Novo Nordisk benefits from increasing demand for appetite suppressants

Novo Nordisk benefits from increasing demand for appetite suppressants

Pharmaceutical company Novo Nordisk reported a significant increase in both sales and profits in the first quarter, largely due to strong demand for its appetite suppressants. Products such as Wegovy and the diabetes drug Ozempic, which is based on the same active ingredient, are particularly in demand in the USA. This positive development made management more confident about 2024, although the reaction of investors on the stock market was cautious. The Novo Nordisk share recently recorded a slight decline and was around eight percent below its peak at the beginning of March.

Despite the decline on the stock market, Novo Nordisk remains the most valuable listed company in Europe with a market capitalization of around 411 billion euros. The group has raised its sales and operating profit forecasts for the current year, with analysts already having expectations at the upper end of the ranges. In the first quarter, sales rose by 22 percent to 65.35 billion Danish crowns and operating profit rose by 27 percent to 31.85 billion crowns.

Novo Nordisk continues to benefit from strong demand for diabetes and obesity products. The production of Wegovy can hardly keep up with the current high demand, which slowed down sales in the first quarter. However, the group plans to increase production by investing billions. With a market share of 55 percent, Novo Nordisk is the world's leading provider of GLP-1 drugs that suppress hunger.

While Novo Nordisk shares fell 2.74 percent to DKK 873.1 in trading via NASDAQ Nordic, the company's positive sales and profit development continues to show a promising outlook for 2024. With its strong position in the market for appetite suppressants and diabetes medications, Novo Nordisk is likely to continue to play an important role in the future and hope for further growth.