What To Watch: Novo Nordisk
Novo Nordisk (NVO), the Danish drugmaker behind Ozempic & Wegovy has become a household name and one of Europe's most valuable companies. What To Watch focuses in on three key issues as Novo Nordisk reports 4th quarter earnings on January 25th:
1. Expansion:
3rd quarter results were music to investors ears with a 29% jump in sales to 8.4 billion dollars. The unprecedented off label sales of its diabetes drug Ozempic started a stampeded to keep up with demand & a global surge in counterfeits. Novo’s deal is worth up to 1 billion dollars with U.S. biotech startups and plans for expanding capacity will be watched with interest.
2. Competitors:
Eli Lilly (LLY) is in hot pursuit though diabetes drug Mounjaro and with obesity drug Zepbound after FDA approval in November. Lilly also started a new website to connect patients seeking treatment with Telehealth providers. Then there is Pfizer (PFE), Amgen (AMGN), Roche (RHHBY), & Astra Zeneca (AZN) all fighting for a piece of the pie. The battle is on for a share of the market that could be worth 100 billion dollars by the end of the decade.
3. Barriers:
There are many hurdles for Novo Nordisk. For one, Medicare does not cover weight loss drugs & Novo has been lobbying Congress to release these restrictions. Some insurers are hesitant to cover or have strict prior authorization rules in place. Can Novo keep as much supply as Eli Lilly ramps up their production capacity?
Lots to digest as we wait to see how one of the biggest stories in business news develops.
Video Transcript
And now What To Watch. Novo Nordisk's weight loss drugs. The year of hype gives way to the realities of a fiercely competitive market. And at the center of it all, Novo Nordisk.
The Danish drug maker behind Ozempic and Wegovy becoming a household names, and at one point, Europe's most valuable company. Here are three big issues we'll be focusing on as Yahoo Finance's Company of the Year reports fourth quarter earnings on January 25.
Number one, expansion. Third quarter results were music to investors ears. A 29% jump in sales to $8.4 billion signaling the frenzy around the 100-year-old company. The unprecedented off label sales of its blockbuster diabetes drug Ozempic started a stampede to keep up with demand and a global surge in counterfeits.
Investors will want to know if the tailwinds are still blowing. Novo's deals worth up to $1 billion with the US biotech startups. And plans for expanding capacity will be watched with interest.
Number two, competitors. Eli Lilly is in hot pursuit through diabetes drug Mounjaro and now with obesity drug Zepbound after FDA approval in November. Lilly also launched a new website to connect patients seeking treatment with telehealth providers.
Then there's Pfizer, Amgen, Roche, and AstraZeneca among others looking for a slice of the pie. The battle is on for a share of a market that could be worth more than $100 billion by the end of the decade.
Number three, barriers. It might seem like the sky's the limit for Novo, but there are some big systemic hurdles. For one, Medicare does not cover weight loss drugs. And Novo has been lobbying Congress to remove these restrictions.
Meanwhile, some insurers are hesitant to cover or have strict prior authorization rules in place. Then there's Novo's own supply. Can it beat Lilly in ramping up production?
Lots to digest as we look to see how one of the biggest stories in business news develops. Yahoo Finance will be watching all the finer points of Novo Nordisk's earnings report. Don't miss it.
