American depositary receipts (ADRs) of Novo Nordisk (NVO) jumped over 4% in pre-market trading this morning after reporting a healthy sales beat, driven by its obesity and weight loss drug Wegovy. The Danish pharma giant reported better-than-expected annual sales of DKK.290 billion for Fiscal 2024, up 26% compared to the prior year. Notably, Wegovy sales rose 56% to DKK.65.1 billion, particularly due to high demand in the U.S. On a quarterly basis, Wegovy’s Q4 sales jumped over 100% to DKK.19.87 billion compared to the prior year.
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However, the company’s earnings per share of DKK.22.63 came in marginally lower than the consensus estimate of DKK.22.86. Novo Nordisk CEO Lars Fruergaard Jørgensen noted that about 55 million Americans had secured insurance for Wegovy and that the company also launched the drug in more than 15 countries.
Novo Nordisk Gives Upbeat Outlook
For 2025, Novo Nordisk predicts sales growth between 16% and 24%, lower than the growth achieved in 2024. Analysts expected sales growth of roughly 20%. Meanwhile, operating profit is expected to grow between 19% and 27%. The company said that it expects demand from obesity and weight loss drugs, including Ozempic and Wegovy, to drive most of the sales growth this year.
Novo Nordisk faces its largest competitor, Eli Lilly (LLY), in the weight loss drug market in the U.S. In Q4 of last year, Eli Lilly’s Zepbound drug outpaced Wegovy in terms of weekly prescriptions written in the U.S. Meanwhile, Novo Nordisk is working extensively in developing its other two weight loss drugs, namely CagriSema and Amycretin in competition to Eli Lilly.
Is NVO a Good Stock to Buy?
Analysts remain divided on Novo Nordisk stock trajectory amid the heated competition and pricing pressures. On TipRanks, NVO stock has a Moderate Buy consensus rating based on five Buys, two Holds, and one Sell rating. The average Novo Nordisk price target of $100.10 implies 21.2% upside potential from current levels.
In the past year, NVO stock has lost 29.6%. The price target and ratings could change once analysts reconsider their ratings following the Q4 print.
