Novo Nordisk, Europe’s most valuable company in 2023, announced on Friday a significant upward revision of its full-year sales and operating profit outlook, surpassing market projections for growth. The Danish pharmaceutical giant cited robust demand for its weight-loss drug Wegovy and diabetes medication Ozempic in the United States as primary drivers for the optimistic forecast.
Novo Nordisk now anticipates sales growth for the year to range between 32% and 38%, up from the previously forecasted 27% to 33%. Similarly, Novo Nordisk raised its full-year outlook for growth in earnings before interest and tax (EBIT) to 40%-46%, compared to the previous range of 31%-37%.
“The new sales outlook for this year primarily reflects higher expectations for profits related to sales of Ozempic and Wegovy in the United States,” stated company representatives.
The announcement sent Novo Nordisk’s shares soaring by over 5% to a record-high during the morning session at 1422 GMT. However, gains later moderated, with the stock trading 2.5% higher during the afternoon session.
To ensure an uninterrupted drug supply, the company extended its U.S. supply restrictions on Wegovy in August, a measure likely to persist into 2024 according to analysts from Barclays and Jeffries.
Novo Nordisk previously raised its outlooks in April and August, initially projecting sales and operating profit growth of 13%-19% for the year. By the end of the third quarter, sales had surged by 33% in the first nine months of the year, and 38% in the third quarter alone. Operating profit followed suit, with a 37% increase in the first nine months, and a remarkable 47% rise in the third quarter.
The company is slated to release its complete quarterly figures on November 2.
Despite challenges posed by supply constraints, Novo Nordisk’s adept handling of the pandemic’s uncertainties has allowed it to outperform market expectations. Investors have responded positively to this latest development, reflecting confidence in the company’s resilience and strategic acumen.
Source: Reuters
