Novo Nordisk’s H1 2023 Financials Show 30% YOY Growth Driven by GLP-1 Drugs and Obesity Sales

Denmark-based pharmaceutical company Novo Nordisk A/S (NYSE: NVO) has announced its financial results for the first half of 2023, with GLP-1 drugs and obesity sales propelling a 30% year-on-year (YOY) increase in revenues to DKK 107.7 billion (USD 15.9 billion) in constant exchange rates.

Diabetes and Obesity Care Business Expansion
The company’s Diabetes and Obesity care business unit experienced a 37% growth, contributing DKK 99 billion (USD 14.6 billion) to the total revenues. GLP-1 diabetes products saw a 50% YOY growth, reaching DKK 54.7 billion (USD 8.1 billion), while Obesity Care sales skyrocketed by 157% YOY to DKK 18.2 billion (USD 2.7 billion). In contrast, the company’s insulin product portfolio saw an 8% YOY decrease in sales, amounting to DKK 24.7 billion (USD 3.7 billion).

Regional Performance and Wegovy’s Impact in China
Novo Nordisk’s regional sales performance showed a 42% increase in the US, 19% in EMEA, 12% in China, and 18% in the Rest of World regions. In China, total sales reached DKK 8.9 billion (USD 1.31 billion), with GLP-1 sales surging by 97% to DKK 3.1 billion (USD 457 million). The share of GLP-1 medicines in China’s overall diabetes market increased to 3.0% from 1.6% a year ago. Insulin sales in China, however, declined by 11% YOY to DKK 4.8 billion (USD 709 million). In the second quarter, China market sales rose by 35% YOY to DKK 4.46 billion (USD 658 million).

CFO Commentary and Innovation’s Role
CFO Karsten Knudsen highlighted the significance of the company’s performance in China, especially as it began to navigate the impact of volume-based procurement (VBP) of insulin products initiated in May of the previous year. The Q2 growth exceeding 30% was particularly impressive and attributed to the value of innovation, with new launches such as Ozempic (semaglutide), Xultophy (insulin degludec and liraglutide), and Ryzodeg (insulin degludec/insulin aspart) driving current growth.-Fineline Info & Tech

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