(qlmbusinessnews.com . Wed 30th Jul, 2025) London, UK —
Wegovy Sales Hit by Surge of Competing Weight Loss Drugs, Novo Nordisk Lowers Growth Forecast
The Danish pharmaceutical giant, Novo Nordisk, known for its popular weight-loss drugs Wegovy and Ozempic, has issued a warning that its annual sales and profit growth will not meet its earlier projections, attributing the shortfall to the surge of competing “imitation” weight-loss treatments.
In a dramatic market response, Novo Nordisk's stock price plummeted over 20% following the downgrade of its financial outlook and the unforeseen announcement in May of Chief Executive Lars Fruergaard Jørgensen's departure. Maziar Mike Doustdar, who currently serves as the vice president for the company's international operations, is set to assume leadership on 7 August.
The tepid growth forecast for Wegovy in the burgeoning US obesity market, coupled with a dip in sales of diabetes medication Ozempic to American consumers, has contributed to the firm's revised expectations.
The influx of alternative weight-loss solutions has significantly dented Novo Nordisk's market valuation. The company, in a recent trading update, denounced the release of “unsafe and unlawful” semaglutide-based products since May, revealing its intentions to embark on various strategies, including litigation, to safeguard patients against these unauthorised offerings.
The use of semaglutide injections, initially approved for diabetes treatment, has skyrocketed amongst those seeking weight loss solutions, particularly post-Covid lockdowns.
Despite attributing the downgrade to competition and lacklustre expansion efforts, some analysts believe that Novo Nordisk's sluggish pursuit of the market for its weight-loss treatments has been a factor. Markus Manns, a portfolio manager at Union Investment, a shareholder in Novo Nordisk, pointed out the company's oversight of the self-pay obesity market and tardiness in targeting this crucial demographic.
Manns also expressed astonishment at the significant reduction in Novo's growth expectations, which now forecasts full-year profit to grow by only 10% to 16%, a reduction from the 16% to 24% anticipated in May. Sales growth projections have also been adjusted to 8% to 14%, down from the previously expected 13% to 21%.
Benjamin Jackson, an analyst at Jeffries, raised questions about Novo Nordisk's decision to appoint an internal candidate, Mr Doustdar, who has been with the company since 1992, as the new chief executive, especially amid suggestions that an external candidate might have been preferable. According to the company, Doustdar's selection followed a thorough review process considering both internal and external candidates.
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