Novo Nordisk

Novo Nordisk is a Danish multinational pharmaceutical company founded in 1923 by Harald Pedersen, headquartered in Copenhagen, Denmark. Under CEO Mike Doustdar, Novo Nordisk trades on NASDAQ (NVO) and is a global leader in diabetes care and obesity treatment. The company reported 2025 sales growth of 10% to DKK 309 billion with operating profit growth of 6%, forecasting 2026 adjusted sales growth of -5% to -13% due to pricing pressures and competition in the GLP-1 market.

Novo Nordisk was founded in 1923 in Copenhagen, Denmark, by Harald Pedersen, establishing itself as a pharmaceutical company focused on manufacturing and distributing pharmaceutical products, with an initial concentration on insulin and other diabetes medications. The company was established during a period when diabetes treatment was emerging as a critical medical need, and Novo Nordisk positioned itself at the forefront of pharmaceutical innovation in this therapeutic area.

Throughout the 20th century, Novo Nordisk became a leading pharmaceutical company specializing in diabetes care, developing innovative insulin products and expanding its therapeutic focus to include other areas of medical need. The company's commitment to research and development enabled it to establish itself as a pioneer in diabetes treatment, introducing new formulations and delivery methods that improved patient care and medication adherence.

In 1989, Novo merged with Nordisk Gentofte to form Novo Nordisk, creating a larger pharmaceutical company with expanded capabilities and market reach. This strategic merger combined Novo's expertise in insulin production with Nordisk Gentofte's broader pharmaceutical portfolio, creating a more comprehensive company capable of serving a wider range of therapeutic needs and expanding its global presence.

Throughout the 1990s and 2000s, Novo Nordisk expanded its product portfolio and global presence significantly, establishing itself as a leader in diabetes care and beginning to develop treatments for obesity and other conditions. The company continued to invest heavily in research and development, focusing on innovative drug delivery systems and new therapeutic approaches that would later prove crucial to its success in the obesity treatment market.

In 2021, Novo Nordisk launched Wegovy, a prescription weight loss medication that became a major commercial success and transformed the company's business trajectory. Wegovy, containing semaglutide, represented a breakthrough in obesity treatment and quickly became one of the most sought-after medications in the pharmaceutical market, driving significant growth for the company and establishing Novo Nordisk as a leader in the rapidly expanding GLP-1 receptor agonist market.

In recent years, Novo Nordisk has continued to invest in research and development, expanding its obesity treatment portfolio and maintaining its position as a leading pharmaceutical company. The company's focus on GLP-1 receptor agonists has positioned it at the forefront of medical innovation in both diabetes and obesity treatment, with products like Ozempic (diabetes) and Wegovy (obesity) becoming household names in healthcare.

In 2025, Novo Nordisk reported total sales growth of 10% to DKK 309 billion, with profit before tax rising by 3% to DKK 130.5 billion, demonstrating resilience despite challenging market conditions. However, the company faced significant headwinds including pricing pressures from the US 340B Drug Pricing Program, intensifying competition from rivals like Eli Lilly, and the loss of patent protection for semaglutide in certain markets.

In August 2025, Novo Nordisk appointed Mike Doustdar as CEO, succeeding Lars Fruergaard Jørgensen after the company lost ground to US rival Eli Lilly, prompting several profit downgrades and 9,000 job cuts. Doustdar faced the challenge of navigating what he described as a year of "unprecedented pricing pressure" resulting from the Trump administration's push to lower US weight-loss drug prices, rising competition, and the loss of important patent protections.

In 2026, Novo Nordisk announced its 2026 sales and operating profit outlook, forecasting adjusted sales growth of -5% to -13% at constant exchange rates, reflecting the challenging market environment. The company introduced new non-IFRS measures of adjusted sales growth and adjusted operating profit growth to exclude exceptional and non-recurring effects, primarily the USD 4.2 billion reversal of sales rebate provisions related to the 340B Drug Pricing Program. Despite these challenges, Doustdar expressed hope that the "painful" impact would be an "investment for our future," noting that the company is seeing a volume response to lower prices and hopes to sell higher volumes of obesity and diabetes drugs over the coming years.