Takeaways
- Novo Nordisk has again raised its full-year outlook as demand soars for its Ozempic and Wegovy weight loss treatments.
- The company is also testing the drugs for more ;other potential uses.
- Novo Nordisk's ADR hit a record high on Friday following the news.
Novo Nordisk (NVO) raised its forecast for the second time in two months as demand soars for its diabetes treatments, Ozempic and Wegovy. Novo Nordisk's American depositary receipts (ADRs) rose nearly 2% to an all-time high on Friday following the news.
The Danish drugmaker now predicts year-over-year sales will rise 32% to 38%, up from its previous forecast of a 27% to 33% gain. It forecasts operating profit growth of 40-46% versus a prior estimate of 31-37%.
Novo Nordisk noted that this The change was primarily reflected in higher expectations for Ozemic volumes in the United States and gross to net sales adjustments for Ozemic and Wegovy in the United States.
For the third quarter and first nine months of For the year, Novo Nordisk expects revenue growth of 38% and 33%, respectively. Operating profit expansion over the same periods is forecast at 47% and 37%, respectively. These results should be published on November 2.
The success of Ozempic and Wegovy in helping patients lose weight has led to a boom in demand. In August, the company announced that sales of its treatments had soared 158% in the first six months of the year.
Ozempic and Wegovy are in progress test also for other uses. Earlier this week, Novo Nordisk announced that it had halted a trial of Ozempic to treat chronic kidney disease because preliminary results showed signs of success. Two months ago, the company released study results indicating that Wegovy was successful in reducing major adverse cardiovascular events in patients with cardiovascular disease.
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Source: investopedia.com
