Novo Nordisk's Sales Up 24% in DKK, 25% at CER to DKK 133.4B in H1 2024

Bagsværd, 7 August 2024 - Novo Nordisk has released its financial report for the period from 1 January 2024 to 30 June 2024. The company has reported an 18% increase in operating profit in Danish kroner, reaching DKK 57.8 billion. At constant exchange rates (CER), this increase stands at 19%. It's important to note that the operating profit was impacted by an impairment loss related to ocedurenone, amounting to DKK 5.7 billion.

In terms of regional performance, sales in North America Operations saw a significant rise of 36% in Danish kroner, which is mirrored by a 36% increase at CER. This growth in the US market was positively influenced by gross-to-net sales adjustments from previous years. Sales in the International Operations segment grew by 9% in Danish kroner and 11% at CER.

Delving deeper into the product segments, the Diabetes and Obesity care sector experienced a robust growth of 26% in Danish kroner to DKK 125.0 billion, with a 27% increase at CER. This surge was predominantly driven by a 32% growth in GLP-1 diabetes product sales in Danish kroner, consistent with a 32% growth at CER. The Obesity care segment also saw an impressive rise of 37% in Danish kroner to DKK 24.9 billion, reflecting a 37% growth at CER. However, the segment dealing with rare diseases faced a decline, with sales dropping by 4% in Danish kroner and 3% at CER.

Within the realm of Research and Development (R&D), Novo Nordisk achieved a significant milestone by successfully completing the phase 3 FRONTIER 2 trial with Mim8. This trial demonstrated that both once-weekly and once-monthly doses of Mim8 resulted in a superior reduction of treated bleeding episodes compared to on-demand and prior prophylaxis treatment in haemophilia A patients. However, in June 2024, the company announced the halting of the ocedurenone CLARION-CKD phase 3 trial as the drug did not meet its primary endpoint. Additionally, in July, Novo Nordisk received a Complete Response Letter from the Food and Drug Administration (FDA) for insulin icodec. On a more positive note, in the Obesity care sector, Novo Nordisk received a favorable CHMP opinion based on the SELECT trial, recommending an update of the Wegovy® label to include information on the reduction of major adverse cardiovascular events in the EU.

Looking ahead to the rest of 2024, Novo Nordisk has revised its sales growth expectations to be within the range of 22-28% at CER. The operating profit growth forecast has also been adjusted to 20-28% at CER. The company anticipates that growth reported in Danish kroner will be about 1 percentage point lower than the CER growth for both sales and operating profit.

For the first half of 2024, the financial highlights are as follows:
- Net sales increased to DKK 133,409 million from DKK 107,667 million, marking a 24% increase (25% at CER).
- Operating profit rose to DKK 57,780 million from DKK 48,895 million, an 18% increase (19% at CER).
- Net profit grew to DKK 45,457 million from DKK 39,242 million, reflecting a 16% rise.
- Diluted earnings per share increased to DKK 10.17 from DKK 8.71, a 17% increase.

Lars Fruergaard Jørgensen, the president and CEO of Novo Nordisk, expressed satisfaction with the company's performance in the first half of 2024. He credited the growth to the high demand for GLP-1-based diabetes and obesity treatments and highlighted the company's commitment to reaching more patients with innovative treatments. He also expressed optimism about the potential of Mim8 for haemophilia A patients and the positive recommendation for the Wegovy® label extension in the EU.

Novo Nordisk, founded in 1923 and headquartered in Denmark, is a leading global healthcare company with a strong focus on defeating serious chronic diseases through scientific innovation, expanding access to medicines, and aiming for prevention and cure. The company employs approximately 69,000 people across 80 countries and markets its products in around 170 countries. Novo Nordisk's B shares are listed on Nasdaq Copenhagen, and its ADRs are listed on the New York Stock Exchange.