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Fat Jab Maker Faces Sales Slump Amid Fierce Rivalry
4 Feb
Summary
- Novo Nordisk forecasts a sales drop of 5-13% for the current year.
- Competition from Eli Lilly's Zepbound is impacting prescriptions.
- US pricing pressures, including government demands, affect revenue.
Danish pharmaceutical company Novo Nordisk anticipates a substantial sales reduction, projecting a decline of 5% to 13% for the current year. This forecast follows a period of 10% growth in the previous year and falls below analysts' expectations of a 2% decrease. The company attributes this expected downturn to significant pricing headwinds within an increasingly competitive market.
Global demand for obesity drugs is still on the rise, but Novo Nordisk's revenues are expected to be negatively affected by lower drug prices. This is particularly true in the United States, where political pressure is mounting for pharmaceutical firms to reduce their product costs. The company's shares have already seen a considerable drop of two-thirds since their peak in June 2024.
Novo Nordisk is actively working to regain its leading position in the obesity drug sector. This effort comes as Eli Lilly's drug Zepbound, a competitor to Novo Nordisk's Wegovy, has gained more US prescriptions. The company's chief executive acknowledged the challenges, stating the firm will "face pricing headwinds in an increasingly competitive market."
