Novo Nordisk lifts sales outlook but Q2 profits miss the mark

7th Aug 2024 09:06

(Sharecast News) - Shares in Novo Nordisk slumped in Copenhagen on Wednesday after the Danish pharma group missed forecasts with its second-quarter profits and cut its earnings guidance for the full year.

Net profit totalled 45.46bn Danish krone (£5.23bn) in the first half ended 30 June, up 16% on last year, but the DKK20.05bn reported for the second quarter came in shy of the DKK20.9bn expected by the market.

As previously mentioned, profits were impacted by a DKK5.7bn impairment loss after it pulled the clinical trial of ocedurenone in June.

The company, known for its popular weight loss treatment Wegovy, said sales in the first half were up 24% at DKK133.41bn, with 36% growth in North America and 9% growth internationally. Diabetes and obesity care sales rose 26% to DKK125bn, making up for a 4% fall in rare disease sales.

The company lifted its sales growth guidance range for the full year by three percentage points to 22-28%, but simultaneously cut its operating profit growth outlook by two percentage points to 20-28%.

"We are pleased with the sales growth in the first half of 2024, which has enabled us to raise the outlook for the full year. 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 president and chief executive Lars Fruergaard Jørgensen.

"Within R&D, we are very pleased with the first phase 3 trial results with Mim8 and its potential for people living with haemophilia A, and with the recent recommendation for a label extension for cardiovascular risk reduction for Wegovy® in the EU."

The stock was down nearly 4% at DKK854.40by 1025 local time, after dropping as much as 7.7% earlier on.