Copenhagen-listed shares of Novo Nordisk plunged more than 21% on Tuesday after the Danish pharmaceutical company issued a profit warning, citing weaker-than-expected sales growth for its flagship drugs Wegovy and Ozempic in the United States.
The announcement sent its New York-listed shares down over 20% in pre-market trading, wiping out billions in market value.
The company said it now expects 2025 full-year sales growth of 8% to 14% at constant exchange rates, down from its earlier estimate of 13% to 21%.
Forecasts for operating profit were also trimmed to 10% to 16%, compared with a previous range of 16% to 24%.
This marks the second time in 2025 that the drugmaker has revised its guidance downward.
The downgrade came alongside confirmation of a CEO transition, with internal candidate Maziar Mike Doustdar named as successor to Lars Fruergaard Jørgensen, who was ousted in May.
Copycat drugs and slow US expansion drag Wegovy
At the heart of the revised guidance are slowing sales in the US market for Novo Nordisk’s blockbuster weight-loss drug Wegovy and its diabetes treatment Ozempic, both of which contain the active ingredient semaglutide.
In a statement, the company said, “The lowered sales outlook for 2025 is driven by lower growth expectations for the second half of 2025.”
“This is related to lower growth expectations for Wegovy in the US obesity market, lower growth expectations for Ozempic in the US GLP-1 diabetes market, as well as lower-than-expected penetration for Wegovy in select IO markets,” it said.
Despite an earlier warning by the US Food and Drug Administration (FDA) ordering an end to the practice of drug compounding using semaglutide, Novo said that “multiple entities continue to market and sell unbranded versions” of its drug in the US, undermining its pricing and revenue potential.
“For Wegovy in the US, the sales outlook reflects the persistent use of compounded GLP-1s, slower-than-expected market expansion and competition,” it added in a statement.
Legal pressure builds on compounders
Novo Nordisk has stepped up legal efforts to stem the flow of unauthorized versions of its medications.
It is currently suing US firm Hims and Hers (HIMS), alleging illegal mass compounding of semaglutide products.
The company issued a warning that, without “aggressive intervention by federal and state regulators and law enforcement,” patients face potential harm from illicit or inauthentic active pharmaceutical ingredients used in these compounded alternatives.
“These knockoff ‘semaglutide’ drugs made with unverified ingredients represent a serious risk,” Novo said, calling on authorities to take urgent action.
Eli Lilly also falls ahead of earnings
Investor reaction was swift, with Novo’s shares tumbling by as much as 30% in early trading before recovering slightly to a 22% loss by 1:00 p.m. London time.
The stock decline comes less than two weeks before Novo is scheduled to release its second-quarter earnings on August 6.
The forecast cut follows a similar downgrade in May, after the company posted lower-than-expected first-quarter results.
Shares of Eli Lilly, which competes with Novo in the lucrative weight-loss and diabetes drug markets, also slipped around 3% in pre-market US trading.
Lilly’s own GLP-1 drug Zepbound has been gaining market share in the US and is expected to be a key area of focus when it reports its second-quarter results next week.
With global demand for GLP-1 drugs still surging, the pressure is on for Novo Nordisk to regain its footing in the U.S. market, even as regulatory loopholes and competition complicate its growth story.
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