Novo Nordisk's CFO: Strong Balance Sheet Fuels Acquisition Ambitions, Trump Demands Already Met

Novo Nordisk's CFO, Karsten Munk Knudsen, discussed the company's strong financial position, highlighting its ability to pursue acquisitions in the obesity market. Knudsen stated that Novo Nordisk has a low debt level and significant "firepower" to leverage its balance sheet. He also confirmed that the company has received letters from former President Donald Trump regarding tariffs but is already compliant with several demands. Novo Nordisk offers "reasonably low prices" for Medicaid.

Novo Nordisk A/S, a Danish pharmaceutical giant, has demonstrated financial resilience despite facing challenges in the US obesity drug market. The company's second-quarter earnings, while below analyst expectations, highlighted its robust financial position. Operating profit climbed to DKK33.4 billion ($5.2 billion), although it fell short of the estimated DKK34.4 billion [1].

The company's CFO, Karsten Munk Knudsen, emphasized Novo Nordisk's strong financial standing. He noted that the company has a low debt level and substantial "firepower" to leverage its balance sheet, positioning it well for potential acquisitions in the obesity market [1]. Additionally, Novo Nordisk has already received letters from former President Donald Trump regarding tariffs and is compliant with several demands, including offering "reasonably low prices" for Medicaid [4].

Novo Nordisk's financial performance was driven by strong momentum in its Obesity Care division, where sales jumped 58% at constant exchange rates, driven by the performance of Wegovy, which rose 78% to DKK36.9 billion [2]. However, the company has faced increasing competition in the US market, particularly from Eli Lilly & Co. with its rival shot Zepbound [1].

Despite these challenges, Novo Nordisk remains optimistic about its growth potential. Lars Fruergaard Jørgensen, the outgoing CEO, noted that with over a billion people living with obesity worldwide and only a few million being treated, Novo Nordisk has significant growth potential [2].

The company's stock has fallen 64% in the past 12 months, with a peak of DKK1000 in June 2024 now erased, dethroning it as Europe's most valuable company [1]. However, the stock's decline has been attributed to market competition and regulatory pressures rather than financial distress.

In conclusion, Novo Nordisk's financial resilience and strategic positioning place it in a strong position to navigate the competitive US obesity drug market and expand its global footprint. The company's compliance with tariff demands and low debt level further underscore its financial stability.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-06/novo-profit-misses-estimates-amid-us-obesity-market-competition
[2] https://www.marketscreener.com/quote/stock/NOVO-NORDISK-A-S-1412980/news/Novo-Nordisk-reports-higher-profits-but-cuts-forecasts-50733499/
[4] https://www.pharmaceuticalcommerce.com/view/trump--mfn-drug-pricing-17-big-pharma-companies-spurs-global-industry-response