Novo Nordisk Cuts Forecasts Amid U.S. Drug Rivalry

Novo Nordisk has lowered its full-year and 2025 sales and profit forecasts, citing weaker-than-expected U.S. demand for its branded GLP-1 weight-loss drugs amid rising competition from compounded versions and chief rival Eli Lilly. Although the FDA's allowance of compounded alternatives during shortages has ended, compounded drugs continue to limit Novo's market penetration, with U.S. prescriptions for Wegovy stagnating since February. Despite these challenges, Novo Nordisk reported first-quarter results that beat analyst expectations, including an 18-19% year-over-year sales increase and a rise in share price, though the stock remains below its peak. The company is responding by expanding access through telehealth services, implementing price cuts, and broadening its international rollout while advancing its drug pipeline. Investor sentiment, however, remains cautious due to uncertainties surrounding future market share and the ongoing impact of compounded drugs. Novo Nordisk continues to focus on global expansion amid intense competition in the obesity drug market.