Investors wiped $70 billion off Novo Nordisk's market value on Tuesday after the maker of weight-loss drug Wegovy issued a profit warning and named a new CEO, as it battles rising competition in the obesity drug market.

The Danish-maker of Wegovy and Ozempic has warned that its full-year sales and profits will not grow as quickly as expected as more "knock-off" weight-loss drugs emerge. Novo Nordisk's share price tumbled by more than 20% as it cut its outlook and named a new chief executive to replace Lars Fruergaard Jørgensen,

Shares in Wegovy maker Novo Nordisk fell further on Wednesday as analysts warned of persistent competition from copycat drugs in the United States, a day after a profit warning and the naming of a new CEO prompted investors to wipe $70 billion off the drugmaker's value.

Novo Nordisk A/S’s best-sellers Ozempic and Wegovy transformed the firm into a global pharmaceutical giant. But four years after Wegovy’s US launch, the Danish drugmaker’s growth is slowing. About one million patients in the US are taking cheaper copycat options.