Novo Nordisk’s (NVO) American depositary receipts (ADRs) slipped in pre-market trading on Wednesday, following a mixed earnings report that saw rising sales of its weight-loss drugs failing to meet analysts’ growth expectations for the quarter.
The Danish pharmaceutical giant, known for its popular drugs Ozempic and Wegovy, reported a 25% year-over-year increase in revenue, reaching 68.06 billion Danish kroner ($9.96 billion). Despite the significant revenue boost, the figures fell short of analysts’ forecasts. Net income grew by 3% to 20.05 billion kroner, also missing projections.
Updated Sales and 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,” said Novo Nordisk CEO Lars Fruergaard Jørgensen.
Ozempic sales saw a substantial rise, increasing by 30% overall and 49% in the U.S. compared to the previous year. Wegovy sales also experienced robust growth, jumping 53% globally and 36% in the U.S.
Novo Nordisk has revised its full-year sales growth forecast to a range of 22% to 28%, up from the previous estimate of 19% to 27%. However, the company has lowered its projected operating profit growth to 20% to 28%, down from the prior range of 22% to 30%.
The company acknowledged that occasional supply shortages of Ozempic and Wegovy may persist as it continues to scale up production capacity. Novo Nordisk’s acquisition of three plants from syringe maker Catalent is expected to finalize by the end of 2024, which should bolster production capabilities.
Following the earnings release, Novo Nordisk ADRs dropped over 3% to $125.65 in pre-market trading as of 8:35 a.m. ET Wednesday.
