Novo Nordisk reported that 2025 sales of its flagship GLP-1 therapy Ozempic in the greater China region fell 4.8% year-over-year, marking the first contraction since the drug’s launch. The decline was driven by intensified competition from regional biosimilar entrants and aggressive discounting by local rivals. Management attributed roughly two percentage points of the drop to volume reductions and the remainder to price concessions, reflecting broader pricing pressure in key Asian markets.

In the fourth quarter, Novo Nordisk delivered earnings per share of DKK 5.72 and revenues up 12% at constant currencies, both beating consensus forecasts. However, the company’s outlook for 2026 projected a 5–13% decline in adjusted sales and operating profit, citing significant U.S. price cuts for weight-loss drugs and potential headwinds from the ‘Most Favoured Nations’ agreement. Shares plunged 18% in Copenhagen trading following the guidance release, wiping out nearly $50 billion in market capitalization.

Novo Nordisk warned that pricing headwinds will persist throughout 2026 as U.S. reimbursement reforms and patent expiries on key diabetes products intensify competition. The oral form of its obesity therapy is 25% more expensive to produce yet will launch at a lower price point than injectables, exerting further margin pressure. CEO Mike Doustdar acknowledged that short-term profitability will suffer as the company invests in broader patient access, but he expects volume gains to offset price declines over time.

To counter near-term sales headwinds, Novo Nordisk is gearing up to introduce an oral semaglutide formulation under the Ozempic brand in the second quarter, targeting patients preferring tablet dosing. The company is also accelerating capacity expansions in its Swiss and U.S. manufacturing sites, aiming to add 30% more GLP-1 output by end-2027. In addition, late-stage clinical trials for novel dual-agonist compounds are on track, with data readouts expected in mid-2026, potentially bolstering long-term growth prospects.