Novo Nordisk Faces Challenges Amid Wegovy Competition and Market Pressure

Novo Nordisk, Europe's most valuable company, is navigating competitive challenges around its obesity drug, Wegovy. The Danish pharmaceutical giant has faced a $95 billion plunge in market value prompted by compounded versions of Wegovy in the U.S., leading to a revision in the company's sales and profitability outlook.

Despite the U.S. Food and Drug Administration (FDA) banning compounded copies of Wegovy, Novo anticipates continued usage of these alternative products among American patients. CFO Karsten Munk Knudsen confirmed ongoing strategies, including legal actions, to counter these compounded drugs that are impacting Wegovy's market share.

Novo Nordisk maintains its commitment to cost efficiencies and future investments amidst investor concerns. The drugmaker reported a 67% increase in Wegovy sales in the second quarter, yet its forecasts reflect a cautious stance with anticipated market challenges and potential pricing pressure in the U.S. market.

(With inputs from agencies.)