Novo Nordisk shares surge as weight loss treatments boost profits
Europe's largest pharmaceutical firm, Novo Nordisk, reported fourth-quarter earnings that surpassed analysts' expectations. The company's shares jumped more than 6% at the market open in Europe following the results. Its stock remains flat in year-to-date performance.
However, the company expects slower growth in 2025, likely due to increasing competition in the weight-loss market, particularly from its US rival, Eli Lilly.
Profit Beats Expectations in the Fourth Quarter
Novo Nordisk's operating profit rose 37% to 36.7 billion Danish kroner (€4.92 billion), compared to the estimated 33.6bn DKK (€4.5bn). Full-year operating profit increased by 25% (26% in constant currency) in 2024 to 128.3bn DKK (€17.2bn), with sales in diabetes and obesity care rising by 26%, mainly driven by GLP-1 diabetes sales growth of 21%.
The firm's most popular weight-loss drug, Wegovy, posted a 107% year-on-year growth in sales to 19.87bn Danish kroner (€2.66bn) in the fourth quarter, although slightly missing expectations.
However, the annual growth rate slowed from 35.6% in 2023 and 27.6% in 2022. Its net profit margin also declined to 34.8% in 2024 from 36% in the previous year.
Investors are focused on the company's next-generation weight-loss drugs, as the patent for its blockbuster drug Wegovy is set to expire in the early 2030s. Recently, Novo Nordisk revealed trial results for two new obesity drugs, CagriSema and Amycretin.
The former disappointed investors with less-than-projected weight loss, resulting in a 20% intraday plunge in its share price. However, the latter provided positive results, reassuring investors about its growth prospects.
Demand for weight-loss drugs surged throughout 2024, outpacing supply for most of the year. In December, Novo Holdings, an investment foundation of Novo Nordisk, acquired three manufacturing sites in Catalent to expand its production capacity.
CEO Lars Fruergaard Jørgensen commented: "We are pleased with the performance in 2024, where 26% sales growth reflects that more than 45 million people are now benefiting from our treatments. Further, we completed the acquisition of the three Catalent sites, and during the year, we progressed our R&D pipeline, including obesity projects such as CagriSema and Amycretin. In 2025, we will continue our focus on commercial execution, on the progression of our early and late-stage R&D pipeline, and on the expansion of our production capacity."
A Softened 2025 Outlook
Novo Nordisk expects a slower growth of between 16% and 24% at constant currency in 2025, with the mid-point marking the lowest in three years. The softened outlook suggests that the weight-loss drug market may face a slowdown while competition intensifies globally.
Eli Lilly's corresponding weight-loss drugs to Novo Nordisk's obesity drug Wegovy and diabetes treatment Ozempic are Zepbound and Mounjaro, positioning the firm as a major rival to the Danish pharmaceutical giant. Eli Lilly recently released the latest trial results for its next-generation drug, retatrutide, showing an average weight reduction of 24.4% over 48 weeks, compared to 22% weight loss over 36 weeks for Novo Nordisk's Amycretin.
