Novo Nordisk has reported net Q3 profits of $3.94bn (DKr27.3bn) fuelled by better-than-expected sales for its blockbuster weight loss drug Wegovy (semaglutide).
Sales of the glucagon-like peptide receptor agonist (GLP-1RA) hit $2.5bn in the third quarter, a 79% increase compared to the same period in 2023, as per a 6 November press release. The Danish drugmaker said this was the primary driver behind its profits that exceeded analyst expectations in a company-compiled consensus. The results contrast with disappointing Q2 sales earlier this year.
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Shares in the Nasdaq-listed company dipped 1.7% at market open compared to a pre-announcement market close. Novo Nordisk is currently the most valuable company in Europe and boasts a market cap of $488.3bn.
Novo Nordisk’s net profit of $3.94bn represents a 21% increase from Q3 2023. Net sales in the quarter jumped by the same amount, totalling $10.6bn. The company narrowed its sales growth for the full year 2024, down to 23% to 27% from 22% to 28% at constant exchange rates.
According to Novo Nordisk, the mixed results reflect higher-than-expected volume growth for GLP-1RA products such as Wegovy and Ozempic, combined with the “expectation of continued volume growth and capacity limitations at some manufacturing sites” and “continued periodic supply constraints and related drug shortage notifications”.
The company added it is investing in internal and external capacity to bolster supply in both the short and long term. Wegovy, which had been in significant shortage over recent years due to demand far-outpacing supply, was taken off shortage lists in the US last week. The US Food and Drug Administration (FDA) has now listed all doses of the drug as available.
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By GlobalDataEarlier this week, Novo Nordisk penned a deal with Ascendis to create once-monthly GLP-1RA, which would be a huge improvement on the once-weekly dosing of Novo Nordisk’s products, and those of competitors.
Along with supply bottlenecks, Novo Nordisk has had to battle increased competition in weight loss. This has come in the form of Eli Lilly’s Zepbound (tirzepatide), sold as Mounjaro for type 2 diabetes (T2D) and obesity in some countries, which has seen strong sales since its approval in November 2023.
Zepbound is forecast to generate sales of $25.2bn by 2030 while diabetes treatment Mounjaro could make $32.4bn, according to GlobalData’s Pharma Intelligence Centre. Wegovy, meanwhile, is not forecast to reach the same heights, with sales forecast to reach $19.4bn by the same year. Novo Nordisk’s T2D treatment Ozempic is estimated to generate $23.4bn.
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Novo Nordisk has also contested compounded versions of semaglutide. The company has previously said the safety risks associated with compounded semaglutide are “significant” and has already asked the FDA to prevent compounders from manufacturing copycat versions. Eli Lilly, which has faced the same issue with tirzepatide, has filed three lawsuits against online vendors and wellness spas.
