Richard Parks Novo Nordisk, the leading pharmaceutical company in Europe, reported impressive fourth-quarter earnings, surpassing market expectations and boosting its stock price by over six percent. Despite this strong performance, the company expects growth to slow in 2025 due to increasing competition in the weight-loss drug market, particularly from Eli Lilly.
In the final quarter of 2024, Novo Nordisk’s operating profit rose by 37 percent to 36.7 billion Danish kroner, exceeding projections. For the full year, operating profit climbed 25 percent to 128.3 billion kroner, supported by strong sales in diabetes and obesity treatments.
The company’s best-selling weight-loss drug, Wegovy, saw a 107 percent increase in sales, reaching 19.87 billion kroner in the fourth quarter. Although sales fell slightly short of expectations, the drug remains a key driver of Novo Nordisk’s growth. As the patent for Wegovy is set to expire in the early 2030s, the company is investing in new obesity treatments to stay ahead in the market.
Novo Nordisk’s latest drug trials for obesity treatments delivered mixed results. CagriSema underperformed, causing a significant drop in the company’s stock price, while Amycretin showed encouraging results, restoring investor confidence.
As demand for weight-loss treatments outpaced supply throughout 2024, Novo Nordisk took steps to expand its production capabilities. In December, the company’s investment arm acquired three manufacturing sites from Catalent to boost supply and avoid future shortages.
Novo Nordisk’s leadership remains focused on increasing production, advancing its research pipeline, and strengthening its commercial strategy to support long-term growth.
Looking ahead, Novo Nordisk projects slower growth in 2025, forecasting an increase of 16 to 24 percent at constant currency. This marks the company’s lowest growth forecast in three years, indicating that the weight-loss drug market is stabilizing while competition intensifies.
Eli Lilly is emerging as a strong competitor with its weight-loss drugs Zepbound and Mounjaro, which directly challenge Wegovy and Ozempic. Additionally, trial data showed that Eli Lilly’s new drug, retatrutide, achieved greater weight-loss results than Novo Nordisk’s Amycretin, raising concerns about the company’s competitive position.
At the same time, Novo Nordisk faces rising research and development costs, which could impact its profitability. In 2024, the company’s R&D expenses rose by 48 percent, compared to a 35 percent increase in 2023, as it continued investing in drug innovation and clinical trials.
As the weight-loss drug market becomes increasingly competitive and operational costs rise, Novo Nordisk is relying on new treatments and expanded production to maintain its leadership in the global pharmaceutical industry.