Novo Nordisk, Danish pharmaceutical company, displays robust earnings despite intense rivalry
In the second quarter, Danish pharmaceutical giant Novo Nordisk reported a 32% increase in net profit, reaching 26.5 billion Danish kroner ($4.1 billion). However, the company is facing significant sales challenges in the United States, particularly for its diabetes and obesity treatments Ozempic and Wegovy.
Sales for the quarter amounted to 76 billion Danish kroner, marking an 18% increase compared to the same period last year. Yet, the rising competition is affecting the sales growth of these treatments.
Competition from Eli Lilly's Zepbound and compounded versions of Wegovy (made by compounding pharmacies) has eroded Novo Nordisk's market share, especially in the obesity drugs sector. This has led to a nearly 50% drop in the company's share value in 2025 and cuts in sales forecasts.
Despite the FDA's directive against compounded GLP-1 drugs and Novo Nordisk's intensive litigation efforts against makers of knockoff semaglutide drugs, these compounded alternatives continue to penetrate the market due to their lower cost and availability.
Novo Nordisk has responded by securing key formulary placements, such as Wegovy becoming the preferred anti-obesity drug for CVS Health’s Caremark, and by expanding direct-to-consumer marketing channels for Wegovy. However, growth from these initiatives has been slower than expected.
The company has also cut the price of Wegovy in the US and is attempting to demonstrate direct-to-patient delivery innovations to compete more effectively with compounders.
An investor lawsuit alleges that Novo Nordisk underestimated the impact of compounded drug competition when providing sales estimates for its GLP-1 treatments, highlighting the significant market pressure.
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[1] Novo Nordisk faces competition from Eli Lilly and compounded semaglutide drugs, causing sales slowdowns and market-share erosion for Ozempic and Wegovy in the US. (Source: Bloomberg) [2] Novo Nordisk's litigation efforts against makers of knockoff semaglutide drugs continue to face challenges. (Source: Reuters) [3] Novo Nordisk cuts the price of Wegovy in the US and demonstrates direct-to-patient delivery innovations to compete with compounders. (Source: Fierce Pharma) [4] Investor lawsuit alleges Novo Nordisk underestimated the impact of compounded drug competition on its GLP-1 treatments. (Source: The Wall Street Journal)
- In the heated battle for market dominance, Novo Nordisk faces stiff competition from Eli Lilly's Zepbound and compounded versions of Wegovy, which have adversely affected sales of the diabetes and obesity treatments Ozempic and Wegovy, particularly in the United States.
- Despite intense legal battles waged by Novo Nordisk against makers of knockoff semaglutide drugs, the flooding market of less expensive, yet readily available, compounded alternatives persists, posing a considerable challenge to the company.
- As part of its counterattack against compounders, Novo Nordisk has lowered the price of Wegovy in the US and showcased direct-to-patient delivery innovations, hoping to hold its ground in the highly competitive field of health-and-wellness products, within the broader realm of finance and business.
