Novo Nordisk's U.S.-listed shares sank on Tuesday after the drugmaker released its second-quarter earnings a day early.
The stock slumped 6.1%. The benchmark S&P 500 index rose 1.9%.
Novo reported that adjusted sales grew 7% to 78.49 billion Danish kroner in the latest period, or roughly $12.1 billion. Analysts polled by FactSet had expected roughly $10.9 billion. The company's adjusted operating profit grew 11% to 33.39 billion kroner.
While the Danish company still expects its full-year sales and operating profit to decline, the drop should be less than previously projected. Management pointed to higher U.S. demand for its GLP-1 medications, coupled with successful launches overseas.
Novo projects adjusted sales and operating profit will fall up to 6% at constant exchange rates this year. That compares with prior guidance for both metrics to fall from 4% to 12%.
The company's portfolio of "weight-loss drugs" -- a catchall term for its GLP-1 medications for patients with obesity and diabetes -- is still the what moves the stock. Novo has emerged as a key player in what is effectively a market duopoly alongside tirzepatide maker Eli Lilly.
CEO Mike Doustdar described Novo's flagship weight-loss drug, Wegovy, as "a key growth driver" for the company, pointing to rapid adoption of the Wegovy pill.
The oral drug debuted in the U.S. in January, expanding to the U.K. and United Arab Emirates in the past two months. Since launch, the pill has reached over 5 million prescriptions worldwide, Doustdar said.
The company has tried, with limited success, to change the narrative around its shares by branching into new therapeutic areas. Novo's American depositary receipts tumbled last week after an experimental heart drug failed to reduce the risk of major adverse cardiovascular events in a late-stage study.
With its success hinging on the continued uptake of its branded semaglutide products, Novo's second-quarter earnings are only the latest sign that the company has a way to go before it can be seen as anything other than a GLP-1 play.
Novo is set to host a call with analysts on Wednesday to discuss the latest results.
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