Novo reported quarterly earnings that came in ahead of expectations early Wednesday, driven by stronger-than-expected sales of its Wegovy weight-loss pill.
The Danish pharmaceutical company is seeking to regain momentum after a challenging stretch in which it trailed rival Eli Lilly.
Novo updated its outlook, now forecasting adjusted revenue and operating profit growth of between negative 2% and 2% at constant exchange rates. The company had previously projected full-year sales and operating profit growth of between negative 6% and flat, a range it had raised in August.
Third-quarter sales reached 79.2 billion Danish kroner ($11.9 billion), up 4% year over year at constant exchange rates and ahead of FactSet estimates of 73.6 billion kroner. Adjusted operating profit was 31.7 billion kroner, compared with the expected 28.6 billion kroner.
Although Novo pioneered the GLP-1 weight-loss drugs now used by about 10% of Americans, it has struggled to keep momentum going as chief rival Eli Lilly quickly caught up and moved ahead in its largest market, the U.S. Several other pharmaceutical companies are also considering entering the lucrative weight-loss market.
Investors are now focused closely on the companies’ next-generation weight-loss drugs and whether they can treat obesity-related conditions such as heart and kidney disease, sleep apnea and arthritis.
Novo said sales of its Wegovy pill, launched earlier this year, totaled 5.4 billion kroner, compared with the roughly 4.5 billion kroner analysts had expected. Sales of the injectable Wegovy and diabetes treatment Ozempic were 20.4 billion and 29.7 billion kroner, respectively, also above expectations.
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