European pharmaceutical giant Novo Nordisk released its Q4 2023 financial report on Wednesday, with its revenue performance exceeding market expectations. It also predicts that it will continue to achieve double-digit sales growth this year, with the biggest contributor being its newly launched weight loss drug Wegovy.
According to the financial report, in Danish kroner terms, Novo Nordisk's revenue increased by 31% in 2023 to 232.3 billion kroner (approximately 33.7 billion US dollars), far exceeding market expectations of 21%, and the company's revenue in North America grew strongly by 50%.
In addition, Novo Nordisk's operating profit increased by 37% to 102.6 billion kroner, and its net profit increased by 51% year-on-year to 83.683 billion kroner.
The most eye-catching diabetes and obesity service revenue increased by 38% last year, with GLP-1 drug sales in diabetes increasing by 48% and obesity increasing by 147%.
The company's outlook is that its revenue will continue to grow in 2024, with a growth rate adjusted for fixed exchange rates ranging from 18% to 26%; Meanwhile, profits will also increase by 21-29%. This expectation shows that Novo Nordisk has extremely optimistic sales confidence and is optimistic about market demand.
Lars Fruergaard Jorgensen, CEO of the company, expressed in a statement that he is very pleased with the strong financial performance in 2023. Currently, over 40 million people worldwide are benefiting from Novo Nordisk's innovative diabetes and obesity treatment plans.
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Novo Nordisk pointed out in its financial report that the revenue of GLP-1 drugs (Rybelsus, Ozempic, and Vitoza) used solely for the treatment of type 2 diabetes increased by 48% last year (in Danish kroner), reaching 123.1 billion kroner.
In the global diabetes market, the share of GLP-1 drugs has also increased by 6% from 4.5% a year ago, with Novo Nordisk accounting for 54.8% of the GLP-1 drug market, making it the undisputed leader.
And the star product Ozempic, the low-dose version of Wegovy, saw a 60% increase in sales last year. Novo Nordisk believes that this growth is related to phased supply restrictions and different regions' preventive attitudes towards drug shortages.
The weight loss market is even hotter, with Wegovy, which even Musk is using, experiencing a sales growth of 407% in 2023. The financial report shows that the drug has been launched in countries such as the United States, Denmark, Norway, Germany, the United Kingdom, Iceland, Switzerland, and the United Arab Emirates, with a market size expanding by 116% compared to 2022.
Helge Lund, Chairman of Novo Nordisk, stated in his financial report that the increasing prevalence of type 2 diabetes and obesity has led to a surge in demand for GLP-1 drugs. It also pointed out that this enabled Novo Nordisk to reach the largest user base in its century old history, accelerating strong growth in North American and international business.
On this basis, Novo Nordisk stated that it will vigorously invest in expanding production capacity. In 2023 alone, the company has announced that it will invest over 75 billion Danish kroner (approximately 10.9 billion US dollars) to expand its global base. In addition, the company also stated that in addition to the construction project, Novo Nordisk has implemented a 7-day, 24-hour, three shift extreme production system to meet market demand.