Novo Nordisk Surges Ahead with Wegovy Triumph in Obesity Market

Novo Nordisk reported strong sales for its weight-loss drug Wegovy, surpassing analyst expectations and calming investor worries about losing the obesity drug market lead to Eli Lilly. Despite weaker-than-anticipated diabetes drug sales and U.S. pricing pressures, the company's market value increased significantly.

Novo Nordisk impressed investors on Wednesday by reporting higher-than-expected quarterly sales for its popular weight-loss drug, Wegovy. The positive news comes amid concerns that the Danish pharmaceutical giant was trailing behind its main competitor, U.S.-based Eli Lilly, in the competitive obesity drug market.

Wegovy sales reached 17.3 billion Danish crowns ($2.5 billion) in the third quarter, outpacing analysts' predictions of 15.9 billion. However, total group sales, buoyed by a 21% rise, fell short of expectations due to sluggish sales of its diabetes medication, Ozempic. In the U.S., sales growth was affected by the reduction of volume-based rebates.

With a burgeoning demand for Wegovy, CEO Lars Fruergaard Jorgensen remains optimistic about the drug’s trajectory. The company's focus now lies in boosting production capacity to meet increasing demand, particularly in the U.S. market. Wegovy is now available in over 15 countries, and further market expansion is anticipated.

(With inputs from agencies.)