Novo Nordisk Lowers Sales Expectations for Wegovy Amid Compounding Challenges

Novo Nordisk has adjusted its sales outlook downward for its obesity medication, Wegovy, due to competition from pharmacy compounds.

Following an announcement that significant cuts were made to the forecast for Wegovy, Novo Nordisk's stock fell over 20% on Tuesday.

Projected growth for the obesity drug was revised to a maximum of 14% for this year, contrasting with an earlier estimate of up to 21% issued on May 7.

The company attributes these reduced forecasts to the availability of less expensive, compounded versions produced by pharmacies. These pharmacies can legally replicate drugs during supply shortages. Although Wegovy and the diabetes drug Ozempic had been listed as in shortage by the FDA, allowing such practices, compounded versions have persisted despite the shortage being officially resolved.

Some pharmacists continue to tailor these weight-loss medications according to individual patient needs, occasionally fortifying them with additional nutrients or adjusting dosages.

In response, Novo Nordisk is employing various tactics, including legal action, to curb the prevalence of compounded copies.

The role of compounding pharmacies is to provide customized configurations of drugs that better suit individual patient requirements, without adhering to FDA approval protocols. Such variations are especially pivotal when standard formulations are inadequate, with regulation primarily under state pharmacy boards' oversight.

For instance, transforming a tablet into a liquid format for patients who cannot swallow pills is one example of compounding pharmacy service.

Coinciding with these developments, Novo Nordisk introduced a new CEO, who has been with the company for 33 years, succeeding the outgoing Lars Jorgensen.

In a call with investors, the new leader emphasized a clear path forward in light of recent earnings guidance revisions, focusing on enhancing efficiency and value for shareholders.

Industry observers have noted that some critiques suggest Novo Nordisk and its rival Eli Lilly have inaccurately portrayed compounding pharmacists.

A legal expert remarked that while certain types of GLP1 compounding might be argued as technically illegal, it also provides pharmaceutical companies like Novo an easy justification for earnings cuts.

Compounding is permitted under U.S. law when a tailored formulation is deemed more beneficial for a patient than commercially available options, a principle applicable to any eligible medication.

On a related note, the surge in prescriptions filled by compounding pharmacies has been notable this year, credited largely to assertive marketing and sales techniques.

Competitor Eli Lilly has capitalized on direct sales of its product Zepbound, offering discounted rates directly to consumers, thereby converting users from compounded versions to their branded offering.

Eli Lilly has reported that an estimated 100,000 purchases of Zepbound are made monthly through direct consumer channels on its website.

Novo Nordisk's strategy to increase direct sales of Wegovy through cash transactions has not met previous projections.

Their recent statement indicated that widespread and unchecked compounding continues to undermine Wegovy's anticipated success in the cash market segment. Although the NovoCare Pharmacy initiative launched in March 2025 saw some traction, with around 11,000 prescriptions weekly, combined efforts with retail cash purchases sum to roughly 31,000 prescriptions weekly.