Novo Nordisk, Europe’s most valuable company, is facing significant pressure due to the rising competition from copycat versions of its blockbuster obesity drug Wegovy. The Danish drugmaker warned that it could face layoffs as it battles with US rival Eli Lilly.
Wegovy has lost market share and seen sales growth slow, especially in the United States, where compounded copies are being sold at a lower price point. Novo’s finance chief, Karsten Munk Knudsen, said that more than one million US patients were still using compounded GLP-1s, contradicting the company’s assumption of reduced compounding this year.
The company has cut its full-year sales and profit forecasts, wiping $95 billion off its market value. Outgoing CEO Lars Fruergaard Jorgensen warned that layoffs could be unavoidable as the company adjusts to the changing market.
Despite this, Novo is expanding its direct-to-consumer platform amid pricing challenges. The company has also announced plans to terminate eight R&D projects and pursue cost-cutting measures to ensure efficiencies in its cost base.
Analysts have cut their price targets and recommendation on the stock since last week, with shares plunging 30% over a worst weekly performance in over two decades. The company’s share price dropped by 3.4% at the time of writing.
Source: https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-ceo-warns-layoffs-wegovy-challenge-heats-up-2025-08-06