Novo Nordisk Maintains Hold Rating from DZ BANK AG Analyst

DZ BANK AG analyst Elmar Kraus maintained a Hold rating on Novo Nordisk, with a one-year high of DKK942.40 and a one-year low of DKK287.55. The company has an average volume of 1.32M and a negative corporate insider sentiment with an increase in insiders selling their shares.

Title: Novo Nordisk Faces Challenges in Q2 2025 Earnings and Stock Performance

Novo Nordisk (NVO), the Danish pharmaceutical giant behind the blockbuster GLP-1 drugs Ozempic and Wegovy, reported a mixed second-quarter 2025 earnings report, leading to a significant drop in its stock price. The company’s stock fell over 2% to $46.19 in pre-market trading, following a 3.26% drop to close at $47.22 the previous session [1].

The earnings miss came as Novo Nordisk reported $11.95 billion in revenue and $5.96 EPS, slightly below Wall Street’s expectations of $11.97 billion and $6.06 [1]. Despite the shortfall, the company posted a solid 16% year-over-year sales increase, driven largely by its flagship drugs, which generated $7.9 billion – roughly two-thirds of the quarter’s total revenue.

The earnings miss comes on the heels of Novo Nordisk’s downward revision of its 2025 sales growth guidance, now projected at 8%-14%, down from an earlier range of 13%-21% [1]. This adjustment reflects mounting challenges, including intensified competition and the proliferation of compounded weight loss drugs replicating semaglutide, the active ingredient in Ozempic and Wegovy. Outgoing CEO Lars Jørgensen highlighted the issue, noting that over one million patients are using unauthorized semaglutide knockoffs, primarily produced in China without FDA approval or quality control [1].

Beyond the threat of compounded drugs, Novo faces competitive pressures from Eli Lilly (LLY), which has captured approximately 60% of new patient prescriptions for weight loss drugs [1]. This is a significant blow, especially since Novo secured an exclusive deal with CVS (CVS) to be the sole weight loss drug on its formulary. Additionally, pricing challenges loom large. In 2026, Ozempic will face Medicare price negotiations, which could compress margins [1].

Novo Nordisk has also been involved in a securities fraud class action lawsuit filed by Glancy Prongay & Murray LLP, alleging materially false and misleading statements about the company’s business, operations, and prospects [2]. The lawsuit, which covers the period from May 7, 2025, to July 28, 2025, alleges that Novo Nordisk failed to disclose the significance of the personalization exception for GLP-1 compounding and overestimated its ability to capture patients coming off of compounded treatments.

DZ BANK AG analyst Elmar Kraus maintained a Hold rating on Novo Nordisk, with a one-year high of DKK942.40 and a one-year low of DKK287.55 [3]. The company has an average volume of 1.32M and a negative corporate insider sentiment with an increase in insiders selling their shares.

Despite its first-mover advantage in the GLP-1 market, Novo Nordisk is grappling with a complex landscape. The company’s legal battles against copycat drugs underscore the difficulty of protecting its intellectual property in a rapidly growing market. Meanwhile, Eli Lilly’s aggressive push and the looming specter of price negotiations add further strain. While Ozempic and Wegovy continue to drive substantial revenue, the combination of competitive dynamics, regulatory pressures, and unauthorized generics signals a challenging road ahead for Novo Nordisk as it seeks to maintain its leadership in the GLP-1 space.

Investors will likely be watching closely to see how the company navigates these headwinds while leveraging its robust portfolio and ongoing innovation to sustain growth.

References:
[1] https://wallstreetpit.com/128338-slowdown-in-glp-1-sales-sends-novo-nordisk-stock-lower/
[2] https://www.morningstar.com/news/business-wire/20250807440013/glancy-prongay-murray-llp-a-leading-securities-fraud-law-firm-encourages-novo-nordisk-as-nvo-investors-to-inquire-about-securities-fraud-class-action
[3] https://finance.yahoo.com/news/novo-nordisk-q2-earnings-investors-154900689.html