Novo Nordisk (NVO) delivered a first-quarter earnings report that beat profit expectations, even as the company lowered its full-year sales growth guidance amid intensifying competition in the weight-loss drug market.
The Danish pharmaceutical giant, best known for its diabetes and obesity treatments Ozempic and Wegovy, reported a net profit of 29 billion Danish kroner ($4.2 billion) for the quarter, surpassing analyst forecasts.
Operating profit also came in above expectations, while total revenue grew 18% year-over-year to 78.09 billion Danish kroner, though it was slightly below consensus estimates.
Sales of Wegovy, Novo Nordisk’s flagship weight-loss drug, reached 17.36 billion Danish kroner for the quarter, falling short of analyst projections and reflecting the impact of increased competition and the proliferation of compounded versions of GLP-1 drugs in the United States.
The company cited the rapid growth of compounding practices as a key factor in the slower-than-expected market penetration of its branded products. In response, Novo Nordisk has intensified efforts to curb illegal compounding and improve patient access to its therapies.
Despite the challenges, Novo Nordisk’s shares jumped more than 4% in early European trading, buoyed by the strong profit performance and optimism about future Wegovy sales.
The company expects an uptick in U.S. Wegovy sales in the second half of the year, especially as compounded alternatives are phased out following the resolution of supply shortages.
Novo Nordisk also slashed the price of Wegovy on its online platform to remain competitive, mirroring a similar move by rival Eli Lilly.
Looking ahead, Novo Nordisk revised its 2025 sales growth outlook to a range of 13% to 21%, down from its earlier forecast of 16% to 24%. Operating profit growth is now expected between 16% and 24%.
The company remains focused on expanding the global reach of its obesity treatments, with new clinical trial data supporting further regulatory filings for next-generation therapies.
While the competitive landscape for weight-loss drugs is intensifying, Novo Nordisk’s Q1 results underscore its resilience and ongoing leadership in the sector. Investors are watching closely to see how the company navigates pricing pressures and regulatory changes as demand for obesity treatments continues to surge worldwide.