Novo Nordisk’s Q1 sales drop highlights growing competition in the weight-loss and diabetes treatment market.
Novo Nordisk (NVO) shares have fallen 7.5% year-to-date, underperforming the S&P 500’s 8% gain. The decline follows weaker-than-expected sales of its flagship drugs, Ozempic and Wegovy, which dominate the company’s revenue.
Weight-loss and diabetes treatments accounted for over 75% of Novo Nordisk’s first-quarter sales. However, Ozempic’s sales dropped 8% year-over-year on a constant-currency basis, signaling rising competition. Eli Lilly’s FDA-approved oral treatment, Foundayo, and Pfizer’s acquisition of Metsera add pressure.
The company’s new Wegovy pill aims to counter rivals, but analysts question whether it can sustain growth amid intensifying competition in the obesity and diabetes drug market.