We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Novo Nordisk (NVO) Q4 Earnings Top, GLP-1 Drugs Boost Sales
Read MoreHide Full Article
Novo Nordisk A/S (NVO - Free Report) reported fourth-quarter 2023 earnings of 71 cents per American Depositary Receipt (ADR), which surpassed the Zacks Consensus Estimate of 66 cents. The company had reported earnings of 41 cents per ADR in the year-ago quarter.
Revenues of $9.51 billion increased 37% in Danish kroner (DKK) and were up 43% at constant exchange rate (CER) in the reported quarter. Total revenues also beat the Zacks Consensus Estimate of $9.14 billion. The year-over-year increase in revenues was driven by higher Diabetes and Obesity Care sales as GLP-1 product sales increased year over year, partially offset by decreasing insulin and Rare disease sales.
Shares of Novo Nordisk have rallied 56.8% in the past year compared with the industry’s growth of 20%.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis and at CER.
Quarter in Detail
Novo Nordisk operates under two segments: Diabetes and Obesity Care and Rare disease.
The Diabetes and Obesity Care segment’s sales reported DKK 61.3 billion in fourth-quarter 2023, which represents growth of 48%. In Diabetes Care, fast-acting insulin, Fiasp’s revenues were up 31%. NovoRapid revenues declined 14%. Human insulin revenues decreased 14%. Premix insulin (Ryzodeg and NovoMix) revenues increased 10%. Also, sales of long-acting insulins (Tresiba, Xultophy and Levemir) were flat in the reported quarter.
Ozempic, which has witnessed a strong launch and solid uptake so far, recorded sales of DKK 30.1 billion for the quarter, up 85%. Rybelsus, too, witnessed a strong uptake and recorded sales of DKK 5.9 billion for the quarter, up 51%. However, Victoza sales of DKK 1.8 billion declined 45% during the reported quarter.
Obesity Care (Saxenda and Wegovy) sales were up 114% year over year. Wegovy sales skyrocketed to DKK 9.6 billion during the fourth quarter, as a second contract manufacturer for Wegovy initiated production in April 2023 to meet the increasing demand for the drug.
Sales in the Rare disease segment were down 5% to DKK 4.6 billion in the fourth quarter of 2023. Sales of rare blood disorder products were DKK 2.9 billion, up 4%. Sales of hemophilia A products decreased by 19%. Hemophilia B products’ sales were, however, up 50%. Sales of NovoSeven increased 6% to DKK 2 billion.
Sales and distribution costs climbed 25% in DKK and increased 29% at CER year over year in the reported quarter. This increase was due to North American and International promotional activities related to Ozempic and Rybelsus, as well as Obesity care market development activities, partially offset by adjustments to legal provisions.
Research and development costs were up 29% in DKK and increased 32% at CER from the year-ago quarter’s figures. Higher costs were driven by clinical activity for late-stage studies and increased research activities, partially offset by expenses averted following the termination of the development of belcesiran.
Administrative costs increased 8% in DKK and were up 11% at CER from the year-ago quarter’s figures.
2023 Results
Sales for the year were $33.69 billion, representing growth of 36% at CER from the year-ago quarter’s figures. The total sales figure beat the Zacks Consensus Estimate of $33.44 billion.
For the full year, Novo Nordisk reported earnings of $2.7 per ADR, surpassing the Zacks Consensus Estimate of $2.67.
Novo Nordisk A/S Price, Consensus and EPS Surprise
Novo Nordisk expects its sales to grow in the range of 18-26% at CER in 2024. Operating profit, on the other hand, is expected to grow in the band of 21-29% at CER. The guidance indicates steady sales growth in North America and International Operations, primarily driven by the volume growth of GLP-1-based Diabetes and Obesity care products.
Novo Nordisk has high expectations from this segment, especially from Ozempic in the U.S. market and Wegovy in the obesity care market, post its relaunch. However, the company remains concerned about Wegovy’s limited roll-out in international markets and continues to expect periodic supply constraints.
In the United States, the company recently started gradually increasing the supply of the lower dose strengths of Wegovy to meet demand.
Our Take
Novo Nordisk’s earnings and revenues beat estimates in the fourth quarter of 2023 on the back of higher Diabetes and Obesity care sales. Ozempic and Rybelsus have experienced great traction in the market since launch and are expected to drive growth in the upcoming quarters as well. Wegovy, too, has been witnessing robust uptake so far, contributing significantly to the top line.
NVO continues to expand its supply capacity for Wegovy, post its relaunch in the United States as well as in other geographies. The increasing demand trend for the drug is encouraging and expected to fuel higher revenue incomes in the upcoming quarters.
Zacks Rank and Other Stocks to Consider
Novo Nordisk currently sports a Zacks Rank #1 (Strong Buy).
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has remained constant at 69 cents. Over the past year, shares of PBYI have gained 9.5%.
PBYI beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has remained constant at 2 cents. The consensus estimate for ADMA Biologics’ 2024 EPS is pegged at 22 cents. Over the past year, shares of ADMA have rallied 41.9%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
In the past 30 days, the Zacks Consensus Estimate for Journey Medical’s 2023 loss per share has remained constant at 16 cents. During the same period, the consensus estimate for Journey Medical’s 2024 loss per share has remained constant at 69 cents. Over the past year, shares of DERM have skyrocketed 117.9%.
