Novo Nordisk: Mixed Earnings, Wegovy Shines, Outlook Tightens

Novo Nordisk, a leading global healthcare company, recently reported its earnings for the third quarter of 2024, presenting a mixed bag of results. While the company beat expectations on sales of its blockbuster weight-loss drug, Wegovy, it tightened its outlook for the year, citing ongoing pricing and supply pressure. This article delves into the earnings report, highlighting the key takeaways and their implications for investors.


Novo Nordisk reported an earnings per share (EPS) beat of nearly 3% at $0.88 per share, but missed slightly on revenue, at $10.2 billion for the quarter. The company's stock slipped nearly 3% at the start of trading Wednesday after it reduced its sales and profit outlook for the year. Novo now expects sales growth between 23% and 27% compared to previous guidance of 22% to 28%. The company also now expects operating margin growth of 21%-27% compared to previous guidance of 20%-28%.


Despite the tightened outlook, there was a bright spot in the earnings report: Wegovy sales. The drug reached $2.5 billion for the quarter, an 81% jump year over year. This impressive performance is a testament to the growing demand for weight-loss treatments and the effectiveness of Novo Nordisk's products.

CFO Karsten Munk Knudsen told Yahoo Finance in an interview Wednesday that the company's momentum continues to grow as it creates more supply of its hot-ticket GLP-1 products. "Topline momentum is very solid for the company, and that's really a function of the fact that we have very compelling products, especially in Ozempic and Wegovy," Knudsen said.

However, the company is still facing supply constraints, and the US Food and Drug Administration has yet to remove the drug from its shortage list. Both Novo Nordisk and competitor Eli Lilly (LLY) have acknowledged that they will struggle to meet demand consistently in the near term.


In conclusion, Novo Nordisk's mixed earnings report highlights the company's ongoing challenges with pricing and supply pressure, as well as its strong performance in weight-loss treatments. While the tightened outlook may give investors pause, the continued growth in Wegovy sales and the company's commitment to scaling its GLP-1 products suggest that Novo Nordisk remains a compelling investment opportunity in the long term. As always, investors should carefully consider the risks and rewards before making any investment decisions.