Novo Nordisk Lowers Profit Forecast Due to Wegovy Sales Drop

London — Novo Nordisk has revised its full-year profit forecast downwards following disappointing quarterly sales of its weight loss drug, Wegovy. This marks a significant shift for the company, which has enjoyed a remarkable rise in market value, surpassing $500 billion and making it Europe’s most valuable listed firm. Following the announcement, Novo shares experienced a sharp decline, dropping as much as 7.7% in early trading before stabilizing at a 4.8% decrease by 9:21 a.m. ET. The company’s Chief Financial Officer, Karsten Munk Knudsen, acknowledged the market's reaction, attributing it to the heightened sensitivity surrounding Wegovy, a key product in the burgeoning obesity drug market. Despite a 53% increase in Wegovy sales to 11.66 billion crowns, this figure fell short of the 13.54 billion crowns anticipated by analysts. Additionally, sales of Ozempic, a diabetes medication with the same active ingredient, also missed expectations, raising concerns about Novo's competitive edge in a market projected to reach $150 billion by the early 2030s. In light of these developments, Novo Nordisk has adjusted its operating profit growth forecast for the year to between 20% and 28%, down from a previous estimate of 22% to 30%. However, the company did raise its sales growth outlook to between 22% and 28%, indicating confidence in its ability to increase supply. Meanwhile, Novo has withdrawn its submission for Wegovy's approval for heart failure and kidney disease, planning to resubmit in 2025 with additional data.