**Novo Nordisk Lowers 2025 Profit and Sales Growth Forecast Amid Restructuring and Competitive Pressures**
Novo Nordisk announced a significant revision to its 2025 financial outlook, cutting profit growth forecasts to 4-7% from an earlier 4-10%, and lowering sales growth expectations to 8-11% from 8-14%. The Danish pharmaceutical giant also revealed plans to eliminate 9,000 jobs worldwide, including 5,000 positions in Denmark, as part of a major restructuring initiative.
The company’s third-quarter results showed a 30% drop in operating profit to DKK 23.7 billion, falling short of analysts’ expectations of DKK 24.6 billion. Total quarterly sales increased by 5% to DKK 75.0 billion, slightly below the anticipated DKK 76.2 billion. In local currencies, sales grew by 11%, marginally missing the 11.4% forecast.
Wegovy, Novo Nordisk’s flagship weight management drug, posted an 18% sales increase to DKK 20.4 billion, but this too fell short of analyst estimates of DKK 20.9 billion. The company’s shares have been under heavy pressure this year, dropping 50% amid rising competition from U.S. rival Eli Lilly and the proliferation of compounded copycat drugs.
**CEO Comments and Market Challenges**
Novo Nordisk’s CEO, Mike Doustdar, who assumed leadership in August, attributed the downgraded guidance to slower growth in GLP-1 treatments, including its top-selling diabetes and weight management products. He also highlighted the ongoing challenges posed by “unsafe and unlawful mass compounding,” which persisted through the third quarter.
**Restructuring Costs and Financial Impact**
The restructuring program is expected to have a net one-off cost of approximately DKK 8 billion in 2025. This includes DKK 5 billion in severance payments and DKK 4 billion related to asset impairments. However, these changes are anticipated to deliver savings of around DKK 1 billion in the fourth quarter.
Despite restructuring expenses, the first nine months of 2025 saw operating profit rise 5% to DKK 95.9 billion. Excluding these one-off costs, operating profit would have increased by 15% in Danish kroner and 21% at constant exchange rates. Net sales climbed 12% to DKK 229.9 billion over the same period.
Margins were impacted by the restructuring and increased production costs, with the operating margin declining to 41.7% from 44.7% a year earlier and the gross margin falling to 81.0% from 84.6%.
**Regional and Product Performance Highlights**
– Obesity care sales surged 37% in Danish kroner (41% at constant exchange rates) to DKK 59.9 billion.
– Ozempic sales rose 10% in Danish kroner (13% at constant exchange rates) to DKK 95.3 billion.
– U.S. sales increased by 12% in Danish kroner and 15% at constant exchange rates.
– International markets saw growth of 13% and 16%, respectively, with the EUCAN region up 18%, Asia-Pacific rising 35%, and China growing 8% on a constant currency basis.
Free cash flow decreased by 11% to DKK 63.9 billion, primarily due to higher capital expenditures. Research and development spending increased 9%, reaching DKK 37.4 billion. The effective tax rate rose slightly to 21.6% from 20.6% the previous year.
**Regulatory Approvals and Strategic Acquisitions**
During the quarter, the FDA approved Wegovy for treating metabolic dysfunction-associated steatohepatitis, expanding its therapeutic indications. Novo Nordisk also announced agreements to acquire Akero Therapeutics and Omeros Corporation’s MASP-3 inhibitor, zaltenibart, bolstering its pipeline and strategic positioning.
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Novo Nordisk faces a challenging market environment, pressured by intensified competition and the need for significant operational restructuring. The company’s ability to adapt and innovate will be crucial for sustaining growth in the coming years.
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