Novo Nordisk Reaches $500 Billion Market Cap as It Shows High Demand for Wegovy and Ozempic
Liselotte Sabro | AFP | Getty Images
Operating profits for the full year jumped by 37% in kroner and 44% at constant exchange rates to reach 102.6 billion kroner.
The Danish pharmaceutical giant said it expects sales this year to grow by between 18% and 26% in terms of CERs, with demand rising for Wegovy and Ozempic, which contain the same active ingredient.
Novo Nordisk’s valuation rose to $506 billion at 08:06 GMT, according to CNBC calculations of LSEG data. The share price moderated slightly during the morning, and was up 1.6% on the day at 9:15 AM London time.
Novo remains Europe’s largest company by market capitalization, ahead of LVMH, which was valued at $422 billion before the market opened on Wednesday.
The 2023 results were supported by strong performance in the company’s Diabetes and Obesity Care division, with Obesity Care in particular rising 154% in CER to 41.6 billion.
“We actually expect the same level of demand in the new year, and when you look at the fact that we only serve a few million patients with obesity, and about 40 million people with diabetes – there is a huge market there,” said CEO Lars Frørgaard Jørgensen. to CNBC on Wednesday.
Competing in the weight loss race for Novo Nordisk is American star Eli Lilly. The Danish company has acknowledged that this is likely to put downward pressure on prices in the US, although Jorgensen said competition would ultimately benefit patients.
“If you really want to make a big impact in treating people with obesity and preventing some of the subsequent diseases, it actually takes more than one company to do that, so I welcome competition that will help define the obesity market,” he told Charlotte Reid on Channel 1. CNBC on Wednesday.
“We’re so used to competing to have the best product, and the next competitor that we’ve been competing with for over 100 years — we have great respect for each other — so this is health competition that actually delivers better and better patient care and ‘lightens the burden on healthcare communities. . “So I think this is a win-win for not only the two companies, but also for the community.”
While prices may have to fall, Novo Nordisk does not see a slowdown in global demand.
“The unmet needs in type 2 diabetes and obesity are growing by the day, and the increasing prevalence of these highly relevant threats to global health has increased demand for our GLP-1-based therapies,” Jorgensen and Chairman of the Board of Directors Helge Lund said in a press conference on Wednesday. “. Earnings report.
“This has enabled us to reach more patients than ever before in our 100-year history, contributing to strong sales growth across North America and international operations.”
The company also admitted that this had led to increased pressure on its supply chain, leading to “cyclical constraints” across its portfolio as it struggled to keep up with demand in 2023.
“We have responded by investing heavily in expanding our production capacity with the aim of serving millions more patients around the world. In 2023 alone, we have announced investments totaling more than DKK 75 billion in expanding our production sites worldwide,” Chairman of the Board of Directors Management and CEO said.
“As construction begins on these projects, we strive to operate our existing facilities 24 hours a day, 7 days a week, producing more life-changing medicines than ever before.”
Novo Nordisk said it has now begun gradually increasing supplies of the lower dose of Wegovy in the US, after restricting supplies of the starter strength since last May.
(tags for translation) Breaking News: Investing