Novo Sees Sales Surging Again on Obesity Frenzy

Novo Nordisk, the Danish pharmaceutical giant, is once again riding the wave of surging demand for obesity treatments, with its popular weight loss drug Wegovy driving sales growth. The company reported a 25% increase in revenue in Danish kroner and a 26% increase at constant exchange rates to DKK 290.4 billion in 2024, driven by the strong performance of its obesity and diabetes care segments.



The obesity treatment market has seen remarkable growth in recent years, with Novo Nordisk and Eli Lilly dominating the market. Novo's Wegovy, a once-weekly injection, has become a blockbuster drug, with quarterly sales increasing more than eightfold within one year. In the fourth quarter of 2024, sales of Wegovy more than doubled to 19.9 billion Danish crowns from 9.6 billion a year ago.



Novo Nordisk's strong financial performance is supported by its diversified product portfolio, which includes diabetes treatments like Ozempic and Rybelsus, as well as its rare disease segment. The company's operating profit jumped 37% to 36.7 billion Danish crowns ($5.12 billion) in the fourth quarter of 2024, beating analysts' expectations.

Looking ahead, Novo Nordisk expects sales growth in local currencies to range between 16% and 24% in 2025, less than the 26% growth seen in 2024. However, this outlook is roughly in line with market expectations, as the pace of ferocious demand for Wegovy eases somewhat. The company is also grappling with competition from Eli Lilly, which has its own obesity drug, Mounjaro.



Despite the potential for market saturation and competition in the obesity drug market, Novo Nordisk's current growth trajectory appears sustainable. The global obesity epidemic continues to grow, with the World Obesity Federation estimating that the global population that is obese or overweight will increase from 2.6 billion individuals in 2020 to over four billion by 2035. This increasing demand for obesity treatments provides a strong foundation for Novo Nordisk's growth.

Moreover, Novo Nordisk's pipeline of obesity treatments, such as CagriSema, positions the company for long-term growth and market leadership. CagriSema is expected to be a next-generation obesity drug, and the company plans to file for regulatory approval in the first quarter of 2026. Additionally, Novo Nordisk is working on other obesity projects, such as amycretin, which further strengthens its pipeline and positions the company for long-term growth.

In conclusion, Novo Nordisk's sales are surging again on the obesity frenzy, driven by the strong performance of its weight loss drug Wegovy. The company's diversified product portfolio, robust financial performance, and promising pipeline position it well for long-term growth and market leadership in the obesity treatment market.