Novo Nordisk's Q1 Profit Surges 28%, Thanks To Booming Demand for Weight Loss Drugs
By Thea Felicity
May 02, 2024 12:23 PM EDT
May 02, 2024 12:23 PM EDT
Novo Nordisk has outperformed profit expectations in the first quarter of 2024, reporting a net profit surge of 28% year-on-year to 25.4 billion Danish kroner or about $3.65 billion, according to CNBC.
The Danish pharma giant's performance was largely attributed to the success of its weight loss drug, Wegovy, whose sales more than doubled to 9.38 billion kroner. With Wegovy gaining approval in the US for cardiovascular risk reduction in individuals with obesity, its demand surged, evidenced by 130,000 weekly prescriptions in the US alone.
The company's CEO, Lars Fruergaard Jørgensen, expressed satisfaction with the sales growth driven by increased demand for their diabetes and obesity treatments.
As a result, Novo Nordisk has revised its 2024 outlook, anticipating sales growth between 19% to 27% and operating growth between 22% to 30%, surpassing previous forecasts.
READ NEXT: Senate Begins Inquiry Into Why Ozempic and Wegovy Are So Expensive in the US
However, despite this positive momentum, Novo Nordisk's Copenhagen-listed shares experienced volatility, raising concerns among some analysts about the sustainability of growth amidst intensifying competition in the weight loss treatment market.
At the same time, VCPost also reported that the US Senate is currently probing into Wegovy's expensive price.
Heightened scrutiny and market volatility may affect investor confidence in Novo Nordisk, leading to selling pressure and a decline in share prices if investors perceive increased risks associated with the company's operations and regulatory environment.
READ MORE: Novo Nordisk's $1,000 Ozempic Diabetes Drug Can Be Made for Less Than $5 Monthly
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