Novo Nordisk Sees Big Sales Growth Despite Supply Issues

Novo Nordisk is poised to significantly impact Denmark’s GDP through its obesity and diabetes treatments, as highlighted in its financial report for the first half of 2024. The Danish pharmaceutical company announced operating profits of €7.75 billion, marking a 19% increase at constant exchange rates. CEO Lars Fruergaard Jørgensen expressed satisfaction with the sales growth, which has prompted an optimistic outlook for the remainder of the year, particularly following promising phase 3 trial results for its haemophilia A treatment, Mim8. The company’s success is primarily attributed to a remarkable 26% surge in sales of its diabetes and obesity drug, GLP-1 (semaglutide), with North American demand soaring by 36%. Additionally, Novo Nordisk has received approvals for its once-weekly diabetes medication, Awigli (insulin icodec), in the EU, Japan, and China. However, the U.S. FDA has requested further information regarding its type 1 diabetes treatment, delaying its assessment. Despite the impressive sales figures, Novo Nordisk faces challenges with supply constraints, particularly in the U.S., where demand for its weight-loss drug Wegovy has outstripped supply. To ensure continuity of care, the company has capped the supply of the initiation dose strength. Danske Bank's Chief Economist, Las Olsen, noted that the pharmaceutical sector contributed significantly to Denmark's economic growth last year, with Novo Nordisk potentially adding 1.5% to 2% to the GDP in 2024, although job growth remains concentrated in other industries.