Novo Nordisk on Wednesday reported first-quarter earnings that beat expectations, driven by continued demand for its blockbuster obesity drug Wegovy, even as surging competition from US drug compounders prompted the Danish pharmaceutical giant to cut its full-year sales outlook.

The maker of Wegovy and diabetes drug Ozempic said net sales in the first quarter rose 18% to 78.09 billion Danish kroner ($11.15 billion), slightly below analysts’ estimates.

Sales of Wegovy jumped 83% from a year earlier to 17.36 billion kroner. However, the figure fell short of the 18.51 billion kroner forecast in a FactSet poll.

The company lowered its full-year sales growth forecast to between 13% and 21% at constant exchange rates, down from a previous range of 16% to 24%.

Operating profit growth is now projected at 16% to 24%, versus the prior 19% to 27%.

Novo’s CEO, Lars Fruergaard Jørgensen, blamed the downgrade on the rapid rise of compounded alternatives in the United States.

“Compounders took a part of our business away,” Jørgensen said in an interview with CNBC, referring to US-based pharmacies that mix and sell their own versions of semaglutide, the active ingredient in Wegovy and Ozempic.

“We now expect that compounding will be knocked off, so to say, and we get that business growth going forward.”

Shares of the company were up nearly 6% in London on Wednesday morning following the earnings announcement and optimistic commentary from management.

Invezz takes a look at how a shortage of obesity drugs created a multi-billion dollar industry of its compounded copycats.

Source: Bloomberg

Compounders take a bite out of brand-name sales

For over two years, Novo Nordisk and Eli Lilly have been grappling with a surge in compounding, an old pharmaceutical practice that became a multibillion-dollar industry after the FDA declared shortages of GLP-1 drugs like Wegovy and Zepbound in 2022.

That ruling allowed pharmacies to produce semaglutide-based treatments independently, often at a fraction of the price.

Some patients reportedly paid under $200 per month for compounded versions.

Eli Lilly and Novo Nordisk now typically charge around $500 per month for their brand-name weight-loss drugs to patients paying out of pocket instead of using insurance, but until recently, patients had to pay as much as $1,300 a month.

Compounded medications do not undergo clinical trials or FDA approval and are considered to carry a higher risk, though some providers insist they meet safety and quality standards.

Novo and Lilly have been under pressure as telemedicine platforms and medical spas capitalized on the demand, with companies like Hims & Hers reporting over $225 million in revenue tied to weight-loss offerings, primarily from compounded drugs.

Last month, Eli Lilly sued four compounding pharmacies, alleging they sold unauthorised products containing tirzepatide, the active ingredient in its blockbuster diabetes and weight-loss drug Mounjaro.

Booming market, murky oversight

The rise of Ozempic marked a turning point for compounding pharmacies, drawing in more patients, revenue, and attention than ever before.

This booming business took off in 2022 after the FDA declared a shortage of drugs from Novo Nordisk and Eli Lilly.

Under federal law, compounding is permitted during such shortages or when a patient’s needs cannot be met by commercially available medications.

In many cases, even those with diabetes turned to compounders due to the lack of availability of the branded options.

Compounded drugs are typically made by mixing active pharmaceutical ingredients, usually imported in powder form from China, with additives like sterile water and stabilizers.

These drugs bypass the rigorous FDA approval process and clinical trials, which have raised safety concerns.

While the FDA does regulate compounding, oversight is limited.

The agency’s compounding division is small and has long lacked the resources to keep pace with the explosion in demand, leading to what critics call insufficient enforcement.

Despite this, compounders insist their products are safe.

A trade group representing large compounding pharmacies estimates millions of Americans are currently receiving weight-loss treatments through compounding, potentially rivalling the market share of brand-name drugs.

Will FDA’s crackdown really end compounding?

In February, the FDA declared the drug shortages over and set deadlines for compounders to cease production.

Small pharmacies had until April 22 to stop offering compounded Wegovy; larger compounders have until May 22.

“Following the US FDA removal of semaglutide injectables from the FDA drug shortage list, the sales outlook assumes a reduction in patients on compounded GLP-1 treatment during the second half of 2025,” Novo said.

The company has also reiterated its intention to pursue legal action against compounders that continue to distribute copycat versions of its products unlawfully.

While the FDA’s move is expected to reduce compounded drug sales significantly, experts say enforcement challenges remain.

“We’re about to see just how creative the compounding industry can get,” said Lindsay Allen, a health economist at Northwestern University, in a New York Times report, noting that some compounders are already exploring ways to tweak formulations to evade crackdowns.

