Source: Wall Street News
Novo Nordisk is increasing profits and sales prospects. In 2024, sales are expected to increase by 19% to 27%, operating profit may increase by 22% to 30%, and investment in production capacity may double this year.
Benefiting from the “magic drug for weight loss” siglumetide,$Novo-Nordisk A/S (NVO.US)$It handed over an impressive first-quarter earnings report, while raising full-year profit guidelines and significantly increasing investment in production capacity.
On May 2, Novo Nordisk's financial report for the first quarter showed sales of 65.35 billion Danish kroner, and the market forecast was 63.75 billion DKr. Operating profit reached DKK 31.85 billion, which also exceeded market expectations.
Among them, sales in the diabetes and obesity care sector increased 25% to DKK 61 billion. Sales of drugs for the care of obesity, including siglumeptide, increased by 41% to DKK 11 billion. Among them, total sales of siglumeptide in the first quarter were DKK 9.4 billion, an increase of 107% over the same period last year, but fell short of analysts' expectations. Some analysts believe that supply restrictions are hampering sales growth of siglumeptide Q1.
It is worth mentioning that Novo Nordisk said that the shipment volume of siglumeptide in the US was four times that of the end of last year.
Senior Vice President Negelle Morris said that about 20,000 patients in the US are starting treatment every week, a sharp increase from about 5,000 per week in December last year. In an interview, she mentioned “we expect this number to continue to grow.”
Based on this, Novo Nordisk raised its profit and sales prospects, and is expected to increase sales by 19% to 27% and operating profit by 22% to 30% in 2024.
In terms of production capacity, Novo Nordisk expects to double its investment in production capacity this year to reach 6.4 billion US dollars, to compete with rival Li for dominance in the diet medicine market. Novo Nordisk announced in March that it will invest about 556 million US dollars (about 4 billion yuan) to upgrade and expand its production base in Tianjin, China, which is a key step in its global strategic layout.
As Novo Nordisk raised its full-year profit guidance, Lilly also raised its outlook this week and expects the supply and pricing of its product Zepbound to improve this year.
Benefiting from the broad market prospects for diet pills, Novo Nordisk's stock price has risen 26% so far this year.
editor/tolk