Danish pharmaceutical giant Novo Nordisk said on Wednesday it would cut its growth forecast for its key obesity and diabetes treatments. The company's net profit for the quarter was 20 billion Danish kroner (approximately $3.1 billion), in line with analysts' expectations of 20.12 billion Danish kroner in a FactSet survey.
Diabetes and obesity treatments have become key growth drivers for the company following the widespread use of Wegovy and Ozempic. However, Novo Nordisk lowered its growth forecast, citing prescription trends, competition and pricing pressure.
Novo Nordisk's Copenhagen-listed shares have fallen more than 50% this year as a series of headwinds shake investor confidence in what was once Europe's most valuable company.
In addition to a series of disappointing trial results, growing competition in obesity drugs and challenges posed by U.S. drug pricing and tariff policies, Novo Nordisk is facing leadership changes and opposition to a key acquisition.
therefore,Analysts have mixed views on the stock. Jefferies recently downgraded it to underperform, while Berenberg was positive on the stock, saying Novo Nordisk had reached "peak uncertainty."
"Novo Nordisk's superior growth momentum and best-in-class R&D returns deserve a higher valuation premium than its peers," the bank said.
Acquisition offer for Metsera
Novo Nordisk last week launched a competitive bid for US obesity biotech Metsera, replacing an offer from US pharmaceutical giant Pfizer for the company.
On Monday, Pfizer said it had filed a second lawsuit against Novo Nordisk and Metsera, saying Novo Nordisk's takeover bid for the smaller company was anticompetitive.
A Novo Nordisk spokesman said in a statement that Pfizer's allegations were "false and unfounded."
On Tuesday, Novo Nordisk raised its bid for Metsera, saying it was now offering as much as $10 billion, compared with an earlier offer of about $9 billion.
Novo Nordisk said in a statement: "Novo Nordisk believes that the proposal, including the transaction structure, complies with all applicable laws and is in the best interests of patients who will benefit from our commitment to innovation and is in the interest of Metsera shareholders." It noted that the transaction is also subject to the terms of Pfizer's merger agreement with Metsera.
Metsera said on Tuesday that the revised offer was "more favorable" than Pfizer's revised offer.