Earnings report: Novo Nordisk cashes in on weight loss drug fever with better-than-expected results

This morning, pharmaceuticals company Novo Nordisk reported triumphant Q1 2024 financial results before markets opened.

One of the more memorable highlights was certainly the fact that Novo Nordisk's sales increased by 22% in Danish kroner (by 24% at constant exchange rates) to DKK 65.3 billion for the period. 

Profits up by over a quarter

Meanwhile, operating profit increased by 27% in Danish kroner and by 30% at constant exchange rates (CER) to DKK 31.8 billion.

This effectively meant that the company's profits for the quarter increased by more than 25%

Why are Novo Nordisk's profits up 27%?

The cause of this was higher-than-expected sales figures, almost across the board. The company's obesity care portfolio grew by a massive 41% in Danish kroner to DKK 11.0 billion, in part thanks to weight loss treatment Wegovy being approved in the US for cardiovascular risk reduction in people with overweight or obesity and established cardiovascular disease.

This is the second consecutive win from Wegovy that the company has reported, after both profits and sales grew 30% in Q4 of 2023 last quarter.

Novo Nordisk's diabetes drugs' sales growth also increased a significant 30%, thanks in part to its Awiqli, a once-weekly insulin icodec, being recommended for EU approval.

Sales up signifincatly in America, only marginally in EU

Overall sales in USA operations increased by 34% in Danish kroner, thanks to gross-to-net sales adjustments related to prior years. Sales in international operations increased by 8% in Danish kroner (11% at CER).