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Novo Nordisk reported outcomes for the primary half of 2025 on Wednesday, days after issuing a revenue warning that triggered a 23% single-day share value plunge — the steepest in its historical past.
The outcomes have been broadly in step with expectations. Within the first six months of 2025, Novo Nordisk’s gross sales elevated by 16% in Danish kroner and by 18% at fixed trade charges (CER) to DKK 154.9bn (€20.77bn).
US gross sales climbed 16% in kroner (17% at CER), boosted by accounting modifications. This included a DKK 3bn (€402 million) provision within the second quarter linked to the US’ 340B drug low cost scheme. Worldwide gross sales additionally rose 16% (19% at CER).
Gross sales in Diabetes and Weight problems care, in the meantime, grew 16% to DKK 145.4bn (€19.49bn), pushed by a 56% surge in weight problems therapies to DKK 38.8 billion (€5.2bn). GLP-1 diabetes medication rose 8%, and uncommon illness gross sales elevated 14%.
Valuation hunch
In July 2024, Danish pharmaceutical big Novo Nordisk briefly touched a €600bn valuation, changing into Europe’s most respected firm and even surpassing its nation’s gross home product.
Simply over a 12 months later, its market capitalisation has collapsed to round €180bn, as cracks start to emerge within the blockbuster narrative surrounding its weight-loss medication.
But some Wall Avenue analysts argue the sell-off could have gone too far. At present ranges, they recommend the corporate might be coming into worth territory, doubtlessly providing a compelling shopping for alternative.
Forecasts for the 12 months forward
Wanting forward, Novo Nordisk’s 2025 gross sales are anticipated to develop 8–14% at CER, with working revenue up 10–16%. Forex results are seen trimming these beneficial properties by 3 and 5 share factors respectively.
The lowered forecast displays decreased demand for GLP-1 diabetes and weight-loss therapies as a result of different merchandise from rivals — particularly affecting Wegovy and Ozempic within the US and chosen world markets.
In the meantime, management modifications at Novo Nordisk will take impact this Thursday. After Lars Fruergaard Jørgensen was ousted in Could linked to the agency’s falling share value, Maziar Mike Doustdar will take over as CEO this week.
Analysts eye shopping for alternative after historic sell-off
Goldman Sachs analyst James Quigley famous that the outcomes have been largely in step with the pre-release and exchange-rate pressures on working revenue have been barely much less extreme than initially feared.
Nonetheless, the agency flagged the discontinuation of a number of pipeline belongings. These are individually minor, however collectively elevating some concern about long-term analysis and growth momentum.
Quigley remained broadly optimistic on Novo Nordisk’s long-term potential progress: “On the present degree, we consider the sell-off is disconnected from the long-term alternative within the weight problems market, significantly given the numerous manufacturing infrastructure and investments Novo is making or has already made.”
Goldman Sachs acknowledged that uncertainties stay across the GLP-1 and weight problems market, in addition to Novo Nordisk’s pipeline power, significantly in mild of the eventual semaglutide patent expiry.
The agency stated it could proceed monitoring key information factors and developments carefully.
Nonetheless, Quigley added that, following the sharp share value drop, the risk-reward stability had shifted favourably.
“On stability, we see extra upside than draw back danger and stay Purchase-rated,” the word learn, with a DKK 400 (€53.62) goal value implying about 29% upside from present ranges.
Market response
Novo Nordisk shares have been buying and selling 2% decrease throughout European morning buying and selling on Wednesday, eyeing their seventh destructive day trip of the final eight.
Shares at the moment are down over 65% in contrast with a 12 months in the past.