Novo Nordisk 2022 sales rise 26% to DKK 177 billion on GLP-1 demand

Novo Nordisk reported on Feb. 1, 2023 that its 2022 sales rose 26% in Danish kroner to DKK 177.0 billion, and operating profit rose 28% to DKK 74.8 billion, as demand for its GLP-1 medicines accelerated ^[1]. At constant exchange rates, which removes currency swings, sales rose 16% and operating profit rose 15% ^[1]. The company reports its results in Danish kroner and did not give dollar figures in the release.

Sales in North America Operations grew 35% in Danish kroner, or 21% at constant exchange rates, while International Operations grew 17% in kroner, or 13% at constant rates ^[1].

The GLP-1 numbers

Total GLP-1 diabetes sales rose 56% in kroner, or 42% at constant exchange rates, to DKK 83.4 billion, and accounted for 98% of the company's growth at constant rates ^[1]. Ozempic sales were DKK 59.8 billion, up from DKK 33.7 billion in 2021, a 77% increase as reported ^[1]. Rybelsus, the oral semaglutide, rose 134% to DKK 11.3 billion ^[1]. Victoza, an older GLP-1, fell 18% to DKK 12.3 billion ^[1].

Obesity care sales rose 101% in kroner, or 84% at constant rates, to DKK 16.9 billion ^[1]. Wegovy sales were DKK 6.2 billion, compared with DKK 1.4 billion in 2021 — a 346% increase as reported and 297% at constant rates ^[1]. Saxenda contributed DKK 10.7 billion, up 52% ^[1]. Novo Nordisk said all Wegovy dose strengths were made available again in the US in December 2022 ^[1].

Supply pressure and spending

The company said its sales growth "has resulted in periodic supply constraints and related drug shortage notifications across a number of products and geographies" ^[1].

"We are very pleased with the double-digit sales growth in 2022 driven by our innovative GLP-1-based diabetes and obesity treatments, and more than 36 million people living with diabetes are now benefiting from our treatments," said president and CEO Lars Fruergaard Jørgensen ^[1]. He said the company will keep investing in expanding production capacity ^[1].

Other figures from the report: net profit was DKK 55.5 billion, up 16%, and diluted earnings per share were DKK 24.44 ^[1]. Free cash flow was DKK 57.4 billion, and capital expenditure rose 92% to DKK 12.1 billion ^[1]. The board proposed a final dividend of DKK 8.15 per share, bringing the total for 2022 to DKK 12.40, and approved a new 12-month share repurchase program of up to DKK 28 billion ^[1].

For 2023, Novo Nordisk expects sales and operating profit growth of 13% to 19% at constant exchange rates, with growth reported in Danish kroner expected to be 4 and 5 percentage points lower than that ^[1].

Why it matters for patients

The results describe a market where demand for GLP-1 medicines grew far faster than the company could supply them in 2022. Novo Nordisk states plainly that this growth produced periodic supply constraints and shortage notifications in multiple countries ^[1], and the Wegovy update — all dose strengths back in US pharmacies as of December 2022 — points to how recently those gaps were being filled ^[1].

The report does not say how many people in the US take these medicines, what they pay, or how insurance coverage changed during 2022. None of that was disclosed here. It also does not break out US sales in dollars; North America Operations covers more than the US and is reported in kroner ^[1].

One practical signal is the spending plan. Capital expenditure nearly doubled, up 92%, and the CEO pointed to significant investment in production capacity for current and future products ^[1]. Capacity additions take time, so the 2022 shortages do not tell patients what availability will look like later.

What happens next

Novo Nordisk will hold its annual general meeting on March 23, 2023, where shareholders will vote on the proposed final dividend ^[1]. The company's guidance for 2023 is sales and operating profit growth of 13% to 19% at constant exchange rates ^[1]. The report also notes phase 1 trials of a once-daily oral GLP-1/GIP agonist and once-weekly oral semaglutide, and a phase 3a trial of CagriSema in people with obesity, but gives no dates for results ^[1].