Novo Nordisk, the Danish pharma heavyweight behind Ozempic, is feeling the squeeze as its once-booming diabetes drug sales slow. The company's GLP-1 injectables, key players in the diabetes and weight loss boom, saw their sales growth plummet to 8% in the first half of this year—down from 21% last year, reports the Guardian. Obesity drugs like Wegovy fared better, with sales up 56%, but overall, the company's shine has dulled, reflected in a nearly $100 billion wipeout from its market value after it slashed its 2025 sales forecast.
The slowdown comes as Eli Lilly's Mounjaro, a rival GLP-1 drug hailed for its greater effectiveness, eats into Novo's market share. Generic competition, the threat of tariffs under the Trump administration, and "compounding"—the practice of pharmacies mixing up drugs themselves—have added to the headache for Novo Nordisk, even as US regulators try to clamp down on the latter. The AP noted last month that prices for these type of drugs have been falling overall, though access continues to be a challenge.
The company's outgoing CEO, Lars Fruergaard Jorgensen, who's handing the reins to Mike Doustdar, says the company is tightening costs and sharpening its commercial focus. It's also dropping several experimental weight-loss drugs, including one that just cleared midstage trials, as it retools its portfolio. Jorgensen also says that slimming its workforce is also on the table.
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"We probably won't be able to avoid layoffs," he told Danish broadcaster DR, per Reuters. "When you have to adjust a company, there are some areas where you have to have fewer people, some [areas] where you have to be smaller." Looking ahead, Novo Nordisk expects 2025 sales growth of 8% to 14%, a noticeable drop from earlier forecasts. Investors aren't thrilled, and a US class-action suit accuses the company of painting too rosy a sales picture.
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