Danish pharmaceutical giant Novo Nordisk is facing increasing scrutiny from investors and analysts after the company’s second-quarter earnings report missed Wall Street expectations, despite continued strong demand for its blockbuster drugs Ozempic and Wegovy.
In its Q2 2025 financial update, Novo Nordisk reported $11.95 billion in revenue, narrowly missing the $11.97 billion expected. Earnings per share (EPS) also came in just short at $0.93, compared to the estimated $0.95. While sales were up 16% year-over-year, the numbers reflect a slower-than-anticipated performance in its GLP-1 drug segment — primarily driven by Ozempic and Wegovy.
Ozempic Still Dominates, But Growth Slows
Ozempic, Novo Nordisk’s widely prescribed diabetes medication, continues to lead the company’s revenue streams. Alongside Wegovy, the weight-loss counterpart, the two drugs accounted for $7.9 billion, roughly two-thirds of the company’s total revenue for the quarter.
However, the company has revised its 2025 growth forecast downward, citing weaker-than-expected demand and fierce competition. Novo now expects sales growth between 8% and 14%, down from the previous 13% to 21%.
One of the main issues is the proliferation of compounded versions of semaglutide — the active ingredient in both Ozempic and Wegovy — which has affected Novo’s market share. Outgoing CEO Lars Jørgensen revealed that more than one million patients in the U.S. are currently using unauthorized, compounded knockoffs of the drug, often manufactured without FDA approval or quality controls.
Wegovy Faces Headwinds from Eli Lilly and Market Forces
While Ozempic remains a staple in diabetes treatment, Wegovy has become a headline product in the booming medical weight-loss market. But it too faces mounting challenges.
Novo Nordisk is currently fighting back with 132 lawsuits across 40 states to curb the spread of unapproved versions of its drugs. In addition, Eli Lilly‘s competing product has captured about 60% of new prescriptions, despite Novo clinching a formulary deal with CVS to be the sole weight-loss drug provider.
Beyond competition, pricing pressure is another growing concern. President Trump recently sent a letter to Novo Nordisk and 16 other drugmakers, urging them to extend their lowest international drug prices to U.S. Medicaid populations. Jørgensen responded by saying that Medicaid already receives lower prices than many global markets, but did not comment on extending those prices to all direct-to-consumer channels.
Future of Ozempic and Wegovy in Question
The combination of generic threats, regulatory scrutiny, and fierce competition could affect Novo’s long-term dominance in the GLP-1 space. Ozempic and Wegovy remain central to the company’s revenue, but the latest report highlights that being first to market is no longer enough.
Investors are watching closely as price negotiations with Medicare are expected to begin next year. If enacted, they could significantly cut profit margins for both Ozempic and Wegovy. Additionally, NovoCare — the company’s direct-to-consumer platform — has seen only 10% market penetration since launching in March, indicating slower adoption than anticipated.
Still, Novo Nordisk remains confident in the long-term demand for Ozempic and Wegovy, especially as the global obesity and diabetes epidemic continues to grow. But analysts caution that the landscape is shifting fast, and Novo will need to innovate and litigate simultaneously to protect its turf.
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