Novo Nordisk shares plunged after it missed estimates for its second-quarter operating profit as the company behind Ozempic sold fewer of its weight loss and diabetes drugs than expected and cut its profit forecast.
Sales increased 25% to DKK68bn (£7.82bn/$9.94bn) in the period, below the 26.7% pace forecast by analysts.
Europe’s largest company by market cap said that the 25% increase in net sales was driven by diabetes and obesity care as well as insulin sales. GLP-1 diabetes sales increased by 32% year-on-year, up from 30% in the previous quarter.
Obesity care sales rose by 34% compared to a year ago, slowing from a 41% increase in the first quarter. Sales of the diabetes treatment Ozempic and the popular weight-loss drug Wegovy rose by 30% and 53%, respectively.
Earnings before interest and tax also came in below the forecasts at DKK25.93bn compared to DKK26.86bn for LSEG. Net profit for the quarter was DKK20.5bn, short of expectations of DKK21.3bn.
Additionally, Novo Nordisk trimmed its operating profit outlook for full-year 2024, saying growth was now anticipated to come in between 20% and 28%, rather than the previously expected 22% to 30% range.
CEO Lars Fruergaard Jørgensen said: “We are pleased with the sales growth in the first half of 2024, which has enabled us to raise the outlook for the full year.” However, the firm has trimmed its operating profit growth forecast to between 20% and 28%, down from the 22% to 30% predicted in the first quarter.