Novo Nordisk Reaches $500 Billion Market Cap as It Shows High Demand for Wegovy and Ozempic

Operating profits for the full year jumped by 37% in kroner and 44% at constant exchange rates to reach 102.6 billion kroner.

The Danish pharmaceutical giant said it expects sales this year to grow by between 18% and 26% in terms of CERs, with demand rising for Wegovy and Ozempic, which contain the same active ingredient.

The company's shares rose about 3.7% early Wednesday morning to hit a new all-time high and lift its market value to more than $500 billion, before cooling off slightly. The stock was up 1.6% today at 9am London time.

The 2023 results were supported by strong performance in the company's Diabetes and Obesity Care division, with Obesity Care in particular rising 154% in CER to 41.6 billion.

“The unmet need in type 2 diabetes and obesity is growing by the day, and the increasing prevalence of these threats that are highly relevant to global health has increased demand for our GLP-1-based therapies,” said Chairman of the Board Helge Lund and CEO Lars Frørgaard Jørgensen. he said in the earnings report.

“This has enabled us to reach more patients than ever before in our 100-year history, contributing to strong sales growth across North America and international operations.”

The company also admitted that this had led to increased pressure on its supply chain, leading to “cyclical constraints” across its portfolio as it struggled to keep up with demand in 2023.

“We have responded by investing heavily in expanding our production capacity with the aim of serving millions more patients around the world. In 2023 alone, we have announced investments totaling more than DKK 75 billion in expanding our production sites around the world,” Chairman of the Board of Directors Management and CEO said.

“As construction begins on these projects, we strive to operate our existing facilities 24 hours a day, 7 days a week, producing more life-changing medicines than ever before.”

Novo Nordisk said it is now beginning to gradually increase supply of the low-dose Wegovy in the US, after restricting supply of the low-dose strength since last May.