August 6, 2025
Sales of Novo Nordisk’s injectable diabetes drugs including Ozempic have slowed sharply amid fierce competition and the threat of U.S. tariffs, coupled with continued competition from compounded drugs sold illegally.
Novo Nordisk said sales of medications such as Ozempic – which mimic the GLP-1 gut hormone that regulates blood sugar levels and appetite – grew by 8% in the first half of the year, down from 21% last year. Sales of obesity drugs including Wegovy increased by 56%.
The company has lost market share to its U.S. rival Eli Lilly’s Mounjaro, which studies have shown to be more effective, as well as cheaper versions made by generic drugmakers. It has also been hit by “compounding” in the U.S., where pharmacies make up medications from ingredients, even though the FDA declared an end to the practice recently.
Novo Nordisk’s outgoing chief executive, Lars Fruergaard Jørgensen, said that the copycat market had “equal size to our business” and that compounded versions of Wegovy were sold at a “much lower price point”.
Its finance chief, Karsten Munk Knudsen, said the company was pursuing various strategies, including lawsuits against compounding pharmacies and expanding its U.S. direct-to-consumer platform, NovoCare, launched in March. The company might also pursue “cash sales” directly to patients elsewhere.
Novo is now expecting sales growth of between 8% and 14% at constant exchange rates in 2025, down sharply from its previous estimate of 13% to 21%. Novo Nordisk also disclosed that it had ditched several weight-loss drugs in development, including one that has just completed an intermediate (phase II) clinical study, “due to portfolio considerations”.
The company also faces a class action lawsuit in the U.S. from investors, who claim that it misled them with optimistic growth forecasts in the lucrative weight loss market.
The UBS analyst Matthew Weston said: “We expect GLP-1 compounders to remain in the U.S., which limits cash-pay uptake and leaves an uncertain outlook for U.S. Wegovy.
Novo Nordisk has intensified its legal efforts to safeguard patient health by filing 132 complaints in federal courts across 40 states. These lawsuits target companies whose marketing and business practices allegedly violate the law and jeopardize patient safety. The latest round of lawsuits builds upon previous legal victories and broadens the company’s focus to include two new areas of concern.
The expanded legal actions now address pharmacies that produce unapproved compounded “semaglutide” drugs under the false pretense of personalized care, allegedly in violation of state regulations. Additionally, Novo Nordisk is pursuing telehealth companies that it claims improperly influence treatment decisions by directing patients toward compounded versions of “semaglutide.” These practices, the company argues, are carried out under misleading claims of personalization and contravene California law by allowing corporations rather than licensed medical professionals to guide patient care.
To date, courts have granted 44 permanent injunctions in related cases, barring defendants from unlawfully compounding or misrepresenting compounded “semaglutide” as FDA-approved or equivalent to authorized Novo Nordisk medications such as Wegovy and Ozempic. Some rulings have also required companies to relinquish profits gained through these practices, underscoring the legal system’s efforts to curb unsafe and deceptive activities in the pharmaceutical space.
Independent investigations have further highlighted the safety concerns. A Brookings Institution report revealed that many compounded “semaglutide” products rely on synthetic API imported from Chinese facilities lacking FDA oversight or quality assurance. Notably, 60% of the Chinese manufacturers exporting this API have yet to receive authorization to distribute it for human use in China. FDA data shows that since June 2023, all semaglutide used for compounding in the U.S. has originated from Chinese suppliers. This raises concerns about the quality and safety of these substances.
Commentary
It’s surprising that despite the FDA ban on compounded GLP-1 drugs, which took effect in late May, that compounders are still selling these meds. They are fighting tooth and nail to keep that business, but it’s just a matter of time until they face legal action by Novo and Eli Lilly.
Learn More About The Market for Medical Weight Loss Programs
Marketdata LLC has published anew 154-page analysis of the U.S. weight loss market, entitled: “The U.S. Medical Weight Loss Market: The Impact of GLP-1 Drugs on Doctors, Hospitals, Clinics and Franchises”, February 2025. This report presents a complete picture of the medical weight loss market in the United States, with the inter-relationships between competing MDs, clinics, surgeons, commercial weight loss companies and pharmaceutical firms.
At no other time in the U.S. weight loss market history has one product so dominated the market as have the new GLP-1 weight loss drugs. American dieters have flocked to them, shunning commercial weight loss programs such as Weight Watchers, Medifast, as well as retail and MLM meal replacements.
Demand soared in 2023 and 2024 for Ozempic, Wegovy, Saxenda, Mounjaro and Zepbound — with more new drugs coming in the next few years.
The booming market for GLP-1 drugs has attracted physicians, nurses, dieticians, telemedicine services, medical weight loss franchises, compounding pharmacies, and entrepreneurs – all looking to cash in. However, the party may soon be over for the compounders, as the FDA declared and end to the shortage of the major drugs.
Some Report Findings:
- The value of the U.S. medical weight loss market is estimated to have more than tripled since 2019, to $33.8 billion in 2024. Average annual growth of 12% is forecast through 2028.
- The prescription obesity drugs market soared from $5.0 billion in 2022 to $26.4 billion by 2024, due to the high demand for new GLP-1 drugs. More than 8% of Americans are now estimated to be using them.
- The number of weight loss surgeries has declined 25% since 2022, to 211,000 procedures, as Americans opted for the new drugs instead. This market segment is worth $5.29 billion.
- Hospitals have had a mixed record with weight loss programs. Only 29% of the nation’s hospitals (about 1,400) provide some form of weight loss program – surgery or a non-surgical program.
- Medical weight loss programs represented 11.7% of the total U.S. weight loss market in 2022, but this share is forecast to triple to 36% by 2028.
- Prescription weight loss drugs have stolen major market share from commercial weight loss companies, the meal replacements market, health clubs, the bariatric surgery market, and more.
- The top 11 medical weight loss franchises and regional chains are estimated to generate $264 million in system-wide sales annually. Most franchises are not growing.
Purchase This Report
The report may be purchased at the Marketdata website’s store. Price: $1,495. Or call: 813-971-8080. Table of Contents available, see home page, link for Diet Market – Our Specialty.