Novo Nordisk Rises as Wegovy Is Approved in China

Core Insights - Novo Nordisk's weight-loss drug Wegovy has been approved for sale in China, contributing to a rise in its American depositary receipts (ADRs) [1][2] - The company holds a significant market share in the GLP-1 market for diabetes treatment in China, with 76.6% as of last November [3] - Novo Nordisk's sales in 2023 reached 6.21 billion Danish kroner ($890.7 million), reflecting nearly 80% year-over-year growth at constant exchange rates [3] Company Developments - The approval of Wegovy follows the earlier approval of Ozempic in China in 2021, which has already boosted Novo Nordisk's revenue in the region [1][2] - The company plans to invest over $4 billion in expanding its U.S. manufacturing capabilities, part of a broader $6.8 billion initiative to increase production capacity [4] - ADRs of Novo Nordisk increased nearly 3% to $146.49, with a year-to-date rise of over 40% [4] Market Context - Novo Nordisk's weight-loss drugs have significantly enhanced its earnings globally, while U.S. competitor Eli Lilly has also experienced growth with its drugs Mounjaro and Zepbound [2] - The company is currently facing demand that exceeds supply for both Ozempic and Wegovy, indicating strong market interest [3] - Many patients in China are expected to pay out of pocket for Wegovy after its launch, with the patent for the drug set to expire in 2026 [3]