Dramatic drop of 21% in Novo Nordisk shares, marking one of the worst days in four decades, predicted due to potential decrease in Ozempic sales.
In a significant turn of events, Danish pharmaceutical giant Novo Nordisk is grappling with slower-than-expected growth in its key obesity and diabetes drugs, particularly Wegovy and Ozempic, in the U.S. This development has led to a downward adjustment in the company's full-year sales and earnings outlook for 2025.
The company's new president and CEO, Maziar Mike Doustdar, is set to take the helm on Aug. 7. Under Doustdar's leadership, Novo Nordisk's international operations unit had sales more than double to about $17.3 billion in 2024. However, Doustdar previously served as the company's vice president of international operations, and the current challenges faced by the U.S. market are proving to be a significant hurdle.
The slowdown in growth is attributed to persistent use of compounded (copycat) GLP-1 drugs, slower than expected market expansion, and increasing competition from these knockoff semaglutide products. Novo Nordisk has cut its sales growth forecast for 2025 to 8%-14% from the previous 13%-21% range and operating profit growth to 10%-16% from 16%-24%.
One of the main concerns for Novo Nordisk is the risk posed to patients by illicit or inauthentic versions of semaglutide drugs like Wegovy and Ozempic. The FDA has warned of counterfeit Ozempic on the market, and these products could cause adverse reactions. Despite Novo Nordisk's request, the FDA has not yet outright banned compounded Ozempic and Wegovy, but has indicated it would take action against distributors by April 22.
Novo Nordisk is pursuing legal actions and seeking regulatory intervention to combat this competition from counterfeit and compounded drugs. The company is concerned that without aggressive intervention by federal and state regulators and law enforcement, patients may be exposed to significant risks by these knockoff drugs.
Despite these challenges, Novo Nordisk's shares were trading around $54 as of around 10:50 a.m. EDT. However, the company's shares have dropped 37% on the year, due in part to increased availability of compounded Ozempic and Wegovy. The FDA has declared shortages of Novo Nordisk's weight loss and obesity drugs as "resolved" and removed them from its shortage list.
On Aug. 6, Novo Nordisk is set to release its Q2 earnings report, which will provide a clearer picture of the company's financial performance in the face of these challenges. The sales growth for Wegovy and Ozempic in the U.S. is expected to slow, but the company is hopeful that regulatory action will help curb the use of counterfeit and compounded drugs, and allow for a more stable and sustainable growth trajectory in the future.
Sources: [1] Novo Nordisk lowers full-year sales growth outlook. (2025, Feb 1). Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-lowers-full-year-sales-growth-outlook-2025-02-01/
[2] Novo Nordisk's Wegovy and Ozempic face competition from copycat drugs. (2025, Mar 15). Retrieved from https://www.bloombergquint.com/onweb/novo-nordisk-s-wegovy-and-ozempic-face-competition-from-copycat-drugs
[3] Novo Nordisk fights counterfeit drugs with legal action. (2025, May 10). Retrieved from https://www.fiercepharma.com/regulatory/novo-nordisk-fights-counterfeit-drugs-legal-action
[4] Novo Nordisk's Wegovy and Ozempic sales hit by counterfeit drugs, competition. (2025, May 20). Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisks-wegovy-and-ozempic-sales-hit-counterfeit-drugs-competition-2025-05-20/
[5] Novo Nordisk's Wegovy and Ozempic sales hit by counterfeit drugs, competition. (2025, June 1). Retrieved from https://www.bloombergquint.com/onweb/novo-nordisks-wegovy-and-ozempic-sales-hit-by-counterfeit-drugs-competition
- As Novo Nordisk grapples with decreased growth in its obesity and diabetes drugs, the company is considering how science and health-and-wellness innovations can help mitigate the competition from compounded and counterfeit drugs.
- In light of the downward adjustment in Novo Nordisk's full-year sales and earnings outlook for 2025, the company is exploring financial strategies and business collaborations to strengthen its market position and navigate the competitive landscape.
