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Investing.com -- Novo Nordisk ’s (CSE:NOVOb) stock jumped over 3% on Wednesday following a stronger-than-expected fourth-quarter profit, boosted by an increase in sales of Wegovy, the company’s weight-loss drug.
The pharmaceutical giant reported earnings of DKK 22.63 per share for FY24, a 1% beat compared to analysts’ expectations, while total sales reached DKK 290 billion, also exceeding forecasts by 1%.
The company attributed part of this positive performance to a DKK 5 billion benefit from gross-to-net adjustments in the fourth quarter, with a significant DKK 3 billion coming from its insulin portfolio.
Despite concerns around the future, Novo’s FY25 guidance offered some reassurance, with analysts pointing out that the guidance for both EBIT and sales came in stronger than anticipated.
“FY25 topline guidance of 16-24% brackets consensus (we’d been below and concerned about a lower guide). We think this is good enough to get things back on track,” said analysts at Barclays (LON:BARC) in a note.
The company’s EBIT forecast for FY25 is projected to grow by 28%, outpacing the expected 24% growth, while its sales growth is expected to hit 23%, surpassing the consensus estimate of 21%. FX benefits are expected to contribute an additional 3% to sales and 5% to EBIT.
Analysts noted that the company’s sales growth target for FY25 was set at a broad 16-24% range, but the midpoint of 20% aligns closely with expectations.
The sales forecast for the coming year also reflects a solid starting point, with the lower end of the range in line with consensus.
However, this growth could be somewhat tempered by a slight deterioration in net financials, with the company expecting a loss of DKK 9 billion compared to a consensus estimate of DKK 3.5 billion.
In terms of new product launches, analysts said that the filing for CagriSema, Novo’s promising dual-hormone treatment for obesity, will likely be delayed until the first quarter of 2026, as the company works to secure supply chain readiness.
Meanwhile, the company confirmed plans to file for approval of its oral version of semaglutide for obesity, Rybelsus, in the coming months.
Despite some potential headwinds, analysts at BofA Securities remain optimistic about the outlook, maintaining a "buy" rating for Novo Nordisk, with a price target of DKK 1,075.