Novo Nordisk, the Danish pharmaceutical giant behind the popular Ozempic and Wegovy medications, has once again lowered its sales and profit forecasts, signalling increased competition in the lucrative weight-loss and diabetes treatment market. This downgrade comes as Eli Lilly, the manufacturer of Mounjaro and Zepbound, gains significant ground.
Tough Competition Ahead
According to CEO Mike Doustdar, who assumed leadership in August, the revised projections stem from “the lower growth expectations for our GLP-1 treatments.” He acknowledged the increasingly competitive landscape in a video message accompanying the company’s third-quarter results.
Mounjaro's Edge
Eli Lilly's Mounjaro and Zepbound injections have emerged as strong contenders. Clinical studies suggest that Mounjaro demonstrates greater effectiveness in weight loss compared to Wegovy, impacting Novo Nordisk's market position and contributing to a slowdown in profit growth and a dip in its share price.
Novo Nordisk now anticipates a maximum operating profit growth of 7% in 2025, a significant drop from the previous forecast of up to 16%. Sales growth is also projected to be no more than 11% at constant exchange rates, down from the initial 16%. This marks the fourth time the company has revised its forecasts this year.
The company's third-quarter sales saw a modest increase of 5% to 75 billion Danish kroner (£8.9 billion), falling short of analysts' expectations of 76.2 billion. Overall sales growth for the period stood at 11%.
Adding to the recent developments, Novo Nordisk announced a surprise board shake-up last month, with Chairman Helge Lund and six other board members stepping down.
The weight-loss drug market is clearly heating up, and Novo Nordisk faces a challenging battle to maintain its dominance against increasingly effective competitors like Eli Lilly.