Novo Nordisk, a Danish pharmaceutical giant, announced on Wednesday that it is reducing its growth projections for its major obesity and diabetes treatments.
According to analysts in a FactSet poll, the quarterly net profit was 20 billion Danish kroner ($3.1 billion) as compared to the expected 20.12 billion Danish kroner.
Another major area of growth was diabetes and obesity care after the adoption of Wegovy and Ozempic, but the company revised the growth forecast, citing prescription trends, competition, and pressure.
The Copenhagen-listed shares by Novo have fallen by over 50 percent throughout this year as a series of headwinds have struck investors’ confidence in what was once the most valuable company in Europe.
Together with the inability to produce promising trial outcomes, the growing competition within the obesity drug sector, and the difficulties posed by U.S. policies on drug pricing and tariffs, Novo has been grappling with management changeovers and a backlash over a major acquisition.
Analysts have consequently been divided on the stock; Jefferies has downgraded its rating to underperform, although Berenberg is positive on the stock, claiming that Novo has reached “peak uncertainty.”
The bank reported that “Novo’s superior growth profile and best-in-class R&D returns warrant a higher valuation premium to its peers.”
Novo has proposed a rival takeover bid to American obesity biotech company Metsera a week ago, replacing an offer to the company by U.S. pharmaceutical giant Pfizer.
Pfizer announced on Monday that it had pressed a second suit against Novo and Metsera on the basis that the takeover of the smaller company by Novo was an anticompetitive takeover bid.
A spokesman for Novo commented in an announcement that Pfizer had allegations were “false and without merit.”
Novo increased its Metsera bid on Tuesday, claiming it was now offering up to $10 billion in comparison to the previous offer of approximately $9 billion.
In a statement, the company said highlighting that the agreement was subject to the terms of Pfizer’s merger deal with Metsera, the company added, “Novo Nordisk believes that the proposal, including the structure of the transaction, complies with all applicable laws and is in the best interest of patients who will benefit from our commitment to innovation, as well as Metsera’s shareholders.”
Metsera reported on Tuesday that the revised offer was “superior” to a revised bid by Pfizer.
