Wegovy, Ozempic maker Novo Nordisk Q3 earnings
A can of Ozempic sits on a table in North Tyneside, Britain, October 31, 2023.
Lee Smith | Reuters
Danish pharmaceutical giant Novo Nordisk said on Wednesday it was lowering growth expectations for its key obesity and diabetes treatments.
Net profit for the quarter came in at 20 billion Danish kroner ($3.1 billion), in line with the 20.12 billion Danish kroner forecast by analysts in the FactSet survey.
Diabetes and obesity treatment has been a key growth driver following the acquisitions of Wegovy and Ozempic; but the company lowered its growth expectations, citing prescription trends, competition and price pressure.
Sales of blockbuster weight-loss drug Wegovy rose 18% year on year to 20.35 billion Danish kroner in the three months to September; this was slightly below the 21.35 billion crowns analysts expected.
Novo’s Copenhagen-listed shares have fallen more than 50% this year as a number of headwinds have shaken investors’ confidence in what was once Europe’s most valuable firm.
Novo Nordisk’s share price
In addition to a series of disappointing trial results, increased competition in the obesity drug space, and challenges from U.S. policies on drug pricing and tariffs, Novo is struggling with leadership changes and pushback against a major acquisition.
As a result, analysts were mixed on the stock. While Jefferies recently downgraded its rating to underperform, Berenberg remains bullish on the stock, saying Novo has reached the “peak of uncertainty.”
“Novo’s superior growth profile and best-in-class R&D returns warrant a higher valuation premium over its peers,” the bank said.
Metsera offer
A spokesperson for Novo said in a statement that Pfizer’s claims were “inaccurate and unfounded.”
Novo later increased its bid for Metsera on Tuesday, saying it was now offering up to $10 billion, compared to a previous bid of about $9 billion.
“Novo Nordisk believes that the offer, including the structure of the transaction, complies with all applicable laws and is in the interest of Metsera’s shareholders as well as patients who will benefit from our commitment to innovation,” the company said in a statement, noting that the deal is also subject to the terms of Pfizer’s merger agreement with Metsera.
Metsera said in a statement on Tuesday that the revised offer was “superior” to the revised offer made by Pfizer.
