Novo Nordisk stock sank Thursday after sales of weight-loss blockbuster, Wegovy, nearly doubled year over year, but missed even more bullish expectations.
Wegovy generated $1.34 billion in sales, skyrocketing more than 99%, according to FactSet. In Danish krone, the growth was even more impressive, with sales catapulting 106%. But the Street projected an even stronger $1.49 billion, signaling Novo Nordisk is still struggling to meet demand for the popular obesity treatment.
The Danish drugmaker's parent company, Novo Holdings, announced in February its $16.5 billion plan to buy drug manufacturer Catalent to help boost production of weight-loss and diabetes drugs, including Wegovy and Ozempic. Both are branded versions of the chemical backbone, semaglutide, which targets the GLP-1 hormone.
Novo Nordisk Chief Executive Lars Fruergaard Jorgensen credited the diabetes and obesity drugs for driving outsized demand in the first quarter.
"More patients benefit from our innovative treatments, and the agreement to acquire the three Catalent manufacturing sites will enable us to serve significantly more people living with diabetes and obesity in the future," he said in a statement.
On today's stock market, Novo Nordisk stock toppled 4% to 124.02. The MarketSurge stock chart shows a flat base with a buy point at Novo's March 7 record high of 138.28.
Novo Nordisk Stock: Bullish Growth, But Light In Some Areas
Across all products, sales climbed nearly 19% to $9.36 billion, topping analysts' projection for $9.13 billion. On an adjusted basis, earnings surged about 25% to 81 cents per share. That beat analysts' call by 6 cents a share.
The biggest growth came from Novo Nordisk's weight-loss drugs, which also includes a treatment called Saxenda. Alongside Wegovy, sales within that segment soared almost 37% to $1.58 billion, FactSet shows. Yet, Novo Nordisk stock analysts projected a bigger $1.73 billion.
On the diabetes side, sales of powerhouse drug Ozempic popped 33% to $3.85 billion and narrowly beat the Street forecast for $3.84 billion. The diabetes segment — which includes a third drug based on semaglutide called Rybelsus — generated $6.9 billion in sales, up 74% and above calls for $6.29 billion.
But revenue from insulins took a hit, falling about 4% to $1.91 billion. Still, that beat analysts' call for $1.75 billion.
For the year, Novo Nordisk expects sales to climb 19% to 27% in constant currency. The company also called for a 22% to 30% jump in operating profit.
Novo Nordisk stock currently ranks No. 21 on the IBD 50 list of elite growth stocks.
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