Novo Nordisk's New Weight-Loss Pill Boosts Profits Amid Intense Competition

Novo Nordisk surpassed first-quarter profit forecasts and increased its annual outlook due to robust sales of its new weight-loss pill. The Danish pharmaceutical giant is vying with U.S. competitor Eli Lilly, having launched its pill that reached 1.3 million prescriptions, despite increased market competition.

Novo Nordisk exceeded first-quarter profit expectations and increased its full-year forecast on Wednesday, driven by higher-than-anticipated sales of its new weight-loss pill, as it strives to compete with U.S. rival Eli Lilly. The Danish drugmaker's shares rose 5.8% by 0913 GMT, marking the highest daily increase this year. Novo aims to regain market share lost to Lilly in the U.S. and counter intensifying price pressures. The company plans to introduce the Wegovy pill in global markets beyond the U.S. by the latter half of 2026.

Novo reported an adjusted operating profit of 32.86 billion Danish crowns ($5.16 billion), exceeding the 28.74 billion predicted in a company survey. The company slightly revised its full-year projection, anticipating adjusted sales and operating profit declines of 4% to 12% at constant exchange rates, an improvement from the prior range of minus 5% to minus 13%. Meanwhile, last week, Lilly adjusted its annual profit and revenue forecasts upward by a wider margin. Under CEO Mike Doustdar, Novo is depending on the new pill to spur short-term recovery after last year's price reductions on its Wegovy injection affected margins. However, its exclusive status as the only oral obesity pill in the U.S. ended in early April when Lilly received FDA approval for a competing drug, Foundayo, introducing a new phase in the competition between the two pharmaceutical companies.

Wegovy pill prescriptions reached around 1.3 million in the first quarter and have surpassed 2 million since its January launch, making it the largest GLP-1 launch by volume in the United States, according to CEO Mike Doustdar. He noted that drop-off rates among new pill users have been minimal. The results represent an initial test of whether the Wegovy pill can rejuvenate Novo's growth. Pill sales reached 2.26 billion crowns, nearly doubling analyst predictions. Despite the positive outlook, investment strategist Oskar Bernhardtsen of Saxo Bank warned that the guidance upgrade fell short of market expectations. Adjusted group sales for the quarter totaled 70.06 billion Danish crowns, surpassing analyst expectations. While trying to recover from disappointing trial results and a market slump that has reduced their value by over $400 billion since 2024, CFO Karsten Munk Knudsen reported a consumer shift away from compounded obesity drugs. Notably, self-pay channels now account for over half of U.S. Wegovy sales, up from 10% a year prior. Novo has filed its Wegovy pill with the European Medicines Agency and other regulatory bodies.