Investors remain skeptical over Novo Nordisk’s long-term growth prospects despite raised full-year guidance amid intensifying competition.
Novo Nordisk raised its full-year guidance after reporting better-than-expected quarterly results, now expecting adjusted sales and operating profit to decline 6% to flat at constant exchange rates. The update improved on prior guidance of a 4% to 12% drop for both metrics, but failed to address investor concerns over sustainable growth in its obesity business.
Analysts noted the quarter benefited from temporary factors like rebate adjustments, while obesity drug sales met expectations and oral Wegovy slightly missed forecasts. Clinical results for next-generation weight-loss drug CagriSema were mixed, further fueling doubts about the company’s pipeline. Competition from Eli Lilly’s Zepbound and Mounjaro continues to pressure Novo’s market position.
Shares fell as much as 6% in after-hours trading following the report, paring some losses later. The reaction underscores lingering skepticism despite the improved outlook.