Novo Nordisk lifts full-year outlook as Wegovy pill sales beat forecasts
The Danish drugmaker now expects adjusted revenue and operating profit growth of between negative 2% and 2% at constant exchange rates, up from its earlier guidance
Novo Nordisk raised its full-year outlook on Wednesday after third-quarter earnings came in ahead of expectations, helped by sales of its Wegovy pill that beat analyst estimates. The Danish weight-loss drug maker reported quarterly sales of 79.2 billion Danish kroner ($11.9 billion), up 4% year-on-year at constant exchange rates and ahead of FactSet estimates of 73.6 billion kroner. Adjusted operating profit was 31.7 billion kroner, against an expected 28.6 billion.
The company said it now expects adjusted revenue and operating profit growth of between negative 2% and 2% at constant exchange rates for the full year. It previously guided to negative 6% to flat for both metrics, guidance it had already raised in August.
Novo pioneered the GLP-1 weight-loss drugs now used by around 10% of Americans, but has spent the past year losing ground to rival Eli Lilly, which overtook it in the U.S., by far the largest market for the treatments. Several other pharmaceutical companies are also eyeing entry into the market.
The quarter's standout was the Wegovy pill, launched earlier this year, which recorded sales of 5.4 billion kroner against the roughly 4.5 billion kroner analysts had expected. Sales of injectable Wegovy were 20.4 billion kroner and diabetes treatment Ozempic brought in 29.7 billion kroner, both also above expectations.
Attention now centres on the two companies' next-generation weight-loss drugs and whether they can treat conditions linked to obesity, including heart and kidney disease, sleep apnea and arthritis. The article called itself a breaking news story and asked readers to refresh for updates.
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Third-quarter sales of Wegovy pill, injectable Wegovy, and Ozempic (billion kroner)
billion kroner
Wegovy pill sales beat analyst expectations of 4.5 billion kroner. Source: US Top News and Analysis
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Analysis
Why This Matters
Novo Nordisk is trying to halt a year in which it lost its lead to Eli Lilly in the U.S., the largest market for weight-loss drugs, so the raised guidance signals the pill form of Wegovy is finding demand.
The guidance is still for growth of between negative 2% and 2%, meaning the company is not projecting expansion at constant exchange rates even after the improvement.
The result shifts attention to the next generation of obesity drugs, where both companies are racing to show treatments for related conditions such as heart and kidney disease.
Background
Novo Nordisk and Eli Lilly together dominate the market for GLP-1 drugs, a class of medicines developed for diabetes that became blockbuster treatments for weight loss. Novo's Ozempic and Wegovy established that market, before Lilly's competing products gained ground, particularly in the United States. Both companies, and a growing list of other pharmaceutical firms, are now investing in newer drugs that may offer greater weight loss or additional health benefits. Novo's launch of a pill version of Wegovy this year is part of that effort to defend its position.
What to Watch
Whether Novo holds to its raised guidance through the rest of the year, or revises it again at the next update.
Eli Lilly's upcoming results, which will show whether Novo's recovery came at its rival's expense in the U.S. market.
Data on next-generation obesity drugs, and any evidence that they can treat heart, kidney, sleep apnea or arthritis conditions, which investors are watching closely.
Key Perspectives
Investors: are focused on the two companies' next-generation weight-loss drugs and whether they can treat obesity-linked diseases including heart and kidney conditions, sleep apnea and arthritis.
12 claims in this story checked against 1 source: 12 supported.
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SupportedNovo Nordisk raised its full-year outlook as Wegovy pill sales beat forecasts.US Top News and Analysis: “Novo raises full-year outlook as Wegovy pill sales impress. Novo posted quarterly earnings ahead of expectations early Wednesday as sales of its Wegovy pill blew past estimates.”
SupportedNovo now expects adjusted revenue and operating profit growth of between negative 2% and 2% at constant exchange rates, up from negative 6% to flat.US Top News and Analysis: “The company updated its outlook to now see adjusted revenue and operating profit growth of between negative 2% and 2% at constant exchange rates. It previously saw full-year sales and operating profits, which it hiked in August, at negative 6% to flat for both metrics.”
SupportedNovo raised its outlook on Wednesday after third-quarter earnings exceeded expectations, with Wegovy pill sales helping.US Top News and Analysis: “Novo posted quarterly earnings ahead of expectations early Wednesday as sales of its Wegovy pill blew past estimates.”
SupportedThird-quarter sales were 79.2 billion Danish kroner ($11.9 billion), up 4% year-on-year at constant exchange rates and above FactSet’s 73.6 billion kroner estimate.US Top News and Analysis: “Sales in the third quarter came in at 79.2 billion Danish kroner ($11.9 billion), up 4% year-on-year at constant exchange rates and ahead of FactSet estimates of 73.6 billion kroner.”
SupportedAdjusted operating profit was 31.7 billion kroner, compared with an expected 28.6 billion kroner.US Top News and Analysis: “Adjusted operating profit (EBIT) was 31.7 billion kroner, compared with the expected 28.6 billion kroner.”
SupportedNovo’s GLP-1 weight-loss drugs are now used by around 10% of Americans.US Top News and Analysis: “While Novo pioneered the GLP-1 weight-loss drugs now used by around 10% of Americans”
SupportedNovo has lost ground to Eli Lilly in the U.S., which the source describes as their biggest market.US Top News and Analysis: “chief rival Eli Lilly quickly caught up and surpassed Novo in their by far biggest market, the U.S.”
SupportedSeveral other pharmaceutical companies are eyeing entry into the market.US Top News and Analysis: “Several other pharma companies are also eyeing entry into the lucrative market.”
SupportedThe Wegovy pill, launched earlier this year, had sales of 5.4 billion kroner, versus analysts’ roughly 4.5 billion kroner estimate.US Top News and Analysis: “Novo said sales of its Wegovy pill, launched earlier this year, totaled 5.4 billion kroner, compared with the roughly 4.5 billion kroner analysts expected.”
SupportedInjectable Wegovy sales were 20.4 billion kroner and Ozempic sales were 29.7 billion kroner, both above expectations.US Top News and Analysis: “Sales of injectable Wegovy and diabetes treatment Ozempic were 20.4 billion kroner and 29.7 billion kroner, respectively, also above expectations.”
SupportedInvestors are focused on the two companies’ next-generation weight-loss drugs and whether they can treat obesity-linked conditions including heart and kidney conditions, sleep apnea and arthritis.US Top News and Analysis: “Investors are now laser-focused on the pair's next-generation weight-loss drugs, and whether they can treat obesity-linked diseases such as heart and kidney conditions, sleep apnea and arthritis.”
SupportedThe article identifies itself as breaking news and asks readers to refresh for updates.US Top News and Analysis: “This is a breaking news story. Please refresh for updates.”
