Novo Nordisk's Wegovy Surpasses Sales Expectations, Obesity Drug Market Race Heats Up

Novo Nordisk's third-quarter sales for Wegovy exceeded expectations, relieving investors concerned about demand slowdown. Despite a tempered sales growth forecast for next year, shares rose. Novo plans to triple production to meet high demand. U.S. sales are impacted by rebate phase-outs, but obesity drug market remains highly competitive.

Novo Nordisk has reported third-quarter sales for its popular weight-loss drug Wegovy that exceeded forecasts, offering reassurance to investors concerned about a potential slowdown in demand. The sales data, released Wednesday, showed a total of 17.3 billion Danish crowns ($2.5 billion), surpassing analysts' expectations and marking a 48% increase from the preceding quarter.

The company's shares initially rose nearly 9% following the news. However, they later adjusted to a 1.1% increase at 1525 GMT after management indicated that next year's sales growth could be in the high teens in percentage terms, lower than the 21% analysts predicted. Novo competes with Eli Lilly in the obesity drug market, which some project could reach $150 billion by the early 2030s.

While Wegovy's success has been a relief amid pricing pressures in the U.S., Novo's diabetes drug, Ozempic, saw weaker-than-expected sales. CEO Lars Fruergaard Jorgensen emphasized the high demand outweighing supply capabilities for both companies. Meanwhile, anticipation builds around the late-stage trial data for CagriSema, Novo's upcoming weight-loss treatment, expected by year-end.

(With inputs from agencies.)