Novo Nordisk (NYSE:NVO) shares enjoyed a big bounce on Wednesday, as the health-care company reported better-than-expected 2023 earnings, as sales of its wildly popular anti-obesity and diabetes drugs continued to soar.
The maker of weight loss drug Wegovy and diabetes drug Ozempic reported an increase in sales of 31% in Danish kroner and 36% at constant exchange rates (CER) to 232.3 billion kroner ($33.71 billion U.S.).
Full-year operating profit jumped by 37% in kroner and 44% at constant exchange rates to 102.6 billion kroner.
The Danish pharmaceutical giant said it expects sales growth this year of between 18% and 26% in CER terms, as demand surges for Wegovy and Ozempic, which contain the same active ingredient.
Novo Nordisk’s valuation rose to $506 billion U.S. as of early Wednesday morning. The share price moderated slightly through the session, and was up by 1.3% on the day at 1:05 p.m. London time. Shares opened Wednesday in New York up $4.37, or 4%, to $113.38.
Novo remains Europe’s largest company by market capitalization, ahead of LVMH, which was valued at $422 billion ahead of Wednesday’s market open.
The 2023 results were fueled by strong performance in the company’s diabetes and obesity care division, with obesity care in particular spiking by 154% at CER to 41.6 billion.
