Novo Nordisk, the Danish pharmaceutical giant, has revised its financial forecasts in response to competition from compounded versions of its popular obesity and diabetes drugs, Wegovy and Ozempic, in the United States. The company now anticipates a full-year sales growth between 13% and 21%, and operating profit growth of 16% to 24%. This is a step down from the earlier projections of 16% to 24% for sales growth and 19% to 27% for operating profit, as reported by Reuters.

The revision in forecasts comes as pharmacies have been producing compounded alternatives to Novo's branded drugs due to FDA-declared shortages, affecting the market uptake of Wegovy and Ozempic. The U.S. Food and Drug Administration has mandated that these compounded alternatives be discontinued by May 22, 2025. With this order, Novo may see improved sales later in the year. Additionally, Eli Lilly's Zepbound has overtaken Wegovy in U.S. prescriptions, presenting further competition.

Despite the challenges, Novo Nordisk is taking strategic steps to bolster its market position. The company is focusing on expanding partnerships with discounts offered through CVS and telehealth channels, and it plans to speed up the international rollout of Wegovy. Notably, even amid the forecast cut, Novo Nordisk's shares have appreciated by 6.4%, likely buoyed by the impending cessation of compounded drug alternatives, as noted by Reuters.