Additionally, Novo Nordisk's mounting spending on research and development may also squeeze its profit margin. The company's R&D costs, primarily comprising employee costs and clinical trial expenses, accelerated in 2024, rising by 48% annually compared to a 35% increase in 2023.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
a day ago
- Euronews
Danish cities drop Microsoft over concerns about Trump and US Big Tech
Two of Denmark's biggest municipalities are ending their use of Microsoft systems in the latest move by European governments away from US Big Tech companies. Henrik Appel Espersen, the chairman of Copenhagen's audit committee, told newspaper Politiken that the council is making the decision to move away from Microsoft Office programmes due to the economy and the "monopoly-like" control of the company. Plus, the foreign policy situation with US President Donald Trump has made the problem "more topical," Espersen added. The same decision was made in Aarhus, Denmark's second-biggest municipality, where, according to the newspaper, a German system has already replaced Microsoft technology. Euronews Next contacted both municipalities to independently verify local reporting. The reported moves from local governments in Denmark follows a public debate in the Netherlands that saw the Dutch parliament approve a series of motions earlier this year to build a digital cloud and reduce its dependence on US cloud technology. There are concerns from experts who previously told Euronews Next that the Trump administration could either compel tech companies to provide the US with Dutch data or force them to no longer provide cloud services to Europe, which could cause massive disruptions to public services. The debate on US Big Tech influence has been going on for some time in Denmark, based on the results of an expert panel looking into their influence. The Danish expert group on tech giants released a report in December 2024 that called for Big Tech alternatives in Europe to "be able to emerge and grow large". "No one should be forced to use the services of tech giants to get information and participate in social, cultural, and democratic communities," the report said. It also asked for an "overview" of the tech giants' influence on digital infrastructure in Denmark, saying that the public sector and education systems should not be "dependent" on the services of tech giants. "We need to fence in the tech giants," Morten Bodskov, Denmark's minister of business and industry, said in a statement at the time. "If we only use their solutions, it makes our society extremely vulnerable in a world that is changing with pressure from great powers, geopolitical tensions, and a technology race. That is why we must develop our own solutions". Euronews Next followed up with the panel of experts and the Danish government to see whether this inquiry has been started or promised but did not receive a reply at the time of publication. Another alternative for Denmark, the Netherlands, and other states concerned about the influence of US Big Tech companies is EU-wide initiatives that are in the works. The European Commission is holding public consultations until July 3 on the future of cloud legislation in the bloc to "address Europe's gap in cloud and AI infrastructure capacity". The act will eventually address research and innovation to accelerate data centres for cloud and AI, private investment in sustainable cloud and AI capacity, and increasing the "secure processing capacity" of EU-based cloud providers. Mario Draghi's 2024 report on the state of Europe's competitiveness noted that the bloc has to "enhance technological infrastructure and reduce dependencies" on non-EU cloud service providers. On March 18, 1967, the supertanker SS Torrey Canyon struck a reef off the coast of Cornwall, United Kingdom, spilling 100,000 tonnes of crude oil into the English Channel. Beaches in southern England, the French region of Brittany, and Guernsey in the Channel Islands were submerged in thick sludge. More than 15,000 seabirds were killed, and the spill caused innumerable long-term damages to the marine environment. The Torrey Canyon disaster was the first major oil spill in European waters. It marked a turning point in the way people interacted with oceans, revealing how vulnerable marine ecosystems are to human-induced threats. To mark World Oceans Day on June 8, Euronews Tech Talks talked to two ocean experts to better comprehend the state of our oceans and the high and low-tech innovations that can help protect them. Over the past four decades, global plastic production has more than quadrupled, yet recycling has failed to keep pace, with rates remaining below 10 per cent. Simon Bernard is the CEO and co-founder of Plastic Odyssey, a project dedicated to tackling ocean plastic pollution. Bernard and a group of researchers embarked on a tour around the world aboard a research vessel to explore the best solutions for reducing plastic pollution. "The idea of a research vessel is to be a scientific platform to study, do research, and development... The vessel acts as a laboratory, so for example, the aft is dedicated to recycling with various machines used to recycle plastic, test different solutions and technologies, and train local entrepreneurs," Bernard explained to Euronews. Plastic Odyssey