Investing.com — Shares of Novo Nordisk (NVO) jumped 3% on Wednesday before paring gains to trade 4.2% higher, after the Danish pharmaceutical maker raised its outlook for 2026 due to stronger-than-expected demand for obesity drugs.
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The company now expects its adjusted revenue and adjusted operating profit to range from a 2% decline to 2% growth at constant currencies, compared to a previous forecast of a 6% decline to flat.
Adjusted sales for the third quarter reached 79.20 billion Danish crowns, compared to 74.98 billion a year earlier. Adjusted operating profit increased 27% at constant exchange rates to 31.72 billion crowns from 23.68 billion.
Reported operating profit, however, fell 9% at constant exchange rates to 23.01 billion crowns, reflecting non-cash writedowns of 8.7 billion crowns.
42.82 +2.63 (+6.53%)
At 11:07:41 a.m. EST. Open market.
These include a writedown of 4.6 billion crowns linked to ziltivekimab and 4.1 billion crowns linked to the restructuring of its manufacturing network.
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Sales of obesity care increased 22% at constant exchange rates to 26.15 billion crowns, driven by volume growth in the United States and international markets.
Adjusted sales were 8% above the Visible Alpha consensus of 73.4 billion crowns, and adjusted operating profit was 10% above the consensus of 28.9 billion crowns.
Jefferies said the new guidance suggests consensus forecasts could rise about 3 percentage points at the midpoint for sales and adjusted earnings.
Jefferies warned that the sales pace was flattered by about 2 billion crowns of gross-net price tailwind, mainly supporting injectable Wegovy. Without that, the pace would have been around 5% and Wegovy would have missed expectations.
“The change in CFO will likely spark some debate,” the analysts add.
Jefferies rates the stock “hold” with a price target of 275 crowns. Novo expects free cash flow of 60 to 70 billion crowns in 2026, compared to 45 to 55 billion previously and a consensus of around 45 billion, according to Jefferies.
The company also plans to reduce the wholesale acquisition cost of Wegovy and Ozempic in the United States by approximately 50% and 35%, respectively, to $675 starting January 1, 2027.
Original article
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