Ozempic maker Novo Nordisk soars profits 62%
Novo Nordisk said Wednesday its fourth-quarter profit jumped by almost two-thirds, boosted by the popularity of the weight-loss drug that made it Europe’s biggest company.
novo nordisk nvo,
Sales rose 37% to 65.86 billion kroner, while profits rose 62% to 21.96 billion kroner ($3.19 billion). Operating profit exceeded the company consensus by 5%, and sales exceeded expectations by 4%.
Novo Nordisk shares NOVO.B.
Up 2% in early trading in Copenhagen, shares have surged 62% in the past 52 weeks.
Growth was driven by the GLP-1 class of drugs, with sales of diabetes drugs that can also be used for weight loss increasing by 33%, followed by sales of obesity drugs more than doubling to a 105% increase.
Ozempic, a type 2 diabetes treatment drug, recorded sales of 30.07 billion kroner in the fourth quarter. Wegobi, which is prescribed for weight loss and weight management, recorded sales of 9.61 billion kroner.
Novo Nordisk and Eli Lilly LLY;
It is expected to dominate the GLP-1 market, which could grow to $100 billion annually over the next few decades. Citi analysts estimate that Novo Nordisk alone could generate up to $77 billion in sales from that drug class.
Novo Nordisk’s biggest issue continues to be supply. In January, the company began gradually increasing its supply of low-dose strength Wegovy in the United States and said it would gradually roll out Wegovy in limited quantities internationally.
Novo Nordisk said it expects revenue growth of 18-26% at constant exchange rates and operating profit growth of 21-29% at constant exchange rates in 2024. The currency conversion is expected to increase sales by 1 percentage point and profits by 2 percent. Analysts at JPMorgan said the guidance suggests Wall Street earnings estimates for this year should increase by as much as 4%.
Novo Nordisk said it had launched a new share buyback plan worth up to 20 billion kroner and proposed a final dividend of 6.40 kroner per share.
