Novo Nordisk confirms significant sales growth despite supply constraints

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Despite supply constraints, Novo Nordisk is expected to make a significant contribution to Denmark’s GDP with its obesity and diabetes treatments, according to its first-half 2024 financial report.

The Danish company reported operating profits of 7.75 billion euros in the first six months of the year, up 19 percent at constant exchange rates (CER). Report The article published on Wednesday reads:

“We are pleased with the sales growth in the first half of 2024, which allows us to raise our full-year outlook. In research and development, we are very pleased with the first Phase 3 trial results for Mim8 and its potential for patients with hemophilia A,” said Lars Fruergaard Jørgensen, president and CEO of Novo Nordisk.

Novo Nordisk’s remarkable success was mainly due to a 26% increase in sales of its diabetes and obesity treatment GLP-1 (semaglutide), with strong demand in North America growing by 36%.

The most well-known brand names of GLP-1 are Ozempic, which focuses on diabetes, and Wegovy, which focuses on obesity and weight loss.

Although overshadowed by the runaway success of semaglutide, the company’s once-weekly diabetes drug Awigli (insulin icodec) has also been approved in the EU and Japan for the treatment of both type 1 and type 2 diabetes, and in China for the treatment of type 2 diabetes. The U.S. Food and Drug Administration (FDA) requested more information on the type 1 diabetes treatment before completing its evaluation.

A complicating factor for semaglutide’s success is periodic supply constraints. Novo Nordisk is increasing capital investments to reduce shortages. In the United States, Wegovy is in short supply and supply of initial dose strengths remains limited to maintain continuity of care.

Danish giant

“The pharmaceutical industry accounted for about half of Denmark’s total growth last year, and Novo Nordisk was clearly the leader,” Lars Olsen, chief economist at Danske Bank, told EuroDynamics. He estimated that by 2024, Novo Nordisk could contribute 1.5% to 2% to Denmark’s GDP.

“It’s a very, very large portion of GDP growth, but it’s not leading to huge job growth,” Olson said. “By far the largest portion of job growth has been in other sectors, and that’s what matters most for fiscal policy.”

(Editing by Daniel Ek)