Novo beats earnings on pill surge

Novo Nordisk reported third-quarter revenue of 79.2 billion Danish kroner, or roughly $11.9 billion, a figure that surpassed analyst projections by billions. The result drove the company’s shares up more than 6 percent in early trading on Wednesday. This performance marks a shift for the firm, which has struggled to maintain its lead in the weight-loss drug market against rival Eli Lilly.

The company’s financial trajectory has been volatile over the past year. In August, Novo raised its full-year guidance but still projected flat to negative 6 percent growth for sales and operating profits. By Wednesday, executives revised that outlook upward, now expecting adjusted revenue and operating profit growth between negative 2 percent and 2 percent at constant exchange rates. This adjustment follows a period where the stock fell nearly 8 percent in September after investors expressed doubt about the company’s post-Wegovy strategy.

Specific product performance drove the beat. Sales of the Wegovy pill, which launched earlier this year, reached 5.4 billion kroner, well above the 4.5 billion kroner analysts anticipated. Injectable Wegovy sales totaled 20.4 billion kroner, while Ozempic sales hit 29.7 billion kroner. Both injectable figures also exceeded market estimates. The strength in these products comes as the company competes with Eli Lilly, which recently raised its own outlook following strong sales of Mounjaro and Zepbound.

Novo CEO Mike Doustdar addressed reporters to discuss the results. He stated that the company’s recovery is gaining traction due to successive upgrades to its guidance. However, he cautioned that a full turnaround cannot be confirmed by a single quarter’s results. "Turnaround and recovery is not done based on one data point, on one quarterly good result," Doustdar said. He added that the progressive improvement in the outlook provides confidence that the company is moving in the right direction.

The earnings report also included a leadership change. Karsten Munk Knudsen, who has served as chief financial officer for nine years, will leave the company at the end of 2026. He will be succeeded by Luigi La Corte, the current CFO of Swiss dermatology firm Galderma. Knudsen has been with Novo for 27 years.

Investor attention remains fixed on the next generation of obesity treatments. Both Novo and Lilly are racing to develop drugs that treat obesity-linked conditions such as heart disease, kidney issues, sleep apnea, and arthritis. While Lilly’s weight-loss pill Foundayo missed expectations in its own recent report, its CEO noted that total U.S. prescriptions for the drug doubled from the previous quarter.

Novo’s shares are currently down approximately 17 percent year-to-date. The company will host a live interview with CEO Mike Doustdar at 9:25 a.m. GMT to discuss the earnings and strategic outlook.