Regulatory Storm in U.S. Slows Wegovy Momentum

Novo Nordisk has long dominated the weight-loss drug market with its popular GLP-1 drug Wegovy. But in the first quarter of the year, the Danish pharmaceutical giant has had to acknowledge that copycat products from U.S. pharmacies are making inroads. Despite an annual sales increase of 83 percent, Wegovy revenue landed at 17.36 billion DKK – slightly below analysts’ expectations.

This battle isn’t just about numbers; it’s about market dominance. In the U.S., so-called compounding pharmacies exploited a past drug shortage to create their own versions of Wegovy. And although American health authorities have now declared the shortage over, setting a May 22 deadline to halt sales, the competition has already left its mark on Novo Nordisk’s outlook.

Topline Up, But Forecasts Revised Downward

The first quarter brought good news to the bottom line: Net profit came in at 29.03 billion DKK, exceeding analysts’ estimates. Likewise, diabetes treatment Ozempic performed well with 32.72 billion DKK in sales. Nevertheless, Novo Nordisk has lowered its full-year 2025 forecast: Expected sales growth is now projected between 13 and 21 percent, down from the previously forecast 16 to 24 percent.

“We have reduced our full-year guidance due to lower-than-planned branded GLP-1 penetration, which is impacted by the rapid expansion of compounding in the U.S.,” said CEO Lars Fruergaard Jørgensen in the earnings statement.

New Weight Loss Solutions Incoming – But So Are More Rivals

To maintain momentum, Novo Nordisk is accelerating its pipeline. The company plans to file for approval of its new CagriSema drug in early 2026. In addition, it is working on an oral version of semaglutide, which could become the first tablet-based GLP-1 treatment for obesity.

However, the competition is heating up. Alongside Eli Lilly, which reported 45 percent growth for the same quarter and competes with Zepbound, major players like Roche, AbbVie, and AstraZeneca are all entering the fray.

Seen in this light, Novo Nordisk’s revisions don’t signal weakness but rather a realistic adjustment to a new landscape, where drug wars and copycat products have become the norm. A market in explosive growth demands both innovation and the ability to navigate headwinds.

Our team may have used AI to assist in the creation of this content, which has been reviewed by our editors.