Novo Nordisk A/S (NYSE:NVO) has more than doubled its target for sales of obesity drugs by 2025 after overwhelming demand for its new Wegovy drug.
Novo Nordisk aims to generate annual obesity drug sales of more than DKK25 billion by 2025. Novo's diabetes and obesity sales leaped 15% to DKK121.6 billion in 2021. Obesity sales alone rose 55%.
Related: Novo Nordisk Posts Upbeat Q4 Earnings, Expects Obesity Drug Shortages May Soon Be Resolved.
The company had a breakthrough with Wegovy, which was released in the U.S. in June last year and helped achieve a weight loss of 17% on average over almost two years. Novo Nordisk was overwhelmed by initial demand for Wegovy, leading to supply shortages.
In December, the company took a further hit when Catalent Inc (NYSE:CTLT) temporarily halted deliveries and manufacturing after issues relating to good manufacturing practice.
Novo expects to meet demand in the second half of this year. Still, Novo remains confident it can meet U.S. demand for Wegovy in the second half of the year, the company said in Thursday's presentation.
Production is expected to kick off in the second quarter, with Novo's contract manufacturer planning to initiate media fill test runs "in the coming weeks." Novo said it expects to boost capacity for Wegovy in 2023.
Price Action: NVO shares are down 0.20% at $104.46 during the market session on the last check Thursday.
