Denmark-based biopharma Novo Nordisk A/S (NYSE: NVO) has released its Q3 2022 earnings report. The company reported a 16% year-on-year (YOY) growth in constant exchange rates (CER) to DKK 128.9 billion (USD 17.3 billion) over the 9-month period. Sales for the three-month Q3 period were up 15% (CER) to DKK 45.566 billion (USD 6.1 billion).
Key Growth Drivers
The increasing demand for GLP-1-based diabetes and obesity treatments, particularly Ozempic (semaglutide), was identified as the key driver of this growth. The strong performance led Novo Nordisk to raise its full-year 2022 guidance, with sales growth now expected to be 14%-17% at CER (up from the previous forecast of 12%-16%) and operating profit growth projected at 13%-16% (compared to the prior range of 11%-15%).
Segment Performance
In global terms, the Diabetes Care segment accounted for DKK 36.13 billion (USD 4.9 billion) of the total, growing at 13% YOY. Sales of GLP-1 therapies reached DKK 22.37 billion (USD 3 billion), up 44% YOY, with Ozempic sales growing by 63% to around USD 2.2 billion. Rybelsus (the oral form of semaglutide) saw sales rise by over 100%. However, the global insulin portfolio declined by 15% YOY to DKK 12.96 billion (USD 1.8 billion), reflecting falling sales in the US (-27%), EMEA (-7%), and China (-28%).
Obesity and Rare Disease Segments
Sales in the Obesity segment rose 62% YOY to DKK 4.33 billion (USD 581 million), driven by Saxenda (liraglutide) and Wegovy (another form of semaglutide). The Rare Disease segment also saw growth, with sales up 4% YOY to DKK 5.1 billion (USD 686 million).
China Market Impact
Despite the global strength, Novo Nordisk faced a downturn in China, one of its key markets. With several insulin products included in the sixth round of the volume-based procurement (VBP) program, China market sales in CER terms were down 6% YOY (up 4% in DKK terms) during Q3 to DKK 4.438 billion (USD 595 million). Over the 9-month period, China sales were down 5% to DKK 12.845 billion (USD 1.72 billion). For the Q3 period, China insulin sales fell 28% to DKK 2.636 billion (USD 354 million) due to the VBP impact. However, GLP-1 sales in China reached DKK 1.065 billion (USD 142.8 million) after growing by 96%.-Fineline Info & Tech
