Zhitong Finance learned that Novo Nordisk (NVO.US) announced its first quarter financial performance. The financial report shows that Q1 revenue was DKK 65.35 billion, a year-on-year increase of 22.4%. Each ADR yield is DKK 5.68. The Danish pharmaceutical giant announced that net profit increased by 28% year-on-year to DKK 25.4 billion (approximately USD 3.65 billion), which is higher than the LSEG survey analyst predicted DKK 23.7 billion. Q1 EBIT was DKK 31.8 billion, higher than the analyst's prediction of DKK 29.0 billion in LSEG's survey this week, a year-on-year increase of 27%.

Novo Nordisk announced on Thursday that first-quarter profits exceeded expectations, thanks to the surge in demand for weight loss drugs in the market. Last year, Novo Nordisk became the most valuable company in Europe because of the huge success of its weight loss drugs. Negelle Morris, senior vice president of the company, said this week that since December last year, the company's Wegovy supply in the United States has increased four times; at least 20,000 new American patients start injections every week, reflecting the company's efforts to increase production capacity.

Sales of Q1 best-selling weight loss drug Wegovy increased by more than doubled to 9.38 billion DKK, but lower than analysts' expectations. Calculated at a fixed exchange rate, sales of Novo Nordisk's weight loss and care products, including Wegovy, increased by 41% to 11 billion DKK in the first quarter of this year.

At a time when the company has invested billions of dollars in increasing the production of Wegovy to meet explosive demand, the initial dose in the United States has been boosted. The company said that in the first quarter of this year, Wegovy has been approved in the United States for reducing cardiovascular risk in obese people, and total sales in North America increased by 35%. Novo Nordisk CEO Lars Fruergaard Jørgensen said in a statement: "We are pleased with the sales growth in the first three months of 2024, which is due to the increase in demand for diabetes and obesity treatment based on GLP-1 drugs."

This slight upward revision of guidance and better-than-expected performance highlights Wegovy's success and Novo Nordisk's leading position in the rapidly growing weight loss drug market. Against the backdrop of Wegovy's huge success, Novo Nordisk's supply has been suppressed—it cannot meet the huge demand for weekly injections. John Rountree, managing partner of pharmaceutical consulting firm Novasecta, believes that the company's performance is full of "outstanding performances." Rountree said: "Really, except for continuous growth and significant growth, there are no other expectations."

However, the company also faces fierce competition from US competitor Eli Lilly & Company (LLY.US) as the company launches its Zepbound therapy in new markets. It was launched in the United States last December and this year in Germany, Poland and the UK. He added that as more and more competitors enter the market, and drug patents expire, it will be important for the company to maintain high R&D spending and innovation. Novo Nordisk faces competition from companies such as US pharmaceutical giant Eli Lilly in the weight loss treatment market, as well as a range of small and large companies seeking to enter the market. Novo Nordisk said it is still the global leader in GLP-1 drugs, with a market share of 55%; by 2030, the obesity treatment market may soar to more than USD 80 billion.

As Novo Nordisk competes with Eli Lilly for dominance in the weight loss market, increasing production is a key element of the company's strategy. The pharmaceutical company's investment in production capacity doubled this year to around USD 6.4 billion, a figure that does not include plans to spend USD 11 billion to acquire three factories originally owned by contract manufacturer Catalent Inc. The company expects that capital expenditure in 2024 is expected to be around DKK 45 billion; the current forecast is that the free cash flow for the whole year will be between DKK 57-67 billion.

Secondly, the demand for this heavyweight weight loss drug and its sister drug Ozempic for the treatment of diabetes prompted this Danish company to raise its expectations on Thursday, stating that sales this year may soar by 27% and operating profits may increase by 30%. Last month, positive trial data for Novo Nordisk's experimental new weight loss drug further boosted the company's market value. The latest research results have also boosted the company. Earlier this month, an EU regulatory investigation found that taking Wegovy or Novo Nordisk's diabetes drug Ozempic has no connection with increased risk of suicide and self-harm.

展望未来、ノボノルディスクは売上高および営業利益の成長率の見通しを上方修正しました。同社は現在、2024年の売上高の見通しを固定為替レートをベースに19-27%（以前は18-26%）と予想しており、営業利益の成長率も固定為替レートをベースに22-30%（以前は21-29%）を見込んでいます。