JHVEPhoto/iStock Editorial via Getty Images
Novo Nordisk (NVO) (OTCPK:NONOF) shares fall ~5% It held its premarket on Thursday after sales of weight-loss drug Wegovy fell short of expectations, despite better-than-expected first-quarter earnings and earnings.
Wegobythe version of semaglutide, posted quarterly sales of DKK 4.56 billion, up +225% year-on-year.
However, BI Research says that the 5% mis-selling of weight loss therapies will not go unnoticed.
Bloomberg cites BI Research as saying that given the weight loss drug is a key driver of the assessment and there is no room for error, supply of low-dose Wegobee is temporarily declining in the tight US supply. That could limit the start of new patients and cause anxiety among investors, he said. .
Novo is also cutting some quantities of Wegovy’s supply in the US due to high demand.
The company’s first-quarter earnings call noted that “the supply of low-dose Wegovy in the United States will be temporarily reduced to ensure continuity of treatment.”
However, Novo added that supply capacity is being gradually expanded, with Wegovy’s second contract manufacturer starting production in April.
Diabetes-focused pharmaceutical company saw Q1 EPS +41% Y/Y growth, DKK8.78. Operating income +31% y/y (+28% at constant exchange rate – CER) to ~DKK25.01B.
net sales Growth of +27% (+25% CER) Y/Y ~DKK53.37B. The rare disease segment declined, driven by diabetes and obesity drugs.
Lars Fluergaard Jorgensen, President and CEO, said:
diabetes care Segment sales increased +23% y-o-y (CER +21%) to DKK 409.5 billion in the first quarter, driven by GLP-1 therapies.
total GLP-1 segment +54% Y/Y (+50% CER) increased to DKK26.81B.
blockbuster drug Ozempic (semaglutide) sales increased +63% (+59% at CER) year-on-year to DKK19.64B. Libersus Revenue increased +111% year-on-year (+107% at CER) to ~DKK4.36B.
in the meantime, Victoza Sales fell -15% YoY (-17% at CER) to ~DKK2.82B.
total sales from insulin portfolio -10% y/y (-11% at CER) to ~DKK13.41B.
total obesity care Segment sales increased +131% (+124% CER) year-on-year to DKK7.84B.weight loss pills Saxenda Revenue increased 64% year-on-year (+63% at CER) to ~DKK3.28B.
but, rare disease Segment sales fell -15% y/y (-16% CER) to ~DKK4.58B.
buy back Program: Novo said its ongoing share buyback program has been expanded from DKK2B to DKK30B.
The company said it returned DKK23.5 billion to shareholders through share buybacks (DKK5.2 billion) and dividends (DKK18.3 billion) in the first quarter.
Outlook:
In April, Novo raised its outlook for 2023 Today’s results confirm that.
company expect Sales growth of 24% to 30% on a CER basis is expected, compared with previous estimates of 13% to 19% in February.and
Operating profit growth is expected to be in the range of 28% to 34% at CER, versus February’s guidance of 13% to 19%.
NVOs -5.14% $159.15 in May 4th Premarket
