Novo Nordisk cuts guidance but says generic competition will ease
By Benjamin Chiou
Date: Wednesday 07 May 2025
(Sharecast News) - Novo Nordisk's stock was rising strongly on Wednesday after the Danish drugmaker beat profit forecasts in the first quarter, as investors shrugged off a sales miss and a downgrade to full-year guidance.
Net profits jumped 14% to DKK29.0bn, beating the DKK27.8bn market estimate, causing shares to jump 5% to DKK462 by 1202 in Copenhagen.
Sales over the first three months of 2025 were up 19% on last year at DKK78.1bn, helped by a 67% jump in sales at its Obesity care division to DKK18.4bn, powered by its blockbuster weight loss drug Wegovy.
Nevertheless, group sales came in slightly shy of the DKK78.2bn consensus forecast as Wegovy sales were held back by heightened competition from copycat versions of weight loss drugs on the market in the US.
However, the negative impact of so-called "compounders" should ease over the second half of the year after the FDA ruled that compounding pharmacies have until 22 May to stop selling generic version.
"Following the US FDA removal of semaglutide injectables from the FDA drug shortage list, the sales outlook assumes a reduction in patients on compounded GLP-1 treatment during the second half of 2025," Novo Nordisk said.
Looking ahead, the company now expects sales to rise by 13-21% in constant currency terms in 2025, 3-5 percentage points than previous guidance.
"The updated sales outlook reflects lower-than-planned penetration of branded GLP-1 treatments in the US, impacted by compounded GLP-1s," the outlook statement said.
"Novo Nordisk is focused on preventing unlawful compounding and further expanding access in the US. With around 1 billion people living with obesity globally and only few million on treatment, Novo Nordisk continues the global roll-out of Wegovy."
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN