Novo Nordisk cuts 2025 guidance as drug copycats hit Wegovy sales, posts first-quarter profit beat

Danish drugmaker Novo Nordisk presented its annual report at its headquarters in Bagsvaerd, Denmark, on February 5, 2025, displaying flags with the logos of its popular diabetes and weight-loss treatments, Ozempic and Wegovy.

Novo Nordisk exceeded analysts’ expectations with a first-quarter net profit of 29.03 billion Danish kroner ($4.4 billion) but revised its full-year sales growth forecast downwards. This adjustment was due to increased competition from generic versions of its Wegovy weight loss drug in the market.

Despite a rise in overall revenues to 78.09 billion Danish kroner and strong sales performance of its diabetes treatment Ozempic, Novo Nordisk now anticipates a sales growth of 13% to 21% for 2025, down from the earlier forecast of 16% to 24%. The company’s CEO, Lars Fruergaard Jørgensen, highlighted the impact of competition on their branded GLP-1 treatments in the U.S., resulting in the reduced outlook.

Novo Nordisk is facing competition from compounding pharmacies in the U.S. that have been producing generic versions of Wegovy and Ozempic. Despite the FDA ending the drug shortage ruling allowing compounding, Novo Nordisk remains vigilant against the illegal distribution of these copycat drugs.

Looking ahead, Novo Nordisk plans to seek regulatory approval for its obesity drug candidate, CagriSema, and is working on an oral version of its existing semaglutide treatment. Competing with other pharmaceutical companies developing weight loss drugs, Novo Nordisk aims to maintain its position in the market with innovative treatments.