Denmark cuts growth forecast amid troubles for Novo Nordisk

[Novo Nordisk office in Fremont, California, USA]
JHVEPhoto/iStock Editorial via Getty Images

Denmark on Friday slashed its 2025 growth forecast to 1.4% from 3% projected in May, citing, among other things, weaker prospects for the country’s largest company, the weight loss drugmaker Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]).

In addition to economic troubles for the Wegovy maker, Denmark’s economy ministry noted that higher tariffs imposed by the Trump administration on exports from the Scandinavian country also led to the revision.

"The pharmaceutical industry is increasingly challenged [https://www.reuters.com/world/europe/novo-nordisk-woes-prompt-denmark-slash-countrys-2025-growth-forecast-2025-08-28/] by competition in the markets for weight loss products, which has dampened growth expectations in the industry," a statement from the ministry said, according to Reuters.

Danish exports have dropped significantly this year due to market share losses for Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]), the government said, noting that its growth forecast for the country’s exports now stands at 0.9% compared to 4.3% in May.

The country expects its economic growth and exports to recover next year, with its growth projections for GDP and exports at 2.1% and 2.9%, respectively.

“We expect that the pharmaceutical industry will continue to be of great importance to the Danish economy, even though we cannot expect the same extraordinarily large [https://www.bloomberg.com/news/articles/2025-08-29/thai-court-dismisses-premier-paetongtarn-for-ethics-violation] growth as in recent years,” Bloomberg News reported, citing a statement from Danish economy minister Stephanie Lose.

Its revised growth outlook came weeks after Novo (OTCPK:NONOF [https://seekingalpha.com/symbol/NONOF]) lowered its full-year growth outlook for sales and operating profit, citing pressure on its obesity franchise led by its GLP-1 medication semaglutide, marketed as Ozempic and Wegovy. [https://seekingalpha.com/news/4473239-novo-nordisk-stock-drops-guidance-cut#hasComeFromMpArticle=false]

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