Novo Nordisk's Earnings Beat Estimates on Surging Demand for Its Weight-Loss Drugs

Novo Nordisk (NVO) reported first-quarter earnings Thursday that beat analysts' estimates as demand surged for its weight loss drugs, Ozempic and Wegovy.

Ozempic and Wegovy Demand Drives Sales

The drugmaker reported net profit of 25.41 billion Danish kroner ($3.65 billion), up from 19.81 billion kroner ($2.84 billion) a year ago and above the 23.29 billion kroner ($3.34 billion) analysts expected, according to estimates compiled by Visible Alpha. Diluted earnings per share of 5.68 kroner (82 cents) also rose from the year-ago period and beat estimates.

Revenue of 65.35 billion kroner ($9.38 billion) was up from 53.37 billion kroner ($7.66 billion) in the year-ago period and compared to estimates of 63.61 billion kroner ($9.13 billion), as the Danish drugmaker saw demand continue to rise for its weight-loss drugs, Ozempic and Wegovy. Novo Nordisk said sales of Ozempic and Wegovy increased 25% year-over-year, with sales in the company's North American operations rising 34%.

"We are pleased with the sales growth in the first three months of 2024, driven by increased demand for our GLP-1-based diabetes and obesity treatments," Novo Nordisk CEO Lars Fruergaard Jørgensen said. "More patients benefit from our innovative treatments, and the agreement to acquire the three Catalent manufacturing sites will enable us to serve significantly more people living with diabetes and obesity in the future."

Full-Year Guidance Raised

As the company has done multiple times in the past few years, Novo Nordisk raised its full-year guidance, projecting sales to grow between a range of 19% to 27% at constant exchange rates, slightly up from its previous projection of 18% to 26%.

The company suggested those figures could be higher, and projected demand for Ozempic and Wegovy will likely continue to outpace supply for much of the year as the company continues to increase production. Novo Nordisk has made a number of investments to boost production, including a $16.5 billion acquisition of syringe-maker Catalent earlier this year, which Novo Nordisk anticipates will be completed by the end of 2024.

Novo Nordisk competitor Eli Lilly (LLY) also saw revenue and profits jump earlier this week, thanks to its own weight loss drugs, Mounjaro and Zepbound.

American depositary receipts (ADRs) of Novo Nordisk were little changed in pre-market trading, edging 0.3% lower to $128.86 as of 8:15 a.m. ET following the release.