Novo Nordisk Reports Lower Earnings and Cuts Profit Outlook

Novo Nordisk announced a net profit of 20.05 billion Danish kroner ($2.93 billion) for the second quarter of 2024, falling short of market forecasts. The pharmaceutical company also revised its operating profit outlook for the full year, now projecting growth between 20% and 28%, down from the previous estimate of 22% to 30%. Following the announcement, Novo Nordisk's shares experienced a significant drop, initially falling nearly 7% before stabilizing to a 2.71% decline by mid-morning in London. In contrast to the current quarter's performance, Novo Nordisk had reported a robust 28% increase in net profit in the first quarter of 2024, amounting to 25.4 billion Danish kroner. The company had also raised its sales and operating profit forecasts during that period. Notably, sales of Wegovy, its popular weight loss drug, surged by 55% year-on-year in Q2, reaching 11.66 billion kroner, indicating strong demand for the product. CEO Lars Fruergaard Jørgensen expressed optimism about the company's future, stating that Novo Nordisk anticipates "attractive growth" in the upcoming months. He emphasized confidence in the company's ability to scale operations and supply patients effectively, while also highlighting a strong product pipeline that positions Novo Nordisk for long-term competitiveness. Additionally, regulatory bodies in the U.K. and the European Union have endorsed Wegovy as a means to mitigate serious heart risks in overweight and obese adults, further solidifying the drug's market potential.