Ozempic's Surging Demand Has Novo Nordisk Restricting It In Europe, Plus An Older Generation Diabetes Drug: What's Next?
Portfolio Pulse from Vandana Singh
Novo Nordisk A/S (NYSE:NVO) is facing a significant surge in demand for its diabetes drug Ozempic (semaglutide) and will restrict its starter kit supplies in Europe. The company will also temporarily reduce the supply of another diabetes drug, Victoza (liraglutide), to focus on Ozempic production. Intermittent shortages of Ozempic are expected through 2024, with Victoza shortages lasting until Q2 2024. Novo Nordisk advises against starting new patients on Victoza until supplies normalize and to limit new patient initiations on Ozempic. The company announced a DKK 42 billion investment to expand manufacturing in Denmark, including for GLP-1 products like Ozempic. Novo Nordisk's stock is slightly down by 0.31% at $103.24.
November 21, 2023 | 8:30 pm
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Novo Nordisk is restricting supplies of Ozempic and reducing Victoza distribution in Europe due to high demand. The company is investing $6 billion to expand production capacity. NVO shares have slightly declined.
The restriction of Ozempic and reduction of Victoza supplies may concern investors about short-term revenue impacts, leading to a slight decline in NVO's stock price. However, the significant investment to expand production indicates a strong future demand outlook, which could mitigate long-term concerns.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100