Novo Nordisk, a Danish drug company, has lowered its expectations for sales and profit for the year. This is due to expected price cuts and weaker sales of its obesity drug, Wegovy, in the third quarter. The company now expects sales to grow by 8% to 11%, down from a previous prediction of up to 14%. Operating profit is also expected to grow by 4% to 7%, down from an earlier estimate of up to 10%. The company’s executives blamed this on increased competition and pricing pressure. Sales of semaglutide, sold as Wegovy for obesity and Ozempic for diabetes, continued to rise in the third quarter, bringing in over 51 billion Danish kroner (about $7.9 billion). However, analysts had hoped for more from Wegovy, and the combined total was less than Eli Lilly’s rival drug, Zepbound/Mounjaro, which became the world’s best-selling medicine in the third quarter with over $10 billion in revenue. The success of GLP-1 drugs has brought both highs and lows for Novo Nordisk. As Ozempic became widely known, the company struggled to meet demand, a problem also faced by Lilly. Shortages allowed cheaper, compounded versions to enter the market, which continue to take a significant share of prescriptions. Both Novo and Lilly have taken steps to fight this competition, such as suing compounders, offering cheaper versions of their brand-name products, and trying to market GLP-1 drugs in pill form instead of injections. While Lilly met Wall Street’s expectations in the third quarter, Novo is once again facing unhappy investors. The company’s largest shareholder is pushing to replace half the board at Novo, which has already switched CEOs and announced significant layoffs in recent months. Meanwhile, Novo is in a dispute with Pfizer over its bid to buy obesity drug maker Metsera. Additionally, Novo is facing pressure on drug pricing. Like Lilly, the company has been negotiating with the White House over prices for its obesity medications, with an announcement expected soon. Reports indicate that Wegovy’s price could be as low as $149 a month for some people, compared to its list price of $1,349. Novo also revealed during its earnings call that it has accepted the U.S. government’s ‘maximum fair price’ for Wegovy, Ozempic, and Rybelsus under the Inflation Reduction Act. This price will take effect in 2027, but Novo did not reveal it. However, the company said that if this price had been introduced on January 1 of this year, it would have had a ‘negative low single-digit impact’ on global sales growth. Despite these struggles, CEO Mike Doustdar told investors and analysts on a call that Novo sees significant growth ahead. ‘I would not lie and say I like losing market share, but our job right now is to focus the company’s strategy around diabetes and obesity,’ Doustdar said. ‘We see a huge expansion potential as we go forward.’