Novo Nordisk's Capex Spending to Peak This Year or Next; Focus on Obesity Market

Novo Nordisk CFO expects peak capex spending this year or next. The company's head of US operations attributes their premature "beyond weight loss" marketing campaign in the US to a shift in messaging back to weight loss. They haven't seen a meaningful change in compounding in the US since May 22 and emphasize the need for enforcement to stop fake APIs. All three Catalent sites are now producing Wegovy, and the company will defend its volumes in the obesity market. They are not in a hurry to race prices down in oral GLP-1 and have not included compounding upside in their guidance for the year.

Novo Nordisk A/S (NVO) reported mixed results for the second quarter of 2025, with earnings beating expectations but revenues falling short. The company's Diabetes and Obesity Care segment saw a 17% increase in sales, driven by higher sales of GLP-1 products and premium insulin. However, sales of Wegovy, the company's flagship GLP-1 obesity drug, declined by 57% due to increased availability of compounded alternatives in the U.S. market [1].

The company's Rare disease segment also reported strong growth, with sales up 28% year-over-year. Sales of NovoSeven increased by 16%, while sales of Novo Nordisk's rare endocrine disorder products jumped by 100% [1].

Novo Nordisk has been proactive in addressing the challenges posed by compounded semaglutide. The company has taken legal and regulatory action against the continued use of illegal compounded alternatives in the U.S. market. Additionally, Novo Nordisk has expanded its indications for semaglutide-based drugs, including a 25 mg oral Wegovy for obesity, which is currently under FDA review [1].

In a recent development, Novo Nordisk has ended its collaboration with Hims & Hers, which offered Wegovy to patients without insurance coverage. The company cited Hims & Hers' continued sale of compounded versions of semaglutide under the guise of "personalization" [2].

The company's CFO expects peak capital expenditure spending this year or next, while the head of U.S. operations attributes the premature "beyond weight loss" marketing campaign to a shift in messaging back to weight loss. The company emphasizes the need for enforcement to stop fake APIs and has not included compounding upside in its guidance for the year [1].

Novo Nordisk remains focused on reinforcing its leadership in diabetes care and obesity management. The company is building out its rare disease segment and is optimistic about an increase in volume of Wegovy sales in the second half of 2025 through initiatives like NovoCare Pharmacy and CVS' exclusive formulary coverage [1].

References:
[1] https://www.nasdaq.com/articles/novo-nordisk-q2-earnings-beat-sales-miss-glp-1-drugs-face-us-hurdles
[2] https://www.aol.com/news/novo-nordisk-ends-collaboration-hims-003356149.html