Novo Nordisk Faces Challenges Amid Obesity Drug Market Competition
Novo Nordisk has lowered its sales and profit forecasts for the second time this year due to competitive pressures in the obesity drug market, particularly from U.S. rival Eli Lilly. Despite earlier robust sales, expectations for 2025 have diminished, impacting the company's valuation and strategic outlook.
Leading obesity drugmaker Novo Nordisk has revised its full-year sales and operating profit projections downward once more, causing its shares to plunge by up to 17%. This adjustment reflects challenges in the competitive landscape, notably against U.S. firm Eli Lilly.
The Danish company, known for its weight-loss drug Wegovy, experienced sharp declines in share value over the previous year. The latest forecasts see slowed growth expectations for Wegovy and Ozempic in U.S. and international markets, adjusting 2025 sales growth to 8%-14% from an earlier 13%-21% range, and operating profit growth to 10%-16% from 16%-24%.
Despite these setbacks, Novo reported an 18% sales increase in both the second quarter and the first half of the year, with operating profits rising 40% in Q2 and 29% in H1. The company's impressive sales of Wegovy once made it Europe's most valued listed company, but its market value has since substantially decreased. CEO Lars Fruergaard Jorgensen was removed by the controlling shareholder in May but will continue until a successor is named.
(With inputs from agencies.)
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