Novo Nordisk (NVO) Q1 2026 earnings: Wegovy sales jump

Nordisk hiked its annual revenue steerage on Wednesday, because the drugmaker mentioned its Wegovy weight-loss capsule carried out higher than anticipated within the first three months of the 12 months, sending its shares sharply greater.

Novo raised its 2026 full-year steerage on the again of elevated expectations for GLP-1 product sales, saying it now expects adjusted sales and revenue to contract between 4% and 12% on a currency-adjusted foundation, an enchancment on the beforehand projected decline of between 5% and 13%.

The firm’s shares rose 6.7% in morning buying and selling in Copenhagen, climbing down from earlier good points that noticed the inventory rise by greater than 8%.

Novo mentioned first-quarter sales jumped 32% on a continuing foreign money foundation to achieve 96.8 billion Danish kroner ($15.2 billion), whereas working revenue emerged 65% to 59.6 billion kroner on a reported foundation.

On an adjusted foundation, sales nevertheless, fell 4% whereas earnings fell 6%.

Adjusted figures exclude a $4.2 billion non-recurring influence from a provision reversal associated to the 340B Drug Pricing Program within the US, Novo mentioned.

The quarter was the primary interval protecting sales of Novo’s oral weight reduction drug, the Wegovy capsule, within the US Sales of the capsule amounted to 2.26 billion kroner, properly above analyst estimates compiled by Reuters of 1.16 billion kroner.

Despite accounting for less than a fraction of complete sales, traders are carefully watching the sales trajectory of the capsules, which is widening the market for these medicine.

In its earnings launch on Wednesday, Novo mentioned the Wegovy capsule noticed round 1.3 million prescriptions within the first three months of the 12 months.

Novo additionally introduced that, pending regulatory approvals, the Wegovy capsule will launch outdoors the US throughout the second half of 2026.

“The numbers with the pill speak for themselves,” CEO Mike Doustdar advised CNBC’s Charlotte Reed, highlighting that the product was properly tolerated by sufferers.

Doustdar mentioned he was seeing sales of the capsule rising by double digits regardless of competitors from rival Eli Lilly’s weight problems capsule Foundayo that was launched within the US in April.

Novo’s Wegovy model now instructions 65% of all new prescriptions within the US, Doustdar mentioned, calling it a “turnaround situation.”

A priority for traders has been the extent the introduction of oral options would hamper sales of the older, injectable merchandise.

But on “pill versus a pen,” individuals are utilizing each, Doustdar mentioned. “It’s having not cannibalizations, but a synergetic effect,” he mentioned.

Sales of its injectable Wegovy drug jumped 12% year-on-year to 18.2 billion kronor, falling barely in need of expectations compiled by LSEG.

Meanwhile, sales of diabetes drug Ozempic fell by 8%, however got here in above expectations, in accordance with LSEG.

The broader weight problems care class noticed adjusted fixed foreign money sales rise by 22%.

“The strong Wegovy performance, combined with continued growth in International Operations, has led us to raise our 2026 guidance for both adjusted sales and adjusted operating profit,” Doustdar mentioned in a press release alongside the outcomes.

But, in a word following the publication of Novo’s earnings replace, fairness analysts at Jefferies mentioned Novo’s change in steerage was unlikely to have a optimistic influence on consensus forecasts — noting market expectations may even contract in response.

“We suspect the fact that the company has not lifted the lower end of the guidance range will more be seen as a negative,” they mentioned.

Novo and his chief rival, Eli Lillyhave been locked in a fierce battle for market share within the profitable weight-loss market, which analysts see rising to $100 billion by the top of the last decade.

Lilly has overtaken Novo in the important thing US marketplace for its injectable diabetes and weight reduction medicine, which has been the main target of their rivalry. Pharma corporations sometimes rely closely on the US, the place costs for branded medicine are sometimes a number of occasions greater than elsewhere.

Lilly launched its own weight loss pillFoundayo, in early April.

Novo sells its GLP-1 drug, semaglutide, as Ozempic for kind 2 diabetes and Wegovy for weight reduction.

Lilly, in the meantime, last week posted sales growth for rival GLP-1 medicine Mounjaro and Zepbound of 125% and 80%, respectively. It additionally raised its full-year outlook on the again of the better-than-expected outcomes as complete income grew 56% within the quarter.

Novo’s outcomes come as investor sentiment across the firm had slowly begun to recuperate following the launch of the Wegovy capsule within the US in early January, which analysts hailed as “one of the best launches ever.”

Lilly CEO David Ricks advised CNBC’s “Squawk Box” final week that the ramp-up of its capsule, Foundayo, was going to take “quarters, not days.” Prescriptions for the primary few weeks of Foundayo considerably lagged these of the Wegovy capsule within the comparable interval. As Foundayo, not like Wegovy capsule, is a totally new drugs, it’s going to take time to construct the model, Ricks mentioned.

The early lead within the oral weight reduction market is a great addition to Novo, which has confronted a collection of setbacks over the previous 12 months, together with disappointing trial outcomes and monetary outlooks.

Investors have additionally questioned the business viability of Novo’s pipeline, corresponding to its next-generation drug CagriSemawhich was proven to be inferior to Zepbound in Novo’s personal research earlier this 12 months. The occasion prompted Novo inventory to shut at a new 5-year low.

Analysts have flagged difficulties in predicting prescriptions and sales of those weight reduction medicine, as GLP-1s have come to be uniquely vital within the direct-to-consumer channel, which till now, prescribed drugs hadn’t had a lot publicity to.

While a head-to-head research pitting the Wegovy capsule and Foundayo towards one another has but to be performed, other trials have proven the previous to result in extra weight reduction on common.