Novo Nordisk raises outlook fuelled by obesity drug demand

 Novo Nordisk raised its 2024 outlook on Thursday and delivered better-than-expected quarterly profits as the Danish drugmaker races to boost output of its hugely popular weight-loss drug Wegovy and fend off competition from rival Eli Lilly.

The company has quadrupled its U.S. supply of starter doses Wegovy since December, Senior Vice President Negelle Morris told Reuters this week.

At least 20,000 new U.S. patients are starting on the weekly injection each week, reflecting the company's efforts to ramp up output, she said.

The small raise to the outlook and forecast-beating results underscore Wegovy's success and Novo's lead in the fast-growing obesity drug market.

Novo's growth on the back of the phenomenal success of Wegovy has nonetheless been held back by its ability to meet runaway demand for the weekly injection.

The company also faces fierce competition from U.S. rival Eli Lilly as it rolls out its Zepbound therapy in new markets. It launched in the United States in December and in Germany, Poland and Britain this year.

The company said it now expects sales growth this year of between 19% and 27% in local currencies, compared to the previously guided range for 18% to 26% growth.

Operating profit growth this year is now seen at between 22% and 30% in local currencies, slightly up from its previous forecast of 21% to 29%.

Novo reported first-quarter earnings before interest and taxation (EBIT) of 31.8 billion Danish crowns ($4.57 billion), above the 29 billion forecast by analysts in a LSEG poll this week and up 27% from a year ago.

Sales of Novo's obesity care products, including Wegovy, rose 41% in local currencies in the first quarter, to 11 billion crowns.

Wegovy sales totalled 9.4 billion Danish crowns between January and March, down from 9.6 billion crowns in the previous quarter and 107% higher than the same quarter a year ago, in local currencies.

The boost to starter U.S. doses comes as the company spends billions to boost output of Wegovy and keep up with explosive demand.

A year ago, Novo began limiting the number of U.S. patients who can start treatment by reducing the supply of the lowest three doses of the appetite-suppressing weekly injection.

In January, Novo said it was more than doubling supply of lower strength or "starter" Wegovy doses in the U.S. that month compared with recent ones. Still, shortages in the U.S. persist.

https://www.yahoo.com/news/obesity-drugmaker-novo-nordisks-q1-053403065.html