Novo Nordisk (NVO), the Danish pharmaceutical company behind Ozempic & Wegovy, has become a household name and one of Europe's most valuable companies. Notably, when Novo Nordisk reports its fourth quarter results on January 25th, he focuses on three key issues.
1. Extension:
Third-quarter results were music to investors' ears, with revenue up 29% to $8.4 billion. An unprecedented off-label sale of the company's diabetes drug Ozempic has set off a rush to meet demand and a surge in counterfeit products worldwide. Novo's deal with the U.S. biotech startup is worth up to $1 billion and will focus on plans to expand production capacity.
2. Competitors:
Eli Lilly (LLY) is under fire for its diabetes drug Munjaro and obesity drug Zepbound after FDA approval in November. Lilly also launched a new website to connect patients seeking treatment with telehealth providers. Next, Pfizer (PFE), Amgen (AMGN), Roche (RHHBY), and AstraZeneca (AZN) are vying for a piece of the pie. The battle continues for market share that could reach a value of $100 billion by the end of the 2010s.
3. Barrier:
Novo Nordisk faces many hurdles. First, Medicare doesn't cover weight loss drugs, so Novo is lobbying Congress to lift those restrictions. Some insurance companies are reluctant to provide coverage or have strict pre-authorization rules. As Eli Lilly increases production capacity, will Novo be able to maintain as much supply?
There's a lot to digest as we wait to see how one of the biggest stories in business news unfolds.
video transcript
And what should I watch now? Novo nordisk weight loss pills. A year of hype has given way to the reality of a fiercely competitive market. At the heart of this is Novo Nordisk.
Danish pharmaceutical manufacturer that made Ozempic and Wegovy famous and at one time Europe's most valuable company. As Yahoo Finance's Company of the Year releases his fourth-quarter results on January 25th, here are his three big issues to watch.
The first is expansion. The third quarter results were music to investors' ears. Sales increased by 29% to $8.4 billion, demonstrating the enthusiasm for this 100-year-old company. Unprecedented off-label sales of blockbuster diabetes drug Ozempic have set off a rush to meet demand and a surge in counterfeit products worldwide.
Investors will want to know if the tailwinds are still in place. Novo's deal with the U.S. biotech startup is worth up to $1 billion. And plans to expand production capacity will be watched with interest.
The second is competitors. Eli Lilly has been aggressively pursuing diabetes treatment through Mounjaro and is currently developing obesity treatment Zepbound, which received FDA approval in November. Lilly also launched a new website to connect patients seeking treatment with telehealth providers.
Further companies like Pfizer, Amgen, Roche and AstraZeneca are eyeing a slice of the pie. A battle continues for a share of a market that will be worth more than $100 billion by the end of the 2010s.
Third, there are barriers. Novo may seem limited, but there are some major systemic hurdles. First, Medicare does not cover weight loss drugs. And Novo has been lobbying Congress to remove these restrictions.
On the other hand, some insurance companies are hesitant to provide coverage or have strict pre-authorization rules. Additionally, there are Novo's own supplies. Will we be able to beat Lily by increasing production?
There's a lot to digest as you watch how one of the biggest stories in business news unfolds. Yahoo Finance will be monitoring every detail of Novo Nordisk's earnings report. Do not miss it.
