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Novo Nordisk (NVO) Rides on Ozempic & Wegovy Amid Rivalry
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Novo Nordisk (NVO - Free Report) is a Bagsværd, Denmark-based global healthcare company and leader in the worldwide diabetes market with a full portfolio of glucagon-like peptide 1 (GLP-1) receptor agonists, modern insulins and human insulins. The company is also a key player in hemophilia care, growth hormone therapy, hormone replacement therapy and obesity.
Novo Nordisk reports its revenue incomes through two segments: Diabetes and obesity care and Rare diseases. The diabetes and obesity care segment includes insulins, GLP-1, other protein-related products, obesity and oral anti-diabetic drugs. On the other hand, the Rare diseases segment includes hemophilia, growth hormone therapy and hormone replacement therapy.
Per the financial results of the company in the past few quarters, growth in revenues was driven by some of Novo Nordisk’s most well-known drugs like Victoza, Ozempic, Saxenda, Rybelsus and the recently launched Wegovy. In the last reported quarter, Ozempic and Rybelsus sales were up 59% and 90% year over year, respectively, demonstrating strong traction in the market.
NVO’s obesity care product, Wegovy, also exceeded expectations in the second quarter after a second contract manufacturer for Wegovy initiated production in April 2023 to meet the increasing demand for the drug. Currently, the company is also looking to expand the drug’s indication as an adjunctive treatment for the prevention of major adverse cardiovascular events over a period of up to five years.
Regulatory filings for the approval of the label expansion in the U.S. and EU markets are expected later in 2023. Possible approvals by respective regulatory bodies are expected to further drive-up demand for the drug.
Its broad diabetes portfolio grants the company a strong presence in the Diabetes care market.
Besides its prowess in the diabetes and obesity care market, NVO is also looking to diversify its portfolio in the rare diseases market through collaborations and acquisitions.
However, stiff competition from other pharma bigwigs, like Pfizer (PFE - Free Report) and Eli Lilly (LLY - Free Report) , is starting to take shape in the global diabetes market for Novo Nordisk. In May 2023, Pfizer shared study data showing that its oral type II diabetes candidate, danuglipron, helped patients lose weight faster than Novo Nordisk’s popular diabetes weekly injection, Ozempic. Pfizer’s danuglipron is an orally administered, small-molecule GLP-1 receptor agonist.
The data reported by Pfizer showed that danuglipron reduced glycated hemoglobin and fasting plasma glucose at all dose levels studied and reduced body weight at doses of 80 mg or more twice daily compared with placebo. Patients treated with danuglipron lost about 10 pounds over the course of 16 weeks. Novo Nordisk’s Ozempic, a once-daily pre-filled insulin pen, showed a similar weight loss of about 9.9 pounds, but over 30 weeks in a similar study.
Lilly’s Mounjaro/tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA), was launched last year for type II diabetes and already competes with Novo Nordisk’s Ozempic/Wegovy. Mounjaro is approved in Europe and Japan. Mounjaro also showed a superior weight-loss reduction in clinical studies for obesity indication. Lilly has initiated a rolling submission in the United States for tirzepatide in obesity that is expected to be completed soon, while a regulatory application has already been filed in the EU.
Now, if danuglipron is also successful in further studies and eventually approved, it can enjoy strong demand trends as the demand for weight loss drugs is huge and rising, posing a serious threat to Novo Nordisk. Also, danuglipron is an oral pill versus weekly injections with Ozempic/Wegovy, which is an easier-to-use formulation.
Additionally, the patent expiry on some of the products in Novo Nordisk’s portfolio is highly concerning. Victoza is slated to lose patent protection in the United States and EU in the days ahead. Unplanned loss of patents, interruptions of supplies and production, and other political and economic headwinds may affect future results. Persistent pricing pressure within diabetes care, especially in the United States, might also negatively impact NVO’s sales prospects.
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Novo Nordisk (NVO) Rides on Ozempic & Wegovy Amid Rivalry
Novo Nordisk (NVO - Free Report) is a Bagsværd, Denmark-based global healthcare company and leader in the worldwide diabetes market with a full portfolio of glucagon-like peptide 1 (GLP-1) receptor agonists, modern insulins and human insulins. The company is also a key player in hemophilia care, growth hormone therapy, hormone replacement therapy and obesity.
Novo Nordisk reports its revenue incomes through two segments: Diabetes and obesity care and Rare diseases. The diabetes and obesity care segment includes insulins, GLP-1, other protein-related products, obesity and oral anti-diabetic drugs. On the other hand, the Rare diseases segment includes hemophilia, growth hormone therapy and hormone replacement therapy.
Per the financial results of the company in the past few quarters, growth in revenues was driven by some of Novo Nordisk’s most well-known drugs like Victoza, Ozempic, Saxenda, Rybelsus and the recently launched Wegovy. In the last reported quarter, Ozempic and Rybelsus sales were up 59% and 90% year over year, respectively, demonstrating strong traction in the market.
NVO’s obesity care product, Wegovy, also exceeded expectations in the second quarter after a second contract manufacturer for Wegovy initiated production in April 2023 to meet the increasing demand for the drug. Currently, the company is also looking to expand the drug’s indication as an adjunctive treatment for the prevention of major adverse cardiovascular events over a period of up to five years.
Regulatory filings for the approval of the label expansion in the U.S. and EU markets are expected later in 2023. Possible approvals by respective regulatory bodies are expected to further drive-up demand for the drug.
Its broad diabetes portfolio grants the company a strong presence in the Diabetes care market.
Besides its prowess in the diabetes and obesity care market, NVO is also looking to diversify its portfolio in the rare diseases market through collaborations and acquisitions.
However, stiff competition from other pharma bigwigs, like Pfizer (PFE - Free Report) and Eli Lilly (LLY - Free Report) , is starting to take shape in the global diabetes market for Novo Nordisk. In May 2023, Pfizer shared study data showing that its oral type II diabetes candidate, danuglipron, helped patients lose weight faster than Novo Nordisk’s popular diabetes weekly injection, Ozempic. Pfizer’s danuglipron is an orally administered, small-molecule GLP-1 receptor agonist.
The data reported by Pfizer showed that danuglipron reduced glycated hemoglobin and fasting plasma glucose at all dose levels studied and reduced body weight at doses of 80 mg or more twice daily compared with placebo. Patients treated with danuglipron lost about 10 pounds over the course of 16 weeks. Novo Nordisk’s Ozempic, a once-daily pre-filled insulin pen, showed a similar weight loss of about 9.9 pounds, but over 30 weeks in a similar study.
Lilly’s Mounjaro/tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA), was launched last year for type II diabetes and already competes with Novo Nordisk’s Ozempic/Wegovy. Mounjaro is approved in Europe and Japan. Mounjaro also showed a superior weight-loss reduction in clinical studies for obesity indication. Lilly has initiated a rolling submission in the United States for tirzepatide in obesity that is expected to be completed soon, while a regulatory application has already been filed in the EU.
Now, if danuglipron is also successful in further studies and eventually approved, it can enjoy strong demand trends as the demand for weight loss drugs is huge and rising, posing a serious threat to Novo Nordisk. Also, danuglipron is an oral pill versus weekly injections with Ozempic/Wegovy, which is an easier-to-use formulation.
Additionally, the patent expiry on some of the products in Novo Nordisk’s portfolio is highly concerning. Victoza is slated to lose patent protection in the United States and EU in the days ahead. Unplanned loss of patents, interruptions of supplies and production, and other political and economic headwinds may affect future results. Persistent pricing pressure within diabetes care, especially in the United States, might also negatively impact NVO’s sales prospects.