The injectable weight loss drug Wegovy will be available at New City Halstead Pharmacy in Chicago, Illinois on April 24, 2024.
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Novo Nordisk, which became Europe’s most valuable company last year on the back of the huge success of its weight-loss drugs, beat first-quarter profit expectations on Thursday as demand for the drugs surged.
The Danish pharmaceutical giant reported a 28% annual increase in net profit to 25.4 billion Danish crowns ($3.65 billion), compared with analysts’ forecasts of 23.7 billion Danish crowns in an LSEG survey.
Sales of the popular diet drug Wegovy more than doubled to 9.38 billion crowns.
The company said Wegovy was approved in the United States in the first quarter to reduce cardiovascular risks in obese patients, and overall North American sales grew 35%.
“We are pleased with our sales growth in the first three months of 2024 due to increased demand for our GLP-1-based diabetes and obesity treatments,” CEO Lars Fruergaard Jørgensen said in a statement.
Novo Nordisk raised its outlook for 2024, raising its sales growth forecast by one percentage point to 19% to 27% at constant exchange rates. It also raised its operating growth forecast to 22% to 30% from the previous forecast of 21% to 29%.
John Rountree, managing partner of pharmaceutical consultancy Novasecta, said the company’s results were “outstanding”.
“There’s really no expectation other than continued growth and substantial growth,” Rowntree told CNBC’s “Squawk Box Europe.”
He added that it is important for companies to maintain high R&D spending and innovation as more competitors enter the market and drug patents expire.
Novo Nordisk faces competition in the weight-loss treatment market from the likes of U.S. giant Eli Lilly and Company, as well as a range of companies large and small seeking to enter the market.
Recent positive trial data for Novo Nordisk’s experimental new weight-loss drug further boosted the company’s value last month.
Recent research findings also support the company. An investigation by EU regulators earlier this month found no link between taking Wegovy or Novo Nordisk’s diabetes drug Ozempic and an increased risk of suicidal thoughts and self-harm.
Shares have risen 59% in the past year.
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