Novo Nordisk (NYSE:NVO) could see consensus estimates rise in coming years as sales of its weight loss drugs pick up in the US, analysts say.
Novo has 12 million patients on its GLP-1-based drugs, Citi analysts highlighted in a note, while the addressable population for the weight loss treatment approaches one billion.
“This simple observation is worth considering when assessing perceived pricing [and] competitor risks,” analysts said.
As such drugs are rolled out in the US, Citi noted “This is indicative of upside pressure to consensus in both 2024 but particularly 2025”.
Data released by the firm earlier this month showed sign-ups for Novo’s Wegovy climbed five-fold in the US over the first quarter, at a rate of over 25,000 a week.
As prices of the treatment, which mimics hormones that lower blood sugar and suppress hunger, fall alongside sister drug Ozempic, Novo said overall sales should grow 27% this year.
“The fact Novo is able to compound growth above 25% despite remaining supply constrained, with clinical data to support increased GLP-1 use building, are further positives,” Citi said.
Citi added competitors had managed impressive initial weight loss results in trials, but often at the expense of poorer side-effect profiles.
A ‘buy’ rating was granted as a result, alongside a 975 Danish Krone share price target, against Tuesday's closing value of 882.6.