Ozempic maker Novo Nordisk lowers growth outlook for its weight loss drugs as pricing pressures mount

Danish pharmaceutical giant Novo Nordisk said Wednesday it is lowering its growth expectations for its key obesity and diabetes treatments.

Net profit for the quarter came in at 20 billion Danish kroner ($3.1 billion) in line with the 20.12 billion Danish kroner anticipated by analysts in a FactSet poll.

Diabetes and obesity care were a key growth driver following the uptake of Wegovy and Ozempic, however the company lowered its expectations for growth, citing prescription trends, competition and pricing pressure.

Novo’s Copenhagen-listed shares have tumbled more than 50% over the course of this year, as a slew of headwinds has shaken investor confidence in what was once Europe’s most valuable firm.

Alongside a series of disappointing trial results, increasing competition in the obesity drug space and challenges arising from U.S. policies on drug pricing and tariffs, Novo has been contending with leadership shakeups and pushback against a key acquisition.

Analysts, as a result, have been mixed on the stock. Jefferies recently cut its rating to underperform while Berenberg is positive on the stock, saying Novo has hit “peak uncertainty.”

“Novo’s superior growth profile and best-in-class R&D returns warrants a higher valuation premium to its peers,” the bank said.

Novo launched a rival bid to acquire American obesity biotech firm Metsera last week, superseding an offer for the firm from U.S. pharma giant Pfizer. On Monday, Pfizer said it had filed a second lawsuit against Novo and Metsera, arguing that Novo’s bid for the smaller company was anticompetitive.

A spokesperson for Novo said in a statement that Pfizer’s allegations were “false and without merit.”

Novo then ramped up its bid for Metsera on Tuesday, saying it was now offering up to $10 billion compared to the earlier offer of around $9 billion.

“Novo Nordisk believes that the proposal, including the structure of the transaction, complies with all applicable laws and is in the best interest of patients who will benefit from our commitment to innovation, as well as Metsera’s shareholders,” the company said in a statement, noting that the deal was also subject to the term’s of Pfizer’s merger agreement with Metsera.

Metsera said on Tuesday that the revised offer was “superior” to a revised bid made by Pfizer.