Novo Nordisk Stock Rises as Q4 Wegovy Sales More Than Double

Novo Nordisk (NVO) shares rose on Wednesday after the Danish pharmaceutical giant reported a better-than-expected net profit in the fourth quarter, driven by soaring demand for its Wegovy obesity drug. The company's net profit for the quarter came in at 28.23 billion Danish kroner ($3.98 billion), beating analyst forecasts of 26.09 billion Danish kroner. The drug maker also posted a 107% year-on-year increase in Wegovy sales to 19.87 billion Danish kroner ($2.76 billion) in the three months to the end of December, slightly missing the 20.02 billion Danish kroner forecast by analysts in a Factset poll late Tuesday.

The strong performance of Wegovy, which is a semaglutide injection used to treat obesity, has been a significant driver of growth for Novo Nordisk. The drug's popularity has been boosted by its effectiveness in helping patients lose weight and its relatively low side effect profile. Wegovy's success has also been aided by the growing awareness of the obesity epidemic and the increasing demand for weight loss treatments.

Novo Nordisk's total company sales grew 30% in Q4 and 26% for the full year, driven largely by demand in North America and Europe, the Middle East, and Africa. However, the company forecast slower growth for 2025, expecting sales to rise between 16% and 24% at constant exchange rates, compared to 18% to 26% in 2024. The company cited rising competition and pricing pressures in the diabetes and obesity care market as factors contributing to the slower growth projection.



Despite the slower growth projection, Novo Nordisk remains optimistic about the long-term prospects for its obesity franchise. The company is investing in internal and external capacity to increase supply both short- and long-term, and is working to diversify its supply chain to mitigate the impact of potential disruptions. Novo Nordisk is also continuing to innovate and market its products effectively to maintain its market share in the competitive weight loss drug market.



In conclusion, Novo Nordisk's strong fourth-quarter results, driven by the success of its Wegovy obesity drug, have boosted the company's shares. While the company is facing intensifying competition and pricing pressures in the weight loss drug market, it remains optimistic about the long-term prospects for its obesity franchise. Novo Nordisk is taking steps to address supply constraints and maintain its market position in the competitive landscape. Investors should closely monitor the company's progress in meeting demand for its weight loss drugs and its ability to navigate the competitive market.