Shares of Novo Nordisk traded sharply lower on Tuesday, falling more than 6% in US markets, after the Danish pharmaceutical giant released second-quarter results that showed softer-than-expected sales of its oral Wegovy weight-loss treatment. The decline came despite the company narrowing its full-year sales and profit outlook, as investors focused on the competitive pressures and pricing dynamics in the GLP-1 market.
Guidance improved, but US headwinds persist
Novo Nordisk now expects full-year adjusted sales to decline between 6% and flat at constant exchange rates, an improvement from its previous forecast of a 4% to 12% drop. The company also revised its adjusted operating profit outlook to a decline of up to 6%, better than the earlier guidance. However, management cautioned that US sales are likely to fall due to current prescription trends for GLP-1 medicines, heightened competition, reduced Medicaid coverage for obesity treatments, and lower realized prices following its “most favored nation” pricing agreement with the Trump administration.
Oral Wegovy sales miss estimates
In the second quarter, Novo Nordisk reported adjusted sales of 78.49 billion Danish kroner (approximately $12.1 billion), representing 7% growth at constant exchange rates. Adjusted operating profit rose 11% to 33.39 billion kroner. The oral version of Wegovy generated 3.22 billion kroner in quarterly sales, slightly below the 3.27 billion kroner analysts had anticipated, according to StreetAccount.
CEO Mike Doustdar highlighted the rollout progress, noting that the pill has surpassed 5 million prescriptions since its January launch in the US. He described Wegovy as a “key growth driver” for the company. The oral formulation has since expanded to the UK and the UAE.
Competitive landscape intensifies
Novo Nordisk continues to vie with Eli Lilly in the rapidly expanding GLP-1 market for obesity and diabetes treatments. Lilly’s Zepbound and Mounjaro have gained market share, prompting Novo to bolster its portfolio with the oral pill and a higher-dose injectable version. Despite the earnings beat, some analysts said investors were hoping for stronger oral Wegovy sales.
“We think the lack of upside for Wegovy pill vs. models has stock down,” said Jared Holz, healthcare sector specialist at Mizuho Securities, in a CNBC report. “But in totality this is an improvement from earlier in the year in terms of trajectory.”
Investor focus shifts to upcoming Lilly results
Novo’s earnings release comes just ahead of Eli Lilly’s quarterly report, with investors closely monitoring both companies for signs of sustained demand in the GLP-1 space. Novo has also sought to diversify beyond obesity and diabetes, though recent efforts have faced setbacks. Last week, shares fell after an experimental heart drug failed to reduce major adverse cardiovascular events in a late-stage trial.
For now, investor sentiment remains tied to the performance of Novo’s semaglutide franchise. The latest results underscore both the continued growth of Wegovy and the challenges posed by pricing pressure and intensifying competition in the US market. As the GLP-1 race heats up, market participants will be watching for any shifts in market share or pricing dynamics that could affect future earnings.
This article is for informational purposes only and does not constitute financial advice.
