Novo Nordisk(US:NVO)2025-11-05 14:28Financial Performance - Novo Nordisk's net sales for the first nine months of 2025 reached DKK 229.9 billion, representing a 12% increase compared to the same period in 2024, with a 15% growth at constant exchange rates (CER) [5]. - Operating profit increased by 5% to DKK 95.9 billion, impacted by one-off restructuring costs of approximately DKK 9 billion; without these costs, the operating profit would have increased by 15% in Danish kroner and 21% at CER [6]. - Free cash flow for the first nine months of 2025 was DKK 63.9 billion, with DKK 53.2 billion returned to shareholders [10]. - The gross margin decreased to 81.0% from 84.6% in the previous year, while the operating margin fell to 41.7% from 44.7% [11]. - Net profit for the first nine months of 2025 increased by 4% to DKK 75,543 million, while adjusted net profit rose by 10% to DKK 87,748 million [65]. - Operating profit for the first nine months of 2025 was DKK 95,922 million, a 5% increase in Danish kroner and 10% at CER, despite one-off restructuring costs of around DKK 9 billion [61]. - Net profit for Q3 2025 was DKK 20,006 million, down 27% from DKK 27,301 million in Q3 2024 [181]. - Total comprehensive income for the first nine months of 2025 was DKK 77,983 million, compared to DKK 69,791 million in 2024, reflecting an increase of 11.5% [158]. Sales Growth - Sales in the US operations grew by 12% in Danish kroner and 15% at CER, while international operations saw a 13% increase in Danish kroner and 16% at CER [7]. - Sales in Diabetes and Obesity care increased by 12% to DKK 215.7 billion, driven by a 37% growth in Obesity care to DKK 59.9 billion and a 7% increase in GLP-1 diabetes sales [7]. - Total sales for the first nine months of 2025 reached DKK 229,920 million, compared to DKK 204,720 million in the same period of 2024, reflecting a growth of 12% [13]. - Sales grew by 12% in Danish kroner and by 15% at CER in the first nine months of 2025, with Obesity care sales increasing by 41% and Diabetes care sales growing by 8% [13]. - 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 10.0% [23]. - Sales in Emerging Markets decreased by 1% in Danish kroner but increased by 6% at CER, with a GLP-1 share of total diabetes prescriptions increasing to 3.1% [23]. - Total sales for Q3 2025 reached DKK 74,976 million, reflecting an 11% increase at constant exchange rates (CER) compared to the previous year [164]. Product Performance - GLP-1-based products for type 2 diabetes generated sales of DKK 114,675 million, representing a 7% increase in Danish kroner and a 10% increase at CER [18]. - Ozempic sales increased by 10% in Danish kroner and by 13% at CER to DKK 95,264 million, driven by both US and International Operations [20]. - Rybelsus sales grew by 2% in Danish kroner and by 5% at CER to DKK 16,790 million, primarily due to International Operations [20]. - Obesity care product sales, including Wegovy and Saxenda, increased by 37% in Danish kroner and by 41% at CER to DKK 59,902 million, with a global market share of 59.2% [33]. - Wegovy sales surged by 49% in Danish kroner and by 54% at CER to DKK 57,242 million, while Saxenda sales decreased by 51% [34]. - Rare disease sales increased by 10% in Danish kroner and 13% at CER, totaling DKK 14.3 billion [10]. - The Rare disease segment reported sales of DKK 14,259 million, with a 13% increase at CER compared to the previous year [166]. Research and Development - Research and development costs rose by 9% in Danish kroner and 10% at CER to DKK 37,391 million, driven by investments in Obesity care and cardiovascular portfolio [58]. - Research and development costs surged by 62% to DKK 15,393 million, representing 20.5% of sales, driven by increased late-stage clinical trials [73]. - Novo Nordisk submitted oral semaglutide 25 mg to the EMA, achieving a 16.6% weight loss compared to 2.7% with placebo in a trial [107]. - The company initiated a phase 3 programme for cagrilintide in people living with obesity, assessing its efficacy and safety [108]. Strategic Initiatives - The company announced the acquisition of Akero Therapeutics, adding a potential first-in-class asset for the treatment of MASH, and initiated a phase 3 program with cagrilintide for weight management [6]. - A company-wide transformation is set to reduce the global workforce by approximately 9,000 positions, including 5,000 in Denmark [128]. - Novo Nordisk aims to reduce its plastic footprint per patient by 30% by 2033, with a current footprint of 0.34 kg per patient [123]. - The company plans to reduce scope 3 CO2 emissions by 33% by 2033, with a current increase of 20% in the first nine months of 2025 [122]. Market Position - Novo Nordisk's global diabetes value market share decreased to 31.6%, down 2.3 percentage points from the previous year, while the total GLP-1 volume market share across Diabetes and Obesity care is 59.0% [15]. - In the US, Novo Nordisk holds a 48.1% value market share in GLP-1 diabetes care products, with a prescription volume growth of over 10% in Q3 2025 compared to Q3 2024 [21]. - The estimated GLP-1 share of total diabetes prescriptions globally increased to 7.4%, up from 6.5% a year ago [18]. Financial Outlook - For the full-year 2025, Novo Nordisk expects sales growth of 8-11% at CER and operating profit growth of 4-7% at CER, reflecting a negative impact of around DKK 8 billion from the company-wide transformation [7]. - Sales growth for 2025 is now expected to be between 8% and 11% at CER, with reported sales growth anticipated to be around 4 percentage points lower [86]. - The company expects financial items (net) for 2025 to amount to a gain of around DKK 2.6 billion, driven by gains on hedged currencies [89]. Legal and Governance - A class-action lawsuit was filed against Novo Nordisk in August 2025, alleging misleading financial forecasts related to GLP-1 medicines [136]. - An Extraordinary General Meeting is scheduled for November 14, 2025, to elect new board members following significant changes in the Board of Directors [133].