Danish drugmaker Novo Nordisk missed second-quarter expectations Wednesday but raised its full-year outlook. NVO stock tumbled.
Sales climbed 25% to 41.27 million Danish Kroner — or about $5.62 billion. Adjusted profit came in at 5.86 Danish Kroner per share, up more than 11%. That translates to about 80 cents of adjusted earnings per share in U.S. dollars. But both measures came in light, according to FactSet.
The company posted strong growth for its diabetes and obesity care division, up 28%. Novo Nordisk said its diabetes drugs in the GLP-1 class — Rybelsus and Ozempic — drove the lion's share of the growth. Together, sales of those drugs increased 57%. Sales of obesity treatments surged 99%.
But on today's stock market, NVO stock toppled 12.7% to close at 99.91.
NVO Stock: Raised 2022 Guidance
Novo Nordisk has made a name for itself in diabetes. It's now expanding more deeply in obesity and overweight treatment, where Eli Lilly soon hopes to make inroads.
By the end of the year, Novo Nordisk says it plans to make all dosages of its newest weight-loss drug, Wegovy, available in the U.S.
For the year, Novo Nordisk called for sales to grow 12%-16% in constant currency and for profit to increase 11%-15%. That's an increase from the company's previous guidance for 10%-14% and 9%-13%, respectively.
But NVO stock plunged below its 50-day and 200-day moving averages, MarketSmith.com shows. Shares are consolidating with a buy point at 122.26.
NVO stock also has a strong Composite Rating of 92, which puts shares in the leading 8% of all stocks in terms of fundamental and technical measures.
Further, shares have a bullish Relative Strength Rating of 90. This means NVO stocks trades in the top 10% of all stocks in terms of 12-month performance, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
