• Sales Growth: 26% increase in 2024.
• Operating Profit Growth: 26% increase in 2024.
• North American Operations Sales Growth: 30% increase.
• International Operations Sales Growth: 19% increase.
• GLP-1 Sales in Diabetes: 22% increase.
• Insulin Sales Growth: 17% increase.
• Obesity Care Sales Growth: 57% increase.
• Rare Disease Sales Growth: 9% increase.
• Gross Margin: Increased to 84.7% from 84.6% in 2023.
• Research and Development Costs: Increased by 48%.
• Net Profit Increase: 21% increase.
• Diluted Earnings Per Share: Increased by 22% to DKK22.63.
• Cash Flow from Operating Activities: DKK121 billion, an increase of DKK12 billion from 2023.
• Free Cash Flow: Minus DKK14.7 billion.
• Dividend Increase: 21% increase to DKK11.40 per share.
• Share Buyback Program: DKK20 billion concluded.

• Warning! GuruFocus has detected 1 Warning Sign with NVO.

Release Date: February 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Novo Nordisk AS (NYSE:NVO) reported a strong 26% sales growth and 26% operating profit growth for 2024.
• The company expanded its patient reach, now serving over 45 million patients with diabetes and obesity treatments.
• Obesity care sales increased by 57%, driven by significant growth in both North America and international operations.
• Novo Nordisk AS (NYSE:NVO) maintained its leadership in the GLP-1 market, serving nearly two-thirds of all patients on GLP-1 treatments.
• The company completed the acquisition of Catalent sites, enhancing its global fill and finish footprint, which will support future market supply expansion.

Negative Points

• Total carbon emissions rose by 23% due to increased production volumes and capital expenditure investments.
• Research and development costs increased by 48%, reflecting higher clinical trial activity and impairment losses related to intangible assets.
• The net financial items showed a net loss of DKK1.1 billion, primarily due to losses on non-hedged currencies.
• The effective tax rate increased to 20.6% in 2024, compared to 20.1% in 2023.
• Free cash flow was negative at minus DKK14.7 billion, impacted by significant capital expenditures and the Catalent site acquisition.

Q & A Highlights

Q: Could you give us more details on what's holding back Wegovy prescriptions in the US and how should we anticipate growth from here? A: The US market for anti-obesity medicines grew by 160% last year, and Wegovy prescriptions doubled from 100,000 to over 200,000. Early in the year, prescription trends are affected by changes in benefit plans and patient co-pays. We are focusing on driving new prescriptions and have increased the supply of starter doses to meet demand. - David Moore, Executive Vice President, Corporate Development

Q: How do you think the profile of CagriSema will stack up versus competitors, and what are your thoughts on REDEFINE 4? A: In REDEFINE 4, CagriSema will be compared to semaglutide. We expect to establish non-inferiority and potentially superiority based on REDEFINE 1 results, but it's too early to speculate on the outcomes. - Martin Lange, Executive Vice President, Development

Q: Can you explain the discrepancy in weight loss profiles in REDEFINE 1 and what this means for REDEFINE 2? A: We observed two distinct groups in REDEFINE 1: those who titrated to the full dose and early responders who lost weight faster. The latter group showed potential for more weight loss with longer treatment. This individual response pattern will inform future trials, including REDEFINE 11. - Martin Lange, Executive Vice President, Development

Q: How do you see the positioning of amycretin versus CagriSema, and what is the timing for the Phase 3 program for amycretin? A: With the size of the obesity market, having a broad portfolio is key. Amycretin offers scalability and flexibility with both injectable and oral formulations. We are planning further clinical development based on promising Phase 1/2 data. - Camilla Sylvest, Executive Vice President, Commercial Strategy and Corporate Affairs

Q: How do you plan to manage the situation with the Inflation Reduction Act (IRA) for semaglutide in the US? A: Semaglutide products are selected for the second round of CMS negotiations. The process will conclude in November, with the maximum fair price effective from January 2027. We oppose government price setting and are monitoring the situation closely. - David Moore, Executive Vice President, Corporate Development

For the complete transcript of the earnings call, please refer to the full earnings call transcript.