Danish pharmaceutical giant Novo Nordisk (NYSE:NVO) is watching its stock plummet 20% in morning trading after slashing its full-year sales and profit outlook for the second time this year. The announcement,

Novo Nordisk named Maziar Mike Doustdar as its new chief executive on Tuesday, relying on an experienced company insider to revive sales and a share price hit by worries the Wegovy maker is falling behind in the weight-loss drug race it started.

Danish drugmaker Novo Nordisk, known for its blockbuster diabetes and weight-loss treatments Ozempic and Wegovy, on Tuesday lowered its full-year earnings forecasts again as it unveiled a new chief executive to tackle "recent market challenges".

The U.S. FDA ban on compounded versions of Novo Nordisk's Wegovy has increased its prescriptions by 33%. Despite this, investor confidence remains shaken due to competitive pressures from Eli Lilly's Zepbound and market challenges.

Since the US Food and Drug Administration (FDA) implemented a ban on ‘compounded’ versions of Wegovy on 22 May, new prescriptions for the drug have risen by approximately 33 per cent. This culminated in 181,200 new prescriptions in the week ending 18 July, according to IQVIA data shared with Reuters by industry analysts.

Some patients reluctantly shifted to save money while others have appealed for coverage of Zepbound after having experienced better weight-loss results and fewer side effects.

A federal court ruled in Mylan's favor, finding no infringement of Novo's patent tied to Wegovy, rejecting direct, contributory, and induced infringement claims.