Novo Nordisk reports earnings miss and reduces operating profit forecast.

• On Wednesday, Novo Nordisk announced its net profit for the second quarter of 2024 was 20.05 billion Danish kroner ($2.93 billion), which was lower than anticipated.
• The pharmaceutical giant revised its full-year 2024 operating profit outlook, predicting growth to fall within a 20% to 28% range.

On Wednesday, Novo Nordisk reported weaker-than-expected net profit in the second quarter and reduced its operating profit forecast.

The pharmaceutical giant reported a net profit of 20.05 billion Danish kroner ($2.93 billion) in the three months to the end of June, which was lower than the LSEG aggregate forecast of 20.9 billion Danish kroner.

Novo Nordisk revised its full-year 2024 operating profit outlook, predicting growth between 20% and 28%, instead of the previously anticipated range of 22% to 30%.

In the first quarter of 2024, the Wegovy manufacturer experienced a 28% increase in net profit from the previous year, reaching 25.4 billion Danish kroner. This slight increase in profitability allowed the company to adjust its sales and operating profit growth forecasts.

On Wednesday, the sales growth expectations for full-year 2024 were revised upward, with the company now forecasting a growth rate of 22% to 28% at constant exchange rates. Previously, the sales growth outlook for the period was estimated at 19% to 27%.

Obesity drug candidate data shared by Roche last month is intensifying competition for Novo Nordisk in the weight loss market, with both smaller companies and pharmaceutical giants posing a threat.

Recently, Wegovy by Novo Nordisk has received positive news. The drug was approved in China and is now available for sale in the world's second largest economy. Additionally, the U.K.'s and European Union's medical regulators have endorsed Wegovy as a way to decrease the risks of serious heart events among overweight and obese adults.

This breaking news story is being updated.