Novo Nordisk slides after slashing outlook, citing competition from compounded weight-loss drugs

Novo Nordisk is down more than 15% in premarket trading after the drugmaker behind Ozempic and Wegovy cut its annual sales and profit outlook.

The company said the new outlook is driven by lower expectations for its blockbuster weight-loss and diabetes drugs in the second half of 2025. It said its sales are being hurt by competition from knockoff versions of its drugs, such as those sold by telehealth companies like Hims & Hers or Noom, which were supposed to stop being sold at scale in May once supply constraints waned.

“For Wegovy in the US, the sales outlook reflects the persistent use of compounded GLP-1s, slower-than-expected market expansion and competition,” Novo said. “Despite the expiry of the FDA grace period for mass compounding on 22 May 2025, Novo Nordisk market research shows that unsafe and unlawful mass compounding has continued, and that multiple entities continue to market and sell compounded GLP-1s under the false guise of ‘personalisation’.”

The Danish drugmaker said it is “deeply concerned that, without aggressive intervention by federal and state regulators and law enforcement, patients will continue to be exposed to the significant risks posed by knockoff ‘semaglutide’ drugs made with illicit or inauthentic foreign active pharmaceutical ingredients.”

Novo Nordisk now expects to report full-year sales growth of 8% to 14%, compared with a prior forecast of 13% to 21%. It expects operating income to grow by 10% to 16%, down from 16% to 24%. The company is set to report second-quarter results on August 6.

Novo also announced the appointment of a new CEO, Maziar Mike Doustda, who was previously the drugmaker’s head of international operations. The company pushed out its previous CEO, Lars Fruergaard Jørgensen, in May.

It has been a tumultuous year for Novo, which was first to the GLP-1 race but is seeing its sales fall off their peak as competitor drugs from Eli Lilly gain prominence and its patent expiry dates approach. Meanwhile, the company has been navigating a sticky relationship with telehealth companies that can either expand the reach of their products or bite into their market share.

Novo has partnerships with some telehealth companies, like Ro, which gives its users access to a discounted version of Novo’s popular but costly weight-loss jab, Wegovy. This gives Novo access to patients who are uninsured or whose insurance doesn’t cover Wegovy.

But other telehealth providers have sought to continue selling knockoff versions, which carry higher margins. Hims, for one, promotes “personalized” versions of Wegovy that it can technically still sell because it’s not manufactured by Novo and is prescribed on a case-by-case basis.

Novo briefly partnered with Hims but abruptly called off the deal in June and accused the company of “illegal mass compounding and deceptive marketing.” Novo has also sued smaller wellness clinics on allegations of selling knockoff versions of its drugs.

Hims slipped on the news of Novo cutting its outlook. One of the biggest risks for the company has been the looming threat of litigation from Novo.