Novo Nordisk reported better-than-expected quarterly results, prompting an increase in its full-year guidance, which now anticipates adjusted sales and operating profit to decline by 6% to flat at constant exchange rates. This is an improvement from the previous forecast of a decline between 4% and 12%.
However, analysts remain skeptical about the sustainability of growth, particularly as competition from Eli Lilly's Zepbound and Mounjaro intensifies. Sales of obesity drugs were generally in line with expectations, but the oral version of Wegovy slightly missed forecasts.
Additionally, mixed results from the next-generation weight-loss drug CagriSema have raised further doubts about Novo's pipeline. Despite the positive guidance, Citi analysts remarked that there was 'nothing to inspire,' and Jefferies noted that the guidance increase offered little potential for upward revisions in consensus sales estimates.
As a result, Novo's American depositary receipts fell 6% in after-hours trading following the earnings report.
The company is under pressure to restore investor confidence, especially as its shares have dropped nearly 70% from their mid-2024 peak, despite some recovery this year due to the successful launch of the Wegovy pill, which has seen over 5 million prescriptions in the U.S. since its launch.
CEO Mike Doustdar emphasized that the Wegovy product portfolio is crucial for growth, particularly with the rollout of the high-dose version and early uptake in international markets