Pharmaceutical Industry
Novo Nordisk says it is struggling to keep up with demand after becoming Europe’s most valuable company
The maker of the blockbuster weight-loss drug semaglutide has reported a steep rise in sales and profits as health systems around the world use it to combat obesity.
Sales of Danish pharmaceutical company Novo Nordisk’s diabetes and obesity drugs rose from 113 billion Danish crowns (13.2 billion pounds) in the nine months to the end of September 2022 to 154 billion crowns in the same period in 2023.
However, the company also warned in its financial results released on Thursday that it was struggling to keep up with demand.
Semaglutide’s effects on obesity, with many patients experiencing greater weight loss than competing products, have made it a rare drug that has gained recognition among the general public. Billionaire Elon Musk and former Prime Minister Boris Johnson are among those who have said they have taken the drug, which is administered through injections.
The British public warned about the dangers of counterfeit weight loss medication pens
The drug, marketed as Wegovy for obesity and Ozempic for diabetes, has also transformed Novo Nordisk’s prospects. New York-listed shares rose 2.9% in premarket trading on Thursday morning, topping $100 after reporting financial results.
The company’s market value before results was $334 billion, almost double its value at the start of 2022 and four times its value at the start of 2019, making it Europe’s most valuable company.
The company has launched sales in the US, Denmark, Norway, Germany, Iceland and the UK. In September, the UK NHS introduced prescribing semaglutide through specialist weight management services, alongside a low-calorie diet and exercise.
Lars Fruergaard Jørgensen, CEO of Novo Nordisk, said: “We are very pleased with the sales growth in the first nine months of 2023, which shows that more people than ever are benefiting from our innovative diabetes and obesity treatments.”
Novo is scrambling to keep up with demand and announced it would limit shipments of Wegovy in the United States. It states: “While supply capacity for Wegovy is gradually expanding, supply of the lower dose strengths in the US remains limited to ensure continuity of supply.”
The company said that despite efforts to build more factories to produce the drug, “regular supply shortages are expected to continue to occur.” Novo is trying to stay ahead of rival Eli Lilly, whose Mounjaro diabetes product is also expected to gain approval as a weight-loss drug.
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