As more strong competitors, such as Eli Lilly and Co., enter the GLP-1 track, the competition in the "weight loss miracle drug" market is becoming increasingly fierce, and coupled with a failed important drug trial, European pharmaceutical giant Novo-Nordisk A/S saw both its operating profit and net income in the second quarter of the year fall short of expectations, and lowered its full-year operating profit guidance. However, considering the increasing demand in the weight loss drug market, Novo-Nordisk has raised its full-year sales guidance. On Wednesday, August 7, Novo-Nordisk released its Q2 and H1 2024 financial report. Revenue: Novo-Nordisk's Q2 net sales increased by 25% YoY to DKK 68.06 billion, lower than the market's expected DKK 68.72 billion. Profit: In local currency, Q2 operating profit increased by 9% YoY to DKK 25.9 billion, while analysts surveyed by the London Stock Exchange expected DKK 27.3 billion. Net income increased by only 3% YoY to DKK 20.05 billion, far below the market's expected DKK 22.64 billion. Business performance: Levemir (insulin injection) sales in Q2 were DKK 1.37 billion, significantly higher than the expected DKK 0.7521 billion. Weight loss drug sales were disappointing, with Q2 sales of GLP-1 drugs reaching DKK 37.04 billion, lower than the expected DKK 37.4 billion, including: Ozempic (regulatory approved for the treatment of diabetes) Q2 sales were DKK 28.88 billion, expected to be DKK 29.74 billion; Wegovy (regulatory approved for the treatment of obesity) Q2 sales were DKK 11.66 billion, expected to be DKK 13.66 billion. Performance guidance: Novo-Nordisk raised its full-year sales guidance, expecting a YoY sales growth of 22%-28%, up from the previously forecasted 19%-27%. It lowered its full-year operating profit guidance, expecting a YoY increase of 20%-28%, down from the previously forecasted 22%-30%. The company stated in its announcement that the profit slowdown was mainly due to impairment, as one of Novo-Nordisk's late-stage kidney disease trials ended in failure in June, resulting in a write-down loss of DKK 5.7 billion (approximately USD 0.835 billion). In addition, Karsten Knudsen, CFO of Novo-Nordisk, stated in a conference call held after the earnings release that the rebates received when delivering products to wholesalers were higher than initially expected, which also had a certain impact on sales, but this was a one-time factor. $LLY.US$ With more strong competitors, such as Eli Lilly and Co., entering the GLP-1 track, the competition in the "weight loss miracle drug" market is becoming increasingly fierce. In addition, a failed important drug trial caused European pharmaceutical giant Novo-Nordisk A/S's operating profit and net income in Q2 to fall short of expectations. But with the huge increasing demand in the weight loss drug market, Novo-Nordisk has raised its full-year sales guidance. $NVO.US$ In Q2, Novo-Nordisk's operating profit and net income were both lower than expected, and the company revised down its full-year operating profit guidance.

Considering the huge increasing demand in the weight loss drug market, Novo-Nordisk has raised its full-year sales guidance.

On Wednesday, August 7, Novo Nordisk released its Q2 and first half financial report for fiscal year 2024. At the time of writing, Novo Nordisk has fallen more than 5% in pre-market trading.

1) Main financial data

Revenue: Novo-Nordisk's Q2 net sales increased by 25% YoY to DKK 68.06 billion, lower than the market's expected DKK 68.72 billion.

Profit: In local currency, Q2 operating profit increased by 9% YoY to DKK 25.9 billion, while analysts surveyed by the London Stock Exchange expected DKK 27.3 billion. Net income increased by only 3% YoY to DKK 20.05 billion, far below the market's expected DKK 22.64 billion.

Net income increased by only 3% YoY to DKK 20.05 billion, far below the market's expected DKK 22.64 billion.

Business performance:

Levemir (insulin injection) sales in Q2 were DKK 1.37 billion, significantly higher than the expected DKK 0.7521 billion.

