Novo Nordisk, Europe’s top pharmaceutical company, delivered impressive fourth-quarter earnings, exceeding market expectations and lifting its stock price by more than six percent. Despite this success, the company anticipates slower growth in 2025 as competition in the weight-loss drug market intensifies, particularly from Eli Lilly.
In the final quarter of 2024, Novo Nordisk’s operating profit surged by 37 percent, reaching 36.7 billion Danish kroner. This result surpassed forecasts. For the full year, operating profit climbed 25 percent to 128.3 billion kroner, driven by strong sales in diabetes and obesity treatments.
Wegovy, the company’s top-selling weight-loss drug, experienced a 107 percent increase in sales, generating 19.87 billion kroner in the fourth quarter. Although this figure fell slightly below expectations, Wegovy remains a crucial growth driver for Novo Nordisk. With its patent set to expire in the early 2030s, the company is actively investing in next-generation obesity treatments to maintain its competitive edge.
Novo Nordisk’s latest obesity drug trials produced mixed outcomes. CagriSema underperformed, causing a sharp decline in the company’s stock price. In contrast, Amycretin delivered promising results, restoring investor confidence in the company’s future product pipeline.
Throughout 2024, demand for weight-loss drugs exceeded supply, prompting Novo Nordisk to expand its production capacity. To address these challenges, the company’s investment arm acquired three manufacturing sites from Catalent in December. This move aims to boost supply and prevent future shortages.
Company leaders remain focused on enhancing production capacity, advancing research efforts, and refining their commercial strategy to ensure long-term success. These initiatives will help Novo Nordisk meet growing demand and strengthen its position in the pharmaceutical market.
Novo Nordisk expects growth to slow in 2025, projecting an increase of 16 to 24 percent at constant currency. This estimate marks the company’s lowest growth forecast in three years, suggesting that the weight-loss drug market is stabilizing as competition grows.
Eli Lilly is emerging as a strong rival with its weight-loss treatments, Zepbound and Mounjaro, both of which compete directly with Wegovy and Ozempic. Recent trial results also indicate that Eli Lilly’s retatrutide achieved greater weight-loss effects than Novo Nordisk’s Amycretin. This development has raised concerns about Novo Nordisk’s ability to maintain its competitive lead.
Additionally, Novo Nordisk faces increasing research and development costs, which could impact its profitability. In 2024, the company’s R&D expenses rose by 48 percent, up from a 35 percent increase in 2023. This rise reflects its commitment to drug innovation and clinical trials.
As competition in the weight-loss drug market intensifies and operational costs rise, Novo Nordisk is relying on expanded production and new treatments to sustain its leadership in the global pharmaceutical industry.
