Novo Nordisk pledges to stick with star drugs despite near-term issues

Novo Nordisk AS on Wednesday confirmed lower sales guidance for 2025 reflecting a slower take-up of its high profile weight loss and diabetes drugs, despite reporting higher sales and profit in the first half of the financial year.

The Copenhagen, Denmark-based pharmaceuticals firm said net profit rose 22% for the six months to June 30 to DKK55.54 billion, around USD8.64 billion, from DKK45.46 billion a year prior. Sales climbed 16% to DKK154.94 billion from DKK133.41 billion.

Diluted earnings per share increased 23% to DKK12.49 from DKK10.17.

Sales in US operations increased by 16%, or by 17% at constant currency, while International operations sales rose 16%, or 19% at constant currency.

Sales within Diabetes and Obesity care increased by 16% to DKK145.4 billion, mainly driven by Obesity care growth of 56% to DKK38.8 billion and GLP-1 diabetes sales growing 8%. Rare disease sales grew 14%.

Last week, Novo Nordisk shares tumbled after it lowered annual guidance, an outlook it confirmed on Wednesday.

For 2025, sales growth is now expected to be 8% to 14% at constant currency, and operating profit growth is now expected to be 10% to 16% at CER.

In 2024, the firm reported sales of DKK290.40 billion and operating profit of DKK128.34 billion.

Sales and operating profit growth reported in Danish kroner are now expected to be 3 and 5 percentage points lower than at CER, respectively.

The lowered outlook is driven by lower growth expectations for the second half of 2025, reflecting the persistent use of compounded GLP-1s, slower-than-expected market expansion and competition.

Novo Nordisk in particular noted lower growth expectations for Wegovy in the US obesity market, for Ozempic in the US GLP-1 diabetes market, and for Wegovy in select 'International Operations' markets.

Shares in Novo Nordisk fell a further 3.3% to DKK295.85 in Copenhagen on Wednesday and are down 67% in the last 12 months, including a 33% drop in the last month alone.

The firm is facing competition from US drug compounding firms and from rival Eli Lilly & Co, which owns Mounjaro.

Novo Nordisk pledged to continue the global rollout of Wegovy to more markets, and to invest in commercial activities towards driving market penetration for both Wegovy and Ozempic.

In addition, Novo Nordisk has decided to merge the company's Research & Early Development with its Development area into a new, consolidated R&D unit, under the leadership of Martin Lange.

Lange, currently executive vice president, Development, will be appointed chief scientific officer with effect from Thursday.

Outgoing Chief Executive Lars Jorgensen said: "We are taking measures to sharpen our commercial execution further, and ensure efficiencies in our cost base while continuing to invest in future growth."

In July, Novo Nordisk announced that Maziar Mike Doustdar will succeed Jorgensen as CEO with the appointment effective from Wednesday.