Novo Nordisk Faces Intensifying Market Pressure as Restructuring Concludes

Novo Nordisk is navigating a pivotal moment. The pharmaceutical giant is nearing the completion of a significant cost-cutting initiative that has eliminated approximately 9,000 positions, even as its chief executive, Mike Doustdar, cautions shareholders about a challenging period ahead. The company’s once-dominant position in the weight-loss medication sector is under threat, with increasing competitive pressure from rivals like Eli Lilly casting a shadow over its upcoming financial results on February 4.

Earnings Report to Reveal Restructuring Impact

All eyes are on February 4, 2026, when Novo Nordisk will release its quarterly figures. This report is expected to provide a clear picture of how the interplay between substantial cost reductions and a more aggressive competitive landscape is affecting the company’s bottom line. The stock, which has shed roughly 39% of its value over the past twelve months, is currently trading almost precisely at its 200-day moving average, setting the stage for a potentially decisive week.

The extensive restructuring program, launched in September 2025, is now in its final stages. The measures have impacted about 11% of the global workforce. Management’s objective is to achieve annual savings of approximately 8 billion Danish kroner (around 1.3 billion US dollars) by the end of 2026.

CEO Acknowledges Shifting Competitive Dynamics

The drive for greater efficiency appears increasingly urgent given recent market developments. Speaking at the J.P. Morgan Healthcare Conference, CEO Mike Doustdar conceded that the company’s exclusive standing in several international markets has eroded. “When you hold a very high market share, competition will take a portion of it away,” he stated, offering a sober assessment of the growing headwinds.

Should investors sell immediately? Or is it worth buying Novo Nordisk?

The primary challenge comes from US-based Eli Lilly, whose drug Zepbound continues to capture market share. Furthermore, the competitive field is widening. In late January, Roche reported positive Phase-2 data for its candidate CT-388, demonstrating efficacy comparable to existing treatments.

Strategic Reinvestment and a New Oral Defense

According to company statements, the capital freed up by the restructuring is not merely intended to bolster financial results. Novo Nordisk plans to strategically reinvest these funds into expanding production capacity and accelerating research and development, with a focus on strengthening its core diabetes and obesity divisions.

As part of its counteroffensive, the company has launched an oral version of Wegovy in the United States. Marketed as the first FDA-approved weight-loss pill, this tablet aims to attract patients who are averse to injectable treatments. While administration requires a fasting period, company leadership points to the roughly 1.5 million patients already using the diabetes drug Rybelsus under similar conditions as evidence of likely market acceptance for the new format.