Novo Nordisk reported strong first-quarter 2025 financial results with double-digit growth in sales and profit but lowered its full-year outlook, citing challenges in the US GLP-1 market from compounded drug alternatives.
Q1 2025 Financial Highlights
Novo Nordisk's net sales in Q1 2025 rose 19% year-over-year to DKK 78.1 billion, with operating profit increasing 22% to DKK 38.8 billion. At constant exchange rates, sales grew 18% and operating profit 20%. Sales in US operations climbed 20% in Danish kroner, while international operations grew 18%[5]. Obesity care was a significant growth driver, with sales up 67% to DKK 18.4 billion. GLP-1 diabetes sales grew 13%, and rare disease sales increased by 5%.[5]
Full-Year 2025 Guidance Lowered
Novo Nordisk reduced its full-year 2025 outlook, now projecting sales growth of 13-21% and operating profit growth of 16-24% at constant exchange rates. This revision comes as US market penetration for branded GLP-1 drugs has slowed, due in part to rapid expansion of compounded versions of Novo Nordisk's treatments.[5][2] Management emphasized ongoing actions to counter unlawful compounding practices and initiatives to expand patient access to approved therapies.
Pipeline and R&D Developments
Novo Nordisk reported progress in its obesity portfolio, including completion of the pivotal REDEFINE 2 trial for CagriSema, which showed 15.7% superior weight loss in adults with obesity or overweight and type 2 diabetes. The company also completed a US regulatory filing for oral semaglutide 25 mg as an obesity treatment.[5] These milestones strengthen Novo Nordisk's late-stage pipeline as demand for obesity and diabetes therapies continues.
Analysis
Novo Nordisk's Q1 2025 performance demonstrates robust demand for its diabetes and obesity products, with significantly higher sales and profits over the previous year. However, the rapid growth of compounded versions of GLP-1 drugs in the US has pressured branded product penetration, prompting the company to lower its full-year guidance. Management's actions to challenge illegal compounding and to reinforce supply and access for approved therapies reflect ongoing market headwinds. The company's scientific pipeline, highlighted by positive CagriSema data and new regulatory filings, suggests continued investment in future growth areas.[5][2]
Outlook
Analysts expect Novo Nordisk to face near-term challenges as it manages headwinds from compounded GLP-1 drugs in the US. The company's focus on legal action and access expansion will be critical to defending its market share. Meanwhile, R&D success and new obesity treatments could support long-term growth. Ongoing regulatory reviews and the commercial trajectory of oral semaglutide and CagriSema will be closely watched by investors and industry observers.[5][2][3]
