Novo Nordisk raised its 2024 outlook on Thursday and delivered better-than-expected quarterly profits as the Danish drugmaker races to boost output of its hugely popular weight-loss drug Wegovy and fend off competition from rival Eli Lilly.
The company has quadrupled its U.S. supply of starter doses Wegovy since December, Senior Vice President Negelle Morris told Reuters this week.
At least 20,000 new U.S. patients are starting on the weekly injection each week, reflecting the company’s efforts to ramp up output.
Novo reported first-quarter earnings before interest and taxation (EBIT) of 31.8 billion Danish crowns ($4.57 billion), above the 29 billion forecast by analysts in a LSEG poll this week and up 27% from a year ago.
Sales of Novo’s obesity care products rose 41% in local currencies in the first quarter, driven by the success of Wegovy, which saw sales total 9.4 billion Danish crowns between January and March.
The boost to starter U.S. doses comes as the company spends billions to boost output of Wegovy and keep up with explosive demand, with shortages in the U.S. persisting.
Novo faces fierce competition from Eli Lilly as it rolls out its Zepbound therapy in new markets, with the company now expecting sales growth this year of 19% to 27% in local currencies, and operating profit growth of 22% to 30%.
Wegovy’s success has propelled Novo’s growth, though the company has been challenged in meeting demand for the weight-loss drug, highlighting the company’s lead in the fast-growing obesity drug market.
