ETH Stock replaced its CEO, and the market turned pessimistic about its weight loss and sales prospe

ETH Stock Plummets 23%: Downgraded Guidance and CEO Change Trigger Market Panic

1. ETH Stock Plunge and Market Reaction

Historic Drop: ETH stock (NVO.US) plummeted 23% at the US stock market opening on July 29th, falling over 30% at one point during the session, marking the company's largest single-day drop in history and wiping out over $60 billion in market capitalization.

Drag on the Industry: Competitor Eli Lilly (LLY) saw its ETH stock fall 6%, dragging down the overall weight loss drug sector.

2. ETH Stock's Guidance Slashed

2025 Sales Growth Forecast Lowered:

Sales growth rate lowered from 13%-21% to 8%-14% (the second downward revision).

Operating profit growth rate lowered from 16%-24% to 10%-16%.

Core Reasons:

ETH Stock Weakened US Market: Sales of the weight loss drug Wegovy and the diabetes drug Ozempic fell short of expectations, impacted by generic competition (such as Eli Lilly's Zepbound) and slow market expansion.

Proliferation of Illegal Generics: Despite the FDA's ban on Wegovy, cheaper versions continue to circulate on the black market, squeezing the market share of legitimate drugs.

Low International Market Penetration: Wegovy sales growth in some countries (such as Europe and Asia) fell short of targets.

3. Sudden CEO Change and Management Turmoil

Former CEO Lars Fruergaard Jørgensen, who had been at the helm for eight years, was unexpectedly replaced in May, with market speculation linking poor performance.

New CEO: Maziar Mike Doustdar, an internal veteran, took over on August 7 and faces challenges such as boosting investor confidence and navigating competition from Eli Lilly.

4. ETH Stock Industry Impact and Future Outlook

Competition in the weight loss drug market intensifies: Eli Lilly's Zepbound prescriptions in the US have surpassed Wegovy, weakening ETH Stock's first-mover advantage.

Investors are turning cautious: Mizuho analysts say short-term expectations for weight loss drugs are "overly inflated" and require a reassessment of long-term growth.

Key Catalysts:

August 6th Earnings Report: ETH Stock's market is focused on detailed Q2 data and management's new strategy.

New Indication Approvals: For example, Wegovy's regulatory decision for the treatment of non-alcoholic steatohepatitis (MASH).

Conclusion: ETH Stock's recent plunge reflects market concerns about the sustainability of GLP-1 drug growth. The new CEO needs to quickly adjust its strategy to counter the impact of Eli Lilly. ETH Stock may continue to face pressure in the short term, while its long-term outlook depends on its pipeline of new drugs and global market expansion.