Demand for weight-loss medicine surged all through 2024, outpacing provide for a lot of the 12 months. In December, Novo Holdings, an funding basis of Novo Nordisk, acquired three manufacturing websites in Catalent to increase its manufacturing capability.
Europe’s largest pharmaceutical agency, Novo Nordisk, reported fourth-quarter earnings that surpassed analysts’ expectations. The corporate’s shares jumped greater than 6% on the market open in Europe following the outcomes. Its inventory stays flat in year-to-date efficiency.
Nonetheless, the corporate expects slower progress in 2025, doubtless on account of rising competitors within the weight-loss market, significantly from its US rival, Eli Lilly.
Revenue Beats Expectations within the Fourth Quarter
Novo Nordisk’s working revenue rose 37% to 36.7 billion Danish kroner (€4.92 billion), in comparison with the estimated 33.6bn DKK (€4.5bn). Full-year working revenue elevated by 25% (26% in fixed foreign money) in 2024 to 128.3bn DKK (€17.2bn), with gross sales in diabetes and weight problems care rising by 26%, primarily pushed by GLP-1 diabetes gross sales progress of 21%.
The agency’s hottest weight-loss drug, Wegovy, posted a 107% year-on-year progress in gross sales to 19.87bn Danish kroner (€2.66bn) within the fourth quarter, though barely lacking expectations.
Nonetheless, the annual progress fee slowed from 35.6% in 2023 and 27.6% in 2022. Its web revenue margin additionally declined to 34.8% in 2024 from 36% within the earlier 12 months.
Traders are centered on the corporate’s next-generation weight-loss medicine, because the patent for its blockbuster drug Wegovy is ready to run out within the early 2030s. Lately, Novo Nordisk revealed trial outcomes for 2 new weight problems medicine, CagriSema and Amycretin.
The previous disillusioned traders with less-than-projected weight reduction, leading to a 20% intraday plunge in its share value. Nonetheless, the latter offered constructive outcomes, reassuring traders about its progress prospects.
Demand for weight-loss medicine surged all through 2024, outpacing provide for a lot of the 12 months. In December, Novo Holdings, an funding basis of Novo Nordisk, acquired three manufacturing websites in Catalent to increase its manufacturing capability.
CEO Lars Fruergaard Jørgensen commented: “We’re happy with the efficiency in 2024, the place 26% gross sales progress displays that greater than 45 million folks at the moment are benefiting from our therapies. Additional, we accomplished the acquisition of the three Catalent websites, and throughout the 12 months, we progressed our R&D pipeline, together with weight problems tasks akin to CagriSema and Amycretin. In 2025, we’ll proceed our deal with business execution, on the development of our early and late-stage R&D pipeline, and on the growth of our manufacturing capability.”
A Softened 2025 Outlook
Novo Nordisk expects a slower progress of between 16% and 24% at fixed foreign money in 2025, with the mid-point marking the bottom in three years. The softened outlook means that the weight-loss drug market could face a slowdown whereas competitors intensifies globally.
Eli Lilly’s corresponding weight-loss medicine to Novo Nordisk’s weight problems drug Wegovy and diabetes remedy Ozempic are Zepbound and Mounjaro, positioning the agency as a significant rival to the Danish pharmaceutical big. Eli Lilly not too long ago launched the most recent trial outcomes for its next-generation drug, retatrutide, displaying a median weight discount of 24.4% over 48 weeks, in comparison with 22% weight reduction over 36 weeks for Novo Nordisk’s Amycretin.
Moreover, Novo Nordisk’s mounting spending on analysis and growth may squeeze its revenue margin. The corporate’s R&D prices, primarily comprising worker prices and scientific trial bills, accelerated in 2024, rising by 48% yearly in comparison with a 35% enhance in 2023.