Yahoo TV

STORY: Novo Nordisk shares slid on Wednesday (August 7) as it cut its 2024 profit outlook…

after reporting weaker-than-expected sales growth for blockbuster weight loss drug Wegovy.

Second quarter profit rose 8% to $3.8 billion - below the $4 billion forecast by analysts.

The numbers stirred concern among investors about stiff competition from Eli Lilly, maker of rival product Zepbound, which is gaining ground in the U.S.

That’s all while Novo races to expand capacity and meet runaway demand…

Sparking concerns that its first-mover advantage in the booming obesity drug market is at risk.

Second-quarter sales of Wegovy did still rise, and the company also raised its sales growth outlook for this year.

But it said profit growth was being constrained by factors including the cost of ramping up output.

Novo and Lilly are now going head-to-head with their obesity treatments in a number of markets.

But the most lucrative one by far is the U.S., where more than 70% of adults are obese or overweight.

Some analysts forecast the obesity drug market could be worth about $150 billion by the early 2030s.

Shares in Novo - Europe's most valuable listed company - were down around 4% by mid-morning.