By Maggie Fick

LONDON (Reuters) -Novo Nordisk on Wednesday posted second-quarter operating profit below expectations, raised its 2024 sales forecast but trimmed profit outlook, as competition from Eli Lilly within the booming weight-loss drug market intensifies.

Operating profit within the quarter rose 8% at constant exchange rates to 25.9 billion Danish crowns ($3.8 billion) compared with the 27.3 billion forecast by analysts in a LSEG poll and Novo’s Frankfurt-listed shares fell 3.2% just after market opening.

The Danish company said it now expected sales growth this 12 months of between 22% and 28% in local currencies, in comparison with the previously guided range for 19% to 27% growth.

“We’re pleased with the sales growth in the primary half of 2024, which has enabled us to lift the outlook for the complete 12 months,” CEO Lars Fruergaard Jorgensen said in a press release.

But the corporate lowered its forecast for operating profit growth this 12 months, to between 20% and 28% in local currencies, in comparison with its previous forecast of twenty-two% to 30% .

Novo ended a complicated kidney disease trial in June, which resulted in an impairment lack of 5.7 billion Danish crowns, which the corporate said impacted operating profit.

The more serious-than-expected second-quarter profits may deepen investor worries that Novo’s first-mover advantage within the fast-growing obesity drug market is in danger.

Sales of Wegovy, Novo’s first-to-market weight-loss drug, also got here in weaker than expected. Sales rose 53% to 11.66 billion crowns in comparison with the 13.54 billion expected by analysts in a company-compiled consensus.

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

Investors are keen to listen to from more from Novo – Europe’s most beneficial listed company value about $550 billion – on Wednesday about when it expects to significantly boost supplies of Wegovy within the U.S. and end shortages as rival Lilly swiftly builds market share.

The corporate is spending billions of dollars to extend production of Wegovy to satisfy runaway demand and fend off Lilly, which launched its rival therapy Zepbound within the U.S. in December last 12 months.

($1 = 6.8402 Danish crowns)

(Reporting by Maggie Fick; Editing by Terje Solsvik and Tomasz Janowski)