Novo Nordisk shares slide despite beating quarterly estimates

Shares of Novo Nordisk fell over 5% despite beating second-quarter estimates, as the drugmaker's updated 2026 guidance disappointed investors. The company faces challenges in the U.S. from intensifying competition from Eli Lilly, reduced Medicaid coverage, and lower prices. Sales for its new Wegovy pill reached 3.22 billion kroner, slightly missing analyst expectations, though prescriptions have topped 5 million since January.

Share price decline

• ▪The company's Danish shares were down nearly 70% from their mid-2024 peak.
• ▪U.S.-traded shares of Novo Nordisk dropped more than 5% on August 4, 2026, after the company released its guidance.

2026 financial guidance

• ▪The company updated its 2026 adjusted operating profit forecast to a range of a 6% decline to flat, up from a previously anticipated 4% to 12% drop.
• ▪Novo Nordisk raised its 2026 forecast, expecting adjusted sales to be between a 6% decline and flat, an improvement from a previously expected 4% to 12% decline.

U.S. market challenges

• ▪Novo Nordisk expects a sales decline in its U.S. operations for 2026.
• ▪The U.S. sales decline is attributed to competition, reduced Medicaid coverage, and lower prices from a 'most favored nation' agreement.

Second quarter results

• ▪Adjusted operating profit for the second quarter rose 11% in constant currency to 33.39 billion kroner.
• ▪Novo Nordisk's second-quarter sales for 2026 rose to 78.49 billion kroner ($12.09 billion), a 7% adjusted increase.

Wegovy pill performance

• ▪The Wegovy pill has surpassed 5 million prescriptions since its launch in January 2026.
• ▪The pill version of Wegovy generated 3.22 billion kroner in Q2 sales, slightly below the 3.27 billion kroner analysts expected.

GLP-1 market competition

• ▪Eli Lilly's rival drugs, Zepbound and Mounjaro, have rapidly gained market share from Novo Nordisk in the GLP-1 market.
• ▪Analysts said Novo Nordisk's better-than-expected quarter benefited from temporary factors like rebate adjustments.
• ▪Novo Nordisk also reported mixed clinical results for its next-generation weight-loss drug, CagriSema, raising investor questions about its pipeline.

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