Wegovy and Ozempic maker forecasts sharp drop in income for 2026

[ad_1] The maker of Wegovy and Ozempic, Novo Nordisk, has predicted a pointy drop in revenues this 12 months owing to a push by Donald Trump to decrease US weight-loss drug costs, rising competitors and the lack of key patent protections.

Denmark’s Novo , as soon as the poster-child for the expansion in weight-loss remedies, stated gross sales this 12 months had been more likely to fall between 5% and 13%, regardless of the launch of its new Wegovy tablet within the US. Its share value plummeted 18% on Wednesday morning, erasing all positive aspects up to now this 12 months. Prior to now 12 months the inventory has misplaced almost 50% of its worth.

Final 12 months, Novo gross sales grew by 10% to 309bn Danish kroner (£36.6bn) “regardless of being a difficult 12 months for the corporate”, in line with Mike Doustdar, the chief govt. Revenue earlier than tax rose by 3% to 130.5bn kroner.

Doustdar added that this 12 months Novo anticipated to “face pricing headwinds in an more and more aggressive market”.

He pointed to Novo’s settlement with the Trump administration to closely reduce costs, from greater than $1,000 a month to a median value of $350, and the patent expiry of semaglutide, the primary ingredient of its weight problems and diabetes medication, in a number of nations, together with India. That might permit generic drugmakers to make cheaper variations of Novo’s medication.

Novo will, nonetheless, hold patent safety for semaglutide in Europe and Japan till 2033, and within the US till 2032.

Doustdar stated: “We're very inspired by the promising early uptake from the US launch of Wegovy tablet, and we stay assured in our capability to drive quantity progress over the approaching years.”

Doustdar succeeded Lars Fruergaard Jørgensen in August after Novo misplaced market share to its US rival Eli Lilly, prompting a number of revenue downgrades. Doustdar shortly introduced 1000's of job cuts in an try to enhance its monetary efficiency.

Lilly’s Mounjaro jab results in better weight reduction, medical research have proven.

The day by day Wegovy tablet, an oral model of Novo’s well-liked injection that customers self-administer as soon as every week, reached 50,000 US prescriptions every week by late January, after launching earlier that month.

It's the first GLP-1 pill available on the market, with Lilly anticipated to launch its personal tablet within the spring, topic to regulatory approval. The medicines work by mimicking the intestine hormone GLP-1, making sufferers really feel fuller and limiting urge for food.

The worldwide GLP-1 market is predicted to proceed to develop, with Novo introducing new remedies, such because the Wegovy® tablet and better doses of Wegovy.

Darren Nathan, head of fairness analysis at Hargreaves Lansdown, stated: “Donald Trump’s campaign on drug costs, patent expiration, and competitors all had their half to play. It wasn’t all dangerous information, with an especially robust launch for the Wegovy tablet, and a reminder of robust medical progress within the next-generation pipeline on the tail-end of 2025.”

He added that Doustdar “faces some robust questions when he takes the rostrum in his first full-year earnings name later immediately, significantly if arch rival Eli Lilly’s outcomes, due earlier than Wall Road opens, paint a special image”.

In London, Britain’s second-biggest drugmaker, GSK, stated gross sales progress would sluggish to between 3% and 5% this 12 months, from 7% progress to £32.7bn final 12 months. In 2025, it initially had the identical gross sales forecast as for this 12 months, however upgraded it twice.

The forecast takes under consideration the corporate’s cope with the Trump administration to decrease the price of prescription medicines for American sufferers, in return for a tariff-free interval of three years.

The corporate’s new chief govt, Luke Miels, who took over from Emma Walmsley initially of the 12 months, reiterated its £40bn-plus gross sales goal by 2031. He stated analysis and growth would develop forward of gross sales “as we proceed to put money into the pipeline whereas driving operational efficiencies”.

GSK reported robust progress in speciality medicines, respiratory, immunology and irritation remedies, most cancers and HIV medication final 12 months. Oncology led the way in which with a 43% bounce to £2bn. Vaccine gross sales elevated 2% to £9.2bn, together with its shingles, meningitis and RSV jabs.

Its share value dipped initially by 0.6% as buying and selling started in London, earlier than rising, up 2%, to the very best since July 2001.

Richard Hunter, head of markets on the buying and selling platform interactive investor, stated: “Provided that GSK has 52% of its gross sales within the US, adjustments in pricing guidelines from the White Home have inevitably had an influence.”