Novo Nordisk stock hits all-time high as Wegovy boosts 2023 results (NYSE:NVO)
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Novo Nordisk (NVO) shares on Wednesday reached an all-time high as it reported a strong financial performance for 2023 on the back of its diabetes and obesity care portfolio.
Shares have gained +57.11% over the last 12 months and touched a high a $109.33 ahead of Q4 and FY earnings.
Revenues rose 31% Y/Y to DKK 232.3B for the full year, beating analyst estimates of a 27% increase. Sales in North America rose 50% while international revenues were up 11%. Net profit increased 51% to DKK 83.7B, with a 36% margin and DKK 18.62 EPS.
Obesity care blockbuster Wegovy was the key driver of growth, with sales surging 407% to DKK 31.3B, 203% in the US alone following commercial relaunch in January 2023.
Novo Nordisk (NVO) has started since January 2024 to gradually increase supply of lower dose strengths of Wegovy, which were reduced since May 2023 in response to excess demand. Meanwhile, Saxenda sales have dropped 20% as the obesity care market moves towards once-weekly treatments.
The diabetes and obesity care franchise posted a 38% jump in sales to DKK 215.1B, driven by 48% higher sales of GLP-1 drugs and a 147% surge in sales of its weight loss range. Meanwhile, rare disease drug sales fell 16% as production dropped. The drugmaker continues to be the global market leader in the GLP-1 segment with a 54.8% value market share measured by total monthly prescriptions.
Novo Nordisk (NVO) expects growth momentum to continue to 2024, with 18-26% constant currency growth projected for 2024 and 21-29% higher operating profits. Sales are set to rise on the back of volume growth of GLP-1-based treatments for obesity and diabetes despite intensifying competition.
The company does expect continued periodic supply constraints and related drug shortage notifications across a number of products and geographies, but is investing in short- and long-term production capacity increases to address them. It also expects a gradual roll-out of Wegovy with capped volumes in international markets.
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