Novo Nordisk Q2 profits rise amid tough sales outlook

(Sharecast News) - Danish drugs giant Novo Nordisk posted a jump in second-quarter profit on Wednesday, against a backdrop of reduced sales forecasts, potential US tariffs and competitors threatening its blockbuster Ozempic and Wegovy weight loss treatments. The group reported a net profit of 26.5 billion kroner, up 32% on last year. Sales rose 18 percent to 76 billion kroner.

Second-quarter sales of Wegovy rose 67% to 19.53 billion kroner. Novo last week warned on profits and replaced its chief executive, sparking a share price slump that saw $95bn wiped off the company's value.

It held full-year guidance on Wednesday and named Maziar Mike Doustdar to take over from CEO Lars Fruergaard Jorgensen. Novo faces increased competition in the US from so-called unregulated "compounded' versions of its major drugs and rival treatments from Eli Lilly.

"We have lowered our full-year outlook due to lower growth expectations for our GLP-1 treatments in the second half of 2025," Jorgensen said.

Sales for 2025 sales are now expected to grow between 8% and 14%, cut as part of the profit warning from 13% - 21%.

"At first glance, Novo Nordisk's first half performance was in decent shape, but the headline figures were flattered by accounting adjustments. The group's now zoning in on improving efficiency, but it's growth that's been the stock's main attraction in recent years. There are several reasons why the first mover in next-generation obesity and diabetes therapies has been losing its way," said Hargreaves Lansdown analyst Derren Nathan.

"Tariffs and drug pricing policy are another threat Mike Doustdar will need to tackle head-on if one of Denmark's greatest success stories is to regain its crown as Europe's most valuable company."

The 15% blanket rate on EU imports is not necessarily the end of the story as Donald Trump dangles the prospect of levies of up to 250% on pharmaceutical imports."

"The weakness in Novo's valuation is a tempting opportunity to gain exposure to a name at the forefront of the enormous market opportunity in obesity and chronic diseases. But unless the new chief hits the ground running, the risks associated with catching a falling knife can't be ignored."

Reporting by Frank Prenesti for Sharecast.com