(Reuters) – Novo Nordisk (NYSE:NVO) said on Thursday it expects another year of double-digit sales growth for its two most popular drugs, even as it cautioned shortages of its Wegovy weight-loss injection would continue in the short to medium term.
The Danish drugmaker, which this year overtook LVMH as Europe’s most valuable listed company, posted record operating profit and sales for the third quarter, underscoring the phenomenal success of Wegovy so far.
Novo shares were trading 3% higher at 0819 GMT, even as investors and analysts had hoped for clarity on when limits on the supply of Wegovy starter doses in the United States would cease.
Novo CEO Lars Fruergaard Jorgensen did not give an end-date and declined to give details on manufacturing, when asked on a media call.
“We foresee that the underlying demand will continue to outpace supply in the short to medium term,” Fruergaard said.
“We don’t see a ‘hockey stick’ development where suddenly there’ll just be a significant ramp up in sales,” he said, indicating that manufacturing would ramp up gradually.
The company also said in its quarterly earnings statement that in September and October it had submitted applications with U.S. and European Union authorities for Wegovy to be approved to reduce the risk of cardiovascular events.
That followed results of a large study released in August that showed Wegovy had a clear cardiovascular benefit, boosting the Danish company’s hopes of moving beyond its image as a lifestyle drug.
The U.S. Food and Drug Administration had granted priority review for the application, Novo said.
“(It’s) slightly negative that Wegovy is still supply restrained,” said Markus Manns, a fund manager at Union Investment and a Novo shareholder.
However, the decision to fast-track Novo’s application in the United States was positive, he said.
SUPPLY ISSUE IN FOCUS
Novo has struggled to keep up with soaring demand for the appetite-suppressing, anti-obesity drug and has limited the number of U.S. patients who can start treatment since May.
Wegovy sales totalled 9.6 billion Danish crowns ($1.36 billion) between July and September, up 28% from the previous quarter and up eight-fold from the same period last year.
In August, Novo said the curbs on Wegovy supplies would most likely extend into 2024.
Investors and analysts have called for clarity on when the supply issue would be solved, as rival Eli Lilly (NYSE:LLY) expects U.S. approval of its Mounjaro weight-loss drug later this year.
The company also said U.S. prescription volumes for GLP-1 class, its hugely popular weight loss and diabetes drugs, grew by 50% in the quarter compared to last year.
Last month, Novo Nordisk raised its full-year sales and operating profit guidance for the third time this year, reflecting strong demand for Wegovy and diabetes medication Ozempic in the United States.
Sales grew 29% year-on-year to 58.7 billion Danish crowns ($8.33 billion), while operating profit (EBIT) rose 33% to 26.9 billion, both in line with preliminary numbers released last month.
($1 = 7.0443 Danish crowns)
