Novo Nordisk extends U.S. supply limits on Wegovy weight-loss drug.

Novo Nordisk extends U.S. supply limits on Wegovy weight-loss drug.

Novo Nordisk Continues to Face Supply Constraints as Demand Soars for Wegovy Weight-Loss Drug

Novo Nordisk

Novo Nordisk, the Danish drugmaker known for its highly effective diabetes and weight-loss drugs, has announced that it will continue to restrict supplies of its popular Wegovy weight-loss drug in the United States due to soaring demand. This news coincides with the company’s decision to raise its full-year profit and sales forecasts for the second time.

Wegovy is a weekly injection that, when combined with diet and exercise, can help patients shed up to 15% of their weight. The drug has seen a surge in demand, pushing Novo Nordisk’s earnings and shares to record highs. With more than 650 million adults worldwide classified as obese and an additional 1.3 billion considered overweight, the need for effective weight-loss solutions has never been greater.

To ensure supplies for existing patients, Novo Nordisk had already halved the supply of starter doses to the U.S. market in May. CEO Lars Fruergaard Jorgensen stated that this initiative has helped manage supply dynamics and will be extended for the coming quarters. However, Novo Nordisk has denied any shortage of larger doses of Wegovy, contrary to ANBLE’s previous reports.

Despite the supply constraints, Novo Nordisk remains optimistic about its growth prospects. The company has raised its earnings guidance and now expects between 31% and 37% operating profit growth in local currencies for 2023, along with sales growth of 27-33%. These projections represent an increase from the previous estimates of 24-30% and 28-34%, respectively. Jorgensen attributes this growth to the increasing demand for the company’s GLP-1-based diabetes and obesity treatments, expressing their commitment to serving more patients than ever before.

However, the second-quarter results came in slightly below expectations, with sales and earnings falling short and costs higher than anticipated. Jyske Bank analyst Henrik Hallengreen Laustsen noted that while core products like Wegovy and Ozempic exceeded expectations, there were some disappointments in the Insulin division and Rare Diseases.

As a result, Novo Nordisk’s shares experienced a slight decline of 1.1% at 0717 GMT. Additionally, the company warns of the possibility of “continued periodic” supply constraints and shortages across various products and geographies.

Novo Nordisk Shares

In conclusion, Novo Nordisk’s Wegovy weight-loss drug continues to experience high demand in the U.S., leading the company to implement supply restrictions. Despite these constraints, Novo Nordisk remains confident in its growth prospects, raising its profit and sales forecasts for the year. However, the company also faces challenges with regards to costs and supply shortages for other products. As the demand for effective weight-loss treatments continues to rise, Novo Nordisk will need to navigate these hurdles to meet the needs of an increasingly weight-conscious population.