Novo Nordisk Cuts Guidance Amid Rising Weight Loss Drug Competition

Novo Nordisk's third-quarter earnings fell short of expectations, prompting a downward revision of its fiscal 2025 revenue and earnings guidance. The Danish pharmaceutical giant faces mounting challenges, including intensified competition in the GLP-1 drug market, disappointing clinical trial results, and regulatory hurdles in the U.S. Despite these setbacks, NVO stock saw a pre-market uptick.

The company's strategic acquisition of Metsera, a U.S.-based obesity biotech firm, has drawn investor skepticism and competitive interest from Pfizer. Novo Nordisk's once-dominant position in the obesity drug market, fueled by Wegovy's success, is now under pressure as sales growth slows and the stock price declines by 43% year-to-date.

Third-quarter earnings dropped 26% year-over-year to DKK 4.50 per share ($0.69), missing analyst consensus. Management changes and pricing pressures signal a turbulent road ahead for Europe's most valuable company.