Shares of Novo Nordisk fell about 5% after the Danish drugmaker posted its second‑quarter results, despite raising its full‑year outlook for adjusted sales and operating profit. Shares fell amid the news.
CEO defends Wegovy pill strategy amid pricing pressure
Chief executive Mike Doustdar told the outlet that the firm’s oral obesity treatment, Wegovy pill, is helping to offset lower prices that have been weighing on sales. “We would not be be able to show a positive growth on the top and the bottom if items like the pill were not doing well and were not profitable,” he said.
Doustdar said the firm is looking for a “sweet spot” between price and volume, noting that lower prices have spurred demand. In the second quarter, Novo reported a “solid volume uptick, well into double‑digit numbers,” even as pricing headwinds persisted.
Analysts noted that the quarterly beat was aided by rebate adjustments and other temporary factors, while the oral Wegovy missed some forecasts. Still, the CEO stressed that the early performance of the pill shows the strategy is working.
Financial results and market reaction
Adjusted sales rose 7% at constant exchange rates in the quarter, and adjusted operating profit climbed 11%. The firm now expects full‑year adjusted sales and operating profit to be down 6% to flat versus the prior year, an improvement from its earlier guidance of a 4%‑12% decline.
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Wall Street remains skeptical. Citi analysts wrote “overall nothing to inspire,” and Jefferies said the guidance increase left little room for consensus sales estimates to move higher. The concern is whether Novo can sustain growth as Eli Lilly’s weight‑loss drugs Zepbound and Mounjaro gain market share.
In the United States, Novo’s shares fell 6% on American depositary receipts after the earnings release, while its Copenhagen‑listed stock is down about 5% year‑to‑date and nearly 70% from its mid‑2024 peak.
Since its launch six months ago, the Wegovy pill has reached more than 5 million prescriptions. That suggests the drug is expanding the obesity market rather than cannibalizing demand for the injectable form.
From a broader perspective, the shift toward oral formulations could change how obesity treatments are delivered. If patients prefer pills over injections, manufacturers may need to adjust manufacturing, distribution, and pricing models to capture that demand. The trend also puts pressure on insurers and providers to evaluate coverage decisions for oral versus injectable therapies, which may affect the overall market.
Scaling the Wegovy pill and maintaining pricing discipline will be key to restoring investor confidence. The company’s next‑generation weight‑loss candidate, CagriSema, delivered mixed clinical results, adding another layer of uncertainty to its pipeline.
