Novo Nordisk warns of growing competition as weight-loss drugs power profits

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Novo Nordisk has warned it faces growing competition and supply constraints after the pharma group’s blockbuster weight-loss drugs powered a surge in sales and profits last year.

The Danish group reported that sales climbed 36 per cent to $33.7bn in 2023 while profits rose to almost $15bn, both above analysts’ expectations.

Growing demand for Novo’s diabetes treatment Ozempic and weight-loss drug Wegovy has catapulted it, alongside US rival Eli Lilly, to the forefront of a market some analysts estimate is worth as much as $140bn a year.

Faced with competition and hurdles to expanding production, Novo Nordisk said on Wednesday that sales growth this year would ease to between 18 per cent and 26 per cent.

Lars Fruergaard Jørgensen, Novo Nordisk’s chief executive, said: “We are very pleased with the strong performance in 2023 reflecting that more than 40 million people are now benefiting from our innovative diabetes and obesity treatments.