Novo Nordisk's quarterly beat and guidance raise did little to calm Wall Street's worries about obesity competition and pipeline gaps. Shares fell 6%.
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Novo Nordisk's quarterly beat and raised guidance did little to settle Wall Street's biggest question: whether the Ozempic maker can sustain growth as Eli Lilly's obesity drugs gain ground.
Analysts pointed to temporary factors behind the better-than-expected quarter. Rebate adjustments and other one-off items lifted results, Citi analysts wrote. Oral Wegovy sales slightly missed forecasts, while injectable obesity drug sales were broadly in line.
"Overall nothing to inspire," Citi analysts wrote. Jefferies said the guidance increase left little room for consensus sales estimates to move higher.
The Danish drugmaker now expects 2026 adjusted sales and operating profit to be down 6% to flat at constant exchange rates. That is an improvement from prior guidance of a decline between 4% and 12% for both metrics.
Novo is racing to rebuild investor confidence in its pipeline and execution, especially in the U.S. market. Eli Lilly's Zepbound and Mounjaro have rapidly taken share despite launching years after Novo's drugs.
Coming into Wednesday trading, Novo's Danish shares had fallen about 5% year to date and were down nearly 70% from their mid-2024 peak, though they have recovered some ground after the Wegovy pill launch.
"The Wegovy product portfolio remains a key growth driver for Novo Nordisk in 2026, led by the continued rapid adoption of Wegovy pill in the US," CEO Mike Doustdar said in a statement.
Novo's American depositary receipts fell 6% in after-hours trading Tuesday after the quarterly report was published one day earlier than expected.
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