Novo Nordisk, a leading pharmaceutical company in Denmark, has revised its annual revenue and profit forecasts due to lackluster sales of its weight loss drug Wegovy, particularly in the US market. Despite a previous surge in sales of Wegovy and the diabetes medication Ozempic, Novo Nordisk’s market value has significantly decreased to around $310 billion as US prescriptions for Wegovy stalled since February.

Investor concerns are growing over Novo Nordisk losing market share to its US competitor Eli Lilly, which produces similar diabetes and obesity drugs. Wegovy, one of the first anti-obesity drugs in a new wave of GLP-1s, experienced lower-than-expected sales in the first quarter of the year, leading to a cut in sales growth forecasts.

Challenges for Novo Nordisk include the impact of compounding, where pharmacy-made versions of their drugs were available at lower costs during shortages declared by the US drugs regulator. The company also faced hurdles in the US market, prompting a recent discounted deal for Wegovy with a healthcare provider.

Despite these setbacks, Novo Nordisk remains optimistic about its innovative GLP-1 treatments and expects moderate sales and profit growth for the year. However, intensifying competition from Eli Lilly and upcoming next-generation GLP-1 medications pose additional challenges for the company in the evolving obesity drug market.

As the industry landscape shifts with new entrants and generic alternatives, Novo Nordisk is navigating a changing market while striving to maintain its position as a key player in the pharmaceutical sector.