Wegovy- maker Novo Nordisk extends curb on supply of weight-loss drug, raises outlook

Novo Nordisk, that makes smash hit drug Wegovy, raised its outlook for 2023 Thursday however stated it is extending supply constraints for some dosages of the weight-loss drug.

The Danish pharmaceutical business reported a 30% boost in sales, at consistent currency exchange rate, for the very first half of this year to 107.7 million Danish kroner ($159 million). Net earnings increased 43%, being available in at 39.2 million kroner.

The business’s diabetes and weight problems department carried out especially well, boosted by interest in its smash hit injection Wegovy.

Shares at first increased in pre-market trading, however then turned to trade nearly 2% lower.

“The [sales] development is driven by increasing need for our GLP-1-based diabetes and weight problems treatments, and we are serving more clients than ever in the past,” Lars Fruergaard Jørgensen, president and CEO, stated in a declaration. “The performance in the first six months has enabled us to raise the outlook for the full year.”

For 2023, the business now prepares for sales development of 27%-33% and operating earnings development of 31%-37%, at consistent currency exchange rate.

High need for Wegovy has actually led the business to cut the supply of starter dosages of the drug as it aims to stay up to date with orders.

On Thursday, Novo Nordick validated that it will continue to limit the lower-dose strengths.

Its outlook “reflects expected continued periodic supply constraints and related drug shortage notifications across a number of products and geographies,” the business stated.

“Novo Nordisk is buying internal and external capability to increase supply both brief and long term. While supply capability for [Wegovy] is slowly being broadened, the supply of the lower dosage strengths in the United States will stay limited to secure connection of care.”

Novo Nordisk CEO Lars Fruergaard Jorgensen more worried a possible supply crunch of Wegovy in the future. In remarks reported by Reuters, he signified considerable need for the weight-loss drug will overtake accessibilities in the foreseeable future and stated that the business will likely have limitations of schedule of Wegovy into 2024.

Last week, late-stage trial information revealed that Wegovy decreased the danger of significant cardiovascular occasions such as cardiac arrest or strokes by 20%, compared to a placebo, sending out shares greater.

The outcomes of the carefully enjoyed “SELECT” trial, which surpassed expectations, were viewed as a significant increase for the business’s hopes of moving beyond Wegovy’s image as a “vanity drug.”

The active component in Wegovy is semaglutide, an FDA-approved drug that works by mimicing a naturally-occurring gut hormonal agent that assists to control cravings.

— Sam Meredith added to this report.