From Yahoo Finance: 2025-05-07 01:35:00

Novo Nordisk expects a rebound in Wegovy sales in the U.S. after a ban on compound copycats is enforced. The drugmaker’s market value has halved to $310 billion since peaking, with prescriptions stagnant despite increased supplies. Investors worry about losing the lead to Eli Lilly’s Zepbound. Novo shares rose 3.4%.

Novo Nordisk reported a decline in first-quarter sales of Wegovy, with executives acknowledging a strategy to regain market share from compounding pharmacies. CEO Jorgensen estimates one-third of the U.S. obesity drug market was impacted by these pharmacies, hampering Novo’s growth. Sales could benefit from CVS Health dropping Zepbound from reimbursement lists. The company also cut its 2025 sales and profit forecasts for the first time since the drug’s launch.

Novo Nordisk has expanded the launch of Wegovy to 25 countries, aiming to accelerate launches with supply constraints removed. Despite the expansion, the company reduced its 2025 sales and profit forecasts, citing sales growth projections of 13% to 21% and operating profit growth of 16% to 24% this year. Potential new tariffs on pharmaceuticals could negatively impact the company. Novo reported first-quarter earnings above forecasts.

Read more: Novo Nordisk hopes to see US Wegovy sales recover soon