has been sailing for two and a half years. During the journey, the crew stops for three weeks in locations affected by plastic pollution, meets the locals, institutions, and entrepreneurs to learn about their solutions, and helps support them. "That's quite shocking to realise that there is no pristine environment anymore, because plastic pollution has impacted all the places," said Bernard. Throughout the Plastic Odyssey's journey, Bernard has met many people tackling plastic pollution and has been impressed by the cleverness of the simplest solutions. "We've visited maybe 150 factories and initiatives, and what's most interesting to us is the ingenuity and the use of low-tech solutions," he said. "We met a guy in Lebanon who made the equivalent of a food delivery app but for waste connection... and I'm thinking about Silvio in Colombia who was building houses out of plastic waste," Bernard said. While plastic pollution is a visible threat to marine ecosystems, oceans are also damaged by hazards that are much harder to detect, like chemical pollutants. Researcher Anneliese Hodge from the University of Plymouth is studying these complex pollutants, and one of her most recent studies focuses on sunscreen. The most harmful components of sunscreen are its UV filters designed to block, absorb, or reflect the sun's ultraviolet rays. "A recent estimation has suggested that approximately 10 million tonnes of UV filters are produced annually for the global market, of which an estimated 6,000 to 14,000 tonnes are released into coral reef zones alone annually," Hodge told Euronews. "So this is quite a widespread issue," she continued. Hodge explained that UV filters in sunscreen can affect marine ecosystems at a molecular, cellular, individual, and community level. For instance, sunscreen can damage the DNA of marine organisms and cause coral bleaching. Despite the need for further research into this topic, Hodge highlighted several potential solutions to reduce the threats sunscreen poses to marine environments. Among them is the encapsulation of UV filters in biodegradable capsules that activate only upon contact with the skin. In addition, Hodge cited the possibility of reducing UV filters and instead using Sun Protection Factor (SPF) boosters, specialised ingredients that could replace UV filters. She also pointed to the introduction of some regulations to make corporations reduce the UV filters or ban the use of certain products.
Euronews
2 days ago
- Euronews
Merz, Frederiksen discuss Ukraine, security, migration, global trade
German Chancellor Friedrich Merz welcomed Danish Prime Minister Mette Frederiksen at the Federal Chancellery in Berlin on Thursday. Topping the agenda for the two leaders was Russia's invasion of Ukraine, immigration bilateral ties and global trade and politics. Commenting on recent Russian attacks on Ukraine, Merz stressed that anyone with a reasonably clear view must recognise that 'Russia is a threat to the security' of the entire NATO alliance. As the NATO leaders' summit in the Hague nears, the German chancellor emphasised that 'Russia is a risk to security on both sides of the Atlantic.' Merz noted that the allies are set to discuss a 'historic' increase in defence spending at the summit in light of the threat the Kremlin poses to Europe. 'We will strengthen the European pillar of NATO together,' said Merz. Frederiksen echoed a similar sentiment, as she highlighted the need to bolster the continent's defences as quickly as possible. 'We have to rebuild our European Defence Industry and of course the German Industry is key for us,' said the Danish leader. 'Rearm Europe, do it fast,' added Frederiksen. The two leaders also discussed immigration, where they expressed similar views regarding the need to impose stricter policies. 'We cannot accept everyone who wants to come to Europe, it has to be a democratic decision who can enter our democratic societies', said Frederikse. Chancellor Merz praised the migration policy of Denmark, saying 'What Denmark has achieved in recent years is truly exemplary and together we are also moving towards new and stricter asylum rules in the European Union.' Regarding the repatriation of migrants, Merz said noted that, if necessary, 'there will also be corresponding changes to the legal basis'. Merz and Frederiksen also spoke about the highly volatile and unstable global trade environment, exacerbated by US President Donald Trump's global tariffs, which have spiralled stock markets internationally. The German leader welcomed the announcement of a new US-China trade deal, after the two nations agreed on a framework of a new deal to ease tensions and resolve trade disputes. 'I therefore welcome the fact that there has been such an agreement between America and China, and I very much hope that we will succeed in reaching similar agreements with America, for example regarding tariffs, in the near future,' said Merz. The pair also discussed the ongoing threat to Greenland, after Trump renewed his interest in 'taking ownership' of the arctic island; an overseas territory of Denmark. "The principle of the inviolability of borders is enshrined in international law and is not up for discussion,' said Merz. 