NVO

Novo Nordisk A/S Q1 2026 Financial Summary

Business Context and Reporting Period

This Form 6-K reports the unaudited financial results for Novo Nordisk A/S for the first quarter of 2026 (January 1 to March 31, 2026), filed on May 6, 2026. The company is a global healthcare leader focused on diabetes, obesity, and rare diseases. The reporting period is significantly influenced by a non-recurring reversal of a sales rebate provision related to the US 340B Drug Pricing Program.

Key Financial Metrics

Note: Reported figures include a DKK 26.8 billion (USD 4.2 billion) non-cash provision reversal. Adjusted figures exclude this item to reflect underlying operational performance.

Material Changes vs. Prior Period

• Revenue Divergence: Reported sales grew 32% at constant exchange rates (CER) due to the 340B provision reversal. Excluding this, adjusted sales declined 4% at CER, driven by lower realized prices in the US and International Operations, partially offset by volume growth in GLP-1 products.
• Profitability: Reported operating profit surged 65% at CER. Adjusted operating profit declined 6% at CER, reflecting the sales decline and continued investments in R&D and commercial activities.
• Geographic Performance: US Operations adjusted sales fell 11% at CER due to price reductions. International Operations adjusted sales grew 6% at CER, driven by volume increases in Europe, Canada, and APAC.
• Therapeutic Areas: Adjusted Obesity care sales grew 22% at CER. Adjusted Diabetes care sales declined 12% at CER, impacted by lower insulin and GLP-1 diabetes sales.

Guidance, Outlook, and Management Commentary

Outlook Update: Management has raised the 2026 full-year guidance for adjusted sales and operating profit growth, though both remain in negative territory due to pricing pressures.

• Adjusted Sales Growth (2026): Expected to be -4% to -12% at CER (previously -5% to -13%).
• Adjusted Operating Profit Growth (2026): Expected to be -4% to -12% at CER (previously -5% to -13%).
• Free Cash Flow (2026): Expected to be DKK 36-46 billion.

Management Commentary: CEO Mike Doustdar highlighted the "strongest-ever GLP-1 volume launch" with the Wegovy pill, which generated DKK 2,256 million in Q1 sales. The company is navigating lower realized prices due to the "Most Favoured Nations" (MFN) agreement in the US and loss of exclusivity in certain international markets, while investing heavily in supply chain capacity and R&D.

Risks and Contingencies:

• Legal: Ongoing litigation regarding FDA drug shortage lists, securities class-action lawsuits, and antitrust claims in the US and China. Patent infringement lawsuits in India regarding semaglutide generics.
• Market Access: Potential negative impacts from reduced Medicaid coverage for obesity medications in the US and generic competition in International Operations.
• FX Exposure: Significant exposure to USD, CNY, and JPY fluctuations.

Key Facts for Investor Verification

• 340B Provision Reversal: Verify the non-cash nature of the DKK 26.8 billion gain and its exclusion from adjusted metrics to assess true operational trends.
• Wegovy Pill Adoption: Monitor prescription volumes and market penetration of the newly launched oral GLP-1, which drove the strongest launch in company history.
• Pricing Pressure: Assess the long-term impact of the US MFN agreement and the announced 2027 list price reductions (approx. 50% for Wegovy, 35% for Ozempic) on future margins.
• Patent Expirations: Track the commercial impact of semaglutide generic launches in India and potential biosimilar approvals in China.
• Capital Allocation: Review the execution of the DKK 15 billion share repurchase program and the DKK 35.3 billion dividend payout.