MW Novo Nordisk shares are rising after the company cut its outlook. It's been that kind of year.

By Steve Goldstein

Novo Nordisk on Wednesday managed the unusual feat of seeing its stock price rise after reducing its earnings outlook. But that's reflective of the tough times the Danish maker of Ozempic and other weight-loss drugs has had.

Novo Nordisk stock (DK:NOVO.B) $(NVO)$ rose 3% in early Copenhagen trade. But the stock is still down about 27% this year and less than half the value of its peak last June.

The company said its first-quarter profit rose 14% to 29 billion Danish kroner ($4.4 billion), as sales rose 19% to 78.09 billion kroner.

Analysts polled by Visible Alpha expected a profit of 27.61 billion kroner on revenue of 78.4 billion kroner.

Novo Nordisk says it's now cutting its annual outlook - seeing sales growth, at constant exchange rates, between 13% and 21%, vs. its previous forecast of 16% to 24%, and operating profit growth between 16% and 24%, vs. its previous forecast of 19% to 27%.

Taking into consideration the currency drags it estimates, Novo Nordisk at the midpoint is targeting 14% sales growth and 15% operating profit growth, which compares to analyst expectations of 18% sales growth and 23% operating profit growth.

Novo Nordisk said the U.S. Food and Drug Administration's removal of semaglutide injections from the drug shortage list means fewer patients taking compounded GLP-1 treatments during the second half of the year.

A compound treatment allows a company like Hims & Hers $(HIMS)$ to make a customized version when the FDA-approved version is not available.

Novo Nordisk said it's focused on preventing unlawful and unsafe compounding. It's also expanding access to the weight-loss medication Wegovy through telehealth organizations as well as the recent decision by CVS $(CVS)$ to have it be the only GLP-1 medication it offers for weight loss.

Novo Nordisk said it's going to reduce spending to make up for the sales shortfall.

-Steve Goldstein

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May 07, 2025 03:59 ET (07:59 GMT)

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