- Company Impact: Danish drugmaker Novo Nordisk, best known for its weight-loss and diabetes drugs Wegovyand Ozempic, announced it will cut 9,000 jobs (≈11% of its global workforce of 78,400).
- Reason: Slowing sales of its blockbuster drugs and fierce competition from Eli Lilly’s Mounjaro and cheaper generic alternatives.
- CEO Action: New CEO Mike Doustdar is leading the restructuring, aiming to restore profitability.
- Financial Market Reaction: Despite the job cuts, Novo’s share price rose 2.1%, as investors welcomed the cost-cutting move.
- Denmark Hit Hard: Around 5,000 of the job losses will take place in the company’s home country, Denmark.
Shift in Pharma Leadership & Market Competition
- Novo Nordisk had risen in recent years to become Europe’s most valuable company, fueled by booming sales of GLP-1 obesity and diabetes drugs.
- However, it lost that crown in March 2025 (briefly regaining it in June) as sales slowed.
- Eli Lilly’s Mounjaro has proven to be more effective than Wegovy in weight reduction, according to studies.
- Availability in UK:
- Both Wegovy and Mounjaro can be prescribed by NHS doctors for patients with high clinical need.
- Ozempic is officially approved for type 2 diabetes treatment but is often prescribed “off label” for weight loss by private doctors.
Trump Pushes EU for 100% Tariffs on India & China
- US Policy Move: US President Donald Trump has reportedly asked the European Union to impose tariffs of up to 100% on India and China.
- Objective: The move is intended to pressure Russia’s President Vladimir Putin into ending the war in Ukraine.
- Discussions: Proposal was made during a US–EU meeting on economic strategies against Russia.
- Official Position: One US official said:“We are ready to go right now, but we are only going to do this if our European partners step up with us.”
- Context: Trump’s frustration is growing after failed peace deal attempts, including a high-profile summit with Putin in Alaska, while Russia intensifies drone strikes — the latest being its largest-ever air attack on Ukraine.
European Union Response & Von der Leyen’s Strong Words
- EC President Ursula von der Leyen used her annual State of the Union speech in Strasbourg to highlight:
- Europe’s “painful” inability to stop the humanitarian crisis in Gaza.
- Criticism of Israeli government plans for illegal settlements in the West Bank, calling them a direct threat to the two-state solution.
- Condemnation of incitement of violence by extremist Israeli ministers.
- On Russia/Ukraine:
- She reaffirmed Europe’s solidarity with Poland, after Russia’s airstrikes violated Polish airspace.
- Urged Europe to exert more pressure on Russia to push Putin to the negotiating table.
Big Picture
This week underscored a turbulent intersection of pharma and geopolitics:
- Pharma sector: Novo Nordisk, once a European giant, is cutting jobs to stay competitive in the obesity/diabetes drug race.
- Global politics: The US is ramping up trade pressure, pulling EU allies into the tariff debate, while Europe is grappling with wars in Ukraine and Gaza.
