Novo Nordisk cuts forecast as competition from copycat drugs rises

In Denmark, Novo Nordisk announced on May 7, 2025, a better-than-expected rise in net profit for the first quarter, reporting 29.03 billion Danish kroner ($4.4 billion), surpassing analysts' expectations. However, the company lowered its full-year sales growth forecast due to increased competition from copycat weight loss drugs, significantly impacting sales of its popular Wegovy obesity drug. Sales for Wegovy reached only 17.36 billion Danish kroner in the quarter, slightly missing analysts' projections and reflecting the growing challenge from compounded drugs in the U.S. market. The company's revenues rose 18% to 78.09 billion Danish kroner but still fell short of the anticipated 78.18 billion Danish kroner. Competitors such as Eli Lilly are also significantly impacting the market dynamics, as indicated by their reported increased sales of 45% in the same quarter. Novo Nordisk CEO Lars Fruergaard Jørgensen pointed to the rapid expansion of compounding pharmacies in the U.S. as a key factor that led to the reduced sales growth forecast for 2025, which was adjusted to a range of 13% to 21% compared to the previously expected 16% to 24%. Despite the setbacks with Wegovy, the company's diabetes treatment Ozempic showed strong performance with first-quarter sales amounting to 32.72 billion Danish kroner, surpassing forecasts. The company is also actively addressing the issue of illegitimate competition, as compounding pharmacies were given permission to create legal copies of its drugs under a recent FDA ruling. However, with the FDA's declaration of a drug shortage now resolved, Novo Nordisk has the legal backing to pursue actions against companies unlawfully distributing these copycat drugs. Moving forward, Novo Nordisk remains committed to expanding its product line, including plans to seek regulatory approval for its next-generation obesity drug, CagriSema, in early 2026. The ongoing competition in the weight loss drug market is substantial, with several pharmaceutical firms, including Roche and AstraZeneca, developing new potential treatments. The outlook for Novo Nordisk's innovative GLP-1 treatments continues to be promising, but it faces significant market headwinds from various competitors and changing regulatory environments.