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Christian Schultz / picture alliance / Getty Images
Novo Nordisk (NVO) is set to report earnings for the second quarter on Wednesday morning after a first half in which the company's market of potential customers for its Ozempic and Wegovy weight-loss drugs expanded.
Analysts project that Novo Nordisk's drugs will help lift the Danish drugmaker's revenue and income. Analyst estimates compiled by Visible Alpha project Novo Nordisk will report a year-over-year jump of about 26% in revenue to 68.47 billion Danish kroner ($9.9 billion), with a rise of nearly 10% in profit to 21.27 billion kroner ($3.08 billion).
| Analyst Estimates for Q2 2024 | Q1 2024 | Q2 2023 | |
| Revenue | 68.47 billion kroner ($9.9 billion) | 65.35 billion kroner | 54.3 billion kroner |
| Diluted EPS | 4.76 kroner (69 cents) | 5.68 kroner | 4.31 kroner |
| Net Income | 21.27 billion kroner ($3.08 billion) | 25.41 billion kroner | 19.43 billion kroner |
Key Metric: Ozempic, Wegovy Sales
In the first quarter, Novo Nordisk said sales of Ozempic and Wegovy rose 25% year over year and said that demand would likely continue to outpace supply for the rest of 2024.
The weight-loss drug sales led Novo Nordisk to lift its guidance for the year, projecting revenue growth between 19% to 27%, slightly up from a previous projection of 18% to 26%.
Investors could expect that guidance to rise again when the company reports Wednesday. Novo Nordisk said in May that its updated figures included expectations that the drugs would face supply constraints over the course of 2024, and that revenue could grow further depending on the company's investments in production capacity.
Business Spotlight: Weight-Loss Drug Production, Market Expansion
Novo Nordisk and Eli Lilly (LLY) have both said that the booming popularity of their weight-loss drugs has meant their supply will likely lag demand as they work to increase production. For its part, Novo Nordisk has made acquisitions and investments to bolster its production capabilities for the drugs, including a $4.1 billion plan to expand its facilities in North Carolina by 2029.
Ozempic and Wegovy also have been introduced to new markets like China over the first half of the year and studies over the last year have also led regulators to support updating the drugs' labels to include evidence that they can have positive cardiovascular impacts along with their weight-loss benefits.
Wegovy also has received approval to start being sold in Australia, further expanding the drug's market, Reuters reported Thursday.
American depositary receipts (ADRs) of Novo Nordisk finished Thursday roughly flat and about 28% above where they started the year.
Read the original article on Investopedia.