By Maggie Fick
LONDON (Reuters) -Novo Nordisk on Wednesday posted second-quarter working revenue under expectations, raised its 2024 gross sales forecast however trimmed revenue outlook, as competitors from Eli Lilly within the booming weight-loss drug market intensifies.
Working revenue within the quarter rose 8% at fixed change charges to 25.9 billion Danish crowns ($3.8 billion) in contrast with the 27.3 billion forecast by analysts in a LSEG ballot and Novo’s Frankfurt-listed shares fell 3.2% simply after market opening.
The Danish firm mentioned it now anticipated gross sales development this yr of between 22% and 28% in native currencies, in comparison with the beforehand guided vary for 19% to 27% development.
“We’re happy with the gross sales development within the first half of 2024, which has enabled us to boost the outlook for the total yr,” CEO Lars Fruergaard Jorgensen mentioned in a press release.
However the firm lowered its forecast for working revenue development this yr, to between 20% and 28% in native currencies, in comparison with its earlier forecast of twenty-two% to 30% .
Novo ended a sophisticated kidney illness trial in June, which resulted in an impairment lack of 5.7 billion Danish crowns, which the corporate mentioned impacted working revenue.
The more severe-than-expected second-quarter earnings might deepen investor worries that Novo’s first-mover benefit within the fast-growing weight problems drug market is in danger.
Gross sales of Wegovy, Novo’s first-to-market weight-loss drug, additionally got here in weaker than anticipated. Gross sales rose 53% to 11.66 billion crowns in comparison with the 13.54 billion anticipated by analysts in a company-compiled consensus.
Some analysts forecast the weight problems drug market could possibly be price about $150 billion by the early 2030s.
Buyers are eager to listen to from extra from Novo – Europe’s most respected listed firm price about $550 billion – on Wednesday about when it expects to considerably enhance provides of Wegovy within the U.S. and finish shortages as rival Lilly swiftly builds market share.
The corporate is spending billions of {dollars} to extend manufacturing of Wegovy to fulfill runaway demand and fend off Lilly, which launched its rival remedy Zepbound within the U.S. in December final yr.
($1 = 6.8402 Danish crowns)
(Reporting by Maggie Fick; Modifying by Terje Solsvik and Tomasz Janowski)
