Novo Nordisk sees quicker revenue progress on diabetes drug Ozempic – Reuters.com
Nov 2 (Reuters) – Danish drugmaker Novo Nordisk (NOVOb.CO) raised its full-year earnings outlook after reporting better-than-expected revenue on sturdy gross sales of diabetes therapy Ozempic, lifting its shares to a three-month excessive.
The corporate predicted 2022 working revenue progress at fixed trade charges of 13-16%, up from a earlier goal vary of 11-15%.
Third-quarter working revenue rose by virtually a 3rd to twenty.2 billion Danish crowns ($2.7 billion), above the 19.2 billion forecast by analysts, primarily based on Refinitiv knowledge.
It reiterated that it expects to make all doses of weight-loss drug Wegovy, a future progress driver, accessible in the US in direction of the tip of 2022, because it recovers from a manufacturing outage final yr.
Like Ozempic, Wegovy belongs to a drug class referred to as GLP-1 analogues.
"The expansion is pushed by growing demand for GLP-1-based diabetes therapies, particularly Ozempic," CEO Lars Fruergaard Jorgensen stated on Wednesday.
Analysts have speculated that Ozempic demand is partly pushed by prescriptions to non-diabetic sufferers who search to reduce weight, which is outdoors its authorized indication.
"We imagine that the load advantage of Ozempic is changing into a stronger prescription driver as a result of it additionally issues to individuals with diabetes," the CEO stated, however he careworn that the corporate would promote medication solely inside authorized indications.
Novo Nordisk shares rose 5% to a three-month excessive, however nonetheless didn’t fairly make up for a nosedive in August, when the corporate flagged delays within the Wegovy relaunch.
In weight problems, a lot of the corporate's progress aspirations are using on weekly injection Wegovy, which was proven to assist sufferers lose about 12% of their physique weight. It received U.S. approval in June 2021 as an weight problems drug.
However a contractor filling syringes for injection pens for the U.S. market bumped into manufacturing issues final December, which has left Novo scrambling to reorganise the launch.
Jorgensen said future weight problems drug launches would have buffer manufacturing capability and he would fear much less about advertising and marketing and promoting due to the "pull nature" of the weight-loss market.
Nonetheless, Novo faces eager competitors from Eli Lilly, whose month-to-month injection Mounjaro received U.S. approval for sort 2 diabetes in Might and it’s underneath fast-track overview as a possible weight-loss drug.
Driving the shock earnings achieve, Ozempic gross sales surged a currency-adjusted 63% to 16.4 billion crowns through the quarter, whereas gross sales from weight-loss capsule Saxenda gained 54% to three.17 billion crowns.
"Underlying weight problems demand remained exceptionally sturdy," Credit score Suisse analysts stated.
($1 = 7.5224 Danish crowns)
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