After last week’s profit warning and leadership shake-up, Novo Nordisk's (NYSE:NVO) latest earnings update offered little new, though the company’s growing struggle against rivals such as Eli Lilly and cheaper weight-loss drug alternatives in the US continues to loom large.
The Danish group, known for its blockbuster obesity treatment Wegovy, confirmed it would tighten its commercial operations and rein in spending following a turbulent week that saw it slash its 2025 outlook and announce a change at the top.
The twin announcements wiped almost $100 billion from Novo’s valuation, which has tumbled 52% in the year to date.
“We are taking measures to sharpen our commercial execution further, and ensure efficiencies in our cost base while continuing to invest in future growth,” said departing chief executive Lars Fruergaard Jorgensen.
He will be succeeded on Thursday by Maziar Mike Doustdar, a long-time executive at the group, who takes over at a time when Novo is under pressure to defend its position in the lucrative GLP-1 drug market.
Its weight-loss and diabetes drugs, Wegovy and Ozempic, have both come under threat from US rivals; most notably Eli Lilly’s Mounjaro and compounded versions being sold at lower prices despite legal grey areas.
On Wednesday, Novo reported second-quarter sales of $11.9 billion, an 18% increase on the same period last year, but slightly below analysts’ forecasts. Earnings before interest and tax rose 29% to $5.2 billion.
The company also reiterated its full-year sales guidance, forecasting 2025 growth of 8% to 14%, a range that was lowered last week from an earlier target of 13% to 21%. It is the second time this year that the forecast has been downgraded.