Novo Nordisk Earnings Boost Ozempic Maker's Stock
Thursday, Feb 6, 2025 9:40 pm ET
4min read Novo Nordisk's shares surged 4% in premarket trading on Wednesday after the Danish drugmaker reported better-than-expected quarterly results, offsetting slower 2025 sales growth projections amid intensifying competition. The maker of blockbuster weight-loss drugs Ozempic and Wegovy reported fourth-quarter sales jumped 30% year-over-year to DKK85.68 billion ($11.97 billion), above the DKK80.62 billion estimate of analysts compiled by Visible Alpha. Novo Nordisk's profit of DKK28.23 billion also topped estimates.
Wegovy sales soared 107% at constant exchange rates to DKK19.87 billion, just below estimates. Ozempic sales rose 12% to DKK33.85 billion, above expectations. However, supply constraints and rising competition are weighing on its outlook. Novo Nordisk projected 2025 sales growth of 16% to 24% at constant exchange rates, below the 26% growth it produced in 2024.
Novo Nordisk's CEO, Lars Fruergaard Jorgensen, brushed off concerns that the company is falling behind Eli Lilly in the obesity drug market. He pointed to the company's strong demand for Wegovy and its guidance for 2025, which implies a 30% increase in the number of patients taking one of its GLP-1 drugs. Jorgensen also reassured investors about CagriSema, the company's experimental obesity drug, and its potential successor to Wegovy.
Novo Nordisk's stock has fallen more than 20% over the last year, and investors feared things would get even worse when the company released fourth-quarter earnings and its 2025 outlook on Wednesday. Instead, Novo beat fourth-quarter expectations and provided a sales growth forecast between 16% and 24% – in line with the 20% Wall Street was looking for. Novo's stock rose more than 4% on Wednesday, indicating that investors are optimistic about the company's prospects despite the slower sales growth projections.
In conclusion, Novo Nordisk's strong quarterly results and optimistic outlook have boosted the company's stock, despite slower sales growth projections for 2025. The company's CEO remains confident in its ability to compete in the obesity drug market and reassured investors about its experimental obesity drug, CagriSema. As the company continues to innovate and expand its production capacity, investors can expect Novo Nordisk to maintain its competitive edge in the GLP-1 market.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
