Novo Nordisk A/S Q4 FY2025 earnings call

• 2025 saw 10% sales growth and 6% operating profit growth, sharpened focus on obesity and diabetes.
• Concluded 2019-established strategic aspirations, doubled sales and operating profit since then, obesity care sales grew from DKK 6B in 2019 to DKK 82B in 2025.
• Rare disease positioned for growth with late-stage assets.
• Returned over DKK 300B to shareholders since 2019.
• Q4 had exciting readouts like Phase II of zenagamtide and Phase III of CagriSema.
• Announced changes to executive management team, welcomed new executives Jamey Millar and Hong Chow.
• David Moore discussed U.S. operations, sales of GLP-1 diabetes care products, Wegovy pill launch and uptake.
• Martin Lange updated on R&D, including results from REIMAGINE 2 trial for CagriSema, progress with zenagamtide, and pipeline plans in various therapy areas.
• Karsten Knudsen covered financials, sales growth, gross margin, operating profit, cash from operations, capital deployment, and 2026 guidance.

In 2025, Novo Nordisk delivered 10% sales growth and 6% operating profit growth. Global GLP-1 market grew over 30%. Diabetes GLP-1 sales up 6%, insulin sales down 1%. Obesity care sales up 31%, driven by Wegovy. Rare disease sales up 9%. International Operations: GLP-1 volume growth 44%, market leader with 62% volume share. U.S. operations: GLP-1 diabetes sales up 5%, Wegovy sales up 16%, early uptake of Wegovy pill.

• 2026 adjusted sales growth expected to be minus 5% to minus 13% at constant exchange rates, impacted by price declines, MFN agreement, and market dynamics.
• Adjusted operating profit growth expected to be minus 5% to minus 13% at constant exchange rates.
• Free cash flow expected to be DKK 35B to DKK 45B in 2026.
• Capital expenditure expected to be around DKK 55B in 2026.

• Market competition and pricing pressures.
• Uncertainty in volume uplift despite price reductions.
• Dynamics in the obesity market, including competitive dynamics and formulary access issues.
• Potential impact of generic competition in international markets.

Q: Triangulate guidance, break down volumes and price; speed of Medicare unlock.

A: Karsten Knudsen discussed guidance breakdown, price declines driving U.S. decline, and gradual ramp of Medicare benefit.

Q: Push and pull in guidance, volume and price; what needs to happen for bottom end of guidance.

A: Karsten Knudsen explained guidance based on latest trends, including Wegovy pill uptake and market dynamics.

Q: Formulary access for Wegovy, impact on mix and volumes; compounder volume.

A: David Moore talked about formulary access progress and stable compounder volume so far.

Q: REDEFINE 4 trial design, full weight loss potential of CagriSema.

A: Martin Lange discussed REDEFINE 4 trial details and full potential in REDEFINE 11.

Q: Wegovy pill supply risk, sustainability of demand; economics of Wegovy pill.

A: Maziar Doustdar reaffirmed supply confidence, and Karsten Knudsen discussed gross margin of Wegovy pill.

Q: Ozempic MFN price timing, volume uplift; profile of Wegovy pill.

A: David Moore and Martin Lange talked about MFN timing and pill adherence and tolerability.

Q: CapEx, API build-out track; Wegovy high dose approval and launch.

A: Karsten Knudsen confirmed CapEx track and Maziar Doustdar discussed Wegovy high dose approval and launch plans.

Q: Guidance dynamics, generic competition in IO.

A: Karsten Knudsen discussed guidance uncertainties and impact of generic competition in Canada.