Novo Nordisk Results were Messy, Challenges Remain

Dow Jones
08/07

1000 GMT - Novo Nordisk's second-quarter report was messy, and the key challenge remains a lack of visibility on pricing and midterm outlook, as well as a lack of a clear Wegovy successor in the pipeline, Citi analysts write. A 16% second-quarter adjusted operating income beat was mostly driven by 2 billion Danish kroner in rebate adjustments. Sales of the drugmaker's Wegovy pill came in slightly below consensus, while U.S. injectable sales missed it by 9%. The full-year guidance raise was expected, and CagriSema's failure in a head-to-head trial versus Eli Lilly's tirzepatide further dented market confidence, Citi adds. Company guidance implies a second-half sales drop of 8% in constant currencies. The bank lowers its stock target price to 310 kroner from 330 kroner and keeps its neutral rating. Shares rise 4.7% to 307.38 kroner.

 

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