The oral obesity drug "Wegovy pill" from Denmark-based drugmaker Novo Nordisk topped 5 million cumulative prescriptions in the United States six months after launch.
Entering the market ahead of rival Eli Lilly and Company's oral obesity drug "Foundayo," Wegovy pill is outpacing in early prescription growth, expanding the GLP-1 obesity-drug battle from injections to oral medicines.
Novo also raised its full-year outlook again, reflecting strong sales of the Wegovy franchise.
Novo Nordisk said on the 4th (local time) during an investor conference call that adjusted revenue in the second quarter this year was 78.488 billion Danish kroner (DKK), or about 17.18 trillion won, up 7% from a year earlier on a constant exchange rate (CER) basis. Adjusted operating profit rose 11% to 33.389 billion DKK (about 7.31 trillion won).
Mike Doustdar, Novo Nordisk chief executive officer, said, "This year remains challenging, but first-half results and overall business progress exceeded expectations," adding, "We will strengthen the competitiveness of the Wegovy franchise and continue developing next-generation pipelines and expanding global launches."
GLP-1 obesity drugs drove the results. Second-quarter obesity drug revenue was 23.152 billion DKK (about 5.069 trillion won), up 16% from a year earlier on a constant exchange rate basis.
The company's Wegovy (semaglutide) is the world's first GLP-1 therapy. It acts similarly to GLP-1, a hormone secreted in the gut after meals. It sends signals to the brain's appetite-control center to increase satiety and reduce appetite, while promoting insulin secretion from the pancreas to lower blood sugar.
The injectable Wegovy posted 19.484 billion DKK (about 4.26 trillion won) in revenue, up 1%. Wegovy pill, an oral obesity drug launched in the United States in January, recorded 3.218 billion DKK (about 704.7 billion won) in second-quarter sales. Wegovy pill surpassed 5 million cumulative U.S. prescriptions about six months after launch. As of on the 17th of last month, U.S. weekly prescriptions (TRx) were about 267,000.
Jamie Miller, Novo's executive vice president and head of U.S. operations, said, "Wegovy pill currently accounts for about 90% of the U.S. oral obesity drug market."
Novo said Wegovy pill is not replacing demand for the existing injectable Wegovy but is bringing in new patients and expanding the obesity treatment market itself. In fact, about 80% of Wegovy pill prescription patients were new to GLP-1 therapy.
Competition in the oral obesity drug market is also heating up. Lilly launched Foundayo, an oral GLP-1 obesity drug approved by the U.S. Food and Drug Administration (FDA) in April. Foundayo posted $98 million (about 135 billion won) in second-quarter revenue.
In the oral market, Wegovy pill, launched earlier in January, is enjoying a first-mover advantage. Since the U.S. launch, Novo has expanded sales to the United Kingdom and the United Arab Emirates (UAE) and plans to launch in Germany in Sept. By contrast, Lilly is in the stage of expanding to global markets after its April U.S. launch.
Novo's diabetes medicines business also continued to grow. Second-quarter diabetes drug revenue was 50.429 billion DKK (about 11 trillion won), up 3% from a year earlier on a constant exchange rate basis. Flagship product Ozempic (semaglutide) led growth with a 5% increase in sales.
By contrast, the oral GLP-1 diabetes drug Rybelsus (semaglutide) saw revenue fall 4% year over year as effective selling prices declined due to U.S. price discounts and rebates.
The company said its cost-saving program is progressing faster than planned. Through an enterprise-wide innovation program released last year, it achieved its targeted 8 billion DKK (about 1.7 trillion won) expense reduction ahead of schedule.
Reflecting broader GLP-1 sales and overseas growth, the company also adjusted its full-year outlook. It revised its adjusted revenue growth guidance from -4% to -12% to 0% to -6%, and its adjusted operating profit growth outlook from -10% to -20% to 0% to -6%. A year-over-year decline remains possible, but the results suggest stronger resilience than initially expected.
Karsten Knudsen, Novo chief financial officer, said, "We will reinvest the saved expense in research and development (R&D) and commercialization to strengthen the foundation for long-term growth."