Sales of Novo Nordisk's obesity pill double expectations. Shares soared

The tablet version of Novo Nordisk's best-selling weight-loss drug Wegovy brought it twice as much as the market expected, the Danish pharma giant's figures for last quarter show. This is the first reporting period to reflect sales of the new pill in the US.

The Wegovy pill generated revenue of DKK 2.26 billion ($0.4 billion), while analysts had expected only DKK 1.16 billion, CNBC reported. About 1.3 million prescriptions were written for the oral version of the popular drug, the company said. Novo also announced that, subject to regulatory approval, it plans to bring the drug to markets outside the US in the second half of the year.

"The numbers (...) speak for themselves," CEO Mike Dousdar told CNBC. He said sales are growing at double-digit rates despite competition from Eli Lilly's Foundayo obesity pill, which was launched in the U.S. in April.

The Wegovy brand is now listed in 65 percent of all new prescriptions in the U.S., Dousdar said, and called it a "game changer."

Novo shares rose 7.5% in trading in Copenhagen. Since the beginning of the year, they are down 5.5%.

- Revenue in the first quarter rose 32% in constant currency year-on-year to DKK96.8 billion ($15.2 billion), while operating profit jumped 65% to DKK59.6 billion ($9.4 billion). However, the growth was largely due to a one-off effect from the dissolution of a provision under the US drug pricing rebate program. Excluding that factor, revenue fell 4% and profit fell 6%, the company said.

- Sales of the injectable version of Wegovy added 12% year-on-year to DKK18.2 billion ($2.9 billion), falling slightly short of forecasts compiled by LSEG, CNBC wrote. Investors were concerned that the emergence of oral alternatives could hurt sales of earlier injectable drugs. However, Dousdar said, "it's not a matter of choosing between a pill and a syringe pen - patients use both formats" and it "doesn't result in a sales spillover, but synergies." Overall, the obesity drugs segment reported first quarter revenue growth of 22% year-on-year in constant currency.

- At the same time, sales of diabetes drugs were down 18%. The flagship Ozempic brought in 8% less, but still more than the market thought, according to LSEG data.

- Wegovy's strong sales, combined with continued growth in its international business, has allowed the company to raise its 2026 outlook for adjusted revenue and operating profit. It now expects adjusted revenue and earnings to decline 4-12% at constant exchange rates - the previous estimate was for a 5-13% decline.

Although tablets are expected to contribute only 4-5% of the company's total revenue in 2026, "it's still encouraging," said Nordnet investment economist Per Hansen. "It is the momentum that drives the stock, and it is strong right now," he added. His opinion is quoted by Bloomberg.

Analysts at Jefferies noted after the reports were released that Novo Nordisk's outlook revision is unlikely to have a positive impact on consensus estimates - indeed, market expectations may even decline, CNBC reported. "The fact that the company did not raise the lower end of its outlook more significantly will be perceived as a negative," they pointed out.

Novo and Eli Lilly are fighting hard for a share of the fast-growing market for weight-loss drugs, which analysts estimate could reach $100 billion by the end of the decade. Meanwhile, Lilly has already overtaken Novo in the key US market for sales of injectable diabetes and obesity drugs, a segment that remains central to their competition, the TV station notes. Lilly last week reported sales growth of rival GLP-1 class drugs, with Mounjaro up 125% and Zepbound up 80%. On the back of better-than-expected results, the company also improved its full-year outlook.

Investors are also questioning the commercial potential of the company's development portfolio - particularly its next-generation drug CagriSema, which lost out to Eli Lilly's Zepbound in Novo's own study earlier this year. Then the shares of the Danish giant fell to the lowest level in five years, recalls CNBC.

Berenberg analyst Kerry Holford notes that "stocks of companies in the weight-loss drug segment are starting to regain investor attention after a weak start to the year," Bloomberg reports.

Overall on Wall Street, the attitude toward Novo Nordisk remains subdued: the majority of analysts covering the company's shares - 18 out of 24 - recommend holding them. Six advise to buy these securities, and only one advises to sell.

This article was AI-translated and verified by a human editor