Sales of Novo Nordisk’s injectable diabetes drugs, including Ozempic, have slowed dramatically amid fierce competition and the threat of US tariffs, prompting the Danish drugmaker to cut costs and sharpen its commercial focus. The company, once Europe’s most valuable, has lost nearly $100bn in market value since cutting its full-year sales forecast last week.
In the first half of the year, sales of GLP-1 diabetes drugs grew just 8%, down from 21% last year, while obesity drug sales including Wegovy rose 56%. Total sales increased 16% to 155bn Danish kroner (£18bn), with pre-tax profit up 24% to 70.8bn kroner. However, the company has lost market share to rival Eli Lilly’s Mounjaro and cheaper generic versions.
Outgoing chief executive Lars Fruergaard Jørgensen warned that the copycat market was “equal size to our business”, with compounded Wegovy sold at much lower prices. Finance chief Karsten Munk Knudsen said Novo Nordisk is pursuing lawsuits against compounding pharmacies and expanding its US direct-to-consumer platform, NovoCare. The company may also offer cash sales directly to patients abroad.
Jørgensen acknowledged that layoffs may be unavoidable, but that decision would fall to new CEO Maziar Mike Doustdar, who takes over on Thursday. Novo Nordisk now expects 2025 sales growth of 8% to 14% at constant exchange rates, down from a previous estimate of 13% to 21%. It has also abandoned several weight-loss drugs in development.
The company faces a US class action lawsuit from investors alleging misleading growth forecasts. Analysts noted that US tariffs and drug pricing policy under President Trump could significantly impact Novo Nordisk’s recovery, with the threat of levies up to 250% on pharmaceutical imports.
