Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Novo Nordisk AS (NVO, Financial) reported a 24% sales growth and 22% operating profit growth for the first nine months of 2024, driven by strong demand for GLP-1 treatments.
- The company expanded its reach to over 43 million patients with diabetes and obesity treatments, an increase of nearly 3 million patients compared to the previous year.
- Novo Nordisk AS (NVO) achieved significant R&D milestones, including positive Phase III results from the SOUL and ESSENCE trials, enhancing the evidence for semaglutide's cardiometabolic benefits.
- The company increased the number of women in senior leadership positions to 41%, reflecting its commitment to diversity and sustainability.
- Sales in North America grew by 31%, with notable increases in GLP-1 sales for diabetes and obesity care, demonstrating strong market execution.
Negative Points
- Total carbon emissions rose by 34% due to increased capital expenditure, highlighting environmental challenges amid growth.
- The company faced periodic supply constraints and drug shortage notifications, impacting product availability across various geographies.
- Research and development costs surged by 56%, driven by increased clinical trial activity and a significant impairment loss related to intangible assets.
- Net profit growth was negatively impacted by a DKK5.7 billion impairment of ocedurenone, affecting overall financial performance.
- Despite strong sales growth, free cash flow decreased compared to the previous year, reflecting higher capital expenditures.
Q & A Highlights
Q: Can you explain the confidence in achieving 25% weight loss with CagriSema, given the earlier clinical trial results?
A: Martin Lange, Executive Vice President of Development, explained that the confidence is based on internal modeling using data from Phase I and II trials for CagriSema monotherapy and obesity, as well as Phase II trials for CagriSema in type 2 diabetes. The models are informed by Novo Nordisk's extensive experience in the obesity space.
Q: What is the status of the Catalent transaction, and can you provide any early indications for 2025 growth?
A: Karsten Munk Knudsen, Chief Financial Officer, stated that the Catalent deal is expected to close by the end of the year, based on ongoing interactions with regulators. Regarding 2025 growth, he suggested that the absolute growth seen in 2023 could continue into 2025, potentially resulting in high teens sales growth, adjusted for favorable US gross-to-net adjustments.
Q: What is the filing strategy for the ESSENCE trial, and what is the potential of monlunabant?
A: Martin Lange noted that the ESSENCE trial aims for conditional regulatory approval based on liver histology improvements, with plans to continue the trial for harder endpoints. Regarding monlunabant, he emphasized the focus on safety and the intention to conduct a Phase IIb trial to establish its safety profile, acknowledging its potential despite high risk.
Q: How do you view the competitive landscape and marketing costs in the US, especially with compounded products?
A: Douglas Langa, Executive Vice President of North America Operations, stated that marketing investments are competitive and appropriate, focusing on market growth. Lars Fruergaard Joergensen, CEO, expressed concern about the safety of compounded products and emphasized Novo Nordisk's commitment to ensuring patients receive quality treatments.
Q: Can you provide more details on the supply situation for Ozempic and Wegovy, particularly outside the US?
A: Karsten Munk Knudsen explained that while Ozempic supply has been constrained, Wegovy sales have accelerated with launches in over 15 countries. The company is focused on scaling supply to meet growing demand.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
