Novo Nordisk Beats Earnings Expectations, Stock Surges
Key Metrics:
* Q4 2024 Revenue: $11.6 billion, up 30% YoY
* Full-Year 2024 Revenue: $40.5 billion, up 25% YoY
* Stock Performance: +3% pre-market trading
Key Drivers:
* Blockbuster semaglutide drugs (Wegovy and Ozempic) generated $24.9 billion in revenue, accounting for 60% of total revenue.
* GLP-1s position Novo Nordisk as a leader in the weight loss market, with 52% market share.
Growth Outlook:
* 2024 Outlook: 18%-26% growth
* 2025 Outlook: 16%-24% growth
Headwinds:
* Slower-than-expected growth in weight loss drug sales (22.7% weight loss vs. 30% for competitors)
* FDA shortage list for semaglutide drugs, leading to knockoffs
* Potential headwinds from Medicare Part D drug pricing negotiations
Other Notable Points:
* Novo Nordisk is investing in new manufacturing sites to address drug shortages.
* The Catalent deal will add three new sites, bringing the total to 14.
* Key drugs Ozempic and Wegovy are included in the Medicare negotiation list for 2027.