Boxes of Ozempic and Wegovy made by Novo Nordisk at a pharmacy in London on March 8, 2024.
Hollie Adams | Reuters
Sales of Novo Nordisk‘s blockbuster Wegovy weight loss drug surged in the second quarter, the company said in its latest report, as it pledged to reduce costs after stock losses.
Revenues for its blockbuster Wegovy obesity drug rose 67% to 19.53 billion Danish kroner in the three months to the end of June, slightly below the 20 billion Danish kroner forecast by analysts in an LSEG poll.
Shares were down 1.2% by 10:07 a.m. London time (5:07 a.m. ET).
Overall sales rose 13% year-on-year at constant exchange rates to 76.86 billion Danish kroner ($11.92 billion) over the period, just ahead of the 76.6 billion Danish kroner analysts forecast.
Quarterly net profit came in at 26.5 billion Danish kroner, versus 26.6 billion Danish kroner expected.
The Danish drug maker reiterated its full-year outlook after last week slashing its guidance on weaker second-half U.S. sales growth forecasts for Wegovy and its Ozempic diabetes treatment.
The company now expects annual sales growth of 8% to 14% at constant exchange rates, along with annual operating profit growth of 10% to 16%.
Novo Nordisk also said that it would cut costs and sharpen its commercial focus after the company’s share price took a beating on last week’s announcement, extending prolonged declines since its June 2024 peak.
Novo Nordisk.
“We are taking measures to sharpen our commercial execution further, and ensure efficiencies in our cost base while continuing to invest in future growth,” outgoing President and CEO Lars Fruergaard Jørgensen said in a statement accompanying the results.
Incoming CEO Maziar Mike Doustdar, whose appointment comes into effect Thursday, said last week that he was assuming the role with “a sense of urgency, a laser focus on high performance, and a fierce determination for Novo Nordisk to aim higher than it’s ever done.”
Fruergaard Jørgensen’s surprise ouster in May took place as the company has been battling softer U.S. sales amid increased competition from compounded drug makers and major rival Eli Lilly. Disappointing trial results for its next-generation obesity drug candidate, CagriSema, have added to the company’s woes.
The wider pharmaceutical industry is facing the prospect of significant White House tariffs — which U.S. President Donald Trump said Tuesday could run as high as 250% — and pressure from the administration to lower domestic drug prices.
The White House on Thursday said that President Trump had sent letters to 17 major pharmaceutical firms, including Novo Nordisk, outlining the steps they must take to lower the price of U.S. prescription drugs to “most favored nation” (MFN) levels by Sept. 29.