Flags with the emblems of Danish drugmaker Novo Nordisk, maker of the blockbuster diabetes and weight-loss therapies Ozempic and Wegovy are footage year the corporate items the once a year file at Novo Nordisk in Bagsvaerd, Denmark, on February 5, 2025.
Mads Claus Rasmussen | Afp | Getty Pictures
Stocks of Novo Nordisk climbed virtually 7% on Wednesday then it stated gross sales of its blockbuster Wegovy weight reduction drug had been not hidden making improvements to in the second one part of the 12 months as the provision of copycat compounded medication is phased out.
The Danish pharmaceutical gigantic reported lower-than-expected first-quarter gross sales of its flagship weight problems drug and trimmed its full-year gross sales expansion forecast as spare variations of the drug have eaten away at its U.S. marketplace percentage.
Then again, CEO Lars Fruergaard Jørgensen advised CNBC that the tip of a drug rarity ruling by means of the Meals and Drug Management (FDA) would permit gross sales to select up once more upcoming within the 12 months.
“Compounders took a part of our business away,” Jørgensen advised CNBC’s Charlotte Reed.
“We now expect that compounding will be knocked off, so to say, and we get that business growth going forward,” he added.
Stocks of Novo Nordisk rose 6.77% by means of 10:20 a.m. London pace.
The drugmaker on Wednesday reported a better-than-expected arise in first-quarter web benefit of 29.03 billion Danish kroner ($4.4 billion) for the three-month length to the tip of March, forward of the 27.8 billion Danish kroner forecast by means of analysts in an LSEG ballot.
Gross sales of the corporate’s frequent Wegovy weight problems drug rose 83% every year at consistent change charges to 17.36 billion Danish kroner, coming in rather under the 18.51 billion Danish kroner expected by means of analysts in a Factset ballot Tuesday.
Total revenues at Novo Nordisk — which additionally produces diabetes and uncommon disorder therapies — rose 18% to 78.09 billion Danish kroner as opposed to an anticipated 78.18 million Danish kroner.
For 2025, the corporate stated it now sees gross sales expansion of 13% to 21% at consistent change charges, under the 16% to 24% up to now forecast in February. Working benefit expansion is forecast at 16% to 24%, as opposed to 19% to 27% up to now.
Copycat medication
Jørgensen attributed the lowered forecast to emerging festival from compounded weight reduction medication within the U.S. within the early a part of the 12 months.
“In the first quarter of 2025, we delivered 18% sales growth and continued to expand the reach of our innovative GLP-1 treatments,” Jørgensen stated in a remark.
“However, we have reduced our full-year outlook due to lower than-planned branded GLP-1 penetration, which is impacted by the rapid expansion of compounding in the U.S.”
U.S. compounding pharmacies were accepted to construct criminal copies of Novo’s Wegovy and diabetes drug Ozempic underneath a drug rarity ruling by means of the FDA.
The FDA declared that rarity over in February, giving compounding pharmacies till Might 22 to stop promoting copies of the drug. As such, Novo stated it expects gross sales of compounded possible choices to peace quickly, and reiterated that it will pursue firms that proceed to unlawfully distribute such copycat medication.
“Following the U.S. FDA removal of semaglutide injectables from the FDA drug shortage list, the sales outlook assumes a reduction in patients on compounded GLP-1 treatment during the second half of 2025,” the corporate stated.
Jørgensen additionally pointed to the origination of a new direct-to-consumer online pharmacy and partnerships with telehealth suppliers Hims & Hers Fitness, Ro and LifeMD, which he stated would degrade Wegovy prices and grant a “safe, trusted alternative” for sufferers who had up to now been the usage of compounders.
A statement ultimate day from CVS Fitness, which is able to amplify get right of entry to to Wegovy for sufferers coated by means of its pharmacy get advantages supervisor, Caremark, will handiest upload to that get right of entry to.
“They have now excluded the competitive products, so we have exclusivity with them,” Jørgensen stated. “We did not bid for exclusivity. We believe in open access, so it was CVS that made a decision to focus on Wegovy.”
Festival heats up
The effects come amid runaway call for for the drugmaker’s blockbuster GLP-1 weight reduction therapies, which paintings by means of mimicking a hormone referred to as glucagon-like peptide-1 to hold back urge for food.
Then again, the corporate has struggled to shake damaging sentiment following a layout of disappointing trial effects for its next-generation weight problems drug candidate CagriSema.
Novo Nordisk showed Wednesday that it plans to document for regulatory commendation of CagriSema within the first quarter of 2026. In the meantime, it has carried out for regulatory U.S. commendation of an oral model of its present semaglutide remedy, which it stated has the possible to be “the first oral GLP-1 treatment for obesity.”
“I’m very optimistic on CagriSema,” Jørgensen stated. “From the data we have, CagriSema is the best product that has been tested out or is on the market, and we believe we can get those data even better.”
Festival is heating up within the weight reduction drug marketplace, with pharma companies together with Roche, AstraZeneca and AbbVie all recently creating attainable pristine applicants.
Novo’s key U.S. rival Eli Lilly on Thursday reported an expectation-beating 45% arise in first-quarter gross sales, regardless that revenues for its frequent weight-loss drug Zepbound got here in rather not up to anticipated on degrade drug pricing. The U.S. drugmaker additionally diminished its full-year benefit steerage because of fees matching to a up to date most cancers remedy do business in, sending stocks degrade.
