Wegovy Sales Slowdown Triggers JPMorgan Warning on Novo Nordisk's Q3 Earnings

Intelligent Finance APP learned that Novo Nordisk's (NVO.US) weight-loss drug Wegovy once brought enormous profits, but its recent sales momentum seems to be weakening. Analysts at J.P. Morgan forecast that its Q3 sales of Wegovy will fall short of expectations, causing Novo Nordisk’s stock price in Europe to drop to a seven-month low, down about 20% from its historical high in June, with nearly $149 billion wiped off its market value. The stock also fell more than 3% in pre-market trading in the U.S.

Danish pharmaceutical company Novo Nordisk's stock price was hit on Friday after analysts at JPMorgan predicted that the company’s upcoming Q3 results may fall below expectations, particularly regarding sales of its best-selling weight-loss drug Wegovy. This forecast caused Novo Nordisk’s shares to drop by as much as 4.6%, continuing a recent downward trend. Nevertheless, JPMorgan’s Richard Vosser still advised investors to increase their holdings in Novo Nordisk, as he anticipates the earnings report, due on November 6, might bring some disappointments.

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Soren Lontoft Hansen, a senior analyst at Sydbank, mentioned that the constant news about potential competitors to Novo Nordisk's Ozempic and Wegovy has weakened investor confidence. Additionally, the recently released data on Novo Nordisk's weight-loss drug monlunabant was also disappointing.

Meanwhile, the situation is reversed for Novo Nordisk's main competitor, Eli Lilly and Company. Although Eli Lilly's Mounjaro and Zepbound were launched after Novo Nordisk's products, their market share has been steadily increasing.

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