Ozempic Maker Novo Nordisk Terminates Multiple Pipeline Programs, Faces Investor Lawsuit Over GLP-1 Market Misrepresentation
Novo Nordisk A/S (NYSE:NVO) on Wednesday reported second-quarter 2025 sales of roughly $11.68 billion (76.86 billion Danish kroner), missing the consensus of $11.79 billion.
Sales increased by 13% in Danish kroner and 18% at CER, driven by increased sales across the portfolio. GLP-1 diabetes sales increased by 8% to 38.37 billion Danish kroner, and Obesity care sales increased by 53% to 20.37 billion Danish kroner.
Insulin sales increased by 5% to 12.75 billion Danish kroner, and Rare disease sales increased by 28% to 4.92 billion Danish kroner.
The weight loss drug maker reported earnings of 91 cents per share (5.96 Danish kroner), missing the consensus of 93 cents.
Ozempic sales increased 15% to 31.79 billion Danish kroner, and Wegovy sales jumped 75% to 19.53 billion Danish kroner.
Outlook
In July, Novo Nordisk shared its trimmed 2025 outlook. The company reiterated the lowered guidance on Wednesday with sales growth of 8-14% at CER, and operating profit growth of 10-16% at CER.
The lowered sales outlook for 2025 is driven by lower growth expectations for the second half of 2025, reflecting the persistent use of compounded GLP-1s, slower-than-expected market expansion, and competition.
Lars Fruergaard Jørgensen, president and CEO, said, “While delivering 18% sales growth in the first half of 2025, we have lowered our full-year outlook due to lower growth expectations for our GLP-1 treatments in the second half of 2025. As a result, we are taking measures to sharpen our commercial execution further, and ensure efficiencies in our cost base while continuing to invest in future growth. With more than one billion people living with obesity globally, including more than 100 million living in the U.S., and only a few million on treatment, I am confident that under Mike Doustdar’s leadership, Novo Nordisk will maximise the significant growth opportunities, supported by a strong product portfolio and future pipeline”.
During the earnings conference call, Novo Nordisk’s U.S. Operations Chief, David Moore, announced plans to launch Ozempic in the cash-pay channel later this year. Moore also stated that Wegovy’s penetration in the cash channel is currently around 10% of total U.S. prescriptions.
Pipeline Update
The company terminated development of a once-weekly GLP-1/GIP co-agonist for weight management. Novo Nordisk said that although the drug showed statistically significantly greater body weight reductions than placebo in the Phase 2 study, the decision follows portfolio considerations.
Novo Nordisk has also terminated further development of INV-347 due to the pharmacokinetic profile and portfolio considerations. In May 2025, Novo Nordisk completed a phase 1 trial with INV-347, a next-generation oral small-molecule CB1 receptor blocker.
Earlier this year, Novo Nordisk completed a phase 2 trial in around 700 patients with MASH F2-F4, evaluating the safety and efficacy of zalfermin. The fixed dose combination of zalfermin and semaglutide 2.4 mg did not meet the primary endpoint of superior improvement in liver fibrosis and no worsening of MASH, compared to placebo. The development of zalfermin in MASH has been terminated due to portfolio considerations.
Novo Nordisk has terminated the development of ANGPTL3i due to portfolio considerations. In May 2025, the company completed a phase 1 trial with ANGPTL3i, a monoclonal antibody, for dyslipidaemia.
Lawsuits
Novo Nordisk is facing a federal securities class action lawsuit after significantly cutting its sales and profit outlook for 2025.
Plaintiff alleges that the company misled shareholders about the true potential of its GLP-1 drug market, causing them to buy shares at artificially inflated prices.
The suit filed on Friday alleges that these statements failed to disclose critical risks. Specifically, it claims Novo misrepresented the impact of the FDA’s personalization exception, which allows certain compounded GLP-1s to remain available.
The lawsuit contends that the size and penetration of the GLP-1 market were overstated, and that Novo’s ability to capture new market share was far more limited than portrayed.
On Tuesday, Novo Nordisk announced the filing of 14 new lawsuits against organizations involved in illegal activities related to unsafe non-FDA-approved compounded “semaglutide.”
Novo Nordisk has filed more than 130 lawsuits across 40 states, resulting in 44 permanent injunctions to stop the unsafe, illegal marketing and selling of knockoff Wegovy and Ozempic.
Courts have already issued 44 permanent injunctions against defendants in similar cases, prohibiting them from a variety of unlawful conduct, including unlawfully compounding “semaglutide” and falsely claiming that compounded “semaglutide” products are FDA-approved, safe, or equivalent to Novo Nordisk’s authentic medicines.
Courts have also taken steps to deter similar conduct, including ordering defendants to forfeit illegally obtained profits.
Price Action: NVO stock is trading lower by 2.24% to $46.16 premarket at last check Wednesday.
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