Liselotte Sabroe | afp | fake images
Novo Nordisk on Wednesday reported better-than-expected profits for 2023 as sales of its popular anti-obesity and diabetes drugs continued to rise.
The maker of weight loss drug Wegovy and diabetes drug Ozempic reported a sales increase of 31% in Danish crowns and 36% at constant exchange rates, to 232.3 billion crowns (33, 71 billion dollars).
Operating profit for the full year increased by 37% in crowns and 44% at constant exchange rates to 102.6 billion crowns.
The Danish pharmaceutical giant said it expects sales growth this year of between 18% and 26% in CER terms, as demand increases for Wegovy and Ozempic, which contain the same active ingredient.
Novo Nordisk's valuation rose to $506 billion at 08:06 GMT, according to CNBC calculation based on LSEG data. The share price moderated through morning trading, before closing the session up 3.5%.
Novo remains Europe's largest company by market capitalization, ahead of LVMHwhich was valued at $422 billion before Wednesday's market open.
The 2023 results were boosted by the strong performance of the company's diabetes and obesity care division, where obesity care in particular increased 154% in CER to 41.6 billion crowns .
“In fact, we expect the same level of demand in the new year and when we look at the fact that we only serve a couple of million patients living with obesity, about 40 million people living with diabetes, there is a market huge out there,” CEO Lars Fruergaard Jørgensen told CNBC on Wednesday.
Competition in the weight loss race has emerged for Novo Nordisk in the form of American stalwart Eli Lilly. The Danish company has acknowledged that this is likely to put downward pressure on prices in the US, although Jørgensen said competition would ultimately benefit patients.
“If you really want to make a big impact in treating people with obesity and preventing some of the diseases that follow, it actually takes more than one company to do that, so I welcome the competition.” that will help establish obesity. market,” she told CNBC's Charlotte Reed on Wednesday.
“We're used to competing to have the best products, and the incoming competitor that we've been competing with for over 100 years (we have a lot of mutual respect for each other), so that's healthy competition that really brings attention every time.” better for patients and “Relieves the burden on healthcare societies. So I think it's beneficial not only for both companies, but also for society.”
While prices may have to come down, Novo Nordisk does not see a slowdown in global demand.
“Unmet needs in type 2 diabetes and obesity are growing by the day, and the increasing prevalence of these closely related threats to global health has created increasing demand for our GLP-1-based therapies,” said Jørgensen and President Helge Lund. in Wednesday's report. earnings report.
“This has allowed us to reach more patients than at any time in our 100-year history, contributing to strong sales growth in North America and international operations.”
The company also acknowledged that this had resulted in increased pressure on its supply chain, leading to “periodic constraints” across its portfolio as it struggled to keep pace with demand in 2023.
“We have responded by investing heavily in expanding our production capacity with the aim of serving millions more patients around the world. In 2023 alone, we announce investments totaling more than 75 billion Danish crowns in the expansion of our sites worldwide,” said the president and CEO.
“With construction of these projects underway, we strive to operate our existing facilities 24 hours a day, seven days a week, while producing more of our life-changing medicines than ever before.”
Novo Nordisk said it had now begun gradually increasing the supply of lower doses of Wegovy in the US, after having restricted supply of the initial dose since last May.