Weight loss drug sales were disappointing, with Q2 sales of GLP-1 drugs reaching DKK 37.04 billion, lower than the expected DKK 37.4 billion, including:

Ozempic (regulatory approved for the treatment of diabetes) Q2 sales were DKK 28.88 billion, expected to be DKK 29.74 billion;

Wegovy (regulatory approved for the treatment of obesity) Q2 sales were DKK 11.66 billion, expected to be DKK 13.66 billion.

Performance guidance: Novo-Nordisk raised its full-year sales guidance, expecting a YoY sales growth of 22%-28%, up from the previously forecasted 19%-27%. It lowered its full-year operating profit guidance, expecting a YoY increase of 20%-28%, down from the previously forecasted 22%-30%.

Novo-Nordisk raised its full-year sales guidance, expecting a YoY sales growth of 22%-28%, up from the previously forecasted 19%-27%.

It lowered its full-year operating profit guidance, expecting a YoY increase of 20%-28%, down from the previously forecasted 22%-30%.

The profit slowdown was mainly due to impairment, as one of Novo-Nordisk's late-stage kidney disease trials ended in failure in June, resulting in a write-down loss of DKK 5.7 billion (approximately USD 0.835 billion). In addition, Karsten Knudsen, CFO of Novo-Nordisk, stated in a conference call held after the earnings release that the rebates received when delivering products to wholesalers were higher than initially expected, which also had a certain impact on sales, but this was a one-time factor.

Novo-Nordisk released its Q2 and H1 2024 financial report. Revenue: Novo-Nordisk's Q2 net sales increased by 25% YoY to DKK 68.06 billion, lower than the market's expected DKK 68.72 billion. Profit: In local currency, Q2 operating profit increased by 9% YoY to DKK 25.9 billion, while analysts surveyed by the London Stock Exchange expected DKK 27.3 billion. Net income increased by only 3% YoY to DKK 20.05 billion, far below the market's expected DKK 22.64 billion. Business performance: Levemir (insulin injection) sales in Q2 were DKK 1.37 billion, significantly higher than the expected DKK 0.7521 billion. Weight loss drug sales were disappointing, with Q2 sales of GLP-1 drugs reaching DKK 37.04 billion, lower than the expected DKK 37.4 billion, including: Ozempic (regulatory approved for the treatment of diabetes) Q2 sales were DKK 28.88 billion, expected to be DKK 29.74 billion; Wegovy (regulatory approved for the treatment of obesity) Q2 sales were DKK 11.66 billion, expected to be DKK 13.66 billion. Performance guidance: Novo-Nordisk raised its full-year sales guidance, expecting a YoY sales growth of 22%-28%, up from the previously forecasted 19%-27%. It lowered its full-year operating profit guidance, expecting a YoY increase of 20%-28%, down from the previously forecasted 22%-30%. The profit slowdown was mainly due to impairment, as one of Novo-Nordisk's late-stage kidney disease trials ended in failure in June, resulting in a write-down loss of DKK 5.7 billion (approximately USD 0.835 billion). In addition, Karsten Knudsen, CFO of Novo-Nordisk, stated in a conference call held after the earnings release that the rebates received when delivering products to wholesalers were higher than initially expected, which also had a certain impact on sales, but this was a one-time factor.

Novo Nordisk also stated that it has withdrawn the approval application for Wegovy for treating heart failure submitted to regulatory agencies in the United States and Europe. The company plans to resubmit the application early next year and provide more data.

At the same time, the declining profitability may exacerbate investors' concerns, as Novo Nordisk's first-mover advantage in the fast-growing weight loss drug market is disappearing. Some analysts predict that by the early 2030s, the global weight loss drug market could be worth approximately $150 billion.

Investors are also concerned about Novo Nordisk's significant increase in the supply of Wegovy in the United States.

The company's CEO Lars Fruergaard Jorgensen stated on a conference call: "In the US market, we currently only serve a few million obese patients. From the perspective of a saturated market, it is still too early."

It is reported that Novo Nordisk is investing billions of dollars to increase the production of Wegovy to meet the soaring demand and resist the impact of Eli Lilly, which launched the weight loss drug Zepbound in the United States in December last year.

Editor/Somer