Reduced profit expectations: Pharmaceutical corporation Novo Nordisk lowers its projected earnings
Novo Nordisk, the Danish drugmaker behind diabetes and weight-loss treatments Ozempic and Wegovy, is currently facing slowing sales growth in the US market. The company's earnings forecasts have been lowered multiple times, and sales growth in the diabetes and obesity care segment decelerated to 16% in the first half of 2025, down from 26% the previous year[1].
The main challenges include rising competition, particularly from Eli Lilly's GLP-1 drug tirzepatide (Mounjaro and Zepbound), which has demonstrated higher efficacy and is outpacing semaglutide in the obesity market[1]. Additionally, compounded (unapproved) versions of semaglutide sold at lower prices have eroded Novo Nordisk’s market share and forced the company to cut the price of Wegovy in the US[1][2].
To address these challenges, Novo Nordisk has taken several actions. The company has filed 14 new lawsuits (totaling 132 lawsuits) against manufacturers of unapproved compounded semaglutide drugs across 40 US states, aiming to curb what it considers unlawful and unsafe competition[1]. Novo Nordisk also cut the price of Wegovy in the US and introduced more direct-to-patient delivery methods to retain market share amidst competition from compounded drugs and rivals[1].
A recent reimbursement deal with CVS Caremark in July 2025 is expected to improve patient access to Wegovy, potentially expanding its volume in the US obesity market[2]. However, the confidentiality of deal terms leaves some uncertainty regarding pricing impacts.
With Maziar Mike Doustdar recently appointed as the new CEO following the departure of Lars Fruergaard Jørgensen amid share price challenges, Novo Nordisk is focusing on sharpening commercial execution and improving cost efficiency while continuing to invest in future growth[1][2]. Doustdar, a 33-year company veteran, faces the task of navigating intensified competition and reshaping strategic priorities in a more crowded GLP-1 market[2].
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[1] Novo Nordisk reports Q2 results, faces challenges in the US market. (2025, August 3). Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-reports-q2-results-faces-challenges-us-market-2025-08-03/
[2] Novo Nordisk appoints new CEO as it faces competition from Eli Lilly. (2025, August 10). Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-appoints-new-ceo-it-faces-competition-eli-lilly-2025-08-10/
In response to the slowing sales growth of Novo Nordisk's diabetes and weight-loss treatments, there has been a surge of interest in alternative treatments in the news, such as Eli Lilly's GLP-1 drug, and investors are closely monitoring the financial implications for companies in the obesity care market. Meanwhile, economists are analyzing the impact of cheap unapproved compounded semaglutide drugs on the business competition and the effect on companies' pricing strategies.
