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Novo Nordisk sold fewer of its weight loss and diabetes drugs than expected in the second quarter and cut its profit forecast, as the Ozempic and Wegovy maker faces increased competition and continued supply constraints.
Sales increased 25 per cent to DKr68bn ($9.94bn) in the period, below the 26.7 per cent pace forecast by analysts. Net profit for the quarter was DKr20.5bn, short of expectations of DKr21.3bn.
Novo Nordisk has been the biggest winner in the booming market for obesity drugs, but the Danish pharma group is facing rising competition from the likes of Eli Lilly, pressure on pricing and supply constraints.
In a sign of investor concern over lower than anticipated sales — including for blockbuster weight-loss treatment Wegovy — shares fell 5 per cent in early trading in Copenhagen.
The company also changed its guidance for the year ahead. Sales are expected to increase 22 to 28 per cent at constant exchange rates, compared with previous guidance of 19 to 27 per cent.
It also lowered its expectations for operating profit, which it expects to increase by 20 to 28 per cent, compared with previous guidance of 22 to 30 per cent, in part owing to a DKr5.7bn impairment charge on a failed drug for chronic kidney disease.
Novo Nordisk said its outlook reflected “expected, continued periodic supply constraints” across the world.
The company has invested heavily in increasing supply, while higher doses of the Wegovy have recently been removed from US lists of drugs in shortage, in a sign of easing constraints. But it continues to cap the amount of doses for new patients to prioritise supply to existing users.
Lars Fruergaard Jørgensen, president and chief executive of the Danish drugmaker said he was confident that Novo Nordisk could meet demand, saying “we are gradually releasing starter doses as a sign of our comfort in our ability to scale”.
Sales of Wegovy reached DKr11.7bn, well below analysts’ estimates of DKr13.6bn. Karsten Munk Knudsen, chief financial officer, said the numbers were a “quarterly blip”.
The fall partly reflected an underestimate of rebates due to US pharmacy benefit managers, entities that negotiate prices between drugmakers and insurance companies, and can receive payments from manufacturers when their drugs are dispensed to patients, he said.
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