Ozempic And Wegovy Maker Cuts Outlook In Surprise Move, Picks New CEO
Novo Nordisk A/S (NYSE:NVO), the Danish pharmaceutical giant renowned for its weight-loss drug Wegovy and diabetes treatment Ozempic, experienced a significant downturn on Tuesday following the company’s decision to trim its 2025 financial outlook.
This marks the second time this year the company has revised its guidance downwards, signaling growing headwinds in key markets. Novo Nordisk now projects 2025 sales growth to be in the range of 8-14% at constant exchange rates, a notable reduction from its earlier forecast of 13-21%.
Similarly, the outlook for operating profit growth has been lowered to 10-16% from the previously anticipated 16-24%. This revised guidance largely stems from a slower-than-expected penetration of its branded GLP-1 treatments, particularly in the United States, a market increasingly impacted by the persistent use of compounded GLP-1 alternatives.
Also Read: Judge Rules Mylan Did Not Infringe Novo Nordisk Patent In Wegovy Generic Case
The company specifically cited lower growth expectations for Wegovy in the U.S. obesity market and for Ozempic in the U.S. GLP-1 diabetes market. Furthermore, Wegovy’s penetration in certain international markets has also fallen short of expectations, attributing to slower market expansion and heightened competition.
In May, Novo Nordisk already lowered its 2025 guidance, reflecting lower-than-planned penetration of branded GLP-1 treatments in the U.S., impacted by compounded GLP-1s.
Despite the expiry of the FDA’s grace period for mass compounding on May 22, 2025, Novo Nordisk asserts that unsafe and unlawful mass compounding has continued unabated. The company’s market research indicates that numerous entities persist in marketing and selling compounded GLP-1s under the guise of “personalization,” directly impacting Wegovy’s penetration within the cash payment channel.
In response, Novo Nordisk has launched NovoCare Pharmacy in March 2025, which has facilitated approximately 11,000 total weekly Wegovy prescriptions, alongside an additional 20,000 weekly prescriptions in the broader retail cash channel.
In the insured channel, new commercial initiatives for Wegovy launched in the first half of 2025 have not fully offset the slower market expansion and competitive pressures, leading to lower-than-anticipated penetration.
To counter these challenges, Novo Nordisk is actively pursuing multiple strategies, including litigation, to safeguard patients from what it terms “knockoff ‘semaglutide’ drugs.” This comes amid a broader industry concern, highlighted by a recent letter from over 80 bipartisan U.S. congressional members to FDA Commissioner Marty Makary, urging the agency to curb the proliferation of counterfeit and copycat GLP-1 drugs.
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