Novo Nordisk’s shares rose nearly 8% on Wednesday after the Danish pharmaceutical company reported higher-than-expected third-quarter sales of its popular weight-loss drug, Wegovy.
The strong performance helped Novo Nordisk post a quarterly net profit of 27.3 billion Danish kroner (approximately $3.92 billion), slightly above analysts’ estimates of 26.95 billion kroner, as compiled by LSEG.
The company attributed its sales growth to robust demand for its GLP-1-based treatments, including Wegovy and Ozempic, which are used to treat both obesity and diabetes. Sales of Wegovy jumped by 79% year-over-year in the third quarter, reaching 17.3 billion kroner and exceeding the anticipated 15.9 billion kroner, according to Novo Nordisk’s internal data. This strong performance contributed to Novo Nordisk narrowing its sales growth guidance for 2024 to a range of 23% to 27%, an update from its previous projection of 22% to 28%.
In addition to sales guidance, Novo Nordisk tightened its operating profit growth forecast to between 21% and 27%, compared to its previous estimate of 20% to 28%, both at constant exchange rates. The company noted that while it continues to see strong growth in North America, capacity constraints in production facilities could limit supply for certain products. To address this, Novo Nordisk has been investing in expanding its manufacturing capabilities.
Regionally, North American sales were particularly strong, up 22% year-over-year, driven by a 15% increase in GLP-1 volume growth in the US Novo Nordisk also highlighted its leadership position in the US obesity and diabetes market, holding 53.9% of total monthly prescriptions for GLP-1 treatments.
In recent weeks, Novo Nordisk received positive news when the US Food and Drug Administration confirmed the availability of all dosage levels of Wegovy, following earlier shortages. Additionally, recent studies indicate that Ozempic may potentially reduce the risk of Alzheimer’s disease, a promising finding that could further boost interest in GLP-1 treatments.
Novo Nordisk’s CEO, Lars Fruergaard Jørgensen, acknowledged the impact of the company’s treatments.
“[The growth reflects] increasing demand for our GLP-1-based diabetes and obesity treatments, and we are serving more patients than ever before,” Jørgensen stated.
In an increasingly competitive market, Novo Nordisk continues to develop new drugs, including CagriSema, which is expected to deliver late-stage clinical results by year-end and may offer an alternative to Wegovy and Ozempic.
With input from CNBC, Market Watch, and Financial Times.
