Novo Nordisk Reports 2019 Financial Results: China Revenue Reaches RMB 13.2 Billion, Semaglutide Sales Soar to USD 1.685 Billion

On February 5, Novo Nordisk announced its 2019 financial results. The company’s total revenue for the year amounted to DKK 122.021 billion (approximately USD 18.294 billion, calculated at the 2019 average exchange rate of USD 100 = DKK 667; hereinafter the same), representing a 9% year-on-year increase. Of this, revenue from China reached DKK 12.844 billion (approximately RMB 13.241 billion, calculated at the 2019 average exchange rate of RMB 100 = DKK 97; hereinafter the same), a 14% year-on-year growth, making it the second-fastest growing region in Novo Nordisk’s business segmentation, surpassed only by the AAMEO region.

Note: AAMEO refers to the markets in Africa, Asia (excluding China, Japan, and South Korea), the Middle East, and the Pacific Rim.

Novo Nordisk’s business is primarily focused on endocrinology (diabetes, obesity, and growth hormone deficiency) and hemophilia. Its diabetes portfolio can be categorized into four major segments: long-acting insulin, premixed insulin, rapid-acting insulin, and GLP-1 receptor agonists. In 2019, the company’s total revenue amounted to DKK 97.161 billion (approximately USD 14.567 billion), capturing a 28.6% share of the global diabetes drug market. Revenue from China reached DKK 12.510 billion (approximately RMB 12.897 billion), accounting for a 27.4% share of the Chinese diabetes market.

If Novo Nordisk’s diabetes business in China is segmented into insulin and GLP-1, its 2019 insulin revenue amounted to DKK 9.965 billion (approximately RMB 10.273 billion), accounting for 49.8% of the Chinese insulin market; its GLP-1 revenue was DKK 898 million (approximately RMB 926 million), representing 92.8% of the Chinese GLP-1 market.

In terms of specific products, the long-acting insulin Tresiba ($1.388 billion, +15%), the premixed insulin Ryzodeg ($149 million, +39%), the ultra-fast-acting insulin Fiasp ($186 million, +111%), and the weight-loss product Saxenda ($851 million, +47%) were the main drivers of Novo Nordisk’s global performance growth.

Notably, sales of the long-acting subcutaneous GLP-1 injection Ozempic (semaglutide) doubled from $284 million in 2018 to $1.685 billion, narrowing the gap with Eli Lilly’s dulaglutide to $2.4 billion. It is worth noting that oral semaglutide (Rybelsus) was approved on September 20, 2019, with Novo Nordisk reporting sales of $7.5 million for that year. Although this figure was not particularly striking, Novo Nordisk stated in its financial report that market response to Rybelsus, which launched in the fourth quarter, was encouraging.

Novo Nordisk’s 2019 Sales of Major Pharmaceuticals (in DKK billions)

Note: Exchange rates are calculated based on USD 100 = DKK 667 and CNY 100 = DKK 97.

On January 20, the FDA approved a new indication for Ozempic to reduce the risk of major adverse cardiovascular events in patients with type 2 diabetes and established cardiovascular disease, while simultaneously updating the labeling for Rybelsus (oral semaglutide) to include cardiovascular safety results from the PIONEER 6 study. Additionally, on the same day, the European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) recommended the approval of Rybelsus for the treatment of type 2 diabetes. With these label expansions and market approvals, Novo Nordisk’s global market share for GLP-1 therapies is poised for continued growth.

In China, Victoza (liraglutide) saw a significant increase in sales volume after being included in the National Reimbursement Drug List in 2017, with its revenue reaching RMB 926 million in 2019, a year-on-year growth of 70%. Tresiba was also included in the National Reimbursement Drug List in 2019, more than a year after its approval in China, achieving sales of RMB 90 million in that year. Novo Nordisk’s new product, Ryzodeg, was also approved in China in 2019. This series of favorable factors will continue to boost Novo Nordisk’s performance in the Chinese market.

Source: PharmaCube