Novo Nordisk Implodes After Wegovy Warning—Is The Weight-Loss Bubble Bursting?

Novo Nordisk A/S (NYSE:NVO) suffered its worst trading session on record Tuesday, plunging as much as 25% in European markets after issuing a surprise profit warning tied to its blockbuster obesity drug Wegovy and appointing a new CEO.

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The Danish pharmaceutical giant now expects 2025 sales to grow 8%–14%, down from a previous range of 13%–21%, and has cut its operating profit forecast to 10%–16%, from 16%–24%. That marks the second guidance cut of the year.

Shares have now fallen 35% year-to-date and are down a staggering 65% from their June 2023 all-time high, wiping out billions in market cap.

Goldman Sachs analyst James Quigley wrote that the reduced expectations were driven by "no change in the compounded semaglutide headwinds and slower-than-expected commercial progress for both ...