The result of the Danish pharmaceutical miracle was better than expected – Novo Nordisk sold weight loss drugs for 5.9 billion euros

A Danish pharmaceutical company Novo Nordisk made a slightly better result than expected in the third quarter.

Its turnover in July–September 2024 was 71.3 billion Danish kroner (about 9.6 billion euros9. The consensus of 17 analysts compiled by Factset expected a turnover of 72.1 billion kroner from the company. In the comparative period in July–September last year, the company had a turnover of 58.7 billion kroner.

Novo Nordisk’s operating profit was 33.8 billion kroner, while analysts were expecting a result of 33.3 billion kroner. In the comparison period last year, the result was 26.9 billion kroner.

The profit per share was 6.12 kroner. Analysts’ consensus expected earnings per share of SEK 6.00. The profit per share for the comparison period was SEK 5.00.

The turnover of the North American business grew by 31 percent and the international business by 15 percent.

The company’s main business is diabetes and slimming drugs. In July–September, their sales grew by 25 percent in Danish kroner. Sales of diet pills increased by 44 percent and amounted to 43.7 billion kroner (about 5.9 billion euros).

According to the company, the increase in turnover in the United States was negatively affected by the step-by-step price reductions. The strong growth in turnover has continued to cause intermittent delivery difficulties and the associated drug shortages for many products and in many regions.

The instructions became more detailed

Novo Nordisk refined its guidelines for this year. The turnover growth forecast was refined from 22–28 percent to 23–27 percent in local currencies. It previously estimated operating profit to grow by 20–28 percent, now 21–27 percent. According to the company’s estimate, revenue growth in Danish kroner would be one percentage point lower than in local currencies, and profit growth would be two percent.

Novo’s share price has been falling in recent weeks. Just a week ago, the company’s worst competitor, an American Eli Lilly disappointed investors with a worse-than-expected interim result. According to Eli Lilly, the disappointing results were due to corrections in inventory levels in the United States. Eli Lilly sells the diabetes drug Mounjaro, which competes with Novo Nordisk’s Ozempic, and the weight loss drug Zepbound, whose counterpart Novo has Wegowy.