Investors breathed a sigh of relief on Wednesday as shares in Novo Nordisk (NYSE:NVO) rose 3% in early trading, despite the drugmaker trimming its sales and profit forecasts for 2025.
The downgrade, which had largely been anticipated, brings an end to a four-year streak of upgrades driven by booming demand for its obesity drug Wegovy.
While first-quarter sales of the treatment fell short of expectations, the results were better than many feared.
Sales of Wegovy dropped 13% from the previous quarter to 17.36 billion Danish Krone (£1.98 billion), missing analyst estimates.
Still, first-quarter earnings before interest and tax rose 22% to 38.79 billion Krone, beating forecasts.
Although Novo increased supply in the US, prescriptions have plateaued since February, and competition from Eli Lilly’s rival drug Zepbound is intensifying.
Novo now expects 2025 sales growth of 13–21% in local currencies, down from its previous range of 16–24%.
Forecast operating profit growth has also been cut to 16–24%, compared with earlier guidance of 19–27%.
The stock was up 13.45 DKK at 454.5 DKK.