Wegovy Oral Medications Achieved $807.2 Million in Third Quarter Sales
Driven by the improved prospects for drugs for central obesity and diabetes, Novo Nordisk raises its full-year performance guidance.
As new oral weight loss drugs continue to be launched on the market, Novo Nordisk stated that its core weight management and diabetes medications, especially in markets outside of the United States, have a promising outlook. As a result, the company has raised its performance forecasts for the current year. Inspired by this news, the company's stock price rose by 4.5%.
The Danish pharmaceutical company announced on Wednesday that, based on a fixed exchange rate, the expected range for revenue and operating profit growth after adjustments this year is between -2% and +2%, which is better than the previous guidance of a maximum decline of 6% for these two indicators.
Analysts had previously predicted that there would be strong demand for Wegovy oral medications in newly listed countries, and Novo Nordisk is expected to raise its full-year performance forecasts accordingly.
Novo Nordisk disclosed that in the third quarter, the sales of Wegovy oral medications reached 5.39 billion Danish kroner, equivalent to 807.2 million US dollars; FactSet analysts unanimously expected 4.5 billion Danish kroner, and the actual sales exceeded market expectations.
The competition in the weight loss market is intensifying: Eli Lilly's injectable competitors are already eroding Novo Nordisk's share of the injectable drug market. At the same time, the patent exclusivities for the core active ingredients of Wegovy and Ozempic have expired this year in countries such as India, Canada, and Brazil, and more countries will follow suit in the coming months. The competition from generic drugs is imminent, putting downward pressure on drug prices.
However, at the beginning of this year, Wegovy oral medication, which was the first to be launched in the United States, has performed exceptionally well in sales, helping the company to gain a competitive advantage in the oral weight loss drug market. Following its launch in the US, the drug has now entered the markets of the UK, UAE, and Germany, and recently has also made its debut in Mexico, Spain, France, and Poland.
The company stated that the overseas market is still in its early stages of promotion, but the initial performance is "encouraging," with overseas sales reaching 1.22 billion Danish kroner this quarter.
In the fourth quarter, efforts will continue to expand into new markets; Novo Nordisk expects that by 2027, this oral medication will be available in more than 20 countries and regions.
In the third quarter, the group's adjusted total revenue was 79.2 billion Danish kroner, a year-on-year increase of 6%; the adjusted operating profit was 31.72 billion Danish kroner, a substantial year-on-year increase of 34%. Both indicators exceeded expectations. FactSet Survey analysts had previously forecasted revenue of 73.65 billion Danish kroner and an adjusted operating profit of 28.66 billion Danish kroner.
Additionally, the company announced that Kasten Monk Knudsen, who has served as Chief Financial Officer for 27 years since 2018, will leave at the end of the year to pursue other career opportunities; his position will be taken over by Luigi La Corti, the Chief Financial Officer of Galderma.
