Novo Nordisk Misses Q2 Profits, Lowers Operating Profit Outlook
Novo Nordisk has reported a net profit of 20.05 billion Danish kroner ($2.93 billion) for the second quarter, falling short of analyst expectations, which forecasted 20.9 billion Danish kroner. As a result, the company has revised its operating profit outlook for 2024 downward, now expecting growth between 20% and 28%, compared to the previous range of 22% to 30%. Despite the lower profit forecast, Novo Nordisk raised its sales growth projection for 2024 to a range of 19% to 27% at constant exchange rates.
The company's performance comes amid heightened competition in the weight-loss drug market, particularly from Eli Lilly. Shares of Novo Nordisk have seen fluctuations, including a 1.1% drop following positive trial data from Eli Lilly's weight-control pill. Novo Nordisk's weight-loss drug Wegovy has received regulatory approvals in both the EU and the UK for reducing heart risks in obese adults, but its sales have not met expectations. The company is investing significantly to boost Wegovy's production capacity to maintain its market position.
