Dramatic 21% drop in Novo Nordisk's shares, marking one of the company's worst days in four decades, predicted as Ozempic sales potentially decelerate.
Novo Nordisk Faces Challenges in 2025 as Sales Growth Slows
Novo Nordisk, a Danish pharmaceutical company, has announced a downward revision of its full-year sales and profit guidance for 2025. The company's revised sales growth forecast now ranges from 8-14%, down from an earlier estimate of 13-21%. Similarly, the operating profit growth forecast has been revised to 10-16%, down from 16-24%.
The key reasons behind this revision include weaker momentum in the U.S. for the company's semaglutide franchise, specifically the obesity drug Wegovy and the diabetes drug Ozempic. This weakening is partly attributed to competition and market challenges. Additionally, the slower penetration of Wegovy in selected international markets is further limiting growth expectations.
Another significant factor is the continued use of unregulated, compounded GLP-1 alternatives in the U.S., which compete with Wegovy. Although the FDA ended its compounding grace period in May 2025, illegal semaglutide sales persist, affecting demand for the branded drugs. Novo Nordisk is taking legal and regulatory actions to counter this issue.
The sale of compounded drugs, which are unapproved by the FDA, is a concern for Novo Nordisk as it may expose patients to significant risks from knockoff drugs. The company has asked the FDA to outright ban compounded Ozempic and Wegovy due to concerns about their safety, effectiveness, and quality.
Novo Nordisk's battle with increased availability of compounded Ozempic and Wegovy has contributed to significant losses. The company's shares fell more than 21% on Tuesday, marking one of the company's largest losses since the 1980s. For the year, shares of Novo Nordisk have dropped 37% due to these issues.
The Food and Drug Administration (FDA) has declared shortages of Novo Nordisk's weight loss and obesity drugs as "resolved," but the company claims compounded drugs are still on the market. The FDA allowed pharmacies to compound and sell copies of both Novo Nordisk's weight loss and obesity drugs amid shortages, and production of these drugs was granted a period during which the agency would not take action. However, the FDA indicated it would take action against distributors of compounded drugs by April 22, but the sale of these drugs continues.
Despite these challenges, Novo Nordisk is optimistic about its future. Maziar Mike Doustdar has been announced as the new president and CEO, effective from August 7. Doustdar previously served as the head of Novo Nordisk's international operations unit, where he oversaw sales more than doubling to about $17.3 billion in 2024.
Novo Nordisk expects sales growth for Wegovy and Ozempic in the U.S. to slow due to slower-than-expected market expansion, competition, and persistent use of compounded alternatives. However, the company remains committed to addressing these issues and continuing to provide innovative treatments for patients with diabetes and obesity.
The company's Q2 earnings report is scheduled for August 6.
References: [1] Novo Nordisk lowers full-year sales and profit guidance for 2025. (2025, June 30). Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-lowers-full-year-sales-profit-guidance-2025-2025-06-30/ [2] Novo Nordisk cuts 2025 sales and profit outlook on slower growth of Wegovy, Ozempic. (2025, June 30). Retrieved from https://www.fiercepharma.com/pharma/novo-nordisk-cuts-2025-sales-and-profit-outlook-on-slower-growth-of-wegovy-ozempic [3] Novo Nordisk lowers sales and profit guidance for 2025. (2025, June 30). Retrieved from https://www.pharmaceutical-technology.com/news/novo-nordisk-lowers-sales-and-profit-guidance-for-2025/ [4] Novo Nordisk cuts 2025 sales and profit outlook on slower growth of Wegovy, Ozempic. (2025, June 30). Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-cuts-2025-sales-and-profit-outlook-on-slower-growth-of-wegovy-ozempic-2025-06-30/
- Novo Nordisk, despite facing challenges in 2025 due to slowing sales growth and competition, remains optimistic about its future, particularly in the field of health and wellness, where new president and CEO Maziar Mike Doustdar will focus on expanding their innovative treatments for diabetes and obesity.
- With the continuously growing medical-conditions market, the financial sector and broader business community will closely monitor Novo Nordisk's performance and strategies regarding the illegal sale of compounded GLP-1 alternatives, as it may have significant implications on the company's reputation, revenue, and long-term growth prospects.
