Inbizzzy – August 7, 2025 – Danish pharmaceutical giant Novo Nordisk saw its shares tumble 3.9% after announcing continued pressure from unsafe and unauthorized knockoff versions of its flagship drugs Wegovy and Ozempic in the U.S. market.
This drop comes just days after the company cut its 2025 revenue forecast, sparking bearish sentiment among investors. However, Wegovy sales surged 67% year-over-year to USD 3.04 billion in Q2 2025, exceeding analyst expectations of USD 2.97 billion (FactSet).
Knockoff Drugs Hit Cash-Pay Market
Dave Moore, Executive Vice President of U.S. Operations at Novo Nordisk, estimates that about 1 million Americans are now using compounded drugs based on semaglutide, the active ingredient in both Wegovy and Ozempic.
Even though the FDA has declared no shortage of Wegovy or Eli Lilly’s Zepbound, unauthorized versions are still being sold, often through personalized dosing models.
“Novo Nordisk remains committed to preventing the distribution of illegal and unsafe compounded semaglutide, while ensuring patients retain access to authentic, company-manufactured products,” said Moore in a press briefing.
He noted that the presence of unauthorized compounded drugs is limiting Wegovy’s growth in the cash-pay channel.
Ozempic Falls Short, but Overall Revenue Climbs
Novo Nordisk’s total revenue grew 13% to USD 11.95 billion, beating estimates of USD 11.91 billion. Earnings per share rose 33% to 93 cents, surpassing forecasts of 91 cents.
However, Ozempic sales grew only 10% to USD 4.94 billion, falling short of analyst expectations of USD 5.03 billion.
Soon-to-depart CEO Lars Fruergaard Jorgensen acknowledged that the market for compounded semaglutide is now “the size of our core business.” He also noted that knockoffs are priced significantly lower, undermining efforts to grow direct-pay channels, including the company’s NovoCare Pharmacy platform.
According to Moore, only about 10% of Wegovy prescriptions are paid directly by patients, a figure that has stagnated due to competition from unauthorized products. Meanwhile, a positive sign emerged as pharmacy chain CVS chose to cover Wegovy exclusively for weight loss.
Efficiency Measures and Potential Layoffs
Novo Nordisk maintained its annual sales growth outlook of 8% to 14%, and operating profit growth of 10% to 16%, excluding currency impacts. However, the company acknowledged upcoming cost-saving efforts following its earnings downgrade.
“We likely won’t be able to avoid layoffs,” Jorgensen admitted , adding that organizational restructuring would be implemented selectively based on business needs.
With the incoming CEO Mike Doustdar set to take over, Novo Nordisk is also shutting down several development programs, including:
- Trials for MASH (metabolic dysfunction-associated steatohepatitis) therapies
- A GLP-1/GIP-based weekly obesity drug
- A CB1 receptor-targeted weight loss project
- Dyslipidemia treatment research
These changes reflect a strategic pivot and tighter R&D focus amid a challenging market landscape shaped by increasing unauthorized drug competition.
