Novo Nordisk, the maker of obesity drug Wegovy, reassured investors on Wednesday that it remains competitive despite recent challenges.
The company's stock had dropped over 20% in the past year as rival Eli Lilly's weight-loss drug Zepbound gained traction and Novo's experimental drug CagriSema fell short of expectations in a Phase 3 trial.
However, Novo exceeded fourth-quarter earnings projections and set a 2025 sales growth target between 16% and 24%, closely matching Wall Street expectations.
CEO Lars Fruergaard Jorgensen remained optimistic, stating that the company expects to supply more starter doses this year, leading to increased patient volume.
"We are quite confident that as we move into the year and we'll be supplying more and more of the starter doses, we can see a nice step up in our volume and serving more and more patients," he said.
According to CNBC, the company's stock rose more than 4% following the announcement.
A key factor in Novo's performance is Wegovy's supply management. Patients begin with a low-dose starter before gradually increasing to stronger doses.
Due to past shortages, Novo had restricted the availability of these starter doses to ensure that existing patients could continue treatment.
Novo Nordisk Eyes 30% Growth in GLP-1 Patients, Pushes Forward with New Treatments
The company now anticipates a 30% increase in GLP-1 drug patients, including those using Ozempic.
Novo also addressed concerns over CagriSema's recent trial results. Jorgensen explained that some patients lost weight rapidly while others continued to lose weight throughout the study, suggesting some may need extended treatment. "I'm very confident in the potency of the biology we have here," he said.
Meanwhile, Novo's earlier-stage treatment, amycretin, has shown promising early results, and the company is in talks with the FDA about advancing it directly to a Phase 3 trial.
In addition to expanding production, Novo is facing growing scrutiny over its environmental impact.
The company reported a 23% increase in emissions for 2024, largely due to scaling up Wegovy production.
Novo reaffirmed its commitment to achieving net-zero emissions by 2045 and introduced a target to cut supply chain emissions by 33% by 2033, Reuters said.
The company outlined plans to use lower-carbon materials and encourage suppliers to transition to green energy sources.
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