Novo Nordisk (NYSE:NVO) shares gained nearly 4% in the opening session today after the Danish pharmaceutical giant’s revenue during the first nine months of 2023 jumped by 29% to DKK 166.4 billion. Further, its EPS jumped by 49% to DKK 13.71 during this period.
This jump in the company’s top line was driven by higher sales of its diabetes and obesity products. Ozempic sales increased by 53% to DKK 65.7 billion, while Wegovy sales surged by a massive 481% to DKK 21.7 billion. However, a temporary decrease in manufacturing output resulted in a 20% decline in the sales of the company’s Rare disease products. Impressively, sales in North America rose by 46%, and sales in the company’s International operations increased by 12%.
Driven by volume gains in Diabetes and Obesity care, Novo Nordisk expects a healthy sales growth of between 32% and 38% for Fiscal year 2023. The company expects to generate free cash flow in the range of about DKK 65 billion to DKK 73 billion, with expected capital expenditures of nearly DKK25 billion. The operating profit for the year is projected to rise in the range of 40% to 46%.
Is Novo Nordisk a Buy, Sell, or a Hold?
Overall, the Street has a Strong Buy consensus rating on Novo Nordisk. The average NVO price target of $108.50 implies a modest 11% potential upside. But that’s after a mammoth 83% rally in the share price over the past year.
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