Novo Nordisk Shares Soar 3.85% on Wegovy Sales, Expansion Plans

On April 14, 2025, Novo Nordisk's stock rose by 3.85% in pre-market trading, reflecting positive market sentiment towards the company's recent developments and strategic initiatives.

Novo Nordisk has been actively involved in promoting health literacy and disease prevention, particularly in the areas of diabetes and obesity. The company's global senior vice president and China region president, Xiaoping Zhou, emphasized the importance of improving public health literacy to combat the rising prevalence of chronic diseases such as diabetes, obesity, and cardiovascular diseases. Novo Nordisk is collaborating with government agencies, medical institutions, and communities to enhance health education and disease screening, aiming to shift the focus from treatment to prevention.

In the competitive weight loss drug market, Novo Nordisk's Wegovy has shown strong sales performance, alleviating investor concerns following the disappointing sales of Eli Lilly's Zepbound. Wegovy's success has led to an upward revision of Novo Nordisk's full-year performance guidance, with expected sales growth of 23-27% and operating profit growth of 21-27% for 2024. This positive outlook has contributed to the stock's recent gains.

Novo Nordisk is also investing in expanding its production capacity to meet the growing demand for its GLP-1 class drugs. The company recently announced a $1.09 billion investment to expand its factory in Minas Gerais, Brazil, which will increase the production of active ingredients for drugs like Ozempic and Wegovy. This strategic move is part of Novo Nordisk's global production strategy, aiming to reduce geopolitical risks and ensure a stable supply of its key products.