Novo Nordisk shares plunge on weak sales forecast

Novo Nordisk shares plunged up to 30%, wiping out nearly $93 billion in market value yesterday, after the company slashed its 2025 sales forecast for Wegovy, its top-selling obesity drug.

The Danish drugmaker blamed slower Ozempic sales and widespread use of cheaper, compounded versions of Wegovy in the US.

Cheaper compounded versions made by pharmacies when drugs are in short supply have flooded the market. Though the FDA declared the Wegovy shortage over, some compounders still sell altered versions, prompting Novo to pursue legal action.

Sales growth is now expected at 8%–14%, down from the previous forecast of 13%–21%.

To regain momentum, Novo named Maziar Mike Doustdar as its new CEO, effective August 7.

Meanwhile, rival US pharma Eli Lilly is gaining ground with discounted sales of its obesity drug Zepbound. CEO David Ricks stated in March that 100,000 people buy the drug from its website every month.

Novo’s own cash-based Wegovy sales have lagged, with just 11,000 prescriptions weekly through its NovoCare platform.