Novo Nordisk(NVO) - 2025 Q2 - Quarterly Report

Financial Performance - Novo Nordisk's sales increased by 16% in Danish kroner and by 18% at constant exchange rates to DKK 154.9 billion in H1 2025[4] - Operating profit rose by 25% to DKK 72.2 billion, with a 29% increase at constant exchange rates[6] - Net profit for H1 2025 was DKK 55.5 billion, reflecting a 22% increase compared to H1 2024[5] - Free cash flow for H1 2025 was DKK 33.6 billion, with DKK 36.5 billion returned to shareholders[10] - The total assets increased by 31% to DKK 482.2 billion, and equity rose by 49% to DKK 168.1 billion[10] - Total sales reached DKK 154,944 million in H1 2025, compared to DKK 133,409 million in H1 2024, reflecting a 16% increase[14] - Gross margin for H1 2025 was 83.4%, down from 84.9% in H1 2024, primarily due to amortizations and depreciations related to Catalent[58] - Operating profit for H1 2025 increased by 25% in DKK and 29% at CER, amounting to DKK 72,240 million[61] - Net profit for H1 2025 rose by 22% to DKK 55,537 million, with diluted earnings per share increasing by 23% to DKK 12.49[65] - The company reported a total comprehensive income for H1 2025 of DKK 60,199 million, compared to DKK 44,074 million in H1 2024[168] Sales Growth - Sales in US Operations increased by 16% in Danish kroner, positively impacted by gross-to-net sales adjustments of approximately DKK 3 billion in Q2 2025[6] - Sales within Diabetes and Obesity care grew by 16% to DKK 145.4 billion, driven by a 56% increase in Obesity care sales to DKK 38.8 billion[6] - Sales grew by 16% in Danish kroner and by 18% at CER in H1 2025, driven by Obesity care sales growth of 58% and Diabetes care sales growth of 8%[13] - Sales in the Diabetes care segment increased to DKK 106,610 million, a growth of 6% in Danish kroner and 8% at CER[16] - Total sales for H1 2025 reached DKK 154,944 million, representing a 16% increase compared to H1 2024[176] - The Diabetes and Obesity care segment generated total sales of DKK 145,406 million, with a 58% increase at CER[171] Market Performance - Novo Nordisk's global diabetes value market share decreased to 32.6%, down from 34.0% over the last 12 months[16] - GLP-1-based products for type 2 diabetes generated sales of DKK 77,940 million, an increase of 8% in Danish kroner and 10% at CER[19] - Ozempic sales increased by 14% in Danish kroner and by 15% at CER to DKK 64,520 million, driven by both US and International Operations[21] - Sales of GLP-1 Diabetes care products in US Operations increased by 8% in Danish kroner and by 9% at CER, with a market share of 50.4%[22] - Sales in EUCAN increased by 14% in Danish kroner and by 15% at CER, with a GLP-1 share of total diabetes prescriptions rising to 9.4%[24] - Sales in Region China decreased by 13% in Danish kroner and by 11% at CER, with a GLP-1 share of total diabetes prescriptions dropping to 3.1%[25] Research and Development - Novo Nordisk plans to advance subcutaneous and oral amycretin into phase 3 development for weight management[6] - Novo Nordisk initiated an exploratory phase 1 study with zalfermin in combination with semaglutide for type 1 diabetes in July 2025[103] - Novo Nordisk initiated a phase 3b trial, REDEFINE 11, for CagriSema in June 2025, enrolling approximately 600 participants over 80 weeks to assess efficacy and safety compared to placebo[105] - A phase 2 trial with a once-weekly GIP/GLP-1 co-agonist demonstrated significant body weight reductions compared to placebo, but further development was terminated due to portfolio considerations[107] - Novo Nordisk completed a phase 1 trial with INV-347, which was well-tolerated, but development was terminated due to pharmacokinetic profile and portfolio considerations[108][109] - The company submitted once-weekly semaglutide 2.4 mg for regulatory approval in Japan and the US, with FDA priority review expected for Q3 2025[111] Leadership and Management - The company announced a leadership change, with Maziar Mike Doustdar succeeding Lars Fruergaard Jørgensen as CEO effective August 7, 2025[6] - Changes in Executive Management were announced, with Mike Doustdar appointed as the new CEO effective August 7, 2025[135] Sustainability and Social Responsibility - Total CO2 emissions increased by 31% in H1 2025 compared to H1 2024, with scope 2 emissions rising by 220% due to new production sites[122][123] - Novo Nordisk aims to reduce its plastic footprint per patient by 30% by 2033, with a 5% increase in absolute plastic footprint noted in H1 2025[124] - The total number of patients reached with Novo Nordisk products was 45.7 million in H1 2025, a 9% increase from 42.1 million in H1 2024[126] - Patients reached with Novo Nordisk's Obesity care products increased by 107% to 2.9 million in H1 2025, compared to 1.4 million in H1 2024[126] - The number of vulnerable patients treated with Diabetes care products declined by 13% to 7.5 million in H1 2025, down from 8.6 million in H1 2024[128] - Novo Nordisk aims to reach 100,000 children through the Changing Diabetes in Children programme by 2030[129] - The company is committed to ensuring uninterrupted access to essential medicines during humanitarian crises, maintaining essential supplies amid geopolitical tensions[131][132]