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Novo Nordisk shares NVO rallied on Wednesday after the Danish drugmaker reported stronger-than-expected third-quarter results, driven by demand for its Wegovy weight-loss pill, and raised its full-year outlook for the third time this year.
The company’s American depositary receipts rose as much as 5.36% to $42.36, recovering some ground after falling more than 20% this year through Tuesday’s close.
The results offered investors some reassurance as Novo attempts to regain market share from US rival Eli Lilly in the increasingly competitive obesity drug market.
Novo reported adjusted sales of 79.2 billion Danish kroner for the third quarter, up 6% from a year earlier.
Adjusted operating profit increased 27% to 31.72 billion kroner at constant exchange rates, beating analyst expectations.
Wegovy pill sales exceed analyst expectations
The Wegovy pill was the main contributor to the earnings beat.
Sales of the oral treatment reached 5.39 billion kroner ($810 million) in the third quarter, compared with analyst expectations of 4.62 billion kroner, according to Reuters.
The figure represented a 53% increase from the previous quarter.
Launched in the US in January, the pill is now available in eight markets, including Germany, the UK and the United Arab Emirates.
The oral treatment is considered an important growth opportunity for Novo because it could attract patients who prefer not to use injectable weight-loss drugs.
The company said manufacturing output and faster regulatory approvals had enabled it to accelerate the rollout.
It now plans to launch the pill in more than 20 countries by mid-2027, bringing forward its previous target of the end of 2027.
Novo said the pill holds around 80% of the US oral obesity drug market across reimbursed, cash-pay and telehealth channels.
It also reported market shares of approximately 90% in the UK and 80% in the UAE.
US demand received support from a government programme that allows eligible seniors to access obesity drugs for $50 a month.
Novo’s US head said the programme was largely responsible for an approximately 20% quarterly increase in Wegovy pill volumes.
Novo raises outlook as it seeks to regain market share
Novo raised its 2026 forecast for adjusted sales and operating profit growth to between a 2% decline and 2% growth at constant exchange rates.
Its previous outlook had projected flat growth to a decline of 6%.
The company attributed the improved outlook to stronger volumes, particularly for obesity treatments, in both the US and international markets.
It expects international sales to grow while US sales decline.
The revised forecast marks the third time Novo has raised its outlook this year, offering a sign of progress after a period of declining sales and management changes.
However, competition remains a significant challenge.
Eli Lilly recently raised its own revenue outlook following strong demand for its injectable weight-loss treatments and is also gaining traction with its rival oral drug, Foundayo.
Novo Chief Executive Mike Doustdar said the company had maintained its position despite Lilly’s entry into the pill market. “We’ve been able to hold the baton,” he told Reuters.
He also acknowledged the competitive threat, saying Lilly was working hard to reverse the current market position.
Leadership changes and competition remain in focus
Novo’s recovery comes after its shares fell more than 70% from their peak, while Lilly’s stock advanced.
The Danish company had become Europe’s most valuable listed company in 2023, with its market value exceeding $600 billion.
The latest results have raised hopes that the company is stabilising under its new leadership.
However, analysts continue to warn that competition in the obesity drug market is likely to intensify.
Novo also announced that Chief Financial Officer Karsten Munk Knudsen will leave at the end of December.
Luigi La Corte, currently finance chief at Galderma, will succeed him.
Investors will be watching whether the Wegovy pill can sustain its growth and help offset weakness in injectable sales as Novo seeks to narrow the gap with Lilly.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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