Novo Nordisk's revenue for the first three quarters increased by 76% year-on-year, with weight loss becoming the growth engine for Novo Nordisk

Since 2020, Novo Nordisk's stock price has continuously reached new highs, with a maximum increase of over 450%, translating to an annualized return exceeding 30%. Based in the field of diabetes treatment, this century-old pharmaceutical company has attracted the attention of global investors with its groundbreaking achievements in obesity treatment.

In the first three quarters of this year, Novo Nordisk's overall sales increased by 23% year-on-year, while sales of obesity treatment drugs surged by as much as 44%. Among them, the star product Wegovy® (semaglutide injection 2.4mg) rose by 76% year-on-year, becoming the "core engine" driving the company's performance growth.

Behind all this is the phenomenal performance of Wegovy® (Chinese product name: 诺和盈®). This highly anticipated "miracle drug," 诺和盈®, was officially launched in the Chinese market in November.

1. Unveiling the True Face of Obesity: Global Challenges and Huge Market Opportunities

Obesity is no longer just a weight issue.

With the development of the times, obesity has quietly transformed from a "personal lifestyle problem" into a global public health crisis. According to data from The Lancet, there are currently over 1 billion obesity patients worldwide fighting this disease. Behind this massive number lies a huge medical and economic burden, as well as increasingly severe public health pressure.

According to statistics, the direct medical costs in the United States due to overweight in 2020 were approximately $313 billion, with a total economic impact reaching $726 billion, accounting for 3.5% of GDP; in China, the economic burden caused by obesity also reached $283.3 billion in 2020, and by 2025, the losses due to national overweight in China may reach about $459 billion, accounting for an estimated 2.4% of GDP.

Behind all this is a vast medical market and an urgent need for health care.

Modern medicine has demonstrated that obesity is a complex chronic disease caused by the interaction of biological, genetic, social, psychological, and environmental factors. Its complexity means that obesity affects human health in a systemic and multifaceted way, potentially reducing patients' quality of life and life expectancy. It is known that overweight and obesity are associated with over 200 diseases, including cardiovascular diseases, certain types of cancer, and type 2 diabetes.

Currently, cardiovascular diseases have become the leading cause of death among obesity patients. Compared to individuals with normal weight, even metabolically normal obese individuals have a 96% increased risk of heart failure and a 49% increased risk of coronary heart disease.

Additionally, there are psychological issues associated with the impact of obesity and obesity discrimination. The mobility impairments caused by obesity, the severe metabolic effects of obesity, and misconceptions surrounding the causes of obesity significantly increase the mental burden on the obese population The situation is so severe, yet for decades, there has been a lack of effective means for treating obesity in clinical practice. Professional medical institutions have hesitated to promote relevant treatments, while a large number of weight loss health products with unclear effects and questionable safety have flourished, severely harming the interests of patients.

Novo Nordisk has steadfastly remained in the field of obesity treatment against this backdrop, responding to challenges with groundbreaking innovations. In June of this year, Wegovy® was approved in China for long-term weight management in adults and was launched in November, marking the official availability of this significant innovative product as an accessible option for the obese population in China, opening a new landscape for obesity treatment in China in a scientific, effective, and safe manner.

2 , The Breakthrough and Story of Semaglutide: The Multiple Potentials of a "Miraculous" Molecule

The core ingredient of Wegovy®, semaglutide, was not originally developed for obesity. This ingredient was initially a "star" in diabetes treatment, as its unique GLP-1 receptor agonist (GLP-1RA) mechanism of action can significantly help patients lower blood sugar levels.

However, during long-term research aimed at diabetes treatment, researchers were surprised to find that semaglutide could lead to significant weight loss. This unexpected discovery motivated Novo Nordisk to further explore the efficacy of semaglutide.

After years of validation, Wegovy® not only shows significant weight loss effects but also its once-weekly injection form greatly enhances patient compliance, making it a safe, convenient, and effective treatment option for obesity currently available on the market.

The clinical efficacy of Wegovy® has been fully validated in the STEP series of studies, with data showing an average weight reduction of about 17%. Furthermore, its efficacy is not just in numerical weight loss; it also improves multiple metabolic indicators, has clear cardiovascular protective effects, and can prevent and improve obesity-related complications, bringing multiple health benefits to patients.

In addition to its efficacy, as a long-term chronic disease medication, semaglutide has demonstrated the most comprehensive data safety in the GLP-1RA drug market. To date, semaglutide has been thoroughly tested in large real-world data studies and well-structured clinical research projects (SUSTAIN trials, PIONEER trials, STEP trials, SELECT trials, OASIS trials), accumulating over 22 million patient exposure years of usage experience. This data provides assurance for the safety of semaglutide.

Novo Nordisk is still further exploring the potential of semaglutide in different dosages and various indications, striving to bring multidimensional health improvements to a larger patient population.

Currently, the scope of indication development for semaglutide has gradually expanded from diabetes and obesity to multiple fields, including chronic kidney disease, cardiovascular diseases, heart failure, peripheral artery disease, metabolic dysfunction-associated fatty liver disease (MAFLD), and Alzheimer's disease. These explorations demonstrate Novo Nordisk's profound scientific understanding of diseases and indicate its firm determination to further tap into product potential through a multi-indication strategy.

