Novo Nordisk Obesity Sales Drop, Stock Rises, Go Figure

The word of the day in obesity is volatility. Minutes ago in Denmark, Novo Nordisk announced their first quarter business results and revealed a 13% drop in obesity drug sales, a reduction in their sales forecast, and yet the response in European stock markets was that the stock rose in value. In fact, it rose by more than six percent. Indeed, this is an odd pairing of signals.

But volatility is all around us these days. Why should the business prospects for obesity care be an exception?

The Tail End of Compounding?

CEO Lars Fruergaard Jørgensen was optimistic about the prospects for growth in Novo’s obesity business. But he blamed the sales pinch on compounded and illicit knock-offs of Wegovy and Ozempic:

“We have reduced our full-year outlook due to lower-than-planned branded GLP-1 penetration, which is impacted by the rapid expansion of compounding in the US. We are actively focused on preventing unlawful and unsafe compounding and on efforts to expand patient access to our GLP-1 treatments.”

With regard to expanding access, Novo recently scored a competitive victory. Last week, Wegovy gained preferred status on the CVS Caremark formulary. In the process, they knocked Zepbound down a notch. In short, this means that from the largest U.S. PBM, Wegovy might soon be a little easier to get.

Prepare for More Ups and Downs

It’s a safe bet that the volatility in obesity will continue. Downward price pressure will be intense and that will be good. It can only help with access to these important medicines. This sales drop might be just a blip on a path of long-term growth for Novo Nordisk and its obesity portfolio. The company has new indications for Wegovy coming, a possible approval for an oral formulation, and new medicines in development.

But price pressures, and an expanding array of competitors will, at the very least, make things bumpy. Hang on for the ride. Patients will benefit in the end.

Click here, here, and here for more on the business news from Novo Nordisk.

Laid Down, painting by Felix Vallotton / WikiArt

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May 7, 2025