Novo Nordisk, Europe’s top pharmaceutical company, posted strong fourth-quarter earnings, exceeding expectations and boosting its stock price by over six percent. However, it anticipates slower growth in 2025 due to increasing competition, particularly from Eli Lilly.
In Q4 2024, operating profit surged 37 percent to 36.7 billion Danish kroner. Full-year profit rose 25 percent to 128.3 billion kroner, driven by diabetes and obesity treatments. Wegovy, the company’s best-selling weight-loss drug, saw sales jump 107 percent to 19.87 billion kroner, though slightly below expectations. With its patent expiring in the early 2030s, Novo Nordisk is investing in new obesity treatments.
Recent drug trials showed mixed results. CagriSema underperformed, causing a stock price drop, while Amycretin showed promise, restoring investor confidence.
To tackle supply shortages, Novo Nordisk acquired three Catalent manufacturing sites in December. The company continues scaling production, advancing research, and refining its commercial strategy for long-term growth.
Novo Nordisk forecasts 2025 growth of 16 to 24 percent, its lowest in three years, as the market stabilizes. Eli Lilly is a strong competitor with Zepbound and Mounjaro, and its new drug, retatrutide, outperformed Novo Nordisk’s Amycretin in trials.
R&D expenses rose 48 percent in 2024, up from 35 percent in 2023, reflecting heavy investment in innovation. As competition and costs rise, Novo Nordisk is banking on new treatments and expanded production to maintain its industry leadership.