Novo Nordisk A/S Class B

Top-line & profit trend (Q1 2026): sales down on price/mix, margin pressure; transformation savings on track - Reported sales +32% to DKK 96.8bn, but adjusted sales -4% (CER) because realized prices fell (partly offset by GLP-1 volume growth + market expansion). - Adjusted gross margin fell to 80.6% vs 83.5% in 2025 due to lower realized prices, one-time costs, and negative FX, offset by positive mix from higher GLP-1 share. - Adjusted operating profit -6% at CER; management says investment level remains elevated in R&D + commercial (launches/growth). - Company-wide transformation savings: on track to deliver DKK 8bn savings (announced Q3 2025) and reinvest into growth.

2026 guidance: still negative growth, but outlook improved on stronger GLP-1 expectations - Adjusted sales growth now expected: -4% to -12% at CER (range improved vs prior; management emphasized GLP-1 product sales expectations). - Adjusted operating profit growth: -4% to -12% at CER. - Key drivers in guidance: - International: continues benefiting from GLP-1 volume penetration + obesity market expansion, but semaglutide compound patent expiry impacts some markets. - U.S.: expected pressure from injectable GLP-1 competition, reduced obesity coverage in Medicaid, and further realized price declines (incl. Most-Favored-Nations assumptions). - Wegovy pill uptake included via multiple assumptions (including potential negative impact on injectable obesity category growth + channel mix). - Employee count: ~68,000 FTEs (down ~10,000 YoY), supporting cost discipline.

Obesity franchise momentum: Wegovy pill launch is the big positive surprise; high-dose rollout underway - Obesity care sales +22% in Q1: - International +44%, U.S. +9%. - Wegovy pill (U.S.) early traction (very strong): - ~1.3m TRx in Q1, and >2m total TRx since launch (~16 weeks) → >1m people treated. - Week ending Apr 17: ~207k weekly prescriptions. - ~80% of pill users are GLP-1 naive; some users shift from competitors with “limited cannibalization” from injectable Wegovy. - PBM behavior: by end of Q1, 3 largest PBMs added at parity (expected to influence reimbursed vs self-pay mix over time). - Patient usability: early signals include ongoing titration/refills/stay-time patterns “consistent with expectations” (still early—uncertainty remains). - Wegovy HD 7.2mg: launched in U.S. in April; management cited ~20.7% mean weight loss in adherent patients (step-up trial), with discontinuation due to AEs similar to lower dose; already seeing users titrate to 7.2mg. - Surprising/positive competitive point: management claims Wegovy franchise leads NBRx market share ~65% after commercial adjustments.