Novo Nordisk's U.S. stock pre-market fell nearly 19%, as the company lowered its outlook for the fiscal year 2025
Novo Nordisk stated that the sales growth expectation at fixed exchange rates has been revised down from the previous 13%-21% to 8%-14%, and the operating profit growth expectation has been revised down from 16%-24% to 10%-16%. The main reason is that the sales performance of its flagship weight loss drug Wegovy through cash payment channels has fallen short of expectations, impacted by "unsafe and illegal large-scale generic drugs."
On the 29th, Tuesday, Novo Nordisk suddenly issued a profit warning, significantly lowering its sales and operating profit growth expectations for the full year 2025, mainly due to the underperformance of its flagship weight loss drug Wegovy.
Novo Nordisk stated that the sales growth expectation at fixed exchange rates has been revised down from the previous 13%-21% to 8%-14%, and the operating profit growth expectation has been revised down from 16%-24% to 10%-16%.
The company indicated that the penetration rate of Wegovy in cash payment channels is lower than expected, primarily impacted by the ongoing effects of "unsafe and illegal large-scale generic drug" production. Additionally, the flagship diabetes drug Ozempic is also facing increased competitive pressure in the U.S. market. Analysts had previously expected Novo Nordisk's full-year sales growth to be 16.6%.
As a result of this news, Novo Nordisk's stock fell over 19%. The stock has now dropped more than 41% year-to-date.
Novo Nordisk Lowers Full-Year Performance Expectations, Wegovy Sales Under Pressure in Cash Channels
Novo Nordisk was originally scheduled to release its second-quarter financial report on August 6 but chose to issue a profit warning ahead of time. The company had just announced the replacement of CEO Lars Fruergaard Jorgensen in May, seeking to reposition itself after a series of setbacks.
The company specifically pointed out in its statement that the market penetration rate of Wegovy in cash payment channels is significantly lower than the company's expectations. The company attributes this to the ongoing existence of "unsafe and illegal large-scale generic drug production," which has directly impacted its sales performance in the U.S. market.
Despite Novo Nordisk's earlier announcement of a new Wegovy supply contract with CVS Health Corp., expected to drive sales growth starting July 1, the company still faces fierce competition from Eli Lilly's competing product Zepbound. The competitive landscape in the weight loss drug market is rapidly evolving, posing challenges to Novo Nordisk's market leadership.
In addition to the poor sales of Wegovy, Novo Nordisk's other blockbuster product Ozempic is also encountering competitive pressure in the U.S. market. The company stated that the downward revision of growth expectations for the second half of the year is the main driver behind the adjustment of its full-year sales outlook.
Novo Nordisk also disclosed an adjustment related to the 340B program of approximately 3 billion Danish kroner. The company stated that the sales growth in the first half of the year was positively impacted by net sales adjustments related to previous years, including an adjustment of approximately 3 billion Danish kroner related to the 340B program in the second quarter
