top of page
Zdjęcie autoraJarosław Jamka

Novo Nordisk Q1 2024 Earnings Review

My key takeaways:


1)

Total revenue beat +2.65%,

Operating profit beat +10.4%,

Net profit beat +10.0%,

EPS diluted beat +8.75%


2) Revenues increased YoY by 22.5% - additionally, in the last two months analysts have significantly increased their revenue growth forecasts in the following years - see Figure 1



3) However, quarter-on-quarter revenues decreased by 0.78% - see Figure 2 (rev split by segments). Total GLP-1 revenues decreased the most quarter by quarter by DKK -2.78 billion - see Figure 3. Wegovy's sales have not been growing for 3 quarters either. The company has not been able to meet demand for practically a year:


“Demand for Wegovy® exceeds supply, and to safeguard continuity of care, supply of the lower Wegovy® dose strengths in the US has been reduced since May 2023. Novo Nordisk started gradually increasing the supply of the lower strength doses in January 2024.”




4) Novo Nordisk is going to expand its production capacity to meet up the demand for weight-loss drugs. The company announced an agreement to acquire three fill-finish sites from Novo Holdings A/S, following Novo Holdings A/S's acquisition of Catalent. This acquisition is expected to be a significant boost to the company's manufacturing capabilities.


5) The company also slightly raised its financial outlook for the entire year 2024. Currently, the company expects sales to increase by 19-27% (it was 18-26% - outlook from January 31 this year). The increase in operating profit is expected to be between 22-30% throughout 2024 (was 21-29%)


6) But year on year, the company achieved a significant increase in revenues of key drugs:


Ozempic +41.6% (DKK +8.17 bln)

Wegovy +105.5% (DKK +4.81 bln)


Ozempic + Wegovy YoY = DKK +12.98 bln


Total GLP-1 (here is Ozempic) +30.5% (DKK +8.17 bln)

Total Obesity (here is Wegovy) +40.7% (DKK +3.19 bln)


Total Sales +22.5% (DKK +11.98 bln)


Figure 4 details the YoY change in DKK billion.



8 wyświetleń0 komentarzy

Ostatnie posty

Zobacz wszystkie

Comments


bottom of page