HQ Team
May 2, 2024: Novo Nordisk, Europe’s most valuable company, has raised its 2024 revenue outlook on the back of its popular weight-loss drug Wegovy, as it announced its January to March operating profit rose 27% to Danish kroner 31.8 billion.
Sales growth this year is forecast to grow between 19% and 27% in local currencies, compared to the previous range of between 18% and 26%, according to a statement released after its first-quarter earnings.
Operating profit growth in 2024 is estimated at between 22% and 30% in local currencies, up from its previous forecast of 21% to 29%.
The obesity care segment rose by 41% in Danish kroner to 11 billion crowns. The company plans to increase the output of Wegovy, where shortages persist in the US market.
Supply constraints
Wegovy has been facing supply constraints due to soaring demand from nations where it has been sold, and that is putting pressure on the company to increase production.
“As we expect supply to be constrained for the foreseeable future, a proportion of available supply will be allocated for use only within the NHS,” the company stated in September last year.
In February 2024, Novo Nordisk announced an agreement to acquire three “fill-finish sites” from Novo Holdings A/S in connection with a transaction where Novo Holdings A/S has agreed to acquire Catalent, Inc.
Novo Nordisk expects the acquisition to be completed by the end of 2024, according to the earnings statement.
Global market
The global obesity market is estimated to be worth $100 billion by Goldman Sachs. As of May 2024, Novo Nordisk’s market capitalisation was $578.54 billion.
It made Novo Nordisk the world’s 11th most valuable company by market cap according to research company, CompaniesMarketcap. The market capitalisation is calculated by multiplying the share price with the amount of outstanding shares.
Diabetes and Obesity care segments put together registered a growth of 25% in Danish kroner to DKK 61.0 billion, mainly driven by GLP-1 diabetes sales growth of 30%.
Sales growth in North America increased by 34% in Danish kroner while “sales growth in the US was positively impacted by gross-to-net sales adjustments related to prior years.
GLP-1
“The sales growth in the first three months of 2024 (was) driven by increased demand for our GLP-1-based diabetes and obesity treatments,” said Lars Fruergaard Jørgensen, president and CEO.
“More patients benefit from our innovative treatments, and the agreement to acquire the three Catalent manufacturing sites will enable us to serve significantly more people living with diabetes and obesity in the future.
“Within R&D, we are pleased with the positive results from the kidney outcomes trial with semaglutide and the label expansion for cardiovascular risk reduction for Wegovy in the US.”
