Novo Nordisk (NYSE:NVO) executives announced on Tuesday that the launch of its obesity drug Wegovy in most of Europe will be slower than planned and the medication will likely not be sold in developing nations for a “very long time,” due to surging demand in the US following its launch there in mid-2021.
Wegovy has lifted Novo Nordisk (NYSE:NVO) to record sales as well as its current position as the third largest pharma company globally by market capitalization, according to Refinitiv data.
A weekly injection of Wegovy leads to an average weight loss of around 15%, alongside changes to diet and exercise, Reuters reported.
The Danish drugmaker noted it is unable to keep up with demand even as it spends billions of dollars to increase its production capacity.
It added that it has also had to overcome problems at a contract manufacturer.
As well, Novo Nordisk CEO Lars Fruergaard Jorgensen stated that infrastructure challenges, such as insufficient cold chain technology, in many developing nations pose a "significant challenge" in making Wegovy available in those countries.
Reuters reported that during a presentation before the news conference, the company shared statistics from the World Health Organisation (WHO) showing there are some 815 million obese people worldwide today, up from about 650 million in 2016.
And that number is expected to rise to 1.5 billion by 2035, Novo Nordisk said.
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