Novo Nordisk gains because of its weight-loss drugs
Novo Nordisk rose in early trading after it reported better-than-expected earnings propped up by even more growth in its weight-loss drugs.
The company reported $3.9 billion in net income in the last quarter of 2024, compared to the $3.6 billion analysts polled by FactSet were expecting. That was largely thanks to growth in sales of Wegovy, one of its two weight-loss medications that have exploded in popularity.
Novo Nordisk sells two brand names of semaglutide, a GLP-1 drug often used for weight loss: Ozempic, which is typically prescribed for diabetes, and Wegovy, which is prescribed for broader use. Ozempic, which has been around longer, saw sales moderate and only grew by about 7% year over year. Sales of Wegovy doubled during the same period.
The growth in Wegovy is a welcome sign for investors, who have been worried that Eli Lilly’s weight-loss drugs, Mounjaro and Zepbound, would eat into its market share. Novo Nordisk also said it was getting closer to releasing an oral version of semaglutide.
“The story continues to be about market expansion for obesity,” David Moore, president of Novo Nordisk’s US business, told analysts on Wednesday morning.
Novo Nordisk sells two brand names of semaglutide, a GLP-1 drug often used for weight loss: Ozempic, which is typically prescribed for diabetes, and Wegovy, which is prescribed for broader use. Ozempic, which has been around longer, saw sales moderate and only grew by about 7% year over year. Sales of Wegovy doubled during the same period.
The growth in Wegovy is a welcome sign for investors, who have been worried that Eli Lilly’s weight-loss drugs, Mounjaro and Zepbound, would eat into its market share. Novo Nordisk also said it was getting closer to releasing an oral version of semaglutide.
“The story continues to be about market expansion for obesity,” David Moore, president of Novo Nordisk’s US business, told analysts on Wednesday morning.
