Novo Nordisk stock edged higher Wednesday though the obesity drug kingpin cut its 2025 outlook, citing "unlawful compounding" of its diabetes and weight-loss drugs.
The drugmaker now expects sales to grow 13% to 21% in constant currency, down from the outlook it issued three months ago for 16% to 24% sales growth. Novo also slashed its expected operating profit growth guidance to 16% to 24%, down from its previous call for 19% to 27%.
The updated outlook includes "lower-than-planned" penetration for drugs that mimic the GLP-1 hormone, which includes weight-loss drug Wegovy and type 2 diabetes treatment Ozempic.
"Novo Nordisk is focused on preventing unlawful compounding and further expanding access in the US," the company said in its news release. "With around 1 billion people living with obesity globally and only few million on treatment, Novo Nordisk continues the global roll-out of Wegovy."
Novo Nordisk stock rose 1.9% to close at 67.55.
Novo Nordisk Stock: Wegovy Misses
In total, Novo Nordisk earned an adjusted 99 cents per share on $11.87 billion in first-quarter sales, according to FactSet. Earnings beat expectations for 92 cents and grew 22%. Sales also topped forecasts for $11.7 billion and advanced nearly 27%.
But sales of Novo's marquee products, Wegovy and Ozempic, were mixed. Wegovy generated $2.64 billion in sales, lagging the Street's call for $2.8 billion. Sales rocketed almost 90%. Ozempic brought in $4.97 billion, growing 24% and topping estimates for $4.75 billion.
Notably, Novo Nordisk is working to expand the uses for semaglutide, the chemical backbone behind Wegovy and Ozempic. The company has asked the Food and Drug Administration to approve an oral version for patients with obesity. The FDA is also reviewing a weekly shot as a treatment for metabolic dysfunction-associated steatohepatitis, a liver disease known more commonly as MASH.
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