Novo Nordisk (NVO) stock plunged early Tuesday, falling as much as 20% in premarket trading after the company behind the viral weight-loss drug Wegovy and diabetes treatment Ozempic slashed its sales and profit forecasts.
In a release early Tuesday, the pharmaceutical giant cut its expected full-year sales growth to 8%-14%, down from the 13%-21% it expected to see as of May.
The company also said it now expects a growth in its operating profit of 10%-16%, down from its previous estimate of 16%-24%.
Novo Nordisk attributed the estimate cuts to weaker than expected second-half sales forecasts for both Wegovy and Ozempic as the company has had to fend off competition from rivals and copycat “compounder” drugs.
“For Wegovy in the US, the sales outlook reflects the persistent use of compounded GLP-1s, slower-than-expected market expansion and competition,” the company said in its statement. “For Ozempic, the updated outlook is negatively impacted by competition in the US.”
Drugmakers Hims & Hers Health (HIMS) and Eli Lilly and Company (LLY), which both also make weight loss drugs like the Danish maker’s Wegovy, were down by more than 2% and 3.5%, respectively, early Tuesday.
Novo Nordisk’s estimate cuts mark the second time this year that the company has lowered performance expectations after cutting down its 2025 full-year guidance in May following weaker-than-expected Q1 sales figures.
The drugmaker’s share price is down more than 50% over the past year as the company has faced increasing competition from the likes of Hims and Eli Lilly.
US prescriptions for Eli Lilly’s weight loss drug Zepbound passed those issued for Novo Nordisk’s Wegovy in March, according to Reuters. Eli Lilly also announced in May that its weight loss drug was more effective across several markers in a head-to-head trial between the two.
In a press release released concurrently Tuesday morning with the lowered estimates announcement, Novo Nordisk said that Mike Doustdar, the company’s executive vice president of international operations, will be the drugmaker’s new president and CEO as of August 7.
Doustdar replaces Lars Fruergaard Jørgensen, whose outster was announced in May after the company’s stock price spent a year plunging downward.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.
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