-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Reported Q1 sales and operating profit surged 24% and 54%, respectively, boosted by a $4.2B reversal of 340B Drug Pricing Program rebate provision. On an adjusted basis (excluding this item), sales declined 10% (or -4% CER) due to lower realized prices, particularly in the U.S., partially offset by volume growth. The Wegovy pill, launched in January, delivered DKK2.3B in Q1 sales with weekly prescriptions exceeding 200k by mid-April and 2M+ total prescriptions, while injectable Wegovy grew 12% CER internationally, though U.S. sales fell 11% CER on pricing pressure. Management raised its 2026 outlook, with adjusted sales and operating profit now expected to decline 4%-12% CER (vs. prior -5% to -13%), reflecting stronger GLP-1 expectations, particularly for the Wegovy pill. Wegovy pill's strong launch trajectory is encouraging, with international rollout expected in 2H 2026. However, persistent U.S. pricing pressure, mixed clinical data (CagriSema setbacks), and intensifying competition warrant close monitoring.