Novo Nordisk A/S Q2 Earnings Call Highlights
NVONOVO_B
Novo Nordisk A/SNVOreported second-quarter adjusted sales growth of 7% at constant exchange rates, supported by GLP-1 volume growth across its obesity and diabetes franchises, while lower realized prices and manufacturing-related costs weighed on margins
Chief Executive Officer Mike Doustdar said the company is serving more than 46 million people with obesity and diabetes and is treating nearly 5 million people with its obesity therapies, about 70% more than a year earlier. Novo Nordisk also raised its full-year outlook following what Chief Financial Officer Karsten Munk Knudsen described as a better-than-expected start to 2026
Wegovy Pill Drives Volume Growth
The company highlighted continued momentum for its oral Wegovy treatment, which launched in the U.S. six months ago. Jamey Millar, executive vice president of U.S. Operations, said Wegovy pill had exceeded 5 million total prescriptions and reached weekly prescriptions of 267,000 as of July 17
Millar said the product has captured about 90% of the U.S. oral obesity-medication market despite competition entering in early April. Roughly 80% of patients using Wegovy pill are new to GLP-1 treatment, according to the company, suggesting the therapy is expanding the market rather than solely switching patients from existing products
Most U.S. Wegovy pill prescriptions remain self-pay, as access to reimbursed obesity GLP-1 treatments remains limited. Novo Nordisk is also pursuing broader access through its Medicare Part D Bridge program for eligible patients age 65 and older. Millar said early participation has been encouraging, though the company is still assessing whether the initial uptake will be durable
The broader branded obesity-medication market grew volumes by about 70% from the second quarter of 2025, Novo Nordisk said. The Wegovy franchise held an approximately 60% share of new branded obesity prescriptions in July
Outside the U.S., International Operations GLP-1 sales rose 13%, with obesity franchise sales increasing 37%. Emil Kongshøj Larsen, executive vice president of International Operations, said Novo Nordisk held about 58% of GLP-1 volume market share outside the U.S., though its share has declined in recent quarters
The company launched Wegovy pill in the U.K. and United Arab Emirates during the quarter. In the U.K., Novo Nordisk estimated that about 300,000 patients started treatment within three weeks of broad availability in early July. The company said this initial uptake raised its overall obesity market share in the country from about 30% before launch to 45%, based on July IQVIA sell-in data to private providers and pharmacies. Germany is expected to be the next launch market, beginning in September.
Margins Affected by Prices and Manufacturing Costs
Second-quarter adjusted sales totaled DKK 78.5 billion. U.S. Operations grew 4%, while International Operations increased 10%. Obesity care sales rose 16%, supported by volume growth across the Wegovy portfolio, while GLP-1 diabetes sales increased 2%
Adjusted gross margin fell to 78.2% from 82.7% a year earlier. Knudsen attributed the decline to lower realized prices, a roughly DKK 3 billion one-time cost related to resizing manufacturing-capacity agreements, and negative currency effects. Productivity gains and a more favorable mix from GLP-1 sales partly offset those factors
Adjusted operating profit increased 11% at constant exchange rates. The company said it is ahead of plan on its DKK 8 billion cost-savings program, with the savings being reinvested in research, development and commercial growth initiatives. Novo Nordisk ended the quarter with approximately 66,700 full-time employees, down nearly 12,000 employees, or roughly 15%, from a year earlier
In the U.S., Wegovy injectable sales faced pricing pressure despite volume growth. Knudsen said self-pay patients now account for about 35% of U.S. injectable Wegovy sales, compared with roughly 10% to 15% a year ago. The self-pay channel carries a different price point but has helped expand patient access, he said
Guidance Raised Despite Second-Half Headwinds
Novo Nordisk raised its 2026 outlook and now expects adjusted sales growth and adjusted operating-profit growth of between 0% and negative 6% at constant exchange rates
Knudsen said the outlook improvement primarily reflects stronger expectations for GLP-1 sales. However, the forecast assumes sales growth internationally and a sales decline in the U.S. It also incorporates intensifying U.S. competition, reduced Medicaid coverage for obesity medications, lower realized prices associated with market-access investments, and effects from most-favored-nation agreements with the U.S. administration
The company also expects the loss of semaglutide exclusivity in markets including Canada and Brazil to have a greater effect in the second half, with that impact annualizing into 2027. Novo Nordisk said generic competition in early loss-of-exclusivity markets has been modest so far but is expected to be more significant later in the year
Pipeline Progress and ZEUS Setback
On the research front, Novo Nordisk disclosed that its ZEUS cardiovascular outcomes trial of ziltivekimab did not meet its primary objective. The study enrolled more than 6,300 patients with established cardiovascular disease, chronic kidney disease and inflammation
Martin Holst Lange, executive vice president of R&D and chief scientific officer, said ziltivekimab demonstrated target engagement and reduced inflammatory biomarkers, but this did not translate into lower major adverse cardiovascular events. The hazard ratio for major adverse cardiovascular events was 0.99. Overall adverse-event rates were similar to placebo, though serious infections occurred more frequently with ziltivekimab
The company said the result does not alter its commitment to cardiovascular disease research. Two additional ziltivekimab outcomes trials, ARTEMIS in acute myocardial infarction and HERMES in heart failure with preserved ejection fraction, are continuing, with results expected in the first half of 2027
Novo Nordisk also completed its REDEFINE 9 trial of lower maintenance doses of CagriSema, reporting superior weight loss versus placebo and a safety and tolerability profile consistent with previous CagriSema studies. Detailed data are expected later this year. The company continues to expect a U.S. regulatory decision for CagriSema in obesity near the end of 2026, with a potential launch in 2027
Novo Nordisk A/S is a Danish multinational pharmaceutical company headquartered in Bagsværd, Denmark, best known for its leadership in diabetes care and metabolic health. The company traces its roots to early Danish insulin production in the 1920s and was established in its current form through a 1989 merger of predecessor companies. Novo Nordisk develops, manufactures and markets pharmaceutical products and devices that address chronic and serious diseases, with a strong emphasis on long-term treatment and patient support.
The company’s core product portfolio centers on diabetes therapies, including a range of insulins and modern incretin-based treatments
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