This Pharma's Sales Are So Hot It's Trying to Curb Demand
Novo Nordisk (NYSE: NVO) is planning to pause some of its advertising campaigns for its obesity drug Wegovy, due to white-hot demand in the U.S. The impact of the move isn't the marketing costs it saves, but the unambiguous message it sends: Wegovy is probably going to bring in even more sales than management expected -- and it had expected quite a bit.
But capturing that growth is clearly going to require some agility from the drugmaker, as it might need to bolster its manufacturing capacity in addition to rethinking its advertising. Here's what shareholders and potential investors need to know about the implications.
This isn't the first time that demand for Wegovy has been greater than what the pharma can manufacture, and it's no surprise why. In the first quarter of 2023, the business reported that its obesity-care sales had grown by 131% year over year to reach $1.1 billion.
Source Fool.com
