Novo Nordisk (NVO) Soars 3.18% on Q1 Earnings Beat, Cuts Sales Forecast

On May 9, 2025, Novo Nordisk's stock rose by 3.18% in pre-market trading.

Novo Nordisk reported that its net profit for the first quarter of 2025 exceeded expectations, but it lowered its full-year sales growth forecast. The primary reason for this adjustment is the impact of generic drugs on the demand for its popular product, Wegovy, a weight loss drug.

The company's total revenue for the first quarter increased by 18% year-over-year, reaching 780.9 billion Danish kroner. The net profit was 290.3 billion Danish kroner, surpassing the expected 278 billion Danish kroner. However, the company's guidance for the full year was revised downwards, with expected sales growth of 13% to 21%, lower than the previous forecast of 16% to 24%.

Novo Nordisk's CEO, Lars Fruergaard Jørgensen, attributed the downward revision to increased competition from compounded GLP-1 drugs in the U.S. market. The company is taking legal action against companies that continue to distribute these unauthorized products.

Despite the challenges, Novo Nordisk is focusing on expanding its GLP-1 treatment portfolio and improving the accessibility of its products in the U.S. market. The company is also working on developing new oral formulations of its GLP-1 drugs, which could provide a more convenient treatment option for patients.