The market reacted negatively when Danish pharmaceutical giant Novo Nordisk presented its second-quarter report. The share fell 4 percent on the Copenhagen Stock Exchange during the morning.
Johan Unnerus, a pharmaceutical analyst at the research firm SB1, is surprised by the market's negative reaction.
This quarter, it is mainly the diabetes side that is a big surprise, he says.
Sales were significantly higher than expected for treatment for type 2 diabetes.
Uncertain response in Europe
In its new forecast of increased sales for the full year, Novo Nordisk refers to increased demand for the weight-loss pill Wegovy, which was recently approved for use in Europe.
The question is how much of an advantage the pill will have in Europe over injectables with stronger effects.
The US has a more consumer-driven market when it comes to weight loss, but parts of Europe are more focused on specialist care.
Pressed by Eli Lilly
However, the competing pharmaceutical company, the American Eli Lilly, is pressuring Novo Nordisk in the US and globally with its obesity and diabetes drug Mounjaro.
Eli Lilly has gained a significant grip on the market for injectable treatments for weight loss and diabetes, according to Unnerus.
However, Novo Nordisk has a head start in the pill-based weight-loss market, and came to market earlier with a treatment that has a stronger effect, he says.
Market in its infancy
The demand for weight-loss preparations has surged in recent years and Johan Unnerus does not believe in any setback.
In weight loss, the market is still in its infancy.
Now patients pay a large part of the cost out of pocket, but both Novo Nordisk and Eli Lilly are trying to get their weight-loss drugs included in drug subsidies in Europe.
In Europe, many countries and regions are often a little cautious about bringing in products under reimbursement, says Unnerus.
Novo Nordisk is raising its full-year forecasts thanks to strong demand for the weight-loss drug Wegovy.
The forecast for adjusted sales growth and adjusted operating profit for the full year is expected to be between 0 and a decline of 6 percent at constant exchange rates, compared with a previously expected decline of 4-12 percent.
Adjusted sales in the second quarter of this year rose 7 percent to 78.5 billion Danish kroner compared with the same period last year, beating analysts' expectations of 71.6 billion Danish kroner.
Adjusted operating profit increased 11 percent year-on-year to DKK 33.4 billion, compared with an expected DKK 28.9 billion.
Source: Novo Nordisk.
