ZACKSยท2025-11-05 16:31Core Insights - Novo Nordisk A/S reported Q3 2025 earnings of $0.70 per ADR, missing the Zacks Consensus Estimate of $0.77, and down from $0.90 per ADR in the same quarter last year [1][7] - Total revenues reached $11.74 billion, a 5% increase year-over-year in Danish kroner and an 11% increase at constant exchange rates, but fell short of the Zacks Consensus Estimate of $11.88 billion [2][7] Revenue Breakdown - The Diabetes and Obesity Care segment generated sales of DKK 70.26 billion, an 11% increase, with notable growth in fast-acting insulin Fiasp, which saw a 67% revenue increase [4] - Sales of Ozempic reached DKK 30.74 billion, up 9%, while Rybelsus sales were DKK 5.44 billion, up 4% [5] - Obesity Care sales increased 18% to DKK 21.11 billion, with Wegovy sales growing 23% to DKK 20.35 billion, although growth was hindered by illegal compounded versions and competition from Eli Lilly [6][7] Rare Disease Segment - Sales in the Rare disease segment rose 9% to DKK 4.72 billion, with hemophilia A products increasing 18% and hemophilia B products up 29% [9] Cost and Expenses - Sales and distribution costs increased 14% to DKK 16 billion, driven by promotional activities for Wegovy [10] - Research and development costs surged 65% to DKK 15.39 billion, influenced by late-stage obesity research and restructuring charges [11] Outlook Adjustments - The company revised its 2025 sales growth forecast to 8-11% from 8-14% and operating profit growth to 4-7% from 4-10% [12] - The guidance reflects anticipated slower growth for the GLP-1 portfolio amid competition and pricing pressures, particularly in the U.S. market [13][14] Competitive Landscape - Novo Nordisk's global diabetes market share declined 2.3% to 31.6%, attributed to competition from Eli Lilly's Mounjaro and Zepbound, which generated combined sales of $14.7 billion in the first half of 2025 [15] - Eli Lilly reported strong Q3 results, further intensifying competition for Novo Nordisk [15] Strategic Initiatives - The company is pursuing expanded indications for its semaglutide drugs and has a robust pipeline for diabetes and obesity treatments [17] - A major restructuring program was announced to streamline operations and reinvest in core businesses, targeting annual savings of around DKK 8 billion by 2026 [20]