Novo Nordisk reported better-than-expected adjusted sales and operating profit in the second quarter, prompting the Danish pharmaceutical company to raise its full-year guidance. The firm now expects adjusted sales and operating profit to decline between 6% and flat at constant exchange rates, an improvement from prior guidance of a decline ranging from 4% to 12% for both metrics.
Despite the improved outlook, investor sentiment remained cautious. Adjusted sales rose 7% at constant exchange rates in the second quarter while adjusted operating profit increased 11%, with volume gains partially offset by lower prices. Copenhagen-listed shares fell roughly 5% following the quarterly report, with American depositary receipts declining 6% in late trading. Analysts expressed skepticism about the sustainability of the results, noting that the beat appeared driven by temporary factors including rebate adjustments rather than fundamental business strength.
CEO Mike Doustdar sought to reassure investors that the company’s strategy was generating positive outcomes despite pricing headwinds. He emphasized that the Wegovy pill portfolio, which includes both injectable and oral formulations, was performing well and profitably. The oral formulation has accumulated more than 5 million prescriptions since its launch, with approximately 80% of pill users having no prior experience with GLP-1 treatments, suggesting market expansion rather than cannibalization of injectable sales.
Doustdar highlighted accelerating uptake of the oral formulation, noting that the most recent 1 million prescriptions were gained in four weeks compared to eleven weeks for the initial 1 million prescriptions. He characterized the competitive landscape as challenging but expressed confidence in the product’s trajectory, stating he envisioned the obesity market becoming predominantly pill-based in the future.
Competitive pressures from Eli Lilly’s weight-loss medications continue to weigh on investor confidence. The company’s shares have declined substantially from mid-2024 peaks, though they have recovered some ground following the Wegovy pill launch. Analysts raised questions about the company’s longer-term pipeline after mixed clinical results for the next-generation weight-loss drug CagriSema were reported, reinforcing broader concerns about Novo’s sustainable growth prospects.
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