Novo Nordisk's 2024 Earnings Surge by 23%! Diabetes Drug Sales Skyrocket, but Facing Competition Pressure from Tirzepatide

On November 6, 2024, Novo Nordisk announced its financial results for the third quarter of 2024. According to the report, the company's total revenue in the first three quarters reached 204.720 billion Danish krone (about 29.850 billion US dollars, based on the average exchange rate for the year 1 Danish krone to 0.14581 US dollars, the same as below), an increase of 23 percent from the same period last year.

In the first three quarters of the year, sales of GLP-1 drugs for diabetes increased 25 percent year-on-year to DKK 106.952 billion ($15.595 billion). At the same time, sales of drugs targeting obesity also saw significant growth, rising 44% year-on-year to DKK 43.74 billion ($6.378 billion).

By product, sales of Semaglutide injection Ozempic, which is used to reduce blood sugar, were DKK 86,489 billion (US $12.611 billion) in the first three quarters, up 32% year on year; Revenue from Rybelsus, an oral semaglutide tablet, was DKK 16.384 billion (US $2.389 billion), up 28% year-over-year; Sales of Wegovy, a semaglutide injection used for weight loss, were 38.340 billion Dan ($5.59 billion), up 76% year on year. The combined sales of the three products in the first three quarters amounted to DKK 141.213 billion, equivalent to $20.59 billion. Based on this growth trend, sales of Simeglotide are expected to exceed $27 billion for the full year.

The competition between Semaglutide and Tipotide has been concerned by the industry. In contrast, Mounjaro (tilpotide, used to treat type 2 diabetes) and Zepbound (tilpotide, used for weight loss) had combined sales of $11 billion in the first three quarters of this year, leaving a gap between them and Semaglutide.

The rapid growth of Semaglutide is due to the continuous expansion of its indications. Recently, Semiglutide has achieved important stage results in the field of MASH. Results from the first part of the Phase III ESSENCE study showed that at week 72, 37.0% of patients in the Semaglutide 2.4mg group had improved liver fibrosis and no worsening steatohepatitis, compared with 22.5% in the placebo group. Steatohepatitis was alleviated and liver fibrosis did not worsen in 62.9% of patients treated with semaglutide 2.4mg, compared with 34.1% in the placebo group. Based on these data, Novo Nordisk expects to file for new indications in the United States and the European Union in the first half of 2025.

In its earnings release, Novo Nordisk also revealed that it had submitted a marketing application to the European Union in October for IcoSema (Icodec insulin + Semaglutide, once a week) for the treatment of type 2 diabetes.

In other businesses, insulin revenue increased by 9% to DKK 39.486 billion; Revenue from the rare diseases business increased slightly by 3% to DKK 12.934 billion.

In China, Novo Nordisk's first-quarter results amounted to DKK 14.177 billion ($2.067 billion, up 7%), of which GLP-1 contributed DKK 5.709 billion ($832 million, up 19%).

In China, sales of Ozempic (Semaglutide injection for hypoglycemic use) amounted to DKK 4.747 billion ($692 million, up 28%). In January, Simeaglutein tablets Rybelsus were approved for sale in China, where sales now stand at DKR 151 million ($22 million, up 64%).

It is worth mentioning that in June this year, Simeaglutide received NMPA approval in China, expanding the weight loss indication. In August, Simeaglutide declared a new indication for chronic kidney disease in China. In September, the long-acting growth hormone Pasil auxin was also declared for listing in China. It is foreseeable that Novo Nordisk's performance in China will have more growth momentum in the future.

Novo Nordisk also continues to deepen its development in its areas of strength. In the GLP-1 space, Novo Nordisk recently entered into an exclusive global licensing agreement with Ascendis Pharma. Under the agreement, Novo Nordisk will use Ascendis' TransCon technology platform to develop, manufacture and commercialize metabolic disease-related products, and has acquired exclusive rights to expand metabolic disease products into other therapeutic areas. The collaboration's lead project is a once-a-month GLP-1 receptor agonist candidate for the treatment of obesity and type 2 diabetes.

In terms of insulin business layout, although Novo Nordisk already has ultra-long-acting once-a-week insulin Ike, it is still developing more advantageous "smart insulin", which can automatically adjust according to glucose levels in the blood. In animal studies, this insulin effectively reduced high blood sugar levels and prevented excessive drops in blood sugar levels.

For the full year 2024 outlook, Novo Nordisk expects sales growth of 23-27% in Danish krone, while sales growth in Danish krone is expected to be 1% lower than sales growth in CER (constant exchange rate).