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The maker of Ozempic and Wegovy has cut its sales and profit forecasts as it continues to fall behind in the competitive market for obesity and diabetes treatments.
Novo Nordisk’s chief executive, Mike Doustdar, who took the reins in August, said the reduced guidance was because of “the lower growth expectations for our GLP-1 treatments”.
“The market is more competitive than ever more,” Doustdar said in a video message accompanying the company’s third-quarter results.
The Danish pharmaceutical firm’s rate of profit growth has slowed and its share price has slid after losing ground to its US rival Eli Lilly, which makes the Mounjaro and Zepbound weight-loss injections. Clinical studies have shown that Mounjaro is more effective in causing weight loss than Wegovy.
Novo Nordisk said it now expected full-year operating profit to grow by a maximum 7% in 2025, compared with an earlier forecast of up to 16%. In addition, the company forecasted sales to grow by no more than 11%, at constant exchange rates, compared with a previous forecast of up to 16%. It has cut forecasts four times this year.
The company said its third-quarter sales increased by 5% to 75bn Danish kroner (£8.9bn), below the 76.2bn forecast by analysts, while its sales grew by 11% during the period.
Last month, Novo said its chair, Helge Lund, and six other board members were stepping down in a surprise shake-up, after a row with the company’s majority shareholder. In May, it announced Lars Fruergaard Jørgensen would be stepping down as chief executive.
The Danish drugmaker is also locked in a tussle with the drugmaker Pfizer to buy the US obesity-focused biotech firm Metsera.
In late October, Novo launched a surprise $9bn (£6.9bn) offer, which threatened an existing bid from Pfizer.
Both companies have since submitted improved offers for Metsera as the two companies fight for dominance in the lucrative weight-loss market.
Pfizer previously requested a temporary restraining order in a US court, looking to stop Novo’s bid. This was rejected by a judge in Delaware. A further hearing has been scheduled for Wednesday.
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Metsera is considered a desirable takeover target in part because of its promising pipeline of obesity drugs. The company has four ongoing clinical trials, including a weight-loss pill, a monthly injection, and two drugs that promote the sensation of feeling full.
Derren Nathan, the head of equity research at the investment platform Hargreaves Lansdown, said: “Novo Nordisk’s CEO Mike Doustdar’s first set of results in the hot seat have come with slimmed down guidance for the full year. Hardly an ideal start but better for him to cut now while fingers can still be pointed at legacy issues.
“The contrast in these results to knockout third-quarter numbers from arch-rival Eli Lilly highlights the scale of the task for the new captain to turn the ship around.”
Novo’s share price has halved this year and the drugmaker, which remains one of Europe’s largest companies, has cut 9,000 jobs.
