UBS Finds Over A Million Americans Using "Unapproved" Compounded GLP-1s

Novo Nordisk shares have experienced a significant sell-off, marking their largest weekly decline ever. This downturn follows a surprise reduction in the company's full-year sales and profit guidance. The primary driver for this downward revision is attributed to softening demand for Wegovy. Compounded GLP-1 alternatives are identified as a major headwind impacting Wegovy sales. Institutional investors are now debating whether this sharp correction presents a compelling entry point for the stock. Analysts at UBS have placed their rating and price target under review due to the magnitude of the guidance cuts. A key concern for Novo Nordisk is the continued prevalence of unapproved compounded semaglutide products in the U.S. market. These compounded versions are significantly cheaper than branded Wegovy, impacting Novo's potential patient pool. Novo Nordisk is actively pursuing legal strategies to combat these counterfeit drugs and protect patients. A resolution to the issue of widespread compounded GLP-1 availability could serve as a potential bottom for Novo's stock.