Novo Nordisk warned that copycat versions of its blockbuster obesity treatment Wegovy will continue to erode sales this year, prompting the Danish drugmaker to launch a sweeping efficiency drive that could include staff cuts. Outgoing Chief Executive Officer Lars Fruergaard Jorgensen said the compounded-drug market is now “equal in size to our business,” while Chief Financial Officer Karsten Munk Knudsen acknowledged that more than one million U.S. patients remain on non-branded GLP-1 formulations despite a May 22 Food and Drug Administration ban. The company’s latest caution follows last week’s surprise profit warning, which wiped roughly $95 billion from Novo Nordisk’s market value and sent the shares down 30%, their worst weekly drop in more than two decades. The stock slipped another 1.8% on Wednesday after the firm reiterated that its revised 2025 outlook assumes no near-term relief from illegal compounding. To shore up profitability, Novo Nordisk is eliminating eight research projects, trimming capital spending and preparing broader cost cuts that may lead to layoffs, Jorgensen said. The reins will pass on Thursday to long-time executive Maziar Mike Doustdar, who has pledged to pursue additional “savings and efficiencies.” Competition in the fast-growing weight-loss market remains intense. Eli Lilly’s rival drug Zepbound overtook Wegovy in U.S. prescriptions earlier this year, although Novo says that gap has narrowed recently. Second-quarter sales of Wegovy rose 36% in the United States and more than quadrupled internationally, helping lift group revenue 18% to 76.86 billion Danish crowns ($11.92 billion), but pricing pressure is expected to deepen in the second half as the company expands direct-to-consumer channels such as its NovoCare platform.