Obesity Drug Boom Eases After Years of Rapid Expansion

After several years of explosive growth fueled by blockbuster obesity treatments, Novo Nordisk is entering a more measured phase. The Danish pharmaceutical major reported global sales growth of 6.4% in 2025, a sharp slowdown from the 25% surge recorded in 2024, according to its latest annual report.

While the deceleration reflects market maturation in developed economies, the slowdown was far from uniform. India and the broader Asia-Pacific (APAC) region stood out as key growth engines, helping cushion the impact of softer performance elsewhere.

APAC Defies Global Trend With Strong Double-Digit Growth

In a year when global operating profit dipped 0.5% due to restructuring costs, Novo Nordisk’s APAC business delivered a standout performance. Regional sales rose 19% year-on-year, or 25% at constant exchange rates, significantly outpacing the company’s global growth rate.

By comparison, sales in the United States grew just 3%, while Emerging Markets recorded 3% growth in reported terms. The strong APAC showing underscores the growing importance of Asian markets as demand for diabetes and obesity treatments expands beyond the West.

India Becomes a Strategic Pillar for GLP-1 Therapies

India played a central role in Novo Nordisk’s APAC momentum during 2025. The company executed a two-phase rollout of its flagship GLP-1 therapies, strengthening its footprint in one of the world’s fastest-growing metabolic health markets.

In June 2025, Novo Nordisk launched Wegovy, its once-weekly semaglutide injection for chronic weight management, under the local brand name Poviztra. This was followed in December 2025 by the launch of Ozempic, primarily approved for Type-2 diabetes but widely prescribed for its additional benefits in weight reduction and cardiovascular risk management.

Alongside injectables, Novo Nordisk already markets Rybelsus, the oral formulation of semaglutide for diabetes, making it one of the few pharmaceutical companies in India with both injectable and oral GLP-1 options.

Portfolio Depth Strengthens Long-Term India Opportunity

With obesity and diabetes rates rising steadily across India, Novo Nordisk’s diversified GLP-1 portfolio positions the country as a long-term growth driver rather than a short-term volume play. The company’s ability to serve patients across different treatment formats has helped it build early leadership in a market that is still in its adoption phase.

This strategic depth has also allowed Novo Nordisk to navigate pricing sensitivity and prescribing patterns more effectively than competitors with narrower offerings.

Global Restructuring Reflects a Strategic Reset

Globally, the company’s slower growth prompted what Novo Nordisk described as a “company-wide transformation.” As part of this effort, the drugmaker cut approximately 9,000 jobs, or around 10% of its workforce, during 2025.

The restructuring is aimed at reallocating resources toward high-priority obesity and diabetes initiatives. Novo Nordisk expects the measures to generate annual savings of nearly ₹96,000 crore (DKK 8 billion) starting in 2026.

Competition Intensifies in the Obesity Drug Market

Despite retaining a commanding 59.6% share of the global branded obesity market, Novo Nordisk acknowledged that competition is accelerating rapidly. In a joint statement, Chairman Lars Rebien Sørensen and CEO Maziar Mike Doustdar noted that nearly every major pharmaceutical company now views obesity treatment as a strategic priority.

The company cautioned investors that it is unlikely to return to the extraordinary growth rates of recent years, citing pricing pressure, increased competition, and market saturation in developed economies.

Patent Expiry Seen as an Opportunity, Not a Threat

Novo Nordisk also addressed concerns around the upcoming loss of exclusivity for semaglutide in select international markets. Rather than framing this as a risk, the company described patent expiries as “stepping stones to broader access.”

While generic competition is expected to expand patient access, Novo Nordisk plans to defend its leadership through higher-dose versions, oral innovations, and next-generation obesity treatments currently in development.

Financial Snapshot for 2025

• Global net sales: DKK 309,064 million (approximately ₹37.1 lakh crore)
• Operating profit: DKK 127,658 million (around ₹15.3 lakh crore), down 0.5% year-on-year
• APAC sales growth: 19% reported, 25% at constant exchange rates

Outlook: Slower Growth, Stronger Foundations

While Novo Nordisk’s global growth has clearly moderated, the company’s performance in India and APAC highlights a shifting centre of gravity for the obesity and diabetes drug market. As Western markets mature, emerging economies are increasingly driving volume, access, and long-term demand.

The next phase of Novo Nordisk’s journey may be less explosive, but it appears more diversified, resilient, and globally balanced than ever before.