Danish pharmaceutical heavyweight Novo Nordisk is facing its toughest test yet. Once Europe’s most valuable publicly traded company, Novo has been forced to cut its growth outlook for 2025 as intensifying competition and mounting pricing pressures shake the weight-loss drug market it helped define.

Despite strong sales of its blockbuster treatments Wegovy and Ozempic, Novo is contending with new entrants, shifting U.S. pricing policies, and investor unease that has erased more than 50% of its market value this year. The revised guidance marks the fourth downgrade in 2025, signaling a cooling period for what had been one of the world’s fastest-growing pharmaceutical success stories.

Easing Growth Momentum in Weight-Loss Franchise

Novo Nordisk reported a net profit of 20 billion Danish kroner ($3.1 billion) for the third quarter — in line with analyst expectations — while sales of its obesity treatment Wegovy rose 18% year-over-year to 20.35 billion kroner, narrowly missing forecasts of 21.35 billion kroner.

The company now expects full-year revenue growth of 8% to 11% at constant exchange rates, down from its prior forecast of 8% to 14%. It also trimmed its operating profit growth outlook to 4%–7%, from a previous range of 4%–10%.

“While we delivered robust sales growth in the first nine months of 2025, the lower growth expectations for our GLP-1 treatments have led to a narrowing of our guidance,” said CEO Mike Doustdar, adding that Novo will “accelerate on all fronts” to remain competitive in increasingly crowded markets.

Although operating profit for the first nine months rose 10% to 95.9 billion kroner, Novo said restructuring costs of 9 billion kroner prevented an even stronger showing. The company emphasized ongoing investments in new weight-management therapies, including those acquired through its Akero Therapeutics deal.

Investor Confidence Falters as Headwinds Multiply

The latest guidance revision underscores the growing challenges facing Novo’s once-unshakable weight-loss franchise. Investor sentiment has soured amid disappointing clinical trial results, intensified pricing competition, and regulatory headwinds in the U.S., where Washington is pushing to rein in prescription drug costs.

The broader backdrop includes tariff-related uncertainties and scrutiny over Novo’s acquisition strategy. Analysts have become increasingly divided: Jefferies recently downgraded the stock to “underperform,” while Berenberg argues the company has reached “peak uncertainty,” maintaining a positive stance based on its strong R&D fundamentals.

“Novo’s superior growth profile and best-in-class R&D returns warrant a higher valuation premium to its peers,” Berenberg analysts wrote, suggesting the current selloff may be overdone.

Novo’s leadership, however, faces the difficult task of stabilizing investor sentiment while navigating multiple fronts — from pricing disputes to strategic acquisitions — in a market that’s shifting rapidly.

A High-Stakes Battle for Metsera

At the center of Novo’s current turbulence is its bidding war with Pfizer for U.S. biotech firm Metsera, a company focused on next-generation obesity treatments. Novo launched a $9 billion offer last week before raising its bid to $10 billion on Tuesday, after Pfizer accused it of anticompetitive practices in a second lawsuit filed Monday.

Novo called Pfizer’s allegations “false and without merit,” emphasizing that its proposal “complies with all applicable laws” and is in the best interests of both Metsera’s shareholders and patients. Metsera’s board has since described Novo’s revised offer as “superior” to Pfizer’s competing bid, setting the stage for what could be one of the industry’s most consequential acquisition showdowns in years.

The deal could determine whether Novo maintains its leadership in the rapidly expanding obesity treatment market, or cedes ground to a reinvigorated Pfizer — both racing to secure dominance in what analysts estimate could become a $100 billion global market by 2030.

Looking Ahead: The Price of Dominance

For Novo Nordisk, the coming quarters will be defined by its ability to sustain profitability under pressure while defending its market share against intensifying competition. The firm’s emphasis on innovation, combined with its long-term R&D pipeline, offers resilience — but short-term volatility seems inevitable.

If pricing pressures continue and regulatory scrutiny tightens, investors may need to recalibrate expectations for Novo’s once sky-high valuation. Still, with obesity and diabetes treatments expected to remain central to global healthcare spending, the company’s long-term fundamentals remain strong — provided it can balance growth with strategic discipline.