Novo Nordisk has trimmed its financial forecast for the fourth time this year, citing lagging sales of its blockbuster drugs Wegovy and Ozempic. The adjustment highlights the challenges facing the company’s new chief executive. Novo Nordisk is a global healthcare company specialising in diabetes care. The company researches, develops, manufactures, and markets pharmaceutical products.
According to the Danish drugmaker, revenue is now expected to rise by a maximum of 11 per cent this year, while operating profit is projected to expand by no more than 7 per cent, based on constant exchange rates. This revision follows the company’s report of disappointing earnings for the third quarter.
Novo Nordisk faces increasing competition from Eli Lilly & Co in the expanding market for obesity medicines. Chief executive officer Mike Doustdar acknowledged that its US rival likely served patients more effectively last quarter. In response, Doustdar is implementing aggressive measures, including laying off 11 per cent of the workforce and making a fresh $US10 billion offer to acquire obesity startup Metsera, potentially diverting it from Pfizer.
Concerns over competitiveness have significantly impacted Novo Nordisk’s stock performance this year, with shares losing almost half their value. The company is actively working to address these challenges and regain market share in the face of growing competition.
