Novo Nordisk (NVO) reported a beat on earnings for the fourth quarter of 2023 in addition to full-year, with complete gross sales up 36% and the corporate’s valuation surging above $500 billion.
Novo’s blockbuster semaglutide medicine, Ozempic, for diabetes, and Wegovy, for weight problems, already gave the corporate causes to have fun within the first three quarters of 2023, together with surpassing your entire GDP of its dwelling nation Denmark and making it probably the most precious European firm.
The corporate reported Wegovy gross sales of $4.5 billion and Ozempic gross sales of practically $14 billion for the complete 12 months final 12 months. Wegovy gross sales helped enhance complete gross sales in its weight problems division by 154% year-over-year, largely pushed by US shoppers.
“I might smile a very long time over outcomes like this — 36% gross sales development. You do not see that too usually,” CFO Karsten Knudsen advised Yahoo Finance.
He added its a historic second for the corporate — and for an trade that usually sees about 2% to 4% development per 12 months, on common.
Novo loved a first-out-the-door win within the weight problems house regardless of manufacturing struggles, however competitors is heating up with Eli Lilly (LLY), which studies earnings subsequent week, set to compete with two medicine of its personal, Mounjaro for diabetes and Zepbound for weight problems. Different entrants usually are not too far behind, however unlikely to pose a menace for a lot of the 12 months.
Provide points
Whereas demand for Ozempic has eased, Wegovy stays on the FDA’s scarcity record. Novo has dedicated greater than $8 billion to construct out manufacturing to make sure it does not lose its market lead.
Knudsen advised Yahoo Finance the corporate is ramping up manufacturing of Wegovy. The corporate beforehand slowed manufacturing of starter doses — 0.25 milligrams of semaglutide — with a view to guarantee sufferers already on the drug might proceed therapy uninterrupted.
“We’re, as of this week, greater than doubling the provision of starter doses we’re supplying the American market,” he mentioned.
Ex-US provide can be extra constrained, however the firm nonetheless needs to broaden into extra markets.
Novo’s inventory is up practically 60% up to now 12 months because of its success, climbing additional on the earnings outcomes Wednesday.
The GLP-1 merchandise in complete, together with older merchandise Saxenda and Victoza, introduced in practically $24 billion for Novo Nordisk in 2023.
Anjalee Khemlani is the senior well being reporter at Yahoo Finance, overlaying all issues pharma, insurance coverage, care companies, digital well being, PBMs, and well being coverage and politics. Comply with Anjalee on all social media platforms @AnjKhem.
