Novo Nordisk Raises 2025 Outlook Despite Wegovy Pill Miss and CagriSema Setback

Novo Nordisk (CSE: NOVOb, NYSE: NVO) raised its full-year 2025 guidance after stronger-than-expected demand for its blockbuster weight-loss drugs helped improve its earnings outlook. The Danish pharmaceutical company now expects annual sales and operating profit to decline by no more than 6% at constant exchange rates, an improvement from its previous forecast of a 4% to 12% decline.

Despite the upgraded outlook, Novo Nordisk shares fell sharply as investors reacted to weaker-than-expected sales of the new oral version of Wegovy and disappointing clinical trial results for its experimental obesity treatment, CagriSema. U.S.-listed shares dropped about 6% on Tuesday, while Copenhagen-listed stock declined more than 4% in early Wednesday trading.

During the second quarter, oral Wegovy generated sales of 3.2 billion Danish kroner (around $500 million), slightly below analysts’ expectations of 3.3 billion kroner. Meanwhile, the injectable version of Wegovy remained the company’s top performer, delivering 19.48 billion kroner in quarterly revenue.

Investor sentiment was also pressured by new trial data showing CagriSema lagged Eli Lilly’s tirzepatide in blood sugar control among patients with Type 2 diabetes. While CagriSema met the primary goal of demonstrating noninferior weight loss, with patients losing an average of 15.2% of body weight compared with 15.8% for tirzepatide, it failed to match its rival in reducing HbA1c levels. CagriSema lowered HbA1c by 1.9%, versus 2.2% achieved by tirzepatide.

Market analysts noted the results were weaker than expected, particularly because Novo Nordisk had aimed to demonstrate noninferiority across both primary endpoints. The outcome strengthens Eli Lilly’s competitive position in the rapidly expanding obesity and diabetes treatment market.

Novo Nordisk reported second-quarter adjusted sales of 78.49 billion Danish kroner, up 7% from a year earlier. Adjusted operating profit, a key metric for investors, increased 11% to 33.39 billion kroner, while net profit declined 21% to 20.99 billion kroner.

Although demand for Wegovy continues to support Novo Nordisk’s business, investors remain focused on pipeline performance and intensifying competition in the global weight-loss drug market.