Novo Nordisk(US:NVO) Zhong Guo Ji Jin Bao·2025-07-29 13:48Core Viewpoint - Novo Nordisk's stock price plummeted over 20% following the company's downward revision of its annual sales and profit guidance due to weak growth expectations for its weight loss drug Wegovy in the U.S. market [1][2] Group 1: Company Performance - Novo Nordisk forecasts a sales growth of 8% to 14% for the year, down from a previous target of 13% to 21% [1] - The company expects operating profit to grow by 10% to 16%, a significant decrease from earlier projections of 21% and 24% [1][2] - The company’s market share in the obesity sector is being challenged by Eli Lilly, which is gaining traction with its competing drug [2] Group 2: Market Challenges - The downward revision is attributed to competition from Wegovy's cheaper generic formulations and overall market growth falling short of expectations [2] - Novo Nordisk plans to combat generic drugs through legal means and invest in direct patient marketing efforts [2] - The company has faced a series of setbacks, including a CEO change in May, aimed at restructuring after disappointing performance [2] Group 3: Future Outlook - Analysts are beginning to question the short-term and long-term expectations for the company in the obesity market, which have become inflated [2] - The company will release its complete second-quarter sales data on August 6, following a previous adjustment to its 2025 performance outlook after lower-than-expected first-quarter sales [2]