THE GIST
Novo Nordisk is formally again on the offensive. After a yr of being chased by rival Eli Lilly, the Danish pharmaceutical big simply posted first-quarter outcomes that smashed expectations, largely thanks to an enormous U.S. urge for food for its new weight-loss capsule, Wegovy.
It seems that whereas individuals love the outcomes of the “skinny jab,” they love the comfort of a every day pill much more.
WHAT HAPPENED
Novo Nordisk hiked its full-year revenue steering on Wednesday after a blowout first quarter. On a reported foundation, gross sales jumped 32% to succeed in 96.8 billion Danish kroner ($15.2 billion), whereas working revenue surged 65% to 59.6 billion kroner.
Nevertheless, these reported numbers carry a large asterisk. They embody an enormous $4.2 billion one-off achieve from a reversal of a provision associated to a U.S. authorities drug pricing program. While you strip out the accounting magic, adjusted gross sales fell 4% and earnings fell 6% on account of decrease realized costs within the U.S.
However buyers ignored the “adjusted” dip and centered on the long run: the capsule. The Wegovy weight-loss pill, launched within the US in January, generated 2.26 billion kroner ($355 million) in its first three months. That’s practically double what analysts anticipated. Prescriptions for the capsule hit 1.3 million within the quarter and surged previous 2 million by mid-April.
CEO Mike Doustdar famous that the US is at present within the grip of a “peptide craze,” the place shoppers are lastly studying the science behind GLP-1 hormones. This cultural shift helped Novo regain a 65% share of all new prescriptions within the US. Shares in Copenhagen jumped 7% on the information, marking the inventory’s greatest day of 2026.
WHY IT MATTERS
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The pharmaceutical world is at present a two-horse race between Novo Nordisk and Eli Lilly for the weight-loss market, anticipated to succeed in $100 billion by 2030. For the previous yr, Lilly has been profitable, with its medication Mounjaro and Zepbound displaying barely increased weight-loss percentages in scientific trials.
This quarter’s outcomes counsel Novo has discovered its “secret weapon” to struggle again. The oral Wegovy capsule is widening the market moderately than simply cannibalizing the injectable enterprise. In a direct-to-consumer market just like the US, a capsule is a a lot simpler promote than a needle, and Novo at present has a head begin on this class. Whereas Lilly lately launched its personal weight problems capsule, Foundayo, Novo’s early lead in prescriptions suggests it’s constructing model loyalty that can be arduous to interrupt.
