Shares of Danish pharmaceutical giant Novo Nordisk (NYSE: NVO), behind the weight-loss drug Wegovy and diabetes medication Ozempic, tumbled on Tuesday after the company slashed its full-year 2025 guidance, triggering a sharp sell-off from investors.
The stock, which closed Monday at $69, plunged to $54.37 in pre-market trading Tuesday, down 21.2%. NVO shares have now dropped over 21% year to date, amid growing pressure on the stock in recent months.
The collapse followed Novo’s downward revision of its 2025 outlook, citing weaker-than-expected international uptake of Wegovy and intensifying competition for Ozempic in the U.S. GLP-1 diabetes market.
Novo now forecasts sales growth of 8% to 14% and operating profit growth of 10% to 16% at constant exchange rates, significantly below its previous estimates of 13% to 21% and 16% to 24%, respectively.
In a statement, the company noted that early 2025 results were boosted by a one-time DKK 3 billion gross-to-net sales adjustment related to the U.S. 340B program.
However, it warned of waning momentum in the second half of the year, particularly for Wegovy in the U.S. obesity market, where unauthorized mass compounding persists despite regulatory efforts.
Novo Nordisk leadership change
Adding to investor concerns was a surprise leadership shake-up. In this case, Novo announced that Maziar Mike Doustdar will take over as President and CEO on August 7, replacing longtime chief Lars Fruergaard Jørgensen. Jørgensen’s departure comes amid rising pressure from the Novo Nordisk Foundation and growing investor unease.
Notably, the correction comes despite Novo posting strong year-over-year results, with an 18% rise in sales and a 40% jump in Q2 operating profit.
Interestingly, this downturn follows a historic milestone for the company, which briefly became Europe’s most valuable listed firm in 2024.
For now, investor focus has shifted to Novo’s upcoming full Q2 earnings report, due on August 6. This release may offer further insight into how the company plans to navigate mounting market challenges.
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