Novo Nordisk (NVO.US) Reports Q2 Profit Below Expectations Amid Intensifying Weight-Loss Drug Competition, Lowers Full-Year Outlook

Intelligent Finance APP learned that pharmaceutical giant Novo Nordisk (NVO.US) announced disappointing Q2 results on Wednesday and lowered its full-year operating profit forecast. Data showed that Novo Nordisk's Q2 net profit was 20.05 billion Danish kroner (equivalent to 2.93 billion US dollars), falling short of market expectations of 20.9 billion Danish kroner.

In the second quarter, sales of the popular weight-loss drug Wegovy increased by 55% year-on-year, reaching 11.66 billion Danish kroner. In the first quarter, Wegovy's sales more than doubled to 9.38 billion Danish kroner but fell short of analysts' expectations.

Novo Nordisk Lowers 2024 Full-Year Operating Profit Forecast, Now Expects Growth Between 20% to 28%, Down from Previous Expectation of 22% to 30%.

In the first quarter of 2024, Novo Nordisk, the manufacturer of Wegovy, announced a 28% year-on-year increase in net profit, reaching 25.4 billion Danish kroner, and slightly raised its sales and operating profit growth forecasts.

On Wednesday, the company once again raised its full-year sales growth forecast for 2024, now expecting full-year sales growth of 22% to 28% (at constant exchange rates), up from the previous expectation of 19% to 27%.

Novo Nordisk Faces Increasing Competition in the Weight Loss Field, Ranging from Smaller Companies to Pharmaceutical Giants Like Roche. Last Month, Roche Announced Positive Results from Clinical Trials of Its Oral Weight Loss Drug, Which Caused a Significant Drop in the Weight Loss Drug Sector. Eli Lilly (LLY.US) and Novo Nordisk Both Fell by 4%.

Novo Nordisk's Wegovy has also delivered good news in recent months. The drug was approved in China in the second quarter, opening the door to sales in the world’s second-largest economy. Health regulatory agencies in the UK and EU have endorsed Wegovy for reducing the risk of serious heart disease in overweight or obese adults.