The 'miracle weight-loss pill' is really popular! Novo Nordisk has already raised its expectations three times this year, and the stock price keeps rising.
The profit growth outlook has been raised for the third time, and it has doubled compared to the initial growth of less than 20%.
The demand for the "miracle weight-loss drug" is booming, and Novo Nordisk has raised its expectations three times this year, with profit growth prospects doubling from the initial increase of less than 20%.
Overnight, Novo Nordisk once again raised its full-year performance guidance, increasing its expected revenue growth from the previous 27-33% to 32%-38%, and raising its pre-tax profit (EBIT) growth forecast from the previous 31-37% to 40-46%. Analysts expect a growth of 37.5%.
As a result, Novo Nordisk's stock price soared by more than 5%, reaching a historic high, and has risen nearly 50% since the beginning of the year. Its market value has surpassed luxury goods giant LVMH, making it the most valuable company in Europe.
In fact, this is not the first time Novo Nordisk has raised its expectations. It has already made two significant upward revisions before. In April and August, Novo Nordisk raised its performance outlook twice, initially expecting sales and operating profit to grow by 13%-19% this year.
The reason for the frequent upward revisions is the booming demand for the "miracle weight-loss drug".
Novo Nordisk's weight-loss drug semaglutide has transformed into a "miracle drug" and has been found to be effective in many areas such as lowering blood sugar and weight, treating dementia, alcohol addiction, and chronic kidney disease.
Thanks to the "amazing" effects of semaglutide, the US market has shown strong demand for its weight-loss drug Wegovy and diabetes drug Ozempic (with semaglutide as the main active ingredient), leading to a double-digit increase in Novo Nordisk's operating income and net profit in the first half of 2023.
Regarding the recent upward revision, analysts from Barclays and Jefferies believe that Novo Nordisk's decision to raise performance expectations before the release of its third-quarter financial report is surprising, especially considering that the growth in prescriptions for Wegovy in the US is currently constrained by the company's supply limitations. Novo Nordisk extended the supply restrictions on Wegovy in August and stated that these restrictions are likely to continue until 2024.