying competition from American giant Eli Lilly have exposed cracks in Novo’s dominance.
Adding to the challenge, Novo Nordisk’s controlling shareholder the powerful Novo Nordisk Foundation has taken direct action to shake up the company’s governance. Frustrated by the company’s recent setbacks, the Foundation has called for an extraordinary shareholders’ meeting on November 14 to replace all six independent directors and the current chair.
In a decisive move, former CEO and Foundation chairman Lars Rebien Sørensen is set to return as board chair, signaling a shift toward tighter owner oversight. The intervention has been described as both a rescue mission and a reprimand a sign that the Foundation is unwilling to let management drift as rivals close in on Novo’s once-unassailable market share.
For Doustdar, this means operating under closer scrutiny than any of his predecessors. His leadership will be judged not only by quarterly results but also by his ability to align with the Foundation’s long-term vision for innovation and sustainable growth.
Just as internal restructuring dominates headlines, Novo Nordisk has opened a new external front an aggressive legal and strategic fight with Pfizer. The Danish company recently made a surprise counterbid for U.S.-based obesity drug developer Metsera, a biotech firm that Pfizer was in the final stages of acquiring for roughly $9 billion.
Novo’s move has stunned industry observers and triggered legal tensions between the two pharmaceutical giants. Analysts say the attempted takeover reflects Doustdar’s willingness to pursue bold and unconventional strategies to expand Novo’s drug pipeline and diversify beyond semaglutide-based therapies.
However, this high-risk gamble also exposes the company to further volatility. If the Metsera deal collapses or backfires, it could deepen investor skepticism about Novo’s direction. But if successful, it could reposition the firm as an innovation leader in next-generation obesity treatments.
Novo Nordisk’s recent financial trends underscore the depth of its challenges. The company has lowered its full-year revenue guidance three times in 2025, citing production bottlenecks, patent concerns, and slowing prescription growth in the United States.
Eli Lilly’s competing drug, Mounjaro, has rapidly gained ground, eroding Novo’s share in the lucrative weight-loss market. Meanwhile, the overall U.S. obesity drug segment appears to be nearing saturation, with fewer new patient enrollments and insurance hurdles limiting expansion.
Analysts caution that Novo’s overreliance on semaglutide could backfire if newer, more effective formulations emerge from competitors. “What Doustdar says this week will set the tone,” one analyst remarked. “Investors need to see not just cost-cutting, but a credible path forward.”
The return of Lars Rebien Sørensen as board chair is seen by many as an attempt to restore discipline and strategic coherence. Sørensen, who led Novo during its early expansion into the diabetes and GLP-1 markets, is expected to push for a more research-driven, innovation-focused agenda.
The Foundation’s intervention also reflects deep unease over the company’s recent missteps, including a $25 billion loss in market capitalization and the announcement of 9,000 job cuts worldwide. Industry insiders suggest that Doustdar will need to balance immediate restructuring with a longer-term vision that rekindles investor faith and employee morale.
As the company prepares to release its quarterly results, the stakes could not be higher. Doustdar must reassure investors that Novo can weather the current storm, defend its market position, and adapt to a changing pharmaceutical landscape.
Analysts predict that this week’s announcement will not just be about earnings it will be about direction. Will Novo double down on cost control and risk mitigation, or will it embrace bolder innovation to outpace its rivals? The answer could determine whether the world’s leading diabetes and obesity drugmaker can reclaim its lost momentum.
For now, Novo Nordisk’s new CEO stands at the intersection of crisis and opportunity. His baptism by fire may define not only his leadership but the future of a company once synonymous with pharmaceutical excellence.