Novo Nordisk A/S (NYSE:NVO) has reportedly imposed a global hiring freeze for nonessential roles, as the drugmaker faces rising competition from copycat versions of Wegovy and intensifying rivalry with Eli Lilly and Co (NYSE:LLY).
Layoffs are also under consideration as part of broader cost-cutting measures. New CEO Mike Doustdar, who took the helm in August, told Danish broadcaster TV2 that he will explore further savings.
The move follows a significant downturn in July, after Novo Nordisk trimmed its 2025 financial outlook for the second time this year, signaling growing headwinds in key markets.
The company now expects 2025 sales growth of 8-14% at constant exchange rates. The prior forecast ranged between 13-21%, and operating profit growth of 10-16%, versus an earlier estimate of 16-24%.
Slower-than-expected adoption of branded GLP-1 treatments, amid continued use of compounded alternatives, largely accounts for the revised guidance.
Also Read: Novo Nordisk’s Lead Fades, Eli Lilly Holds Course For Outsized Gains, Says Analyst
The U.S. market is increasingly impacted by the persistent use of compounded GLP-1 alternatives.
Recently, the U.S. Food and Drug Administration (FDA) approved an additional indication for Novo Nordisk’s Wegovy (semaglutide 2.4 mg) based on a supplemental New Drug Application (sNDA) for noncirrhotic metabolic dysfunction-associated steatohepatitis (MASH) in adults with moderate to advanced liver fibrosis (consistent with stages F2 to F3 fibrosis), in combination with a reduced calorie diet and increased physical activity.
The accelerated approval is based on part 1 of the ESSENCE trial, in which Wegovy demonstrated a statistically significant and superior improvement in liver fibrosis with no worsening of steatohepatitis, as well as resolution of steatohepatitis with no worsening of liver fibrosis compared to placebo.
The clinical data from ESSENCE showed that at week 72, 36.8% of people treated with Wegovy achieved improvement in liver fibrosis with no worsening of steatohepatitis compared to 22.4% treated with placebo. 62.9% of people treated with Wegovy achieved resolution of steatohepatitis with no worsening of liver fibrosis compared to 34.3% treated with placebo.
Price Action: NVO stock is down 1.05% at $53.97 at the last check on Wednesday.
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