Denmark’s pharmaceutical giant Novo Nordisk reported a 25% increase in sales to $40.6 billion in 2024, beating Wall Street expectations. However, the company expects slower growth this year due to increasing competition and pricing pressures.
Novo Nordisk retained its title as Europe’s most valuable company despite its share price dropping 40% since June. Analysts attributed this decline to uncertainty over demand for obesity drugs and new drug trial results.
“We’re seeing a lot of excitement in the first half of the year,” said Emily Field, an analyst at Barclays. However, prescription growth for obesity drugs slowed in the US, and some trial results came in lower than expected.
President Trump’s election also affected pharmaceutical companies, potentially altering healthcare policy. Novo Nordisk’s main competitor, Eli Lilly, sells obesity drugs as well.
Novo Nordisk’s revenue jumped to $40.6 billion, driven by growing sales in the US, and reported a profit of over 100 billion Danish kroner. The company expects 16-24% sales growth in 2025, less than the previous year’s increase due to competition and pricing pressures.
Despite this, CEO Lars Fruergaard Jorgensen said the company is seeing strong demand for obesity treatments, which he believes will lead to a significant ramp in US sales. Novo Nordisk’s share price rose about 5% on the news.
The company has been impacted by Mr. Trump’s administration, with Robert F. Kennedy Jr. being nominated as health secretary and threats of tariffs on Denmark. However, CFO Karsten Munk Knudsen expressed optimism for 2025, citing a late-stage trial result for CagriSema that showed promise.
Source: https://www.nytimes.com/2025/02/05/business/novo-nordisk-earnings-ozempic-wegovy.html