Core Points
- Novo Nordisk's latest forecast: Based on a fixed exchange rate, the adjusted revenue and operating profit growth range is between -2% and +2%.
- Boosted by financial report data, the stock's pre-market increase exceeded 6%.
- After a tumultuous year and being overtaken by rival Eli Lilly, this Danish weight-loss drug company is now striving to regain its growth momentum.
Before the market opened on Wednesday, Novo Nordisk announced quarterly financial results that exceeded market expectations. Global sales of GLP class drugs continued to rise, and the sales of the oral version of Wegovy far exceeded analysts' forecasts, driving the stock up by more than 6% at the start of trading.
The company has updated its annual performance guidance: based on a fixed exchange rate, the adjusted revenue and adjusted operating profit growth rates are expected to fall within the range of -2% to +2%. The company had previously raised its guidance in August, with earlier forecasts for annual revenue and operating profit growth rates ranging from -6% to flat.
In the third quarter, revenue amounted to 79.2 billion Danish kroner (equivalent to 11.9 billion US dollars), a year-on-year increase of 4% at a fixed exchange rate, exceeding the consensus forecast of 73.6 billion Danish kroner from FactSet; adjusted operating profit ( EBIT ) was 31.7 billion Danish kroner, while market expectations were for 28.6 billion Danish kroner.
This Danish weight loss drug company has been in a tumultuous situation over the past year, having been overtaken by its competitor Eli Lilly in the US market. Now, it is making efforts to turn the situation around.
GLP Lantus was the first weight loss drug to be introduced to the market by Novo Nordisk, and currently about 10% of Americans are using this type of medication. However, the company has faced weak subsequent growth, while its main competitor, Eli Lilly, quickly caught up and even overtook it in this largest U.S. market. There are also several other pharmaceutical companies that are eyeing this lucrative market with great interest.
Investors are currently highly focused on the next-generation weight-loss drugs of two companies, paying attention to whether they can treat obesity-related complications such as heart and kidney diseases, sleep apnea, and arthritis.
Novo Nordisk stated that this year, the newly launched oral Wegovy achieved sales of 5.4 billion Danish kroner, while analysts expected around 4.5 billion Danish kroner. The sales of the injectable Wegovy and the diabetes drug Ozempic were 20.4 billion Danish kroner and 29.7 billion Danish kroner respectively, both exceeding market expectations.
Novo Nordisk also announced that Carsten Monk Knudsen, who has been in the role for 27 years and has served as Chief Financial Officer for 9 years, will leave his position at the end of 2026. Luigi La Colte, currently the Chief Financial Officer of the Swiss dermatology pharmaceutical company Galderma, will take over the position at CFO.
The recovery process continues.
Just a week before Novo Nordisk released its financial report, Eli Lilly had just announced its third-quarter results. Thanks to the strong demand for the two diabetes and weight loss injectables Mounjaro and Zepbound, Eli Lilly's performance also exceeded expectations. However, Eli Lilly's oral weight loss drug Foundayo did not sell as well as analysts expected this quarter, despite CFO stating that the total number of prescriptions for this drug and the number of new patients in the United States doubled compared to the previous quarter.
The stock of Novo Nordisk listed in Copenhagen has fallen by approximately 17% this year. In September, due to the company's performance statements failing to reassure investors, the stock tumbled by nearly 8% in a single day.
On Wednesday morning, Mikael Dusdal, CEO of Novo Nordisk, told the media that after continuously raising its annual performance forecasts, the company's recovery momentum is strengthening. However, he also reminded that a single quarter's impressive performance does not yet prove that the company has completed a complete turnaround.
"The turnaround and recovery of a company cannot be judged solely by one data point or a single quarter's good results," said Dusdal when discussing the gradual improvement in the annual guidance. "This gives me confidence that we are on the right path, but we still need to continue to work hard and wait for the full recovery to take hold," he added.
Responsible Editor: Guo Mingyu