Some of the already disclosed positive clinical data provide strong support for the potential of pipeline layout. These results not only confirm the multi-indication potential of semaglutide but also highlight Novo Nordisk's foresight and scientific drive in the field of chronic disease treatment By exploring the multiple health benefits of semaglutide, Novo Nordisk has not only further enriched its product pipeline but also brought comprehensive health improvements to more patients.

3 , A Century of Commitment and Innovation: Novo Nordisk's "Slow" and "Fast"

When we look back at history, we find that Novo Nordisk's success was far from overnight; behind this is over a century of diligent exploration in the field of metabolic diseases. Novo Nordisk's starting point is rooted in innovation.

In 1923, Danish scientist Professor August Krogh, in order to save his wife's life, collaborated with Dr. Hagedorn to establish the Nordisk Insulin Laboratory (the predecessor of Novo Nordisk), beginning the commercial production of insulin. This initiative not only changed the history of diabetes treatment but also brought hope to diabetes patients worldwide who were struggling with the disease.

After more than a hundred years of changing times, Novo Nordisk is still deeply engaged in the field of diabetes treatment, but at the same time, the company has also turned its attention to more related chronic disease areas.

This brings us to Novo Nordisk's strategic characteristic of "slow to achieve fast." In the research and development process of metabolic disease drugs, the company is never in a hurry to pursue short-term breakthroughs but instead lays the groundwork for subsequent clinical development through meticulous preliminary research and a deep understanding of disease mechanisms. The more solid the early research phase, the more efficient the subsequent work will be.

This strategy stems from Novo Nordisk's deep accumulation in the field of metabolic diseases, ensuring that the company always stays one step ahead of its competitors in global chronic disease treatment, maintaining a leading position.

"Slow" reflects Novo Nordisk's research and development philosophy and symbolizes the company's long-term commitment and deep investment in chronic diseases. In the process of "slow," Novo Nordisk has gained a deep understanding of patients' health conditions and treatment situations, thus placing great importance on every feasible innovation project. From early research on disease mechanisms to solid preparations in preclinical stages, Novo Nordisk ensures the efficiency and safety of drug development through "slow," which is the secret to its century-long standing in the industry.

Looking ahead, based on GLP-1RA therapy, Novo Nordisk will continue to actively explore obesity treatment drugs with different targets and mechanisms of action, such as CagriSema—a combination of semaglutide and the long-acting amylin analog Cagrilintide, which may bring more significant surprises to the weight loss market.

4 , Growing Market and Shareholder Value: The Future Prospects of Novo Nordisk's Wegovy®

Novo Nordisk's deep cultivation and persistence in the metabolic field have brought breakthrough drugs to patients and substantial returns to investors. Since 2020, Novo Nordisk's stock price has continuously reached new highs, with a maximum increase of over 450%, translating to an annualized return exceeding 30%.

Currently, Novo Nordisk's leading position in obesity treatment and the growth prospects brought by continuous innovation remain very promising. As the core product of Novo Nordisk's obesity treatment pipeline, Wegovy® has achieved significant sales results in multiple global markets since its launch overseas The financial report for the first three quarters of 2024 shows that Novo Nordisk's overall sales increased by 23%, while the sales growth of GLP-1 products in the obesity treatment sector reached as high as 44%, demonstrating the significant impact of the obesity treatment market on the company's performance.

In the third quarter of this year, Wegovy® generated approximately USD 2.497 billion in revenue, with a quarter-on-quarter growth rate exceeding 40%, dispelling market concerns about a slowdown in the weight loss market's growth. In the first nine months of 2024, sales in the Greater China region increased by 10% at constant exchange rates (CER), primarily driven by the sales growth of GLP-1 products and insulin products in the diabetes treatment sector. With the official launch of Ozempic® in China, it is believed that the Chinese market will also provide positive feedback, further enhancing Novo Nordisk's revenue from its weight loss pipeline and offering more returns to investors.

Conclusion

This year, the National Health Commission launched a three-year "Weight Management Year" initiative; the release of the first authoritative guideline for obesity diagnosis and treatment—"Guidelines for the Diagnosis and Treatment of Obesity (2024 Edition)"—also provides important evidence for the scientific diagnosis and treatment of obesity. These developments signify a heightened national focus on the prevention and treatment of obesity as a chronic disease.

As a global leader in the field of obesity treatment, Novo Nordisk responds with concrete actions by introducing the innovative drug Ozempic®, providing obesity patients with more scientific and effective treatment options, and helping patients manage their weight long-term and improve their quality of life through digital patient service platforms. At the same time, as a leader in the obesity treatment sector, Novo Nordisk continues to pay attention to and advocate for the safe and rational use of prescription medications.

In the future, Novo Nordisk will continue to deepen its efforts in the treatment of obesity and other serious chronic diseases, leveraging globally leading scientific innovations to help Chinese patients move towards a healthier future