Novo Nordisk beats quarterly profit forecasts, lifts outlook on Wegovy pill strength
Quarterly Performance and Strategic Outlook
By Stine Jacobsen and Maggie Fick
COPENHAGEN/LONDON, May 6 (Reuters) - Novo Nordisk beat first-quarter profit forecasts and nudged up its full-year outlook on Wednesday, as sales of its new weight-loss pill came in stronger than expected, a boost for the Danish drugmaker as it battles rival Eli Lilly .
Novo, which rose to become Europe's most valuable firm on demand for its Wegovy weight-loss drug before a years long slide on stalling sales, is banking on demand for its pill to narrow a widening gap on U.S. peer Lilly and show investors its fast-growing volumes can offset a bruising obesity drug price war.
Financial Results Overview
Novo said its adjusted operating profit was 32.86 billion Danish crowns ($5.16 billion) in the first quarter against a forecast of 28.74 billion, according to a company-compiled poll.
The firm said it now expects its adjusted sales and operating profit to decline this year by between 4% and 12% at constant exchange rates, slightly better than a previous range of minus 5% to minus 13% for both variables.
CEO Statement
"The strong Wegovy performance, combined with continued growth in International Operations, has led us to raise our 2026 guidance for both adjusted sales and adjusted operating profit," CEO Mike Doustdar said in a statement.
Wegovy Pill Performance
Wegovy Pill Beats Sales Forecasts
The first-quarter results marked an early test of whether the newly launched Wegovy pill can help revive growth at Novo following a year on the defensive.
Sales Figures
Sales of the pill, a closely watched figure in the earnings report, came in at 2.26 billion crowns. That was well above the 1.16 billion crown analyst forecast.
Adjusted sales for the whole group came in at 70.06 billion Danish crowns in the quarter, compared with 69.07 billion forecast by analysts.
Recent Challenges
Novo has spent much of the past year on the defensive, contending with setbacks including disappointing trial results for its next-generation obesity drug, weaker than expected sales and a share price slide that has erased more than $400 billion in market value since its 2024 peak.
Competitive Landscape
Eli Lilly Battle Intensifies
Under Doustdar, who was appointed last year, Novo Nordisk is pinning a near-term recovery on the Wegovy pill, with margins already under pressure following last year's price cuts to the group's blockbuster weight-loss injection.
Market Competition
But its window as the only oral obesity pill on the U.S. market closed in early April after Lilly received FDA approval for its competing drug Foundayo, intensifying the battle with its main rival.
Novo's share price is down almost 40% in the last 12 months, lagging Lilly's rise of around 18% over the same period, though the stock has been slowly tracking upwards since late March on rising hopes for its weight-loss pill.
Lilly last week hiked its full-year profit and revenue forecasts as surging demand for its weight-loss and diabetes drugs helped offset lower prices.
(Reporting by Stine Jacobsen and Maggie Fick; Editing by Terje Solsvik and Louise Heavens)
