Novo Nordisk shares jumped following stronger-than-expected first-quarter earnings, despite the company lowering its growth outlook for 2025 amid intensifying competition in the weight-loss drug markets.
Europe’s largest pharmaceutical firm reported first-quarter earnings that exceeded analysts’ expectations, but lowered its full-year guidance. Novo Nordisk now forecasts 2025 sales growth between 13% and 21%, and operating profit growth between 16% and 24% at constant exchange rates (CER), down 3-5% respectively from previous projections.
Despite the downgrade, Novo Nordisk’s shares rose 4.4% at the European market open. However, the stock remains down 26% year-to-date, compared with a flat performance by its main US rival, Eli Lilly.
Compounding pressures
Demand for GLP-1 weight-loss drugs surged throughout 2024, significantly outpacing supply. Under US Food and Drug Administration (FDA) policy, compounding pharmacies are allowed to produce copies of drugs that are in short supply. This has enabled smaller telehealth rivals to sell cheaper, compounded versions of weight-loss treatments such as Wegovy and Eli Lilly’s Zepbound.
