06 November 2024
If you are covering Novo Nordisk's latest results, please see the following comment from Sheena Berry, healthcare analyst at Quilter Cheviot:
“Following a period of share price weakness, Novo Nordisk has delivered a better than feared quarter with sales in line with expectations and an operating profit beat.
“The main story for Novo Nordisk continues to be the success of its key drugs, Ozempic, which is approved for type two diabetes, and Wegovy, the group’s obesity drug. Wegovy delivered sales ahead of expectations and saw a marked improvement compared the company’s August update where the injectable missed expectations in part due to lower price. Its success this time around was largely driven by performance outside the US where it has now been launched in more than fifteen countries, and it benefited from stocking ahead of launch in a number of markets. Ozempic failed to achieve the same success and instead missed expectations and continues to be disrupted by some periodic supply constraints.
“Nonetheless, expectations for the group remain high given the obesity story has continued to dominate the healthcare narrative and Novo Nordisk has been one of the key winners. Data from CagriSema, the group’s second generation obesity and diabetes drug which is expected to deliver weight loss of around 25% over 68 weeks, will be an important catalyst as we head towards the end of the year.
“Though supply constraints continue to weigh on its success somewhat, Novo Nordisk's growth outlook remains impressive. Supply constraints should continue to gradually ease and the progression of newer obesity drugs represents a significant opportunity, so investors will no doubt continue to watch Novo Nordisk closely”
