Novo Nordisk Lifts Guidance as Blockbuster Drug Demand Shows No Signs of Abating — Update

By Dominic Chopping

Danish pharmaceutical giant Novo Nordisk raised its full-year guidance to reflect better pricing in the U.S. and as global demand for its hit weight-loss and diabetes drugs continues to outstrip supply.

Sales in the first quarter were boosted by adjustments to gross-to-net rebates in the U.S.--the discount offered between the list price and the actual net sales price--related to previous years, it said Thursday.

The company said sales of its blockbuster Ozempic diabetes drug rose 42% on the year to 27.81 billion Danish kroner ($3.99 billion), while sales of obesity treatment Wegovy more than doubled to DKK9.38 billion. The company said sales of its total portfolio of diabetes and obesity medications grew 25% to DKK61 billion.

The company is struggling to keep up with demand and sales growth would have been even higher had it been able to produce more. It has restricted supplies of Wegovy in the U.S. amid burgeoning demand to ensure current patients maintain access, but it began a gradual easing of the restrictions over the last few months.

The company has recently moved to secure additional production capacity, committing $6 billion to new manufacturing facilities as well as acquiring three Catalent manufacturing sites for $11 billion.

It will take time to bring new capacity on line though and the company still expects continued periodic supply constraints and related drug-shortage notifications across a number of products and geographies.

Overall net profit in the quarter jumped to DKK25.41 billion from DKK19.81 billion, beating the DKK23.09 billion forecast by analysts in a FactSet poll.

Reported sales rose 22% to DKK65.35 billion, compared with a DKK63.43 billion FactSet estimate, driven by sales of Ozempic and Wegovy.

For 2024, the company now expects sales growth of 19%-27% and operating growth of 22%-30% at constant exchange rates, from previous guidance of 18%-26% and 21%-29%, respectively. Sales and operating profit growth reported in Danish kroner is now expected to be in line with constant currency growth, having previously expected to be slightly lower.

Write to Dominic Chopping at dominic.chopping@wsj.com