Wegovy Woes: Novo Nordisk Faces Profit Slump Amid Fierce Competition

Novo Nordisk's sales and profits are set to decline by up to 13% this year due to competitive pressures and pricing concessions in the obesity drug market. The company faces increased challenges from rivals and patent expirations. Key executives are leaving as it tries to regain market dominance.

Novo Nordisk, the maker of the obesity drug Wegovy, announced a potential drop in profits and sales by up to 13% this year. This marks the first time in years the company has faced such declines, primarily due to competitive pressures and pricing interventions by former U.S. President Donald Trump.

The Danish company's growth, which had seen double-digit increases since Wegovy's launch in 2021, is now under threat from lower realized prices, intense competition, and patent expiries. Despite a 10% rise in sales last year, predictions indicate a 2% dip, stressing the need for strategic adjustments.

Novo Nordisk's leadership is experiencing shifts, with two key executives set to leave. Meanwhile, the company plans to counteract market challenges through the promising launch of its new Wegovy pill and strategic volume growth. However, rival companies are also feeling the heat, with share prices affected by the competitive obesity-drug landscape.

(With inputs from agencies.)