In response to these challenges, the company is actively pursuing multiple strategies, including litigation, to protect patients from knockoff semaglutide drugs while calling for aggressive intervention from federal and state regulators. Notably, Novo Nordisk has also tapped Mike Doustdar to succeed Lars Fruergaard Jørgensen as CEO effective Aug. 7.

Inside Novo Nordisk’s Preliminary Results

Taking a deeper look into the preliminary results, the company's core business showed some resilience, with sales rising 18% year-on-year in both Q2 and the first half of 2025, while operating profit increased by 40% in Q2. That said, management expects significant deceleration in the second half of the year, primarily due to mounting competitive pressures from rival Eli Lilly (LLY) and ongoing issues with counterfeit products.

Looking ahead, NVO’s pipeline includes promising developments such as amycretin, with phase 3 trials for an oral version expected to begin early next year. The European drug-loss giant is slated to release its full Q2 results on Aug. 6.

While NVO maintains strong profit margins of 35% and trades at an attractive valuation of about 17 times forward earnings, prospective buyers should weigh today’s deep “discount” on the stock carefully against the context of increasing competition in the obesity drug market and significant regulatory hurdles.

NVO Plunges in Premarket Trading

The market's dramatic reaction has effectively erased significant gains achieved during the previous Ozempic-driven rally in 2024, which boosted Novo Nordisk to the position of Europe's most valuable listed company.