While Novo Nordisk remains confident that branded sales will recover as regulatory pressure mounts on compounders, industry watchers caution that the market for unapproved versions of weight-loss drugs may not vanish entirely.

Some compounders are already altering doses or adding vitamins in a bid to exploit legal gray areas, raising questions about how effective the FDA can be in curbing the practice.

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Orsted announced on Wednesday that it will no longer proceed with the construction of a significant offshore wind farm in Britain. 

The company attributed this decision to a worsening global business climate for renewable energy projects, according to a Reuters report. 

This move represents a setback for the UK’s goals to reduce carbon emissions from its energy sources.

The Denmark-based company has experienced an approximately 80% decline in its market value since its 2021 high. 

This decrease can be attributed to increasing costs, supply chain disruptions, and diminished investor confidence stemming from opposition to offshore wind by US President Donald Trump.

Hornsea 4 project cancelled

Cancelling the Hornsea 4 offshore wind farm, a major global project, could cost Orsted up to 5.5 billion Danish crowns ($837.85 million) in break fees and write-downs, according to the report. 

The company stated that the anticipated value of the project has decreased.

Orsted CEO Rasmus Errboe said in a statement:

The combination of increased supply chain costs, higher interest rates, and increased execution risk has deteriorated the expected value creation of the project.

Appointed CEO in January, Errboe is tasked with restoring investor confidence and restructuring the company to align with the evolving offshore wind sector.

“We believe the decision was needed to ensure we only bring forward assets which we are confident will deliver the value that we would like to see,” Errboe was quoted in the report.

The Hornsea 4 project had not yet reached a final investment decision. 

However, Britain’s Department for Energy Security and Net Zero expressed hope for a potential revival of the project plans.

“We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe, and we will work with Orsted to get Hornsea 4 back on track,” a spokesperson was quoted by Reuters in the report.

Trump proves negative for shares

Orsted shares fell by more than 2% on Wednesday. However, their value has decreased by approximately one-third since Trump’s re-election in November of the previous year.

“The cancellation of Hornsea 4 comes as a surprise but highlights stronger discipline under the new CEO,” Bernstein said in a research note.

Despite Trump’s support for fossil fuels, Britain, Orsted’s typically stable growth region and the largest offshore wind market outside China, is focused on decarbonising its electricity sector to combat global warming.

In September of the previous year, Orsted was awarded a 2.4 gigawatt contract for its Hornsea 4 project. 

This offshore wind farm is situated off the coast of Yorkshire in northern England. 

The contract was secured through a British renewables power auction, the purpose of which was to bolster the project’s viability.

Errboe said:

We believe that the UK government is doing everything right in terms of the framework.

Operational headwinds and financial performance

The industry has faced headwinds recently due to increasing costs, supply chain disruptions, elevated interest rates, and the more recent emergence of trade tensions.

Orsted announced on Wednesday that US tariffs on steel, aluminum, and related items have inflated the costs of its two US offshore wind projects. 

This has led to a 1.2 billion crown impairment. However, the company affirmed that construction will proceed as planned.

For the first quarter of the year (January to March), the company reported a profit of 8.6 billion Danish crowns before interest, tax, depreciation, and amortisation, excluding new partnerships and cancellation fees.

Analysts had generally anticipated an EBITDA of 7.88 billion crowns, according to a company poll.

Orsted maintained its 2025 forecast, which excludes new partnerships and cancellation fees. However, this outlook did not factor in the expenses associated with the Hornsea 4 cancellation.

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Shares of Walt Disney Co. surged early Wednesday after the entertainment giant delivered stronger-than-expected earnings and unveiled plans to build a new theme park in Abu Dhabi—marking its first major expansion into the Middle East.

The stock jumped 10% to $101.43 in early trading, a notable rebound for a company whose shares had declined more than 17% so far this year while rivals Netflix and Comcast are up 28% and down 8.1%, respectively.

For the quarter ended March 31, Disney reported adjusted earnings of $1.45 per share, exceeding Wall Street’s expectations of $1.19, according to data from FactSet.

Revenue rose 7% year-on-year to $23.6 billion, also ahead of the consensus estimate of $23.1 billion.

Disney’s earnings were bolstered by solid results across its key business units, particularly its experiences segment, which includes theme parks, cruises, and resorts, and its streaming platforms.

“Our outstanding performance this quarter-with adjusted EPS up 20% from the prior year, driven by our entertainment and experiences businesses-underscores our continued success building for growth and executing across our strategic priorities,” said Disney Chief Executive Robert Iger.

“Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”

This offered reassurance to investors who had grown concerned about the potential impact of President Donald Trump’s proposed tariffs on consumer sentiment and discretionary spending.

Experiences and streaming drive growth

Revenue from Disney’s experiences segment rose 6% to $8.9 billion, beating analyst expectations of $8.7 billion.

The company reported increased attendance and higher spending at its US parks, though international operations saw a dip in operating income.

The expansion into Abu Dhabi is part of a broader strategy to invest approximately $60 billion over the next decade into the experiences segment, which now accounts for the majority of Disney’s operating income.

In addition to new parks, the company is also ramping up investments in cruise lines and ride development at its existing locations.

Streaming, another pillar of Disney’s business, also posted a strong performance.

Disney+, Hulu, and ESPN+ together added 2.5 million subscribers during the quarter.

Operating profit for the streaming division rose to $336 million, a significant jump from $47 million a year ago.

The improved profitability comes after years of heavy investment in content and technology to build out the platforms.

Disney theme park in Abu Dhabi: a “capital light” way to enter the market

Shortly after posting results, Disney revealed plans to build a new theme park in Abu Dhabi, a move that expands its global footprint to a seventh location.

The park will be located on Yas Island, already home to attractions like Ferrari World and Warner Bros. World, and will be developed in partnership with Miral, a state-backed company known for its work on large-scale entertainment projects in the region.

The company did not disclose a launch date or the scope of the park, but called the venture its most advanced and interactive yet.

The resort will be designed by Disney Imagineers and operated under Disney’s supervision, while Miral will handle financing and construction.

In return, Disney will receive a share of the park’s revenue, though specific financial terms were not made public.

“This groundbreaking resort destination represents a new frontier in theme park development,” said Josh D’Amaro, chairman of Disney’s experiences division.

“It is a testament to the strength of our brand and our confidence in the long-term demand for immersive entertainment.”

CEO Bob Iger described the Abu Dhabi project as a capital-light way to enter a new market, which allows Disney to preserve resources for other investments.

He noted that the Middle East has long shown a strong affinity for Disney’s characters and content, but that the company had so far “just scratched the surface” in the region.

Cautious optimism despite upbeat forecast

Despite the earnings beat, Disney maintained a cautious tone about the rest of the fiscal year.

It raised its full-year earnings guidance to $5.75 per share, above the analyst forecast of $5.43.

However, the company warned that it continues to monitor “macroeconomic developments for potential impacts to our businesses,” citing ongoing uncertainty about the broader operating environment.

The stock’s rise on Wednesday was a welcome sign for shareholders, many of whom have been frustrated with the company’s underperformance.

While Netflix has rallied 28% this year, Disney has struggled amid concerns over consumer spending, international park recovery, and the high costs associated with its streaming operations.

Still, the latest results and the announcement of a new park suggest that Disney is positioning itself for long-term growth.

The company’s ability to leverage its intellectual property across platforms—from theme parks to streaming to merchandise—remains a competitive advantage as it navigates an uncertain economic climate.

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US stocks moved higher on Wednesday as investors tracked developments in trade negotiations and awaited the Federal Reserve’s interest rate decision later in the day.

The Dow Jones Industrial Average rose 225 points, or 0.5%, while the S&P 500 added 0.4% and the Nasdaq Composite gained 0.3%.

Disney shares jumped over 10% following a stronger-than-expected earnings report and a surprise increase in streaming subscribers. In contrast, Uber shares fell roughly 6% after the company missed revenue expectations.

Markets were buoyed by news that Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will meet with Chinese officials in Switzerland this week, which was seen as a positive step following recent trade tensions triggered by President Trump’s tariff hikes.

Attention now turns to Fed Chair Jerome Powell’s post-meeting press conference, with investors looking for guidance on the path of interest rates.

US-China trade negotiations

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet with Chinese officials in Switzerland this weekend to discuss trade and economic issues, their offices confirmed Tuesday evening.

Bessent told Fox News the focus would be on easing tensions rather than negotiating a comprehensive trade deal, stating, “My sense is that this will be about de-escalation, not about the big trade deal… But we’ve got to de-escalate, before we can move forward.”

Current US tariffs on Chinese imports stand at 145%, following Trump’s recent hike in response to retaliatory measures from Beijing.

The development followed President Trump’s comments during a meeting with Canadian Prime Minister Mark Carney, where he said, “we don’t have to sign deals” with other countries, “they have to sign deals with us.”

