Novo Nordisk faces pressure from Eli Lilly, but its latest earnings and sales outlook push shares higher
Novo Nordisk has faced challenges in recent months, according to CNBC, with its obesity drug Wegovy losing market share to Eli Lilly’s Zepbound.
Additionally, its anticipated successor, CagriSema, did not meet investor expectations in a Phase 3 trial.
Over the past year, Novo’s stock has dropped more than 20 percent, leading to concerns ahead of its fourth-quarter earnings release and 2025 outlook.
However, Novo reported fourth-quarter results that exceeded expectations and projected sales growth between 16 percent and 24 percent, aligning with Wall Street’s 20 percent estimate. Following the announcement, Novo’s stock rose over 4 percent on Wednesday.
In an interview with CNBC, Novo Chief Executive Officer Lars Fruergaard Jorgensen dismissed concerns about falling behind Eli Lilly.
Jorgensen stated that they expect a significant increase in volume and the ability to serve more patients as the year progresses.
He added that the company's guidance for the year reflects “an underlying significant ramp in our business.” Jorgensen also expressed confidence in both market demand and their ability to supply and compete.
Wegovy users begin treatment with a low starter dose before progressing to higher doses. At times, Novo has restricted the shipment of starter doses due to production challenges, prioritizing patients already on the drug.
The company’s 2025 sales forecast suggests a 30 percent increase in the number of patients using its GLP-1 drugs, including Ozempic, as stated during its earnings call.
Novo also sought to reassure investors about CagriSema’s potential.
Jorgensen noted that some trial participants lost weight rapidly, while others continued losing weight steadily with no signs of stopping by the trial’s end, indicating the possibility of longer treatment durations.
“I’m very confident in the potency of the biology we have here,” he said.
Meanwhile, attention is shifting to amycretin, an early-stage treatment that recently demonstrated promising results in a Phase 1b/2a trial.
Jorgensen stated that Novo is in discussions with the US Food and Drug Administration regarding a possible direct transition to a Phase 3 trial.
