Wegovy Growth Slows Amid U.S. Market Pressure
Novo Nordisk announced a sharp cut to its full-year guidance Tuesday as demand for its flagship obesity drug Wegovy softens in the United States. The Danish pharmaceutical company now expects 2025 sales growth between 8% and 14%, down from an earlier projection of 13% to 21%. Operating profit growth is also forecast lower, at 10% to 16%, versus the previous estimate of 16% to 24%.
The lowered outlook sent shares tumbling by as much as 26% before partially recovering to close down 23%. Weaker-than-expected U.S. demand for Wegovy and diabetes drug Ozempic drove the revision. The company cited slower market expansion, persistent use of compounded GLP-1 drugs, and mounting competition.
Leadership Change as Growth Strategy Shifts
Alongside the guidance downgrade, Novo Nordisk announced that company veteran Maziar “Mike” Doustdar will take over as CEO effective August 7. He replaces Lars Fruergaard Jørgensen, who was unexpectedly ousted in May. Doustdar has been with the company since 1992, most recently serving as executive vice president of international operations across Europe and Asia.
Board Chairman Helge Lund expressed confidence in Doustdar’s ability to steer the company through this transitional period, describing him as “the best person to lead Novo Nordisk through its next growth phase.” Doustdar, in his first public remarks, said he brings a “sense of urgency” and is committed to delivering innovation to more patients worldwide.
Competition and Copycats Pressure U.S. Sales
Novo Nordisk continues to battle intense pressure in the U.S. market. The ongoing use of compounded versions of GLP-1-based drugs has undermined Wegovy sales. This surge followed an FDA decision that allowed compounded drugs amid temporary shortages of authorized GLP-1 treatments. The company warned in May that such challenges would impact its performance throughout 2025.
Although Novo Nordisk anticipates these pressures to ease in the second half of the year as the availability of copycat drugs diminishes, investor sentiment remains cautious. Shares have fallen more than 42% since the beginning of the year, reflecting concerns over both competition and inconsistent drug availability.
Pipeline Concerns Add to Market Jitters
Beyond market pressures, Novo Nordisk has faced disappointment in the lab. Recent clinical trials of CagriSema, a next-generation obesity drug candidate, yielded underwhelming results. Combined with aggressive moves from rival pharmaceutical companies, Novo’s dominance in the GLP-1 space is being tested.
The full second-quarter results are scheduled for release on August 6, when investors will be looking for signs of stabilization or further risks to the company’s growth trajectory. For now, Novo Nordisk is focused on rebuilding momentum under new leadership while facing a far more crowded and volatile obesity drug market than it enjoyed just a year ago.