Novo Nordisk Plunges 20.72% on Lowered 2025 Outlook

On July 29, 2025, Novo Nordisk's stock experienced a significant drop of 20.72% in pre-market trading, marking a new low since May 2022.

Novo Nordisk, the manufacturer of the popular weight loss drug Wegovy, has lowered its full-year sales and operating profit growth expectations for 2025. This is the second time the company has revised its outlook for the year. The revised sales growth forecast is now between 8% and 14%, down from the previous range of 13% to 21%. Similarly, the operating profit growth is now expected to be between 10% and 16%, reduced from the earlier projection of 16% to 24%.

The company cited several factors for the downward revision, including slower-than-expected growth for Wegovy in the U.S. obesity market and Ozempic in the U.S. GLP-1 diabetes market. Additionally, the penetration of Wegovy in certain international markets has been lower than anticipated due to increased competition and slower market expansion. Novo Nordisk is also facing challenges from the continued use of compounded GLP-1s, which are being marketed illegally and pose significant risks to patients.

Despite these challenges, Novo Nordisk is taking steps to address the issues. The company is pursuing legal actions to protect patients from unsafe compounded drugs and is investing in direct-to-patient initiatives such as NovoCare Pharmacy. Novo Nordisk continues to engage in commercial activities and expects regulatory decisions that could positively impact its market penetration. The company remains committed to its mission of defeating serious chronic diseases and expanding access to its medicines.