Novo Nordisk A/S raised its forecasts for the second time this year, citing higher expectations for its obesity and diabetes drug sales, though the magnitude of the increase failed to impress investors.
Novo said the worst drop for sales and profit will probably be 6% this year, compared with an earlier forecast of sales and profit dropping as much as 12% at constant exchange rates.
Wegovy pill sales of 3.2 billion Danish kroner were in line with analysts' estimates.
The upgrade was “clearly not heroic,” Jared Holz, Mizuho Securities healthcare strategist, said in a note. “The lack of upside for Wegovy pill” compared to expectations weighed on the stock, he said.
Novo's American Depositary Receipts fell as much as 7.2% at 1:05 p.m. in New York.
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Novo is locked in a fight with US rival Eli Lilly & Co. in obesity, a market Bloomberg Intelligence estimates will reach $120 billion a year by 2030. The Wegovy pill, a key part of Novo's strategy, has had the best launch yet for a modern obesity medicine.
In a sign of how intense the struggle between drugmakers has become, Novo sued Lilly on July 21, accusing the US company of misleading advertising for its shots Zepbound and Mounjaro.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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