Novo Nordisk Shares Suffer Major Decline Due to Disappointing Sales of Ozempic & Wegovy

Significant Drop in Novo Nordisk Shares

Novo Nordisk, a leading pharmaceutical company based in Denmark, recently experienced a 7.7% fall in its shares in Copenhagen. This is the most significant intraday drop the company has seen in two years. The decrease is attributed to the disappointing second-quarter sales of its blockbuster anti-obesity drug, Wegovy (semaglutide).

Wegovy's Second-Quarter Sales Fall Short of Expectations

The sales of Wegovy in the second quarter amounted to 11.7 billion Danish kroner ($1.7 billion). This figure falls short of the 13.66 billion kroner estimate made by Wall Street analysts and tracked by Bloomberg. According to CFO Karsten Knudsen, the revenue from the anti-obesity drug was impacted by higher-than-expected price concessions to US pharmacy benefits managers, which he referred to as a 'one-off factor.'

Breakdown of Second Quarter Results

Goldman's James Quigley provided a detailed analysis of the key hits and misses from the second quarter. Wegovy was 14% behind consensus, and Ozempic was 3% behind consensus. Despite the misses, Quigley maintained a 'Buy' rating on Novo with a 12-month price target of DKK 1,090 per share.

Novo Adjusts Full-Year Outlook

Novo adjusted its full-year outlook, lowering its profit guidance while raising its sales outlook for the year. It now forecasts full-year operating growth to range between 20% and 28%, with sales growth between 22% and 28% at constant exchange rates. However, this new guidance falls short of Wall Street's expectations on both the top and bottom lines.

Analysts' Take on Novo's Performance

Various Wall Street analysts provided their insights after Novo reported its performance. Some noted that the 2Q results were "mixed," with Wegovy still hurt by supply constraints amid strong demand. Others pointed out that the company's message is that volume is on track for obesity, which is encouraging. However, the question remains whether the bubble in companies with exposure to GLP-1s has reached its peak.

Bottom Line

Novo Nordisk's recent performance raises several questions about the future of pharmaceutical companies and the market for anti-obesity drugs. With the disappointing sales of Wegovy and Ozempic, it seems that the company and the industry as a whole are facing significant challenges. However, it's also worth noting that the demand for obesity medications remains strong, suggesting potential for growth in the future. What are your thoughts on this matter? Feel free to share this article with your friends and discuss it further. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.