Novo Nordisk reported adjusted sales and operating profit that exceeded expectations and raised its full-year guidance, though investor sentiment turned negative following the announcement. CEO Mike Doustdar emphasized that the company’s pill formulation of Wegovy was performing well and driving profitable growth, noting that the strategy would not be producing positive financial results if the oral medication were not succeeding.
The company reported adjusted sales rose 7% at constant exchange rates in the second quarter, while adjusted operating profit increased 11%, though these gains were partly offset by lower prices. Novo updated its full-year outlook to expect adjusted sales and operating profit to be down 6% to flat at constant exchange rates, an improvement from previous guidance of a decline between 4% and 12%. The Wegovy pill has achieved more than 5 million prescriptions since its launch, and the company noted that approximately 80% of pill users had not previously taken a GLP-1 treatment.
Despite the raised guidance and strong pill performance, market analysts remained skeptical about Novo’s longer-term growth prospects and questioned whether the earnings beat reflected temporary factors such as rebate adjustments. Copenhagen-listed shares fell as much as 5% following the quarterly report, closing 4.3% lower, reflecting ongoing concerns about competition from Eli Lilly’s rival obesity medications Zepbound and Mounjaro. Doustdar acknowledged that the company was seeking a balance between pricing and volume, stating that lower prices were driving strong demand while Novo would continue to adjust pricing as market conditions evolved.
Analysts expressed caution about the company’s future prospects, with some noting the quarterly results offered little to inspire confidence. Questions persisted regarding whether the Wegovy pill could become a sufficiently large growth driver to revive the company’s fortunes and restore investor confidence in its pipeline and execution capability in the challenging U.S. market.
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