Why Is Novo Nordisk’s Stock Rising Premarket Today?

Novo Nordisk shares climbed 0.6% in early premarket trading on Wednesday after the world’s most valuable drugmaker announced plans to cut 9,000 jobs and forecast billions in annual savings, even as it lowered its profit outlook for the third time this year.

The Danish firm behind blockbuster obesity drug Wegovy and diabetes treatment Ozempic said it would cut 9,000 positions, or about 11.5% of its 78,400-strong global workforce, as part of a company-wide transformation. About 5,000 roles will be eliminated in Denmark.

The restructuring is expected to save 8 billion Danish crowns ($1.26 billion) annually by 2026 and will focus resources on diabetes and obesity, Novo’s key growth areas. 

“Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well,” newly appointed Chief Executive Officer Mike Doustdar said in a statement.

The overhaul is accompanied by one-off restructuring costs of 9 billion crowns in the third quarter, including impairment charges, which are partially offset by savings of 1 billion crowns in the fourth quarter. 

Novo now expects operating profit growth of 4%–10% this year at constant exchange rates, down from 10–16% forecast in August and as high as 27% projected in February.

“Sometimes the hardest decisions are the right ones for the future we’re building,” Doustdar said in a LinkedIn post. “This is the right thing to do for the long-term success of Novo Nordisk.”

Novo has already frozen hiring for non-critical roles and withdrawn offers to some new hires. 

The shake-up follows a sharp slowdown in growth, with the company losing market share in the U.S. obesity market to Eli Lilly and facing pressure from compounding pharmacies that are allowed to make copycat versions of Wegovy due to supply shortages.

The company, valued at about $650 billion at its peak last year, saw $70 billion wiped off its market capitalization in July after a profit warning and the appointment of Doustdar as CEO.

Novo said it will report its nine-month results and provide a fresh outlook for 2025 on Nov. 5.

On Stocktwits, retail sentiment for Novo Nordisk was ‘bearish’ heading into Wednesday’s market open.

Novo Nordisk’s stock has declined nearly 36% so far in 2025.

($1=6.38 Danish krone)

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