By Maggie Fick
London: Novo Nordisk raised its 2024 outlook on Thursday and delivered better-than-expected quarterly earnings because the Danish drugmaker races to spice up output of its massively fashionable weight-loss drug Wegovy and fend off competitors from rival Eli Lilly.
The corporate has quadrupled its U.S. provide of starter doses Wegovy since December, Senior Vice President Negelle Morris informed Reuters this week.
At the least 20,000 new U.S. sufferers are beginning on the weekly injection every week, reflecting the corporate’s efforts to ramp up output, she stated.
The small increase to the outlook and forecast-beating outcomes underscore Wegovy’s success and Novo’s lead within the fast-growing weight problems drug market.
Novo’s progress on the again of the exceptional success of Wegovy has nonetheless been held again by its means to satisfy runaway demand for the weekly injection.
The corporate additionally faces fierce competitors from U.S. rival Eli Lilly because it rolls out its Zepbound remedy in new markets. It launched in the US in December and in Germany, Poland and Britain this 12 months.
The corporate stated it now expects gross sales progress this 12 months of between 19 per cent and 27 per cent in native currencies, in comparison with the beforehand guided vary for 18 per cent to 26 per cent progress.
Working revenue progress this 12 months is now seen at between 22 per cent and 30 per cent in native currencies, barely up from its earlier forecast of 21 per cent to 29 per cent.
Novo reported first-quarter earnings earlier than curiosity and taxation (EBIT) of 31.8 billion Danish crowns ($4.57 billion), above the 29 billion forecast by analysts in a LSEG ballot this week and up 27 per cent from a 12 months in the past.
Gross sales of Novo’s weight problems care merchandise, together with Wegovy, rose 41 per cent in native currencies within the first quarter, to 11 billion crowns.
Wegovy gross sales totalled 9.4 billion Danish crowns between January and March, down from 9.6 billion crowns within the earlier quarter and 107 per cent greater than the identical quarter a 12 months in the past, in native currencies.
The enhance to starter U.S. doses comes as the corporate spends billions to spice up output of Wegovy and sustain with explosive demand.
A 12 months in the past, Novo started limiting the variety of U.S. sufferers who can begin therapy by lowering the availability of the bottom three doses of the appetite-suppressing weekly injection.
In January, Novo stated it was greater than doubling provide of decrease power or “starter” Wegovy doses within the U.S. that month in contrast with latest ones. Nonetheless, shortages within the U.S. persist.
($1 = 6.9610 Danish crowns)
(Reporting by Maggie Fick; Further reporting by Stine Jacobsen in Copenhagen and Patrick Wingrove in New York Modifying by Terje Solsvik and Josephine Mason;)