Eyes on the Fed meeting

The Federal Reserve is set to announce its interest rate decision on Wednesday afternoon.

The CME FedWatch Tool shows a 96.8% probability that rates will be held steady.

The meeting follows recent criticism of Powell from President Trump, who previously suggested his removal, though later clarified he had no intention of firing the Fed chief.

With no updates scheduled for the Fed’s economic projections or its dot plot at this meeting, investors will focus on the post-meeting statement and Chair Jerome Powell’s press conference for insight into the central bank’s policy outlook.

“The market is still pricing in more than three rate cuts this year, likely beginning in July,” said BofA economist Claudio Irigoyen.

However, he noted that given the Fed’s dual mandate, delaying cuts to focus on inflation control and maintaining policy credibility would be preferable—unless economic activity deteriorates significantly.

Concerns about inflation are intensifying as the US pursues more protectionist trade measures, including a 145% tariff on Chinese imports.

Stocks initially fell after President Trump’s April 2 tariff announcement but have since rebounded, helped by a 90-day pause on some of the higher duties.

“Stagflation seems to be the hardest word … But everything keeps pointing in that direction,” Irigoyen wrote, adding that elevated inflation combined with weakening growth could push the economy into a stagflationary phase.

That would further complicate the Fed’s policy decisions, making its approach increasingly dependent on how the data evolves.

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The $TRUMP token has seen a sharp reversal in fortune.

Once surging on the back of a high-profile dinner invitation from President Trump himself, the meme coin is now under intense scrutiny from regulators as losses mount for the majority of holders.

Chainalysis data shared with CNBC confirms that while the top 58 wallets made a combined $1.1 billion in profit, over 764,000 wallets that bought into the hype are now in the red.

The surge in interest, fuelled by promises of exclusive access and political proximity, has raised deeper concerns about financial transparency, insider gains, and foreign influence within the crypto fundraising ecosystem.

$TRUMP token hype driven by Trump-backed dinner promise

Interest in the TRUMP token intensified when Donald Trump teased an exclusive gala dinner for the top 220 token holders.

The $TRUMP token has experienced extreme volatility in recent weeks, driven largely by political association and an exclusive promotional campaign.

Initially tied to the prospect of Donald Trump’s second presidential term, the token gained renewed momentum after a May 22 event was announced, offering top holders access to a black-tie-optional dinner with the president at his Trump National Golf Club in Washington, D.C.

Fight Fight Fight LLC. and CIC Digital LLC., the entities controlling most of the token’s supply, have remained largely opaque, though their influence over price movements is evident.

The dinner promotion triggered a sharp spike in demand, particularly among speculative traders, pushing the token’s market cap to $2.7 billion before falling back to roughly $2.17 billion.

Despite this inflow, returns have been highly uneven, with price swings amplified by broader market instability and the token’s limited liquidity distribution.

The event, pitched as an elite gathering tied to Trump’s crypto and AI ambitions, triggered a 50% surge in interest.

Chainalysis data shows over 100,000 new wallets have entered the market since April 15, with more than half—54,000—buying in after the event announcement.

$900,000 in trading fees sparks ethics probe

The token’s popularity—and its sharp concentration of profit—has drawn political and regulatory attention.

According to a CNBC report, Trump and close associates generated nearly $900,000 in trading fees over a 48-hour period following the announcement of the dinner.

The Senate’s Permanent Subcommittee on Investigations has since opened an inquiry into potential conflicts of interest.

At the heart of the probe are concerns about token ownership, financial disclosures, and ties to foreign entities.

Investigators are focusing on whether promotional activity linked to the dinner, combined with anonymous crypto flows, may have enabled undisclosed contributions to Trump-affiliated fundraising entities.

The probe is also looking into World Liberty Financial, another Trump-linked crypto venture.

Its connections to overseas backers, including a state-affiliated Emirati fund and controversial crypto figure Justin Sun, are under particular scrutiny.

Crypto and AI fundraiser raises transparency concerns

Separate from the $TRUMP token dinner, Trump’s super PAC is reportedly offering another high-priced event—this time called the “Crypto & AI Innovators” dinner.

Entry costs $1.5 million per person. However, there is no public requirement to disclose the identities of attendees.

While political donations in fiat currency are subject to disclosure rules, payments made in crypto are not.

This gap is raising fresh concerns about hidden influence and a lack of transparency.

Given the current scrutiny of the $TRUMP token and World Liberty Financial, watchdog groups have flagged the risk of foreign or anonymous interests gaining outsized access to political decision-makers through crypto-focused events.

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