Novo Nordisk Shares Plunge After Wegovy Maker Cuts Full-Year Guidance

Published on July 29, 2025 | Pharmaceuticals & Markets

Novo Nordisk (NVO), the Danish pharmaceutical giant behind blockbuster weight-loss drug **Wegovy**, saw its shares tumble **over 8%** in early trading after the company slashed its full-year sales and profit guidance, citing supply constraints and regulatory delays.

What Happened?

The company now expects:

• **Sales growth** of 14-17% (down from 19-27%)
• **Operating profit growth** of 16-20% (vs. previous 22-30%)

"While demand for our obesity and diabetes treatments remains exceptionally strong, we are facing temporary capacity limitations,"

— Novo Nordisk CEO Lars Fruergaard Jørgensen in a statement.

Key Reasons Behind the Guidance Cut

1. Production bottlenecks for Wegovy and Ozempic
2. FDA delays in approving expanded manufacturing facilities
3. Increased competition from Eli Lilly's Zepbound
4. Pricing pressures in key markets like the U.S.

Market Reaction

Metric	Impact
Share Price Drop	-8.3% (Copenhagen trading)
Market Cap Loss	~$20 billion
Competitor Movement	Eli Lilly (LLY) shares +2.1%

Analyst Perspectives

Bearish View: "This confirms our concerns about Novo's ability to scale production fast enough," says Barclays analyst Emily Field.

Bullish Counter: "The long-term obesity drug market remains underpenetrated—this is a temporary setback," argues Morgan Stanley's Mark Purcell.

What's Next for Novo Nordisk?

The company is:

• Investing $6 billion to expand production capacity by 2027
• Expediting regulatory approvals for new facilities
• Developing next-gen obesity treatments (e.g., oral Wegovy)

While today's news is disappointing for investors, most analysts maintain overweight ratings, citing the massive $100B+ global obesity drug market opportunity.