Novo Nordisk lowers growth expectations for obesity and diabetes drugs.

Danish pharmaceutical giant Novo Nordisk said on Wednesday that it will lower its growth expectations for its major obesity and diabetes treatment drugs. The company's net profit for the quarter was 20 billion Danish kroner, in line with analysts' expectations of 20.12 billion Danish kroner according to FactSet. After the widespread use of Wegovy and Ozempic, diabetes and obesity treatment became a key driver of the company's growth, however, Novo Nordisk has lowered its growth expectations citing prescription trends, competition, and pricing pressures. In addition to disappointing trial results, increasing competition in the obesity drug market, and challenges brought by US drug pricing and tariff policies, Novo Nordisk also faces leadership changes and opposition to a key acquisition. As a result, analysts have mixed views on the stock. Jefferies recently downgraded its rating to underperform, while Berenberg remains positive on the stock, stating that Novo Nordisk has reached a "peak of uncertainty."