Novo Nordisk on Wednesday forecast another year of double-digit growth as the Danish drugmaker began boosting U.S. supplies of its popular weight-loss drug Wegovy and pledged to roll out in new markets amid competition from Eli Lilly.
The company, which has raced to increase output of the blockbuster drug amid shortages, said it was more than doubling supply of lower strength or “starter” Wegovy doses in the U.S. in January compared with recent months.
Boosting supplies is the first sign of progress in Novo’s efforts last year to increase output, helping soothe investor concerns it may lose out to rivals like Lilly, which recently launched its Zepbound therapy in the U.S. and Europe.
Novo has been unable to meet runaway demand for Wegovy, and in May began limiting the number of U.S. patients who can start treatment by reducing the supply of the lowest three doses of the appetite-suppressing weekly injection.
The company said it expects prices of Wegovy to fall as volumes of the weekly injection increase and competition heats up with Lilly launching Zepbound in new markets.
“We also expect that as volumes continue to expand, prices will gradually come down. But that will be much more than offset by the volume expansion,” Chief Financial Officer Karsten Munk Knudsen said on a media call.
Novo investor Yuri Khodjamirian, chief investment officer at ETF issuer Tema, said guidance was “decent” and welcomed news about improved Wegovy supplies.
“This should be a big driver in a year where they face competition for the first time in the obesity market,” he said.