Novo Nordisk Posts Upbeat Q4 Earnings, Expects Obesity Drug Shortages May Soon Be Resolved

Novo Nordisk A/S NVO reported Q4 sales of DKK 38.3 billion, up 19% Y/Y on a reported basis and 16% on constant exchange rates (CER).

• Diabetes and Obesity care sales drove the increased sales as GLP-1 sales increased by 36% at CER. Obesity care sales increased by 73%, partially offset by decreased insulin sales by 1%. Biopharm sales increased by 6% at CER.
• Novo reported a fourth-quarter operating profit of DKK 13.63 billion, an increase of 16% at CER over the corresponding period last year.
• Related: FDA Concerns At Catalent Site Spurred Novo Nordisk's Wegovy Supply Woes: Report.
• In December, a contract manufacturer halted deliveries and manufacturing temporarily after issues relating to good manufacturing practice.
• Fewer new weekly patient initiations are expected in 1H of 2022 compared to Q4 FY21. Novo Nordisk still hopes to meet demand in the U.S. in 2H of 2022.
• Share Buyback: The Board of Directors intends to initiate a new 12-month share repurchase program of up to DKK 22 billion.
• Guidance: The company expects to generate sales growth of 6% - 10% and deliver operating profit growth of 4% - 8% at CER in 2022.
• Price Action: NVO shares are up 3.89% at $106.60 on the last check Wednesday.