Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Novo Nordisk A/S (NVO, Financial) reported a 25% increase in sales and a 19% increase in operating profit for the first six months of 2024, both at constant exchange rates.
- The company is now serving more than 42 million patients with its diabetes and obesity treatments.
- Novo Nordisk A/S (NVO) has expanded the number of women in senior leadership positions to 41%, compared to 40% in the first six months of 2023.
- Positive results from the Mim8 Phase 3 trial and the COMBINE 1 trial for IcoSema were highlighted, showing promising efficacy and safety profiles.
- The company raised its sales growth outlook for the full year to between 22% and 28% at constant exchange rates, reflecting strong performance and demand.
Negative Points
- Total carbon emissions rose by 31% compared to the first six months of 2023, driven by increased investments in capital expenditure.
- The gross margin decreased to 84.9% from 85.1% in 2023, mainly due to increased costs related to ongoing capacity expansions.
- Research and development costs increased by 79% in Danish kroner, driven by increased late-stage clinical trial activity and impairments of intangible assets.
- The company faced periodic supply constraints for Ozempic in the beginning of the year, impacting sales growth.
- Net financial items showed a net loss of DKK530 million compared to a net gain of DKK96 million last year, mainly reflecting hedging losses on the US dollar.
Q & A Highlights
Q: Can you help us understand the moving parts in Wegovy pricing, particularly the gross-to-net adjustments in the US from 1Q to 2Q? Is there a component of seasonality, competition, or channel mix?
A: Lars Fruergaard Joergensen, CEO: The current market structure is one where success is based on the ability to supply rather than classical commercial tactics. We are expanding access in Medicaid, which comes at a lower net price. Our focus is on securing supply to serve as many patients as possible.
Q: Do you expect the cap on the 0.25 mg dosage of Wegovy to continue throughout the rest of the year?
A: Douglas Langa, EVP, North America Operations: We will continue to dynamically manage the 0.25 mg dosage to ensure continuity of care. We do not anticipate changing this cap throughout the year.
Q: What type of efficacy and safety do you expect to see for monlunabant to move forward with this product?
A: Martin Lange, EVP, Development: We expect around a 15% weight loss based on our modeling. Our focus is on demonstrating this efficacy along with an attractive safety profile. We will have more data in Q3 and Q4 of this year.
Q: Can you provide an update on the Catalent transaction and your overall supply chain strategy?
A: Karsten Munk Knudsen, CFO: We expect the Catalent transaction to close towards the end of 2024. This will significantly expand our fill-finish network. Our overall strategy is to scale our API facilities and fill-finish sites globally to accommodate more patients.
Q: Can you talk about the guidance building blocks and the expected acceleration in the second half of the year?
A: Karsten Munk Knudsen, CFO: We are upgrading our top-line guidance due to strong trends both commercially and supply chain-wise. The 25% growth in the first half benefits from rebate adjustments and an easier comparator. The second half acceleration will come from continued trends in Wegovy penetration and Ozempic performance.
Q: What are your expectations for the Wegovy price dynamics as volumes go up?
A: Lars Fruergaard Joergensen, CEO: We compete on bringing volumes to the market rather than price competition. Expanding into Medicaid comes at a lower price point, but our focus is on scaling volumes to meet demand.
Q: Can you provide more color on the average duration of use for Wegovy in the US?
A: Douglas Langa, EVP, North America Operations: The average duration of use is currently around six months due to periodic supply constraints. We are confident that over time, this will improve towards 12 months and beyond.
Q: What are your plans for the once-monthly injectable GLP-1/GIP and your appetite for a monthly injectable obesity treatment?
A: Martin Lange, EVP, Development: The once-monthly GLP-1/GIP study was exploratory. While we see convenience in once-monthly dosing, our primary focus is on efficacy and safety. We will maintain this focus with next-generation or alternative technologies.
Q: How are you addressing the complete response letter for insulin icodec in the US?
A: Martin Lange, EVP, Development: We are in ongoing dialogue with the FDA. A potential carve-out of the type 1 diabetes indication is part of the discussion. This should not impact the IcoSema dialogue.
Q: Can you provide more details on the additional data you are looking to file for Wegovy in heart failure?
A: Martin Lange, EVP, Development: We conducted two dedicated HFpEF trials showing a 69% decrease in risk of CV death or hospitalization for heart failure. We are increasing the volume of events to further substantiate this and increase the likelihood of getting heart endpoints into the label.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
