Novo Nordisk A/S (NVO) shares surged 6.44% in pre-market trading on Wednesday following the release of its first-quarter earnings report, which exceeded analyst expectations. The Danish pharmaceutical giant, known for its weight loss drug Wegovy, reported earnings per share of DKK 6.53, surpassing the consensus estimate of DKK 6.11 and marking a significant increase from DKK 5.68 in the same quarter last year.

The company's revenue also impressed investors, rising 19.5% to DKK 78.09 billion, slightly above the analyst forecast of DKK 78.08 billion. This strong financial performance comes despite Novo Nordisk's decision to cut its annual outlook. The company now expects sales growth between 13% and 21% at constant exchange rates, down from its previous forecast of 16% to 24%. Operating profit growth is projected between 16% and 24%, compared to the earlier estimate of 19% to 27%.

Novo Nordisk's recent strategic moves appear to be bolstering investor confidence. The company has announced deals with telehealth companies to sell Wegovy directly to cash-paying consumers and secured an agreement with CVS Health's pharmacy benefit manager to make Wegovy the preferred GLP-1 medicine on major formularies. These initiatives, coupled with the strong earnings report, have reignited optimism in Novo Nordisk's ability to compete effectively in the evolving weight loss medicine market, despite increasing competition from rivals like Eli Lilly.