Bagsvaerd, Denmark — Novo Nordisk reported a stronger-than-anticipated net profit for the first quarter of 2025, yet adjusted its sales outlook downward due to increasing competition from copycat medications affecting its flagship weight-loss treatment, Wegovy. The Danish pharmaceutical leader posted a net profit of 29.03 billion Danish kroner (approximately $4.4 billion) for the first quarter, surpassing the 27.8 billion kroner projected by analysts in a recent poll.
Following the announcement, shares of Novo Nordisk experienced a 4.25% rise early in the trading session, indicating positive market sentiment despite the adjusted forecasts. Sales of Wegovy rose 83% at constant exchange rates, totaling 17.36 billion kroner; however, this figure fell short of analyst expectations, which had predicted sales of 18.51 billion kroner.
Overall, the company saw its revenues increase by 18% to reach 78.09 billion kroner, just shy of the 78.18 billion kroner anticipated. Notably, sales of Ozempic, another key diabetes treatment, amounted to 32.72 billion kroner, exceeding the forecast of 31.5 billion kroner.
Novo Nordisk CEO Lars Fruergaard Jørgensen indicated that the revision of the annual sales growth forecast to between 13% and 21% at constant exchange rates stems from the escalating competition in the weight-loss market. This adjustment is down from earlier predictions of 16% to 24% released in February. Operating profit growth projections were similarly lowered to 16% to 24%, compared to a previous estimate of 19% to 27%.
“The first quarter delivered solid sales growth as we continue to expand our innovative GLP-1 treatments,” Jørgensen stated. “However, we have adjusted our full-year forecast due to lower-than-expected branded GLP-1 penetration amid the rapid growth of compounded medications in the United States.”
Following a ruling by the Food and Drug Administration (FDA), U.S. compounding pharmacies are allowed to produce alternatives to Wegovy and Ozempic amid medication shortages. Although the FDA declared the shortage over in February, allowing pharmacies until late May to discontinue sales of these alternatives, Novo Nordisk has vowed to pursue legal action against those continuing to distribute unauthorized copies.
The competitive landscape for weight-loss treatments is intensifying, with Novo Nordisk’s offerings distinguished by their mimicry of the glucagon-like peptide-1 hormone to reduce appetite. Despite strong demand, the company has faced challenges due to recent disappointing results from clinical trials involving its next-generation obesity drug, CagriSema. Novo Nordisk announced plans to seek regulatory approval for CagriSema in early 2026.
Moreover, the company has submitted a request for U.S. approval of an oral version of its current semaglutide treatment, a potential first in the oral GLP-1 market, aimed at expanding treatment options for obesity.
In a landscape marked by escalating competition, rivals such as Eli Lilly, Roche, AstraZeneca, and AbbVie are all actively developing alternative weight-loss drugs. Eli Lilly recently reported a staggering 45% increase in first-quarter sales, although its revenue for the weight-loss drug Zepbound fell slightly below expectations, reflecting the impact of decreased drug pricing. Lilly also lowered its full-year profit forecast, grappling with charges linked to a recent oncology deal that affected its stock prices.
As market dynamics continue to shift, Novo Nordisk faces the dual challenge of maintaining its market position while navigating an increasingly crowded field of weight-loss medications.