By Maggie Fick
LONDON (Reuters) – Novo Nordisk raised its 2024 forecast on Thursday and posted better-than-expected quarterly profits, as the Danish drugmaker struggles to increase production of its hugely popular weight-loss drug Wegovy and fend off competition from rival Eli Lilly.
The company has quadrupled its U.S. supply of Wegovy starter doses since December, Senior Vice President Negelle Morris told Reuters this week.
At least 20,000 new U.S. patients are starting weekly shots each week, reflecting the company’s efforts to increase production, she said.
The modest outlook upgrade and above-forecast results underscore Wegovy’s success and Novo’s leadership position in the fast-growing obesity drug market.
Still, Novo’s growth from Wegovy’s phenomenal success was held back by the company’s ability to meet soaring demand for the weekly shot.
The company also faces stiff competition from U.S. rival Eli Lilly as it launches its Zepbound therapy in new markets. It launched in the US in December and in Germany, Poland and the UK this year.
The company said it now expects revenue growth of between 19% and 27% in local currencies this year, compared with the previously forecast range of 18% to 26% growth.
Operating profit growth this year is now between 22% and 30% in local currencies, slightly above the previous forecast of 21% to 29%.
Novo reported first-quarter earnings before interest and taxes (EBIT) of 31.8 billion Danish crowns ($4.57 billion), above the 29 billion predicted by analysts in an LSEG survey this week , and 27% more than a year ago.
Sales of Novo’s obesity treatment products, including Wegovy, rose 41% in local currencies to 11 billion crowns in the first quarter.
Wegovy’s sales between January and March were 9.4 billion Danish kroner, down from 9.6 billion kronor in the previous quarter and up 107% from the same quarter last year in local currencies.
The surge in U.S. starter doses comes as the company spends billions to increase production of Wegovy and keep up with explosive demand.
A year ago, Novo began limiting the number of U.S. patients who could begin treatment by reducing supplies of the lowest three doses of the weekly appetite suppressant injection.
In January, Novo said its supply of lower-strength Wegovy doses, or “starter” doses, in the U.S. had more than doubled that month compared to recent doses. However, there are still shortages in the USA.
($1 = 6.9610 Danish Kroner)
(Reporting by Maggie Fick; Additional reporting by Stine Jacobsen in Copenhagen and Patrick Wingrove in New York. Editing by Terje Solsvik and Josephine Mason;)