Novo Nordisk shares have experienced a significant drop of over 20% in premarket trading following a reduction in the sales forecast for 2025.
Novo Nordisk's Sales Forecast Reduction
Novo Nordisk cut its financial outlook for 2025, now expecting sales growth of only 8%-14% in local currencies, down from the previous guidance of 13%-21%. Operating profit growth expectations were similarly downgraded to 10%-16%. The revised guidance stems from disappointing sales projections for Wegovy and Ozempic in key markets, citing "lower growth expectations for Wegovy in the U.S. obesity market" and "lower growth expectations for Ozempic in the U.S. diabetes market" as primary factors of the outlook reduction.
Premarket Stock Collapse
Novo Nordisk shares opened premarket trading at $55.11, down $13.88 or 20.12% from the previous closing price of $69.00. Over a short span of 12 hours, the stock fell more than 23%, resulting in a significant loss of market capitalization and underlining investor disappointment regarding the revised forecasts.
Competition with Eli Lilly in the Obesity Drug Market
The lowered sales forecasts highlight growing concerns about Novo Nordisk's competitiveness in the obesity drug market, especially as Eli Lilly has been gaining market share with its competing products. This is the second forecast cut in 2025, raising alarm about the company's ability to compete effectively in this lucrative market segment.
The forecast reduction and severe stock drop indicate rising pressure on Novo Nordisk and potential issues with its competitiveness. Investors remain concerned about the company's position in the growing obesity market.
