12:12 PM EDT, 07/29/2025 (MT Newswires) -- Novo Nordisk's ( NVO ) US-listed shares slumped intraday Tuesday as the Danish drugmaker named a new chief executive and tempered its 2025 outlook amid market challenges hurting sales of its obesity and diabetes drugs.

The pharmaceutical giant appointed Maziar Mike Doustdar as CEO, effective Aug. 7, succeeding Lars Fruergaard Jorgensen, who will step down on the same date.

Doustdar, a 33-year veteran at Novo Nordisk ( NVO ), currently serves as executive vice president of its international operations.

"The market is developing rapidly, and the company needs to address recent market challenges with speed and ambition," Novo Chair Helge Lund said. "I believe Novo Nordisk ( NVO ) will build on its strengths as a global leader in obesity and diabetes, and Mike has a clear vision of how to unlock the full potential of the opportunities ahead."

Novo Nordisk's ( NVO ) New York Stock Exchange-listed shares slid 22% in Tuesday trade, taking their year-to-date decline to 37%.

In a separate statement, Novo Nordisk ( NVO ) said it now expects full-year operating profit to grow 10% to 16%, down from its prior guidance of 16% to 24%. Full-year sales are anticipated to increase 8% to 14%, compared with 13% to 21% growth previously expected.

The revised outlook reflects reduced second-half expectations for the Wegovy obesity drug and the Ozempic diabetes treatment in the US. It also factors in lower-than-expected penetration for Wegovy in other markets, Novo Nordisk ( NVO ) said.

"For Wegovy in the US, the sales outlook reflects the persistent use of compounded (glucagon-like peptide 1s), slower-than-expected market expansion and competition," the company said. "For Ozempic, the updated outlook is negatively impacted by competition in the US."

Novo said that mass compounding has continued despite the expiry of the Food and Drug Administration's grace period in May.

Novo reported second-quarter earnings of 5.96 Danish kroner ($0.92) per share and sales growth of 18% at constant exchange rates. Analysts polled by FactSet expect 6.04 kroner per share and sales of 76.83 billion kroner. The company reported EPS of 4.49 kroner and sales of 68.06 billion kroner for the prior-year quarter.

Novo Nordisk ( NVO ) is scheduled to release its full second-quarter results on Aug. 6.

Price: 53.91, Change: -15.10, Percent Change: -21.88