Source Credit : Portfolio Prints
Novo Nordisk raised its full-year outlook on Wednesday after stronger-than-expected early performance of its oral weight-loss drug, Wegovy, boosted first-quarter results and sent shares sharply higher.
The company now expects 2026 adjusted sales and operating profit to decline between 4% and 12% on a currency-adjusted basis, an improvement from its earlier forecast of a 5% to 13% drop. Shares rose 8.3% in morning trading in Copenhagen following the announcement.
First-quarter sales surged 32% at constant exchange rates to 96.8 billion Danish kroner ($15.2 billion), while reported operating profit climbed 65% to 59.6 billion kroner. However, on an adjusted basis—excluding a one-off $4.2 billion impact from a reversal linked to the U.S. 340B Drug Pricing Program—sales fell 4% and operating profit declined 6%.
The quarter marked the first full reporting period for U.S. sales of Wegovy’s oral version. The pill generated 2.26 billion kroner in revenue, nearly double analyst estimates of 1.16 billion kroner. Approximately 1.3 million prescriptions were recorded during the period, signaling strong early adoption.
CEO Mike Doustdar said the figures “speak for themselves,” emphasizing strong patient tolerance and sustained double-digit growth despite new competition from Eli Lilly’s recently launched obesity pill, Foundayo.
Novo now holds roughly 65% of new weight-loss prescriptions in the U.S., with Doustdar describing the trend as a “turnaround situation.” Addressing concerns that oral drugs could erode demand for injectable treatments, he said the two formats are proving complementary rather than cannibalistic.
Injectable Wegovy sales rose 12% year-on-year to 18.2 billion kroner, slightly below expectations, while diabetes treatment Ozempic saw sales fall 8% but still beat forecasts. Overall, Novo’s obesity-care segment posted a 22% increase in adjusted constant-currency sales.
“The strong Wegovy performance, combined with continued growth in international operations, has led us to raise our 2026 guidance,” Doustdar said in a statement.
Novo and Eli Lilly remain locked in a high-stakes battle for dominance in the rapidly expanding weight-loss drug market, which analysts estimate could reach $100 billion by the end of the decade.
Lilly has recently gained ground in the U.S., benefiting from strong demand for its injectable treatments Mounjaro and Zepbound, which posted quarterly sales growth of 125% and 80%, respectively.
Lilly CEO David Ricks noted that scaling its oral drug Foundayo would take “quarters, not days,” as it represents a completely new therapy requiring time to build awareness. Early prescription data shows it trailing Wegovy’s pill launch.
Novo’s early lead in oral treatments provides a timely boost after a challenging year marked by disappointing trial results and concerns over its pipeline, including the next-generation drug CagriSema, which underperformed against Zepbound in recent studies.
Despite ongoing uncertainties around demand forecasting—particularly as GLP-1 drugs gain traction in direct-to-consumer channels—early clinical data suggests Wegovy’s oral formulation may deliver superior average weight loss compared to rivals, reinforcing investor optimism around its long-term potential.
