Novo Nordisk (NVO) stock took a hit on Thursday despite impressive first-quarter results that surpassed Wall Street expectations. The pharmaceutical giant reported a 25% increase in total sales, reaching a revenue of $9.5 billion driven by the success of its GLP-1s Ozempic for diabetes and Wegovy for weight loss.
Wegovy, the weight loss drug, brought in $1.3 billion in sales, while Ozempic generated $3.9 billion in revenue for the quarter. CEO Lars Jørgensen revealed that the company is now filling 27,000 new prescriptions per week for Wegovy, a significant increase from the previous quarter.
However, Novo fell short of Wall Street estimates for Wegovy sales by 11%, despite increasing supply and prescriptions. The company also faces competition from Eli Lilly’s Zepbound, which has impacted pricing strategies.
On a positive note, the approval of Wegovy for obese patients with cardiovascular disease risk has opened up a new revenue stream through Medicare dollars. Jørgensen expressed confidence in the company’s growth outlook for the year, emphasizing their commitment to expanding patient access to treatments for obesity and type 2 diabetes.
Despite its strong performance, Novo Nordisk is facing scrutiny from various government investigations, including concerns over pricing and patents. The Federal Trade Commission has raised issues about Novo’s patents for its drugs, but Jørgensen defended the company’s practices, stating that they are ethical in their patent filings.
Overall, Novo Nordisk remains optimistic about its future prospects, despite facing challenges in the regulatory landscape. Investors will be closely watching how the company navigates these obstacles while continuing to drive growth in key therapeutic areas.