Novo Nordisk Posts Mixed Q3, Trims Growth Outlook

This article first appeared on GuruFocus.

Novo Nordisk (NYSE:NVO) reported a mixed third quarter, showing steady growth but also signs of slowing momentum. The Danish pharma giant best known for its blockbuster diabetes and weight-loss drugs Ozempic and Wegovy posted earnings of DKK 4.50 per share, down 26% from last year, even as revenue climbed 5.2% to DKK 74.98 billion. Net profit fell 27% to DKK 20 billion, though adjusted profit rose 5% to DKK 29.18 billion.

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The company said it now expects full-year sales to grow 811% at constant exchange rates. However, currency swings and slightly weaker demand for its GLP-1 treatments the same class of drugs driving its recent success are expected to weigh on reported results. In Danish kroner, both sales and operating profit could end up 46 percentage points lower.

Novo also expects a boost of about DKK 2.6 billion from financial items this year, thanks to gains on dollar hedges, partially offset by higher interest costs from its Catalent deal. The company described the quarter as one of resilience, despite mounting pressure from competition and foreign exchange headwinds.

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