Novo Nordisk - ADR

Strong Q1 Performance but Adjusted Outlook: Novo Nordisk reported an 18% sales growth and a 20% increase in operating profit for Q1 2025. Despite this strong start, the company lowered its full-year sales growth forecast to 13% to 21% (from prior estimates) primarily due to lower-than-planned penetration of GLP-1 treatments in the U.S., impacted by compounding pharmacies.

Impact of Compounding: The rapid expansion of compounded GLP-1 treatments is significantly affecting Wegovy's market share and overall branded GLP-1 uptake in the U.S. This has created uncertainty in sales projections, with estimates suggesting that compounded products hold a similar market share to branded products.

Regulatory and Strategic Initiatives: Novo Nordisk is actively addressing the issue of thriving compounding practices. The company plans to leverage telehealth collaborations and a new direct-to-patient cash payment initiative for Wegovy to enhance patient access while combating illegal compounding.