Since 2020, Novo Nordisk's stock price has been hitting new highs continuously, with the highest increase exceeding 450%, equivalent to an annualized return of over 30%. Based in the field of diabetes treatment, this century-old pharmaceutical company has attracted the attention of global investors with its breakthrough achievements in the treatment of obesity.

In the first three quarters of this year, Novo Nordisk's overall sales increased by 23% year-on-year, with sales of obesity treatment drugs growing by as much as 44%. Among them, the star product Wegovy (semaglutide injection 2.4mg) saw a staggering 76% year-on-year increase, becoming the "core engine" driving the company's performance growth.

Behind all this is the phenomenal performance of Wegovy (Chinese product name: Novo Ying). This highly anticipated "miracle drug" Novo Ying officially launched in the Chinese market in November.

1. Revealing the true face of obesity: Global challenges and immense market opportunities

Obesity is no longer just a weight issue.

As times evolve, obesity has quietly shifted from a "personal lifestyle issue" to a global public health crisis. According to The Lancet data, there are currently over 1 billion obesity patients globally fighting this disease. Behind this massive number are enormous medical and economic burdens, as well as increasingly severe public health pressures.

According to statistics, the direct medical expenses incurred by the United States in 2020 due to obesity amounted to approximately $313 billion, with a total economic impact reaching $726.1 billion, already accounting for 3.5% of the GDP total; while in China, the economic burden caused by obesity in 2020 also reached a high of $283.3 billion. In the upcoming year of 2025, China may suffer a loss of around $459 billion due to national overweight issues, accounting for an estimated 2.4% of the GDP.

Behind all this lies a vast medical market and an urgent need to meet healthcare demands.

Modern medicine has proven that obesity is a complex chronic disease caused by the interaction of biological, genetic, social, psychological, and environmental factors. It is this complexity that affects human health in a systemic and multifaceted way, potentially reducing patients' quality of life and life expectancy. Overweight and obesity are known to be associated with over 200 diseases, including cardiovascular diseases, certain types of cancer, and type 2 diabetes.

Currently, cardiovascular diseases have become the leading cause of death among obese patients. Compared to people with normal weight, even the metabolically healthy obese population faces a 96% increased risk of heart failure and a 49% increased risk of coronary heart disease.

In addition, there are psychological issues accompanying obesity impacts and the occurrence of fat discrimination. Motor impairments caused by obesity itself, the severe impact of obesity on metabolism, and misconceptions surrounding the causes of obesity significantly increase the mental burden on the obese population.

The situation is so severe, yet there has always been a lack of effective means for treating obesity clinically over the past few decades. Professional medical institutions have been hesitant to promote relevant treatments, leading to a proliferation of weight loss health products with unclear effectiveness and questionable safety, greatly harming the interests of patients.

Novo Nordisk is steadfast in the field of obesity treatment against this background, tackling the challenge with breakthrough innovations. In June of this year, Novo Nordisk won approval in China for adult long-term weight management and was listed on the market in China in November, marking the official accessibility of this groundbreaking innovative product to the Chinese obese population. It opens up a new era for obesity treatment in China in a scientific, effective, and safe manner.

2. The breakthrough and story of Semaglutide: The multiple potential of the 'magical' molecule.

The core ingredient of Novo Nordisk's Semaglutide was not originally developed for obesity. This ingredient was originally a 'star' in diabetes treatment, as its unique GLP-1 receptor agonist (GLP-1RA) mechanism can significantly help patients reduce blood sugar levels.

However, in the long-term study of diabetes treatment, researchers were amazed to find that Semaglutide could lead to a significant weight loss, inspiring Novo Nordisk to further explore the drug's effects.

After years of validation, Novo Nordisk's weight loss effect was not only significant, but its once-weekly injection form greatly improved patient compliance, becoming a safe, convenient, and effective option for obesity treatment in the current market.

The clinical effects of Novo Nordisk have been fully verified in the STEP series of studies, with data showing an average weight reduction of about 17%. In addition, its efficacy not only involves numerical weight loss, but also improves multiple metabolic indicators, has a clear cardiovascular protective effect, can prevent and improve obesity-related complications, and bring multiple health benefits to patients.

Moreover, besides its efficacy, as a long-term use chronic medication, Semaglutide in the GLP-1RA drug market has demonstrated the most comprehensive data safety profile. To date, Semaglutide has been thoroughly tested in large real-world data studies and extensive clinical development projects (SUSTAIN trials, PIONEER trials, STEP trials, SELECT trials, OASIS trials), accumulating over 22 million patient exposure years. These data provide assurance of Semaglutide's safety.

Novo Nordisk continues to explore the potential of Semaglutide in different doses and various indications, striving to bring multidimensional health improvements to a larger group of patients.

Currently, the scope of indications for Semaglutide has expanded from diabetes and obesity to include chronic kidney disease, cardiovascular diseases, heart failure, peripheral arterial disease, metabolic dysfunction-related nonalcoholic steatohepatitis (MASH), Alzheimer's disease, and many other areas. These explorations demonstrate Novo Nordisk's profound scientific understanding of diseases and indicate its firm determination to further explore product potential through a multi-indication strategy.

