Novo Nordisk (NVO) rebranded itself as simply “Novo” on Monday, unveiling a new corporate culture framework as the Danish drugmaker tries to close a widening gap with rival Eli Lilly in the obesity drug market.
CEO Mike Doustdar told CNBC the rebrand and culture shift are part of the same package for evolving the company’s strategy.
Strategy Behind the Shift
Doustdar said the company’s operating environment changed as obesity treatment shifted from a stable, insulin-like market to one that behaves more like a consumer market, where patients cycle on and off drugs.
The new culture, dubbed “The Novo Way,” is built on four principles. Those are customer obsession, competitiveness, clarity, and care and integrity. Doustdar said speed only helps once priorities are clear, adding the company still has work to do across research, manufacturing, and sales.
The rebrand also reverses the direction of Novo’s centuries-old Apis bull logo, a symbolic nod to changing course while keeping its heritage. Novo Nordisk A/S remains the company’s legal name.
Stock Reaction
Investors weren’t too taken with the news. Novo shares traded around $43.45 on Monday, down about 15.8% year-to-date and off roughly 21% over the past year. The stock has fallen more than 60% from its 2024 peak near $147, when Novo led the GLP-1 race.
Analysts at BMO noted that the strong launch of Novo’s oral Wegovy pill this year does not by itself signal a turnaround. Doustdar pointed to early Medicare uptake among obesity patients as an encouraging, if still early, signal for demand.
“The street and the market is always right, but with a lag.”
— Mike Doustdar, CNBC
He said continued execution should eventually restore investor trust. Novo continues to work to defend its lead over Eli Lilly’s competing oral pill.
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