Novo Nordisk lowered its full-year profit forecast on Wednesday, marking an early challenge for newly appointed CEO Mike Doustdar as the Danish drugmaker grapples with slowing sales and a fast-changing obesity drug market.
The maker of Wegovy, once Europe’s most valuable company, said it now expects operating profit growth in local currencies of between 4% and 7% for 2025, down sharply from its earlier forecast of 10% to 16%.
Sales are expected to rise between 8% and 11%, compared with a previous range of 8% to 14%.
Doustdar, who took over in August amid a major restructuring drive, attributed the weaker outlook to “lower growth expectations” for its GLP-1 treatments — the class of drugs used in obesity and diabetes management.
“We aim to accelerate on all fronts to be able to compete better in dynamic and increasingly competitive markets,” he said in a statement.
Slowing growth and mounting competition ailing Novo
Novo Nordisk reported third-quarter sales of 75 billion Danish crowns ($11.71 billion), a 5% increase from a year earlier, slightly below analyst expectations.
In local currency terms, sales rose 11%, compared with a company-compiled consensus of 11.4%.
The growth slowdown reflects intensifying competition from US rival Eli Lilly, whose own weight-loss drug Mounjaro has gained market share rapidly.
Analysts say copycat drugs and tighter regulatory pressures have also eroded Novo’s advantage in a market that once seemed boundless.
The company’s stock, listed in Copenhagen, has fallen more than 50% this year, a steep reversal for a firm that not long ago overtook LVMH as Europe’s most valuable.
Disappointing clinical results, scrutiny over pricing policies, and leadership shakeups have added to investor anxiety.
Analysts divided amid deep restructuring
Investment banks remain split on the stock’s future.
Jefferies recently downgraded Novo to “underperform,” citing “uncertainty around market share and margin recovery.”
Berenberg, however, maintained a positive stance, saying the firm had hit “peak uncertainty” and arguing that its “best-in-class R&D and superior growth profile” justified a valuation premium.
The mixed outlook comes as Novo accelerates a broad restructuring aimed at improving efficiency and competitiveness.
Analysts say the new leadership team faces a delicate balance — maintaining growth in its flagship obesity franchise while expanding into new therapeutic areas.
Novo and Pfizer in takeover clash over Metsera
The Danish drugmaker has also found itself locked in a heated corporate battle with Pfizer over US obesity biotech firm Metsera.
Last week, Novo made a rival bid for Metsera, topping Pfizer’s earlier offer. Pfizer responded by filing a second lawsuit, accusing Novo’s bid of being anticompetitive.
Novo dismissed the allegations as “false and without merit,” later increasing its offer to as much as $10 billion.
Metsera said on Tuesday that Novo’s revised proposal was “superior” to Pfizer’s latest bid.
As Novo’s new chief navigates legal challenges, investor skepticism, and a resurgent competitor, the company’s future may depend on whether its restructuring efforts — and its bets on new acquisitions — can restore momentum in a fiercely contested obesity drug market.
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