Novo Nordisk Net Profit Surges, Plans Insulin Price Cuts

Novo Nordisk experienced a notable surge in net profit and sales in 2024, primarily fueled by the high demand for its obesity drug, Wegovy, which saw a 107% year-on-year increase in sales during the fourth quarter. The company's annual net profit rose 21% to 100.9 billion Danish kroner, surpassing analysts' expectations, although growth is anticipated to slow in 2025 due to competitive pressures, particularly from Eli Lilly. Novo Nordisk's stock increased by more than 6% following the release of its financial results, despite a slight miss in Wegovy's sales forecasts. The company continues to expand its production capacity through strategic acquisitions and remains focused on developing next-generation weight-loss drugs, with mixed trial results impacting investor confidence. Looking ahead, sales growth for 2025 is projected to be between 16% and 24%, with a corresponding increase in operating profit, and a proposed dividend increase to 11.40 kroner per share. Additionally, Novo Nordisk announced significant price cuts for its insulin products in the U.S., reflecting its strategic focus on affordability and market competitiveness.