Connect with us


Novo Nordisk, Lilly see insatiable demand for weight-loss drugs

Novo Nordisk, Lilly see insatiable demand for weight-loss drugs


Nov 2 (Reuters) – Novo Nordisk (NOVOb.CO) and Eli Lilly (LLY.N) both expect juggernaut sales for their diabetes and weight-loss drugs to extend into coming years – limited only by their availability.

The two companies have been the primary beneficiaries of the global boom in obesity drugs, ballooning their market values and reshaping expectations not just in the healthcare industry, but also for sellers of sugary snacks, nutritional aids and packaged foods.

Sales of Wegovy and Ozempic for Novo and Lilly’s Mounjaro surpassed expectations in the most recent quarter reported on Thursday, and both companies flagged their inability to manufacture enough supply to keep up with skyrocketing demand.

That squeeze could worsen once Lilly’s Mounjaro, currently only approved for type 2 diabetes but being increasingly used “off-label” for weight loss, wins U.S. approval to treat obesity, likely by the end of the year.

Danish drugmaker Novo Nordisk, which overtook LVMH (LVMH.PA) as Europe’s most valuable listed company this year, posted record operating profit for the third quarter, with Wegovy sales reaching $1.36 billion, up 28% from the previous quarter.

“At this point, the market is supply driven and every vial of (these weight-loss drugs) is getting used,” said BMO analyst Evan Seigerman.

Novo expects double-digit sales growth in 2024 for Wegovy and Ozempic, which have the same active ingredient, semaglutide.

Indianapolis-based Lilly, now the world’s most valuable healthcare company worth $526 billion, reported Mounjaro sales of $1.41 billion, surpassing $1 billion in a quarter for the first time. It aims to double last year’s supply capacity by the end of 2023.

“With all the investments we’re making and the production plans, the expected demand for (Mounjaro) will be quite significant. So we can be in a tight situation for some time,” said Anat Ashkenazi, Lilly’s chief financial officer, in an interview.

Novo in May limited the number of U.S. patients who can start treatment with Wegovy. “We’ll be supplying significantly more in 2024 compared to what we are in 2023,” Novo CFO Karsten Munk Knudsen said in an interview.

The success of these drugs and the publicity around them has driven a buying frenzy in both Novo and Lilly shares, which have risen 47% and 52%, respectively, in 2023.

Coming into Thursday, both companies sported price-to-earnings ratios that far surpass their peers. Novo’s P/E is now at 46.5, while Lilly’s is at a lofty 77. Most major drugmakers are between 10 and 20, according to LSEG data.

Shares of Novo rose 3% on Thursday while Lilly was up 4%.

The “number one question on investor’s minds is when will Wegovy supply growth resume? When will they open the gates to allow new patients to start?” said Nicholas Anderson, a portfolio manager at Thornburg Investment Management, which holds Novo Nordisk shares.

The success of the drugs has prompted investors to sell shares of healthcare companies that have profited from the obesity epidemic, because they treat diabetes, sleep apnea and other conditions that are exacerbated by excess weight. Several food and packaging companies have also said the drugs could have an effect on demand.

Johnson & Johnson (JNJ.N) last month reported that sales of its devices used for bariatric surgery took a hit as many obese patients turned to the weight-loss drugs instead.

The iShares Medical Devices exchange-traded fund has lost 12% so far this year, while the Invesco Food and Beverage ETF is down 8.3%.

In early October, Walmart (WMT.N), the largest U.S. retailer, said the success of weight-loss drugs was driving a slight pullback in food consumption.

Analysts have cautioned that food companies could be hit in coming months as drugs like Wegovy and Mounjaro become more readily available.

Reporting By Jacob Gronholt-Pedersen, Bhanvi Satija, Patrick Wingrove and Maggie Fick; writing by David Gaffen; Editing by Bill Berkrot

Our Standards: The Thomson Reuters Trust Principles.

Acquire Licensing Rights, opens new tab

Bhanvi Satija reports on pharmaceutical companies and the healthcare industry in the United States. She has a postgraduate degree in International Journalism from City, University of London.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]