Novo's Q1 Revenue Up 24%, Boosts Outlook on Wegovy Sales

Novo Nordisk reported robust financial results for the first quarter of 2024, with revenue surging 24% year-over-year due to strong performances from its type 2 diabetes medication, Ozempic (semaglutide), and its weight-loss drug, Wegovy (semaglutide).

The Danish pharmaceutical company announced revenues exceeding $9.37 billion for Q1 2024, a notable increase from approximately $7.65 billion during the same period in 2023. The net profit for the quarter was over $3.64 billion, translating to about $0.81 per share, marking a 29% year-over-year rise.

CEO Lars Fruergaard Jørgensen expressed satisfaction with the company's growth, attributing it to heightened demand for their diabetes and obesity treatments based on GLP-1 analogs. Ozempic was the standout performer, generating nearly $4.3 billion in revenue, reflecting a 35% growth rate at constant exchange rates.

Wegovy, another GLP-1 analog designed for chronic weight management, saw its sales soar to over $1.34 billion in Q1, a staggering 107% increase compared to the previous year.

During a media call, CFO Karsten Munk Knudsen highlighted the significant increase in Wegovy sales volume, which he noted helped counterbalance price reductions in North America. These price reductions are anticipated to continue as competition and sales volumes rise, as reported by CNBC.

Novo’s long-acting insulin products, including Tresiba, Xultophy, and Levemir, also performed well, achieving a 28% growth to bring in $740 million. The company’s fast-acting insulin products, such as Fiasp and NovoRapid, secured $644 million in revenue.

Despite these successes, Novo acknowledged that the growth of its key products, Ozempic and Wegovy, along with other assets, has been hindered by periodic supply constraints, particularly in the U.S. and China. The company anticipates these supply challenges to persist through the year and has adjusted its guidance accordingly.

Novo now projects sales growth of 19% to 27% for 2024, a slight increase from the previously forecasted range of 18% to 26%. The company has also set its operating profit growth target between 22% and 30%.

Jørgensen stated that Novo is taking measures to expand its manufacturing capacity to meet the growing demand for Wegovy and Ozempic. He noted that the acquisition of three Catalent manufacturing sites would enable the company to serve more patients with diabetes and obesity in the future.

In a bid to achieve its 2024 earnings targets, Novo also shared significant updates to its pipeline. This includes the initiation of a Phase II trial for an investigational GIP/GLP-1 dual agonist for obesity, and the launch of a Phase I study for an investigational NRLP3 blocker aimed at treating metabolic dysfunction associated with steatohepatitis.