Novo Nordisk Lowers Forecast While Increasing Wegovy Production

Novo Nordisk has revised its full-year sales forecast downward following a disappointing performance in Wegovy sales, which, despite a 55% annual increase, fell short of expectations. The company reported sales of 11.66 billion Danish kroner, significantly below its projected 13.54 billion kroner. CFO Karsten Munk Knudsen characterized the report as a "blip," emphasizing that the company remains committed to significantly increasing the supply of Wegovy, which has become a highly sought-after weight loss medication. In response to soaring demand, Novo Nordisk has doubled the number of doses supplied to the market since the beginning of the year and has expanded its launch to 12 markets outside North America. The company had previously faced challenges in meeting demand, leading to restrictions on certain dose strengths for wholesalers. However, the average number of new patients starting Wegovy treatment in the U.S. has risen to approximately 35,000 per week, up from 25,000 in May, indicating sustained interest in the drug. The popularity of Wegovy has intensified competition among pharmaceutical companies, with rivals like Eli Lilly and Pfizer developing their own weight loss medications. Additionally, telehealth companies such as Ro and Hims and Hers Health are entering the market to capitalize on the growing trend. Morgan Stanley projects that by 2035, up to 9% of the U.S. population could be using weight loss drugs, with the global market for obesity treatments potentially reaching $144 billion by 2030. Analysts note that the obesity drug market is being propelled by significant investments from major drugmakers, who are expected to spend over $50 billion to enhance supply chains through 2028. The demand for these medications could further increase if evidence emerges supporting their effectiveness in treating various obesity-related health issues.