Key Takeaways
- Novo Nordisk, maker of weight-loss drugs like Ozempic and Wegovy, reported second-quarter results that fell short of analysts’ estimates.
- Sales of the company’s weight-loss drugs helped boost sales and earnings, but not not enough to meet projections.
- Novo Nordisk lifted its sales estimates, but cut its profit outlook for the full year.
Novo Nordisk’s (NVO) American depositary receipts (ADRs) slipped in pre-market trading Wednesday morning after rising sales of the company’s weight-loss drugs failed to boost earnings to the level of growth analysts expected for the quarter.
The Danish company behind Ozempic and Wegovy saw a 25% year-over-year jump in revenue to 68.06 billion Danish kroner ($9.96 billion), but that was less than analysts expected. Net income grew 3% to 20.05 billion kroner, also missing projections.
Novo Nordisk Raises Sales Outlook, Lowers Profit Guidance
“The growth is driven by the increased demand for our GLP-1-based diabetes and obesity treatments, and we continue to reach more patients with our innovative treatments,” Novo Nordisk CEO Lars Fruergaard Jørgensen said.
Ozempic sales rose 30% overall and 49% in the U.S. compared to the same time last year, while Wegovy sales jumped 53% globally and 36% in the U.S. market.
Novo Nordisk said it now anticipates full-year sales growth of between 22% to 28%, up from 19% to 27% previously. However, the company lowered its projected operating profit growth to 20% to 28%, down from 22% to 30% previously.
Projections still include occasional supply shortages of Ozempic and Wegovy, as Novo Nordisk works to increase production capacity, and said its acquisition of three plants as part of its purchase of syringe maker Catalent is expected to close by the end of 2024.
Novo Nordisk ADRs were down over 3% to $125.65 in pre-market trading as of 8:35 a.m. ET Wednesday following the earnings release.