Novo Nordisk (NVO) $126 Maintaining Buy Recommendation.
No surprise, Novo too, increased its outlook like its competitor Eli Lilly.
Increased full-year outlook on the back of strong Q1 results, driven by increased demand for its GLP-1-based diabetes and weight-loss drugs Ozempic and Wegovy.
Q1- Blockbuster sales double The Danish drugmaker’s total Q1 revenue jumped 22% Y/Y to DKK 65.35B ($9.39B), as sales of its blockbuster drugs surged: Wegovy sales more than doubled to DKK 9.38B ($1.35B); Ozempic sales grew 43% in constant currency to DKK 27.81B (~$4B).
Novo (NVO) now expects sales growth of 19%-27% in constant currency this year, slightly higher than its prior guidance of 18%-26% growth. Operating profit growth is projected to be 22%-30% in constant currency, compared to its earlier forecast of 21%-29%.
The raised guidance reflects the expected volume growth of its diabetes and obesity drugs, both in the U.S. and internationally, although pricing pressures are expected to continue.
The company also continues to see supply constraints and resulting GLP-1 drug shortages and is spending in internal and external capacity to boost supplies.
Pricing pressure – Despite the upbeat outlook, Novo (NVO) fell 3% in early U.S. premarket trade on Thursday. To note, the stock has gained close to 25% so far this year.
Novo Nordisk CFO Karsten Munk Knudsen said on a conference call with reporters that prices of the products were “slightly down” last quarter and that the company expects them to continue to decline this year, according to Reuters.
Novo (NVO) faces stiff competition in the weight-loss drug market from Eli Lilly (LLY), which has also seen surging demand for its GLP-1 drugs Zepbound and Mounjaro.