Europe’'s largest pharmaceutical company reported earnings in the first quarter that exceeded analysts' expectations, but lowered its all-year forecast. Novo Nordisk at constant exchange rates (CER) of 2025 sales growth, down 3 and 5 points respectively from previous estimates %from 13 to tween 21 and operating profit growth is %From 16 to %He expects it to be between 24.
Lars Fruergaard Jørgensen, Chief Executive Officer of “ABDWe have lowered our forecast for the whole year due to the planned low-brand GLP-1 penetration, which is affected by the rapid expansion of compositions in ’. We are actively focused on efforts to prevent illegal and unsafe compounds and expand patients' access to our GLP-1 treatments, ” said.
Novo Nordisk’in shares open European market despite downgrade %It's up 4.4. However, the stock has been around since the beginning of the year, compared to the steady performance of Eli Lilly’, its main competitor in the USA’. %He's down 26 percent.
Category: Compound pressures
Demand for GLP-1 weight loss drugs increased throughout 2024, significantly outpacing supply. Under the U.S. Food and Drug Administration's (FDA) policy, compound pharmacies are allowed to produce copies of drugs that fall short of supply. This allowed smaller telehealth competitors to sell cheaper, compound versions of weight loss treatments such as Wegovy and Eli Lilly’nin Zepbound’u.
Although the FDA announced in February that deficiencies had ended, it allowed a transition period for compound versions until May 22, ’. In response to rising price pressure, Novo Nordisk cut its cost at Wegovy’'s online pharmacy NovoCare’ by more than half following a similar move by Eli Lilly’.
With nearly 1 billion people living with obesity worldwide and only a few million receiving treatment, Novo Nordisk continues to make Wegovy“ available globally, ’ said. CFO Karsten Munk Knudsen said he expects Wegovy sales to accelerate in the third quarter.
Profit exceeded expectations
Net profit per year %Net sales increased by 20 to 38.8 billion Danish kroner (EUR 5.2 billion) %increased by 18 to 78.1 billion krona (EUR 10.5 billion); They both exceeded consensus estimates. Sales of the company's core diabetes and obesity care division ’ increase and GLP-1 diabetes drug sales With the effect of the ’ increase increased to 73.5 billion krona (9.9 billion euros). All figures are on CER’.
Novo Nordisk also emphasized the completion of the REDEFINE 2 trial of the new generation obesity drug ÇağrıSema’. The treatment is %It reduced weight by 15.7 percent. Novo Nordisk expects to apply for the first regulatory approval of ÇağrıSema’ in the first quarter of next year. However, the result, which was first announced in March, was foreseen. %It disappointed investors who fell below the 25’ weight reduction. Eli Lilly last year for his latest weight-loss drug, retatrutide %He announced the results of the trial, which showed 24 weight loss.
Jørgensen said, "As part of “ R&D, we are pleased to have completed the last significant trial for our next-generation obesity treatment CagriSema and applied for U.S. approval for oral semaglutide 25 mg, which has the potential to be the first oral GLP-1 treatment for obesity."
