Novo Nordisk Faces Lawsuit Over Reduced Guidance Amid GLP-1 Market Headwinds.

Novo Nordisk is facing a shareholder lawsuit due to its decision to lower its full-year growth outlook for revenue and operating profit. The company cited headwinds in the GLP-1 market as the reason for the guidance cut. As a result, the company's ADRs plunged over 20% on Tuesday.

Danish pharmaceutical giant Novo Nordisk has faced a shareholder lawsuit following its decision to lower its full-year growth outlook for revenue and operating profit. The company cited headwinds in the GLP-1 market as the reason for the guidance cut, which resulted in a significant drop in its American Depository Receipts (ADRs) on Tuesday.

The company reported that its full-year sales growth is now expected to be in the range of 8% to 14% at constant exchange rates, down from a prior target of 13% to 21%. Similarly, annual operating profit growth is forecasted to be 10% to 16%, compared to the previously estimated target of 16% to 24% [1].

Novo Nordisk also announced the appointment of Maziar Mike Doustdar as its new CEO, effective August 7. Doustdar, who has held several executive positions across Europe and Asia, will succeed Lars Fruergaard Jørgensen, who was ousted in May. The appointment comes amid a challenging period for the company, as it grapples with softer U.S. sales for its blockbuster drugs, Wegovy and Ozempic [1].

The company's shares fell as much as 26% before paring losses slightly to close down 23% by 4:30 p.m. London time (11:26 a.m. ET). The share price has shed over 42% this year, reflecting the company's struggles with competition in the GLP-1 market [1].

Barclays has maintained its Equalweight rating on Novo Nordisk, citing a planned Medicare pilot program for GLP-1 drugs as a potential positive for patient volume expansion. However, the firm cautions that price erosion across the GLP-1 class could occur faster and more deeply than expected, with potential pricing announcements for Ozempic under the Inflation Reduction Act expected in November [2].

Novo Nordisk has faced increased competition in the GLP-1 market, particularly from compounded drug makers following a Food and Drug Administration ruling. The company has been pursuing litigation and regulatory action to protect patients from knockoff 'semaglutide' drugs made with illicit or inauthentic active pharmaceutical ingredients [1].

The company's full disclosure of the financial results for the first six months of 2025 will be published on August 6. Despite the challenges, Novo Nordisk continues to invest in the expansion of direct-to-patient initiatives and expects a regulatory decision around the Wegovy MASH indication during the second half of the year [3].

References:
[1] https://www.cnbc.com/2025/07/29/novo-nordisk-shares-plunge-after-wegovy-maker-cuts-full-year-guidance-.html
[2] https://www.investing.com/news/analyst-ratings/barclays-maintains-novo-nordisk-stock-rating-amid-medicare-glp1-pilot-news-93CH-4168212
[3] https://finance.yahoo.com/news/novo-nordisk-lowers-sales-operating-110200528.html