Novo Nordisk, Eli Lilly rake in cash from weight-loss drugs

Novo Nordisk and Eli Lilly reported booming sales on Thursday from the new generation of diabetes and weight-loss drugs they’ve pioneered, as both drugmakers continue to scramble to keep up with demand.

Denmark-based Novo reported 58.7 billion Danish kroner in revenue, or $8.4 billion, in the last three months — a 29 percent increase from a year ago — with its blockbuster drugs Ozempic and Wegovy accounting for more than half of the sales. Lilly, based in Indianapolis, posted revenue of $9.5 billion for the latest quarter, a 37 percent increase, boosted by fast-growing sales of Mounjaro.

The two companies have emerged as the dominant powers in the weight-loss drug frenzy that has swept up consumers and riveted Wall Street. Both companies fielded questions from financial analysts about their progress in meeting demand, which has exceeded their capacity and prompted the Food and Drug Administration to designate them as drugs in short supply.

These weight-loss drugs were initially developed for Type 2 diabetes, and now they could become one of the biggest-selling in pharmaceutical history. (Video: Luis Velarde, Brian Monroe/The Washington Post)

Novo executives said Thursday the company still isn’t able to fully meet demand for Wegovy, an anti-obesity drug, and it will continue to limit beginning doses to ensure adequate supply for existing patients. Lilly has ramped up the supply of Mounjaro, helped by a new manufacturing facility in North Carolina that came online earlier this year, and all strengths of the drug are currently listed as available on FDA’s drug shortage database.

“This is really all hands on deck,” David Ricks, Lilly’s chief executive, said on the company’s earnings call Thursday.

Lilly’s share price was up 5 percent in early trading Thursday, and has gained about 60 percent so far this year, giving the company a stock-market value of roughly $550 billion — the largest among U.S. drugmakers. Novo shares were up about 4 percent Thursday, and have increased nearly 50 percent this year.

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