Soaring demand for weight-loss drugs boost profits at Novo Nordisk

6th Nov 2024 12:17

(Sharecast News) - Novo Nordisk posted quarterly numbers broadly in line with expectations on Wednesday, as demand for its weight-loss drugs continued to boom.

Total group sales rose 21%, or by 23% on a constant currency basis in the third quarter, to 71.2bn Danish krone (£7.9bn).

That was slightly lower than forecasts for DKK72.3m, on weaker-than-anticipated Ozempic sales. Novo Nordisk said sales in the US had been dented by the phasing out of rebates in 2023.

However, sales of Wegovy surged 48% on the previous quarter and 79% year-on-year, to DKK17.3bn, ahead of analyst expects for closer to DKK15.9bn.

Group operating profits jumped 26% to DKK33.8bn, also up on forecasts.

Lars Fruergaard Jorgensen, chief executive, said: "We are pleased with the performance in the first nine months of 2024. The sales growth is driven by increasing demand for GLP-1-based diabetes and obesity treatments, and we are serving more patients than ever before."

Looking to the full-year, the firm narrowed its outlook, trimming the higher forecast but upping the lower guidance.

Annual sales growth is expected to be between 23% and 27%, compared to an earlier forecast for between 22% and 28%.

Operating profit growth, meanwhile, is expected to come in between 21% and 27%, as opposed to August's forecast for between 22% and 28%.

As at 1300 GMT, Novo's New York-listed shares had put on 3% in pre-marking trading, while its Copenhagen-traded shares were up 6%.