Wegovy Maker Novo Nordisk's Obesity, Diabetes Drug Sales Hit Whopping $22B In Nine Months, Prepares To Expand Capacity

Novo Nordisk A/S's NVO sales for Q3 FY23 climbed 29% Y/Y to DKK 58.73 billion (around $8.58 billion), beating the consensus of $7.91 billion.

Novo Nordisk's sales of obesity and diabetes drugs soared by 36% to DKK 153.81 billion (almost $22 billion in the first nine months of the year. 

For Q3, obesity and diabetes drug sales increased 35.5% to DKK 54.83 billion (around $7.79 billion).

Diabetes and Obesity care sales drove the increased global sales of 38% at CER as GLP-1 diabetes sales increased by 46% at CER, and Obesity care sales increased by 200% at CER. 

The sales increase was partially offset by insulin sales decreasing by 5% at CER and Rare disease sales decreasing by 20% at CER, reflecting a temporary reduction in manufacturing output. 

Sales from the obesity drug Wegovy rose 764% to DKK 9.65 billion, while revenue from its diabetes drug Ozempic increased by 56% at CER to DKK 23.9 billion. 

The company's profit before tax jumped 56% to DKK 28.06 billion, and earnings per share surged 58% to DKK 5 (around $0.73), beating the consensus of $0.71.

Also Read: Beware Of Fake Novo Nordisk's Ozempic - European, UK Regulators Warn About Fake Prefilled Pens.

Guidance: In October, Novo Nordisk raised its FY23 outlook, with sales growth in local currencies of 32%-38%, from 27% to 33% previously.

Operating profit growth is seen at 40%-46%, from 31%-37%. 

"Following higher-than-expected volume growth in recent years, including GLP-1-based products such as Ozempic and Wegovy, combined with the expectation of continued volume growth and capacity limitations at some manufacturing sites, the outlook also reflects expected continued periodic supply constraints and related drug shortage notifications across several products and geographies," the company said.

"Novo Nordisk is investing in internal and external capacity to increase supply both short and long-term," it added.

"While supply capacity for Wegovy is gradually being expanded, the supply of the lower dose strengths in the U.S. will remain restricted to safeguard continuity of care," the company said in a statement.

Price Action: NVO shares are up 4.31% at $101.89 on the last check Thursday.