DERM beat estimates in one of the trailing four quarters and missed on the other three occasions, delivering an average earnings surprise of 118.25%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Novo Nordisk (NVO) Q4 Earnings Top, GLP-1 Drugs Boost Sales
Novo Nordisk A/S (NVO - Free Report) reported fourth-quarter 2023 earnings of 71 cents per American Depositary Receipt (ADR), which surpassed the Zacks Consensus Estimate of 66 cents. The company had reported earnings of 41 cents per ADR in the year-ago quarter.
Revenues of $9.51 billion increased 37% in Danish kroner (DKK) and were up 43% at constant exchange rate (CER) in the reported quarter. Total revenues also beat the Zacks Consensus Estimate of $9.14 billion. The year-over-year increase in revenues was driven by higher Diabetes and Obesity Care sales as GLP-1 product sales increased year over year, partially offset by decreasing insulin and Rare disease sales.
Shares of Novo Nordisk have rallied 56.8% in the past year compared with the industry’s growth of 20%.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis and at CER.
Quarter in Detail
Novo Nordisk operates under two segments: Diabetes and Obesity Care and Rare disease.
The Diabetes and Obesity Care segment’s sales reported DKK 61.3 billion in fourth-quarter 2023, which represents growth of 48%. In Diabetes Care, fast-acting insulin, Fiasp’s revenues were up 31%. NovoRapid revenues declined 14%. Human insulin revenues decreased 14%. Premix insulin (Ryzodeg and NovoMix) revenues increased 10%. Also, sales of long-acting insulins (Tresiba, Xultophy and Levemir) were flat in the reported quarter.
Ozempic, which has witnessed a strong launch and solid uptake so far, recorded sales of DKK 30.1 billion for the quarter, up 85%. Rybelsus, too, witnessed a strong uptake and recorded sales of DKK 5.9 billion for the quarter, up 51%. However, Victoza sales of DKK 1.8 billion declined 45% during the reported quarter.
Obesity Care (Saxenda and Wegovy) sales were up 114% year over year. Wegovy sales skyrocketed to DKK 9.6 billion during the fourth quarter, as a second contract manufacturer for Wegovy initiated production in April 2023 to meet the increasing demand for the drug.
Sales in the Rare disease segment were down 5% to DKK 4.6 billion in the fourth quarter of 2023. Sales of rare blood disorder products were DKK 2.9 billion, up 4%. Sales of hemophilia A products decreased by 19%. Hemophilia B products’ sales were, however, up 50%. Sales of NovoSeven increased 6% to DKK 2 billion.
Sales and distribution costs climbed 25% in DKK and increased 29% at CER year over year in the reported quarter. This increase was due to North American and International promotional activities related to Ozempic and Rybelsus, as well as Obesity care market development activities, partially offset by adjustments to legal provisions.
Research and development costs were up 29% in DKK and increased 32% at CER from the year-ago quarter’s figures. Higher costs were driven by clinical activity for late-stage studies and increased research activities, partially offset by expenses averted following the termination of the development of belcesiran.
Administrative costs increased 8% in DKK and were up 11% at CER from the year-ago quarter’s figures.
2023 Results
Sales for the year were $33.69 billion, representing growth of 36% at CER from the year-ago quarter’s figures. The total sales figure beat the Zacks Consensus Estimate of $33.44 billion.
For the full year, Novo Nordisk reported earnings of $2.7 per ADR, surpassing the Zacks Consensus Estimate of $2.67.
Novo Nordisk A/S Price, Consensus and EPS Surprise
Novo Nordisk A/S price-consensus-eps-surprise-chart | Novo Nordisk A/S Quote
2024 Outlook
Novo Nordisk expects its sales to grow in the range of 18-26% at CER in 2024. Operating profit, on the other hand, is expected to grow in the band of 21-29% at CER. The guidance indicates steady sales growth in North America and International Operations, primarily driven by the volume growth of GLP-1-based Diabetes and Obesity care products.
Novo Nordisk has high expectations from this segment, especially from Ozempic in the U.S. market and Wegovy in the obesity care market, post its relaunch. However, the company remains concerned about Wegovy’s limited roll-out in international markets and continues to expect periodic supply constraints.
In the United States, the company recently started gradually increasing the supply of the lower dose strengths of Wegovy to meet demand.
Our Take
Novo Nordisk’s earnings and revenues beat estimates in the fourth quarter of 2023 on the back of higher Diabetes and Obesity care sales. Ozempic and Rybelsus have experienced great traction in the market since launch and are expected to drive growth in the upcoming quarters as well. Wegovy, too, has been witnessing robust uptake so far, contributing significantly to the top line.
NVO continues to expand its supply capacity for Wegovy, post its relaunch in the United States as well as in other geographies. The increasing demand trend for the drug is encouraging and expected to fuel higher revenue incomes in the upcoming quarters.
Zacks Rank and Other Stocks to Consider
Novo Nordisk currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the drug/biotech industry worth mentioning are Puma Biotechnology, Inc. (PBYI - Free Report) , ADMA Biologics (ADMA - Free Report) and Journey Medical (DERM - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has remained constant at 69 cents. Over the past year, shares of PBYI have gained 9.5%.
PBYI beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has remained constant at 2 cents. The consensus estimate for ADMA Biologics’ 2024 EPS is pegged at 22 cents. Over the past year, shares of ADMA have rallied 41.9%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
In the past 30 days, the Zacks Consensus Estimate for Journey Medical’s 2023 loss per share has remained constant at 16 cents. During the same period, the consensus estimate for Journey Medical’s 2024 loss per share has remained constant at 69 cents. Over the past year, shares of DERM have skyrocketed 117.9%.
DERM beat estimates in one of the trailing four quarters and missed on the other three occasions, delivering an average earnings surprise of 118.25%.