Novo raises full-year outlook as Wegovy pill sales impress

Novo posted quarterly earnings ahead of expectations early Wednesday as sales of its Wegovy pill blew past estimates amid continued GLP-1 volume growth globally.

The company updated its outlook to now see adjusted revenue and operating profit growth between negative 2% and 2% at constant exchange rates. It previously saw full-year sales and operating profits, which it hiked in August, at negative 6% to flat for both metrics.

Sales in the third quarter came in at 79.2 billion Danish kroner ($11.9 billion), up 4% year-on-year at constant exchange rates and ahead of FactSet estimates of 73.6 billion kroner. Adjusted operating profit (EBIT) was 31.7 billion kroner, compared with the expected 28.6 billion kroner.

It comes as the Danish weight-loss drug maker is looking to regain momentum following a tumultuous year in which it fell behind rival Eli Lilly.

While Novo pioneered the GLP-1 weight-loss drugs now used by around 10% of Americans, it has struggled to keep the momentum going as chief rival Eli Lilly quickly caught up and surpassed Novo in their by far biggest market, the U.S. Several other pharma companies are also eyeing entry into the lucrative market.

Investors are now laser-focused on the pair’s next-generation weight-loss drugs, and whether they can treat obesity-linked diseases such as heart and kidney conditions, sleep apnea and arthritis.

Novo said sales of its Wegovy pill, launched earlier this year, totaled 5.4 billion kroner, compared with the roughly 4.5 billion kroner analysts expected.

Sales of injectable Wegovy and diabetes treatment Ozempic were 20.4 billion kroner and 29.7 billion kroner, respectively, also above expectations.

Novo also announced that Chief Financial Officer Karsten Munk Knudsen is leaving at the end of 2026 after 27 years at the company, including nine years as CFO. Luigi La Corte, currently CFO of Swiss dermatology company Galderma, will succeed him.

Novo’s Wednesday earnings report comes after Lilly hiked its full-year outlook last week on the back of a better-than-expected third quarter, driven by strong demand for its diabetes and weight-loss injections Mounjaro and Zepbound.

Lilly’s weight-loss pill Foundayo, however, missed analysts’ expectations in the quarter even as the company’s chief financial officer said total U.S. prescriptions and the number of new Foundayo patients doubled from the previous quarter.

Novo’s Copenhagen-listed shares are down roughly 17% year-to-date. The stock fell nearly 8% in one session in September after Novo failed to reassure investors with its post-Wegovy growth strategy.

Novo CEO Mike Doustdar told reporters early Wednesday that the company’s recovery was gaining traction following successive upgrades to its full-year guidance, but cautioned that a turnaround could not be established on the basis of a single strong quarter.

“Turnaround and recovery is not done based on one data point, on one quarterly good result,” Doustdar said, pointing to the progressive improvement in the company’s outlook throughout the year.

“That gives me confidence that we’re going in the right direction, and then we’ll just have to continue working hard to see the recovery in full,” he added.