Novo Nordisk’s shares have plummeted over 20% after the company announced a significant cut to its forecast for Wegovy, its flagship obesity medication. The move is attributed to cheaper alternatives made by compounding pharmacies, which have increased in popularity due to the shortage of Wegovy.
In May, Novo Nordisk had predicted that Wegovy sales would grow up to 21% this year, but now expects only a 14% increase. The company blames the decrease on compounded versions of its obesity medicine and diabetes drug Ozempic, which have become more accessible due to a shortage.
Compounding pharmacies are allowed to make customized copies of drugs when they’re in short supply, often at lower costs. However, this practice has raised concerns among regulators and industry experts. Novo Nordisk is exploring multiple strategies to combat the issue, including litigation.
The company’s new CEO, Maziar Mike Doustdar, announced his plans to focus on efficiency, growth, and shareholder value. Meanwhile, Scott Brunner of the Alliance for Pharmacy Compounding disputes the notion that compounding pharmacies are operating illegally, stating that customized medications can be allowed under certain circumstances.
Industry expert Rena Conti notes that Novo Nordisk’s situation is not surprising, as compounded sales have seen a significant increase this year due to aggressive marketing and other tactics employed by compounding pharmacies. Her colleague David Ricks of Eli Lilly has reported that direct sales of Zepbound to consumers have been successful, with around 100,000 people buying the product each month.
Novo Nordisk’s attempt to sell Wegovy directly to cash-paying customers hasn’t been as effective as expected, resulting in lower-than-expected penetration. The company launched NovoCare Pharmacy in March 2025, but Wegovy prescriptions via this channel are still relatively low.
Source: https://www.npr.org/sections/shots-health-news/2025/07/29/nx-s1-5484143/drugmaker-novo-nordisk-slashes-wegovy-sales-forecasts-blaming-compounding