Key Takeaways:
Novo Nordisk reported Q2 adjusted operating profit of DKK 33.4 billion, up 11% at CER, beating consensus of DKK 28.7 billion.
"The improved outlook is driven by increased expectations for GLP-1 product sales," the company said in its earnings announcement. CEO Mike Doustdar, who took the helm a year ago, has leaned on the newly launched Wegovy pill to drive a recovery after repeated sales shortfalls and a wave of job cuts.
Q2 adjusted sales rose 7% at CER to DKK 78.5 billion, with GLP-1 volume growth across geographies and favorable US rebate adjustments. Reported operating profit fell 16% at CER, weighed by DKK 6.3 billion in non-cash impairment charges on pipeline assets including monlunabant (DKK 4.0 billion) and a DKK 2.6 billion rebate provision reversal related to the 340B Drug Pricing Program in Q2 2025.
The company raised its full-year 2026 adjusted sales and operating profit growth guidance to 0% to -6% at CER, from -4% to -12% previously. The revision comes as Novo battles Eli Lilly in the obesity drug market, which analysts expect to exceed $100 billion annually by 2030. Lilly still leads in US injectable weight-loss drugs, and Novo sued its rival in US federal court last month over alleged false advertising.
Wegovy pill weekly US prescriptions exceeded 265,000 for the week ending July 17, and the franchise leads branded obesity medications in new patient starts in the US. The pill launched in the UAE in June and the UK in July, with additional launches planned in select markets in coming quarters.
EMA approved the Wegovy 7.2 mg single-dose pen in July based on STEP UP data showing up to 20.7% mean weight loss, and the Wegovy pill based on OASIS 4 data showing up to 16.6% mean weight loss. The 7.2 mg pen roll-out across the EU is planned for the second half of 2026.
In cardiovascular disease, the ZEUS phase 3 trial with ziltivekimab did not meet its primary endpoint.
The guidance raise signals management expects GLP-1 demand to accelerate through year-end, even as the company absorbs pipeline impairments and competitive pressure from Lilly. Investors will watch Wegovy pill prescription trends and additional market launches in coming quarters for evidence the recovery is sustainable.
This article is for informational purposes only and does not constitute investment advice.
