Wegovy-maker Novo Nordisk cuts outlook again as obesity drug sales slow

Core Viewpoint - Novo Nordisk has lowered its full-year profit and sales forecasts, indicating challenges in the competitive obesity drug market under new CEO Mike Doustdar's leadership [1][2]. Company Performance - The company is experiencing a significant decline in share price and slowing sales growth, leading to a CEO change and board restructuring [2]. - Novo's market value peaked in June 2024 but has since decreased by approximately 70%, returning to levels seen around Wegovy's launch in 2021 [4]. - Full-year operating profit growth is now expected to be between 4% and 7% for 2025, down from a previous forecast of 4% to 10% [5]. Competitive Landscape - Novo Nordisk faces intense competition from U.S. rival Eli Lilly and the emergence of compounded copycat drugs made from the same ingredients as branded drugs [5]. - The company has noted ongoing issues with "unsafe and unlawful mass compounding" of GLP-1 drugs, with an estimated 1 million people in the U.S. using these compounded versions [6]. Market Strategy - CEO Doustdar emphasized the need to intensify commercial efforts to enhance competitiveness and adapt to changing market dynamics and consumer behavior [3]. - The Danish Shareholders' Association expressed disappointment over the guidance downgrade but supports the ongoing transformation process within the company [7].