- First half sales up 18%
- Reaffirmed lower full year guidance
- New CEO starts 7 August
Embattled Danish obesity drug maker Novo Nordisk (NOVO-B:CPH) revealed second quarter sales and profit to the end of June slightly below sharply revised consensus estimates.
The shares dropped a further 1.5% in early trading, adding to shareholder woes following last week’s (31 July) profit warning which saw more than £50 billion wiped off the company’s market value.
Over the last 18-months the shares are down around 70%, slashing gains over the last five years to 50% compared with a 400% advance in the shares of arch rival Eli Lilly (LLY:NYSE).
CHANGE OF LEADERSHIP
Outgoing CEO and president Lars Fruergaard Jørgensen said: ‘While delivering 18% sales growth in the first half of 2025, we have lowered our full-year outlook due to lower growth expectations for our GLP-1 treatments in the second half of 2025.
‘As a result, we are taking measures to sharpen our commercial execution further and ensure efficiencies in our cost base while continuing to invest in future growth.
‘I am confident that under Mike Doustdar’s leadership, Novo Nordisk will maximise the significant growth opportunities, supported by a strong product portfolio and future pipeline.’
Doustdar, who takes the helm on 7 August, has a tough job restoring confidence in the company’s ability to effectively compete with Lilly in the fast-growing anti-obesity market while also tackling the firms making copycat obesity drugs.
Doustdar was previously Novo Nordisk’s executive vice president of International Operations.
FAST GROWING MARKET
Second quarter total sales increased by 18% year-on-year to DKK 76.9 billion, slightly ahead of analysts’ forecasts of DKK 76.6 billion, while operating profit jumped 29% to DKK 33.4 billion, roughly in line with estimates.
Sales of Novo’s blockbuster obesity drug Wegovy increased by 67% to DKK 19.5 billion, just shy of the DKK 20 billion expected. For the first half obesity product sales increased by 58% to DKK 38.8 billion.
Novo said global obesity product volumes jumped by 141% in the first half and the company remains the market leader with a share of 64.6%.
The company reaffirmed lowered full year guidance which sees sales growth in a range of 8% to 14% and operating profit growth of between 10% 16%.
