Novo Nordisk posts first Ozempic sales decline in greater China as competition intensifies

Summary

Novo Nordisk has recorded its first-ever drop in Ozempic sales in greater China, with revenue falling 7% in 2025 to about 5.4 billion Danish crowns ($853 million). The decline highlights intensifying competition from domestic and international rivals and growing pricing pressure in one of the drugmaker’s most important markets outside the United States.

Novo Nordisk has reported its first slowdown in Ozempic sales across mainland China, Hong Kong and Taiwan, marking a turning point in a region that has delivered years of strong growth since the drug’s approval in 2021.

The reversal comes as China’s pharmaceutical market becomes increasingly competitive, with new diabetes and weight-related therapies gaining regulatory approvals and broader insurance coverage.

A key market shows strain

Greater China is Novo Nordisk’s second-largest market after the U.S., making the slowdown a significant signal for investors.

Earlier this week, the Danish drugmaker warned that earnings could come under pressure amid what it described as “unprecedented” pricing competition, a sharp contrast to years of double-digit growth.

The latest sales dip underscores how China’s healthcare cost reforms — combined with a surge of domestic biotech innovation — are reshaping the competitive landscape for global pharmaceutical companies.

Rivals gain ground

Several new treatments are now challenging Ozempic’s dominance in China’s rapidly expanding diabetes market, including:

• Eli Lilly’s Mounjaro
• Innovent Biologics’ mazdutide
• Guangzhou Innogen Pharma’s efsubaglutide alfa

Last month, both Lilly’s and Innovent’s drugs were added to China’s national health insurance reimbursement list, significantly improving patient access and intensifying price competition.

Another domestic rival, Sciwind Biosciences, has also recently secured regulatory approval for its diabetes treatment, adding further pressure on Novo’s market share.

Novo remains cautiously confident

Despite the setback, Novo Nordisk says long-term growth potential in China remains intact.

Market penetration for Ozempic is still relatively low compared with Western markets — suggesting room for expansion even as rivals multiply.

“We have a very strong market position with Ozempic, still low penetration, and competition is more entering at this point in time,”
said CFO Karsten Munk Knudsen.

Company data shows the greater China region accounted for 14% of Novo Nordisk’s international sales outside the U.S. in 2025, underscoring its strategic importance.

Why This Matters

China has been one of the most profitable growth engines for global drugmakers — but that era of easy expansion is fading.

The Ozempic slowdown signals:

• Rising power of Chinese biotech competitors
• Stronger government control over drug pricing
• Faster erosion of premium margins for Western firms

If competition continues accelerating, multinational pharmaceutical companies may face lower growth and thinner profits across Asia’s largest healthcare market.

FAQs

Q1. Why did Ozempic sales fall in China?

Mainly due to intensifying competition from newly approved domestic and foreign diabetes drugs and increasing pricing pressure.

Q2. How large was the decline?

Sales fell 7% in 2025 to around 5.4 billion Danish crowns ($853 million).

Q3. Which companies are challenging Novo Nordisk?

Key rivals include Eli Lilly, Innovent Biologics, Guangzhou Innogen Pharma and Sciwind Biosciences.

Q4. Why is China so important for Novo Nordisk?

Greater China is its second-largest market after the U.S. and a major long-term growth driver.

Q5. Is Ozempic losing relevance in China?

Not yet — Novo says market penetration remains low, leaving room for future growth despite rising competition.