Some of the clinical data that has already disclosed positive results have provided strong support for the pipeline layout potential. These achievements not only confirm the multi-indicative potential of semaglutide, but also demonstrate novo-nordisk a/s's vision and scientific drive in the treatment of chronic diseases. By exploring the multiple health benefits of semaglutide, novo-nordisk a/s has not only enriched the product pipeline further, but also brought comprehensive health improvements to more patients.

3. Century-long adherence and innovation: novo-nordisk's "slow" and "fast".

When we look back on history, we will find that novo-nordisk's current success is far from immediate. Behind this is its diligent exploration in the field of metabolic diseases for more than a hundred years. Novo-nordisk's starting point is rooted in innovation.

In 1923, Danish scientist Professor August Krogh, in an effort to save his wife's life, together with Dr. Harald Jensen founded the Nordisk Insulin Laboratory (predecessor of novo-nordisk a/s), initiating the commercial production of insulin. This initiative not only changed the history of diabetes treatment, but also brought hope to global diabetes patients who were struggling with the disease at that time.

After more than a hundred years of changes in the world, novo-nordisk continues to delve deep into the field of diabetes treatment, but at the same time, the company also looks to more related areas of chronic diseases.

This leads to the mention of novo-nordisk's strategic attribute of "slow to fast". In the development of metabolic disease drugs, the company never rushes to achieve short-term breakthroughs, but paves the way for subsequent clinical development through detailed preliminary research and a deep understanding of disease mechanisms. The more solid the early research phase, the more efficient the subsequent work will be.

This strategy stems from novo-nordisk's deep accumulation in the field of metabolic diseases, ensuring that the company always maintains a leading position in global chronic disease treatment, surpassing competitors.

"Slow" embodies novo-nordisk's research and development thinking, as well as symbolizes the company's long-term commitment and deep investment in chronic diseases. Throughout the "slow" process, novo-nordisk has gained a deep understanding of the health conditions and treatment situations of patients, thus giving high priority to every feasible innovative project. From early research on disease mechanisms to solid preparation in the preclinical stage, novo-nordisk ensures the efficient and safe development of drugs with "slow", which is the mystery behind its hundred-year presence in the industry.

Looking ahead, based on the GLP-1RA therapy, Novo Nordisk will continue to actively explore obesity treatment drugs with different targets and mechanisms of action, such as CagriSema - a combination of semaglutide and long-acting amylin analogue Cagrilintide, which may bring more blockbuster surprises to the weight loss market.

4. Growing market and shareholder value: The future prospects of Novo Profits

Novo Nordisk's deep cultivation and persistence in the field of metabolism have brought breakthrough drugs to patients and lucrative returns to investors. Since 2020, Novo Nordisk's stock price has continuously hit new highs, with the highest increase exceeding 450% during which the annualized return surpassed 30%.

Currently, Novo Nordisk's leading position in the field of obesity treatment and the growth prospects brought about by continuous innovation are still very promising. As Novo Nordisk's core product in the obesity treatment pipeline, Wegovy has achieved significant sales performance in multiple markets globally since its overseas launch.

The financial report for the first three quarters of 2024 shows that Novo Nordisk's overall sales increased by 23%, while the sales growth of GLP-1 products in the obesity treatment sector reached as high as 44%, demonstrating the significant driving force of the obesity treatment market on the company's performance.

In the third quarter of this year, Wegovy's revenue was approximately 2.497 billion USD, with a sequential growth rate of over 40%, dispelling market concerns about the slowdown in the weight loss market. In the first 9 months of 2024, sales in the Greater China region increased by 10% calculated at constant exchange rates (CER), mainly driven by the growth of GLP-1 and insulin product sales in the diabetes treatment sector. With the official launch of Novo Profits in China, it is believed that the Chinese market will also provide positive feedback, further boosting the revenue of Novo Nordisk's weight loss pipeline and providing more returns for investors.

Conclusion

This year, the National Health Commission launched a three-year "Weight Management Year" campaign; the release of the first authoritative guidelines for the diagnosis and treatment of obesity - "Obesity Diagnosis and Treatment Guidelines (2024 Edition)", has also provided important basis for the scientific diagnosis and treatment of obesity. These all signify a further emphasis at the national level on the prevention and control of obesity, a chronic disease.

As a leader in the global obesity treatment field, Novo-Nordisk has taken practical actions to introduce innovative drug NovoWin, bringing more scientific and efficient treatment options to obese patients. Through digital patient service platforms and other methods, they help patients manage weight in the long term and improve quality of life. At the same time, as a leader in the obesity treatment field, Novo-Nordisk continues to focus on and advocate for safe and rational use of prescription drugs.

In the future, Novo-Nordisk will continue to deeply cultivate the treatment field of obesity and other serious chronic diseases, using global leading scientific innovation to help Chinese patients move towards a healthier future.