DENMARK — Novo Nordisk, the Danish pharmaceutical giant, witnessed a remarkable surge in sales in the third quarter driven by unabated demand for its obesity and diabetes medications.
The company’s exceptional success with Wegovy, its highly effective weight-loss drug, was particularly noteworthy.
Sales of Novo’s diabetes treatments, including Ozempic, Rybelsus, and Victoza, surged by nearly 50% during the period.
These drugs’ success has sparked a frenzy of interest in the pharmaceutical industry, with analysts predicting that this class of treatments could become one of the most significant blockbusters in history.
Despite record operating profits and sales, CEO Lars Fruergaard Jorgensen highlighted the challenge of supply struggling to keep up with surging demand for Wegovy.
This dynamic is expected to persist in the short to medium term as Novo maintains restrictions on U.S. doses.
However, the company has committed to increasing U.S. supplies of Wegovy in the coming year to meet the escalating demand for this weight-loss medication.
Novo Nordisk reported a substantial 38% rise in revenue, reaching 58.73 billion kroner (US$8.3 billion), excluding certain items, exceeding analysts’ expectations. Operating profit also surged by 47% during this period.
The pharmaceutical giant has grappled with soaring demand for its appetite-suppressing anti-obesity drug, leading to limitations on the number of U.S. patients who can initiate treatment since May.
Furthermore, Novo faces competition from Eli Lilly’s diabetes drug Mounjaro, which is on track to receive U.S. approval for weight loss by the end of 2023.
The global market for obesity drugs, driven by the effectiveness of Wegovy and similar medications, could reach a staggering US$100 billion by 2030.
Novo has catapulted into the spotlight with the success of Wegovy and another related diabetes drug, Ozempic, which have demonstrated their ability to help individuals shed unwanted weight by curbing their appetite.
Wegovy’s sales exceeded expectations, totaling nearly 10 billion kroner (US$895.6 million) during the period, primarily in the U.S., where the pharma group faces challenges in meeting demand.
While Novo Nordisk is actively investing in expanding its supply capacity, it anticipates ongoing supply constraints and shortages in the U.S. and other regions.
To safeguard supplies for existing users in the U.S., Novo is currently limiting starter doses for Wegovy, a medication capable of helping overweight individuals lose approximately 15% of their body weight.
In the race to capture a share of this expanding market, around 40 companies are competing with Novo, with Eli Lilly & Co leading the way. Eli Lilly expects to gain U.S. approval to use its Mounjaro diabetes drug for obesity treatment this year.
Novo Nordisk recently increased its revenue and profit outlook for the third time, with operating profit potentially rising by up to 46%, driven by the success of Wegovy and Ozempic.
These injectable medications, sharing the same active ingredient, work by suppressing patients’ appetite and slowing food movement through the digestive tract.
In a significant development, Novo has submitted applications to U.S. and European Union authorities to seek approval for Wegovy in reducing the risk of cardiovascular events.
This follows the results of a large study conducted in August that demonstrated Wegovy’s clear cardiovascular benefits, hinting at its potential beyond being a lifestyle drug. The U.S. Food and Drug Administration has granted priority review for this application.
On the other hand, Eli Lilly reported billion-dollar quarterly sales of Mounjaro but faced challenges in fulfilling orders for specific Mounjaro doses due to high demand and adjusted its full-year earnings outlook due to charges related to recent acquisitions.
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