Novo Nordisk CEO Calls for Australia to Lead Fight Against Chronic Disease
Novo Nordisk’s global CEO, Mike Doustdar, has urged Australia to grab a leading role in tackling the global rise of chronic diseases, particularly those linked to obesity. He emphasized that a comprehensive approach, extending beyond pharmaceutical interventions, is crucial to bending the curve of these increasingly prevalent health challenges.
Chronic Disease: The 21st Century Health Challenge
Doustdar, who assumed the presidency and CEO role in August 2025 after a 33-year tenure with the company , identified chronic diseases as the defining health challenge of the 21st century, with obesity as a key driver. He stated that the conversation around weight needs to shift, recognizing obesity as a “multi-faceted metabolic chronic disease” rather than a matter of personal choice.
GLP-1 Drugs and Access in Australia
Novo Nordisk’s GLP-1 class of drugs have revolutionized diabetes treatment and demonstrate promise for other health conditions. However, access in Australia remains limited. Currently, these drugs are subsidized for diabetes treatment, with a recent recommendation from the Pharmaceutical Benefits Advisory Committee (PBAC) to extend subsidies to adults with established cardiovascular disease and obesity, contingent on price reductions and risk-sharing arrangements.
Currently, Australians without PBS coverage face annual costs of $4,000-$5,000 for these medications. Doustdar acknowledged the high cost but attributed it to the extensive research and development investment required, emphasizing the need to recoup these costs to fund future innovation.
Beyond Pharmaceuticals: A Call for Systemic Change
Doustdar stressed that addressing chronic disease requires more than just medication. He highlighted the need for systemic changes, including modernizing food labeling, enforcing responsible marketing practices, promoting healthy habits through fiscal policies and creating healthier urban environments. He advocated for increased investment in prevention, noting that Australia currently invests only around 3% of its health budget in preventative measures.
Novo Nordisk’s Commitment and Australia’s Potential
Novo Nordisk, with a market value exceeding $570 billion in April 2024 , is structured with over 70% control by a not-for-profit foundation dedicated to long-term health solutions. Doustdar believes Australia, drawing on its success with initiatives like plain tobacco packaging and HPV vaccination programs, is uniquely positioned to lead the world in preventing chronic disease.
The company has already demonstrated commitment through initiatives like the $3 million “Sense Decent Futures Program” in Logan, Queensland, focused on childhood obesity prevention, and a partnership with Heart of Australia to support early detection of chronic liver disease. Novo Nordisk has also invested nearly $100 million in local clinical trials over the past five years.
Addressing System Bottlenecks
Doustdar also pointed to inefficiencies within the Australian healthcare system, specifically the lengthy drug approval process – averaging 466 days – as a significant bottleneck. He suggested that the current Health Technology Assessment (HTA) and PBS systems, dating back 30 years, require revision.
Doustdar addressed the National Press Club of Australia on March 16, 2026, outlining these proposals.