NVO

Business Context and Reporting Period

Company: Novo Nordisk A/S
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Second Quarter (Q2) and First Half (H1) ended June 30, 2026
Filing Date: August 4, 2026

Novo Nordisk reported Q2 2026 results driven by strong volume growth in GLP-1 products, particularly the Wegovy franchise, offset by lower realized prices and non-cash impairment charges. The company raised its full-year 2026 outlook for adjusted sales and operating profit.

Key Financial Metrics

Note: Negative Net Debt indicates a net cash position. Adjusted figures exclude non-recurring items such as 340B provision reversals and major impairments.

Material Changes vs. Prior Period

• Revenue Growth: Reported Q2 sales grew 3% at Constant Exchange Rates (CER). Adjusted sales grew 7% at CER, driven by GLP-1 volume growth. H1 reported sales grew 18% at CER, heavily influenced by a DKK 26.8 billion 340B provision reversal in Q1 2026.
• Profitability Decline (Reported): Reported operating profit decreased 16% at CER in Q2. This was negatively impacted by the absence of the Q2 2025 340B reversal and a DKK 6.3 billion non-cash impairment charge related to intangible pipeline assets (including DKK 4.0 billion for monlunabant).
• Profitability Growth (Adjusted): Adjusted operating profit increased 11% at CER in Q2, reflecting underlying operational strength.
• Therapy Area Performance:
  • Obesity Care: Adjusted sales grew 16% at CER in Q2, led by the Wegovy franchise.
  • Diabetes Care: Adjusted sales grew 3% at CER in Q2. Ozempic sales grew 5% at CER, while Rybelsus/Ozempic pill sales declined 4% at CER.
• Geographic Performance: US Operations adjusted sales grew 4% at CER in Q2. International Operations adjusted sales grew 10% at CER.

Guidance, Outlook, and Risks

Updated Full-Year 2026 Guidance

Novo Nordisk raised its full-year 2026 outlook, driven by increased expectations for GLP-1 product sales:

• Adjusted Sales Growth: Now expected to be 0% to -6% at CER (previously -4% to -12%).
• Adjusted Operating Profit Growth: Now expected to be 0% to -6% at CER (previously -4% to -12%).
• Free Cash Flow: Expected to be between DKK 45 billion and DKK 55 billion.
• Capital Expenditure: Expected to be around DKK 55 billion.

Management Commentary and Pipeline

• Commercial Highlights: Wegovy pill weekly prescriptions in the US exceeded 265,000 for the week ending July 17, 2026. Total prescriptions since launch exceeded 5 million. Wegovy HD launched in the US; Wegovy pill launched in the UAE and UK.
• Pipeline Progress:
  • Approvals: EMA approved Wegovy 7.2 mg single-dose pen and Wegovy pill. Wegovy approved for MASH treatment in Japan and UK.
  • Setbacks: The ZEUS phase 3 trial with ziltivekimab did not meet its primary endpoint. Development of monlunabant was terminated.
• Pricing Strategy: Effective January 1, 2027, Novo Nordisk will lower the US list price of Wegovy and Ozempic by approximately 50% and 35%, respectively, to USD 675.

Risks and Contingencies

• Legal Matters:
  • Inflation Reduction Act: US Supreme Court denied certiorari; matter closed.
  • Patent Litigation: Cipla filed an ANDA for generic Ozempic; Novo Nordisk filed a patent infringement complaint. Sandoz filed a lawsuit in the Unified Patent Court seeking revocation of a semaglutide patent.
  • False Advertising: Novo Nordisk filed a lawsuit against Eli Lilly alleging false advertising regarding GLP-1 efficacy.
  • Data Breach: Multiple class action lawsuits filed in the US regarding an IT security incident in June 2026.
• Market Risks: Intensifying competition, loss of exclusivity for semaglutide in certain markets, and potential impacts from the US "Most Favoured Nations" agreement on pricing.

Investor Verification Checklist

• Impairment Impact: Verify the long-term impact of the DKK 6.3 billion impairment charge on R&D pipeline valuation and future earnings.
• 340B Provision Reversals: Confirm the sustainability of sales growth excluding the one-time DKK 26.8 billion Q1 2026 and DKK 2.6 billion Q2 2025 340B reversals.
• Wegovy Pill Uptake: Monitor the trajectory of Wegovy pill prescriptions and market share relative to injectable formulations and competitors.
• 2027 Price Reduction: Assess the financial modeling impact of the announced 50% price cut for Wegovy in the US effective January 2027.
• Legal Exposure: Track the status of the Cipla ANDA litigation and the Sandoz UPC patent challenge regarding semaglutide.
• ZEUS Trial Outcome: Evaluate potential further impairment charges related to the failed ZEUS trial in Q3 2026.