Novo Nordisk's Forecast: Slowing Growth and Rising Competition

Novo Nordisk forecasts 2025 sales growth will slow, citing increased competition for its obesity drug Wegovy and aligning roughly with market expectations. Despite a fourth-quarter profit rise, competition from Eli Lilly is mounting. Predicted sales growth of 16-24% in local currencies, falls below 2024's 26%.

Novo Nordisk, the maker of the popular obesity drug Wegovy, announced on Wednesday that it expects slower sales growth in 2025. This projection aligns with market expectations as the feverish demand for Wegovy begins to moderate. The Danish pharmaceutical company forecasts sales growth in local currencies to be between 16% and 24%, a decrease from the 26% growth observed in 2024. Analysts had anticipated a growth rate slightly below 20%.

The company faces increasing competition from Eli Lilly, further impacting its growth prospects. Despite this, Novo Nordisk reported an impressive 37% increase in fourth-quarter operating profit, reaching 36.7 billion Danish crowns ($5.12 billion), surpassing the analyst forecast of 33.6 billion. The company expects its operating profit to rise by 19% to 27% in 2025, slightly down from last year's 26% growth.

In the fourth quarter, sales of Wegovy more than doubled, hitting 19.9 billion crowns compared to 9.6 billion a year earlier, meeting expectations and exceeding the 17.3 billion crowns registered in the third quarter. The company continues to navigate a challenging market landscape with growing competition. ($1 = 7.1674 Danish crowns)