Wall Street Breakfast Podcast: Novo Nordisk Trims Outlook

Listen below or on the go on Apple Podcasts and Spotify

Novo Nordisk (NVO) plans cost cuts amid slower Wegovy growth outlook. (00:22) Disney’s (DIS) ESPN to acquire NFL media assets. (01:35) OpenAI reportedly exploring share sale at $500B valuation. (03:14)

This is an abridged transcript.

Novo Nordisk (NVO) is cutting costs.

The Danish drugmaker says it is facing increasing competition from Eli Lilly (LLY) and generic versions of its obesity drug Wegovy, with slower growth expected for its treatments in the second half of the year.

Novo (NVO) expects sales growth to be 8-14%, and operating profit growth is now likely to be 10-16% at constant exchange rates. This is down from 13 to 21% and 16-24% respectively.

“The lowered sales outlook for 2025 is driven by lower growth expectations for the second half of 2025, reflecting the persistent use of compounded GLP-1s, slower-than-expected market expansion, and competition,” said Lars Fruergaard Jørgensen, president and CEO.

Novo Nordisk said it continues the global rollout of Wegovy to more markets and invests in commercial activities towards driving market penetration for both Wegovy and Ozempic.

Investors wiped off some $95 billion from Novo Nordisk’s market value last month after it issued a profit warning and named a new CEO.

Walt Disney’s (NYSE:DIS) ESPN has reached a non-binding deal with the National Football League (NFL) to acquire key NFL media assets in exchange for a 10% equity stake in ESPN.

Under the deal, ESPN will take over ownership and operations of NFL Network and fully integrate it into its streaming and pay-TV platforms. It will also gain broad rights to the RedZone brand, distribute the RedZone Channel to pay TV providers, and merge NFL Fantasy with ESPN Fantasy to create the NFL’s official season-long fantasy game.

In total, ESPN’s platforms will license three additional NFL games per season to air on NFL Network and shift four games from its schedule to NFL Network, which will continue airing seven games each season.

The move is aimed at strengthening content offerings for ESPN’s upcoming direct-to-consumer streaming platform.

Financial terms were not disclosed, and the transaction is subject to regulatory approval. The Athletic, which first reported on the potential deal last week, cited sources suggesting it could be worth billions of dollars.

In addition to the sale of NFL Network, the NFL and ESPN are also entering into a second non-binding agreement, under which the NFL will license to ESPN certain NFL content and other intellectual property to be used by NFL Network and other assets.

Disney CEO Robert Iger said in a statement that this opens up “an even more compelling experience for NFL fans.”

OpenAI is in early discussions for a potential secondary share sale that would allow current and former employees to cash out, potentially valuing the company at around $500 billion.

According to multiple published media reports, the Microsoft-backed (NASDAQ:MSFT) firm aims to raise several billion dollars through the sale, with existing investors like Thrive Capital reportedly interested in buying employee-held shares.

Separately, OpenAI is also working on a $40 billion primary funding round led by SoftBank (OTCPK:SFTBY) at a $300 billion valuation, intended to support AI research, infrastructure expansion, and product development.

What’s Trending on Seeking Alpha:

Super Micro sinks as Q4 results, Q1 outlook falls short

Nvidia reiterates its AI chips don’t have backdoors or kill switches, urges against location verification

AMD dips after earnings; revenue beats expectations, but data center growth slows

Catalyst watch:

• Eledon Pharmaceuticals (ELDN) will present updated clinical data at the World Transplant Congress from its ongoing open-label Phase 1b study evaluating tegoprubart for the prevention of rejection in subjects undergoing kidney transplantation.

• McDonald’s (MCD) will hold its earnings call at 8:30am. Analysts think the company’s update on consumer trends could have implications across the restaurant sector. Lamb Weston (LW) will also be watched closely since the company derives 15% of its revenue from McDonald’s and trades in tandem with it 75% of the time in the week after earnings.

Dow, S&P and Nasdaq futures are in the green. Crude oil is up 1% at $66/barrel. Bitcoin is flat at $114,000. Gold is down 0.4% at $3,365.

The FTSE 100 is up 0.3% and the DAX is up 0.3%.

The biggest movers for the day premarket:Lucid Group’s (NASDAQ:LCID) -7% — Shares plunged after the company missed Q2 financial expectations and lowered its full-year production forecast.

On today’s economic calendar:

• 2:00 pm Federal Reserve Board Governor Lisa Cook and Federal Reserve Bank of President Susan Collins will participate in a discussion on the U.S. and global economy before the “A Central Bank Perspective on the Evolving Global Landscape” event organized by the Federal Reserve Bank of Boston.

• 3:10 pm San Francisco Federal Reserve Bank President Mary Daly will speak and participate in a moderated conversation before the 2025 Anchorage Economic Summit hosted by the Anchorage Economic Development Corporation.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.