'We stand closely by our Danish friends on these issues and will continue to do so.' Frederiksen once again shot down Trump's remarks, insisting that Greenland is not for sale and its sovereignty is non-negotiable. "Sovereignty of states, the territorial integrity, and by the way the future of Greenland can only be decided in Greenland by the Greenlandic people." She added that she thought Trump was "serious" when it comes to Greenland "and I have to say that so are we." VivaTech opened its doors this Wednesday in Paris, marking the start of Europe's most important tech and startup annual event. With more than 165,000 expected visitors and nearly 14,000 startups from over 50 countries, the ninth edition of the event is set to be the biggest yet. Just like last year, artificial intelligence (AI) is the star of the show. But this time, some of the most attention-grabbing innovations are those applying AI and tech to health care and mental well-being. 'Artificial intelligence is moving from science fiction to real-life application. And visitors will discover with the more than 13,000 start-ups what it is going to mean for business, for our everyday lives and our democracies," said François Bitouzet, Director General of VivaTech. There is a geopolitical context that is incredible in which tech and AI play a role, and we will analyse this during the next four days," he told Euronews. In a year marked by increasing geopolitical tensions and debates around technological sovereignty, Europe is looking to assert itself as a key player in AI innovation. But the tech fair also serves as a platform to explore how this technology can help address deeply human challenges. One such example is Emobot, a French startup developing an AI-powered tool that helps monitor mood disorders through a patient's facial expressions and voice. 'It's an app that is installed on the phone and on the computer. We analyse facial expressions every second while the patient uses their phone throughout the day," explained Antony Perzo, co-founder and CTO of Emobot. "We also analyse their voice. Then, we aggregate this data to monitor for symptoms of depression. All this data, we put it together and then make a dashboard for the doctor that allows them to follow the evolution of the mood disorder symptoms," he told Euronews. All this information is combined to generate a dashboard for doctors, allowing them to track the evolution of symptoms remotely. 'Psychiatry is one of the few disciplines where we can't visualise disorders. In other areas of medicine, we have MRIs or imaging tools. We wanted to create the first device capable of tracking and visualising mood symptoms over time. Think of it as a sort of thermometer for mental health', he said. Another mental health startup, AMOI, blends neuroscience with perfume to shift a person's mood in just minutes. Whether you're looking for focus, calm, energy or joy, AMOI claims its neuro-fragrances can deliver results within five minutes. With more than one in four people reporting feeling mentally unwell, AMOI's founder Pascale Fontaine, says her project is about offering accessible and enjoyable tools for emotional well-being. VivaTech runs until 14 June at the Porte de Versailles exhibition centre in Paris.
Euronews
2 days ago
- Euronews
Why Denmark wants parents to talk to their teens about opioids
'If you know a young person who you think is taking opioids, you need to take action'. That's the key message Denmark wants parents to keep in mind as part of its new campaign to get them to talk with their teenage children about the risk of opioids, a small but growing public health threat in the Nordic country. The Danish health authority and the city of Copenhagen launched the campaign this week after discovering in a February survey that 47 per cent of parents do not know enough about opioids to talk to their children about them. The campaign offers advice from teenagers and experts on how to talk to young people about opioids, which include some types of prescription painkillers as well as heroin and fentanyl, an ultra-potent synthetic opioid. It says parents should broach the subject in a casual way, set clear expectations, and avoid becoming preachy or upset. 'With the new campaign, we will better equip parents and other adults around young people to talk about opioids – and show them how important a role they play for young people,' Jonas Egebart, director of the Danish health authority, said in a statement. Parental outreach is one plank of a government plan announced last year to prevent young people from abusing opioids, which has been a growing public health problem in Denmark in recent years. While some people take opioids legally – for example, cancer patients who are prescribed painkillers – they can quickly lead to addiction, which in turn can have deadly consequences. From 2018 to 2023, the number of Danes aged 25 or younger who were hospitalised because of an opioid overdose rose from 142 to 239 – a 68 per cent increase. In 2023, the country reported 116 opioid-related deaths, mostly tied to methadone and heroin, government data shows. Denmark's new approach to opioids includes a range of measures. People caught in possession of or selling the drugs were previously slapped with a fine, but under the government plan they could be sent to jail. The country is also boosting its drug surveillance and will take steps to improve treatment options for people struggling with addiction.
