© Reuters. Novo Nordisk (NVO) Gains as 2023 Sales Jump 31%
Shares of Novo Nordisk (NYSE gained more than 4% on Wednesday after the company reported its latest quarterly and full-year earnings for 2023.
The company said sales rose 31% in Danish krone (DKK) to 232.3 billion Danish crowns in 2023. Meanwhile, operating profit rose 37% to 102.6 billion Danish crowns.
“We are very pleased with the strong performance in 2023, which reflects that more than 40 million people now benefit from our innovative treatments for diabetes and obesity,” said Lars Fruergaard Jørgensen, President and CEO of NVO. “We continue to advance our strategic aspirations.
Reacting to the report, analysts at Jefferies maintained an Underperform rating and a DKK 465 price target on the stock, saying the outlook was as expected.
“Q4-focused drugs Wegovy are below forecast, but Ozempic is 14% and Rybelsus 14% ahead as US reimbursements return to below normal,” the analysts wrote. “Wegovy's initial dose supply in the US began to gradually increase in January, but will be a focus of the call. The better gross margin is offset by higher spending, which exceeds 5% of EBIT and the 5% EPS.”
They added that the initial outlook for 2024 was broadly as expected, but suggests up to “+3% consensus potential sales and EBIT improvements at the upper ends given the higher base.”
