Novo Nordisk’s shares reached a new record high following the Danish company’s report of soaring sales for its obesity and diabetic drugs Wegovy, and Ozempic. This pushed its market value over $500bn. It also cemented its position as Europe’s most valuable company.
The company is struggling to meet the demand and has had to increase production facilities.
Novo Nordisk’s shares rose 4% on the day before closing at 1.2%, bringing its market value to around $500bn. The obesity drug boom has made the drugmaker Europe’s most valued company . It is ahead of France’s luxury goods group LVMH with a $422bn market value.
Last year, sales of obesity drugs jumped 154%, at constant exchange rates, to 41.6 billion Danish Kroner (£4.8bn). This was largely due to the demand for Wegovy which generated £3.6bn. Sales of diabetes drugs like Ozempic increased by 52%. Obesity and diabetes drug sales reached nearly £25bn.
Profit before tax increased by 52%, to £12bn. Overall sales grew by 36%. Sales growth is expected to be between 18% to 26% in this year and an operating profit increase of 21%-29% as supply and competition continue to grow.
The new weight-loss drug mimics the action of the gut hormone GLP-1, by suppressing appetite, and slowing down the movement of food in the digestive tract.
Many people have lost significant weight with these pills, but they can also cause serious side effects, including nausea, bloating and diarrhoea, as well as more serious problems such as gallbladder, stomach and kidney issues, and pancreatic inflammation.
Lars Fruergaard Jorgensen is the CEO and President of the company. He said, “More 40 million people now benefit from our innovative treatments for diabetes and obesity.” In 2024, our focus will be on expanding our pipeline and reaching more patients. We also plan to continue significant expansions of our production capacity.
According to Nature, blockbuster anti-obesity medications such as Ozempic or Wegovy appear to also dampen inflammation. This raises hope that these drugs could be used in the treatment of diseases like Alzheimer’s and Parkinson’s which are characterized by brain inflammation.
Karsten Munk-Knudsen said that as more patients started using the drug, which they self inject weekly, prices for Wegovy, and Ozempic, would slowly come down in order to reduce pressure on national health systems and insurance companies.
Zepbound’s price is $1 060 while Wegovy is $1 349 in the US. Wegovy’s list price in the UK for a high dose pack of four pre-filled pens with a total of £175.80.
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The second-largest drugmaker in Britain beat analyst expectations for profits and sales during the fourth quarter. RSV became a blockbuster vaccine, with sales of £1.2bn over four months. This was on top of a steady demand for its HIV and shingles medicines. RSV is a common respiratory infection that can cause hospitalisation or death among older adults.
In the first annual results since it
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