Novo Nordisk maintains booming sales of obesity and diabetes drugs

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Novo Nordisk maintained its sales growth momentum on booming sales of its weight loss and diabetes drugs, as it reported revenue and operating profit broadly in line with analysts’ expectations.

The maker of the blockbuster Ozempic and Wegovy drugs has benefited in recent years from huge demand for its products. It reported sales of DKr71.3bn ($10.2bn) in the third quarter, up 21 per cent from the same period in 2023 but slightly lower than analysts’ projections. Operating profit of DKr33.8bn was in line with expectations.

Novo Nordisk now expects sales to increase by 23-27 per cent on a constant exchange rate basis compared with previous estimates of 22-28 per cent.

The company’s shares rose 8 per cent in early trading in Copenhagen, as the results eased concerns about a weakening in weight-loss drug sales sparked by disappointing results last week from its main rival in the category, Eli Lilly. The shares later retreated to end the day 0.6 per cent higher.

The US company’s shares tumbled by as much as 12 per cent last week after it lowered its revenue guidance because of high manufacturing costs and fluctuating inventory levels.  

Novo Nordisk’s revenue growth was driven by sales of its weight-loss drug Wegovy, which accounted for DKr17.3bn of sales, above analyst estimates of DKr15.8bn.

“The sales growth is driven by increasing demand for our GLP-1-based diabetes and obesity treatments, and we are serving more patients than ever before,” said chief executive Lars Fruergaard Jørgensen.

The Danish company’s 7.4 per cent share price rise this year lags far behind its rival Eli Lilly’s 36 per cent, as the US company has gradually increased its share of the obesity and diabetes market and Novo Nordisk has faced lower prescriptions of Wegovy than expected.

Novo Nordisk is developing new drugs that could provide improved weight-loss results for patients, with investors waiting for late-stage results before the end of the year from CagriSema, a new treatment that could eventually replace Wegovy and Ozempic.

Both companies expect to see more competition in the years ahead, although the clinical development of drugs from rivals Roche and AstraZeneca are far behind those of Novo Nordisk and Eli Lilly. AstraZeneca this week reported early data for a weight-loss oral pill that it said was safe and competitive with other drugs in the field.