Novo Nordisk A/S (NYSE:NVO) Q1 2024 Earnings Call Transcript

Daniel Bohsen : Thank you, Doug. And specifically also the cyber-attack, did you see any impact from that in the first quarter?

Doug Langa: Yes. Nothing material, and that wouldn’t explain the volumes.

Daniel Bohsen : Thank you, Doug, and thank you Harry. We’re ready for the next question.

Operator: Thank you. We’ll now take your next question. And your next question is from Richard Parkes. Please go ahead. [Cross Talk]

Richard Parkes: Thanks for taking my question. So yes, just two questions. Firstly, on Monlunabant, the Phase 2 data, I’m just wondering if there’s going to be anything you can generate from that Phase 2 trial to give some comfort on the risk of psychiatric side effects, given the class, i.e. any data on confirmation the drug doesn’t cross the blood bearing barrier to a degree or should we just expect standard sort of Phase 2 read out. And secondly, just sort of playing out the devil’s advocate on the commentary around value to healthcare systems from Wegovy, obviously some of the arguments for that are based on stay time in the select study of three and a half years, but what we’re seeing in the real world at the moment is less than 12 months in terms of median duration.

So for the payers’ perspective, there’s a risk that they get all of the upfront costs without generating savings if they can’t keep patients on drugs. So I’m just wondering, is that a pushback that you often get and how you address that in your discussions with payers? Thank you.

Daniel Bohsen : Thank you, Richard. So Martin, the first one to you and Lars I’ll give the second one to you.

Martin Holst Lange: Yes, thank you very much. So I think you are right. We’re quite excited about Monlunabant and the potential, because we’ve seen potential for substantial weight loss with a scalable oral, and that is of course very exciting, however, we have to rule out potential safety issues. The ongoing Phase 2 trial will give us a good read out on the efficacy and it will also give us a reasonable read out of the safety profile of Monlunabant. However, to fully de-risk this, we intend to investigate this as we already announced in a somewhat larger study, to secure that both obviously, our efficacy, but certainly also our safety assessment of this is right. So you’ll get a good first read out from the ongoing Phase 2 trial, but you’ll see even more from the next.

Lars Fruergaard Jørgensen: Yes, thank you. So, a fair challenge on the stay time. It’s still early days. We are pleased with the stay time we see, but I think it’s also fair to say that we have not had a sustainable market presence to really be able to tell what will the stay time be. I think it’s also a dynamic situation in terms of understanding what is obesity and what’s the value of treating obesity. So we believe over time that we’ll see, say, enough patients getting to a durable weight loss that will also translate into real health benefits. But of course it takes time to establish those data and we have simply not been in the market long enough to document that, but I think it will be possible to do that. Thank you.

Daniel Bohsen : Thank you, Lars, and thank you Richard for the questions. We have time for one final brief question.

Operator: Thank you. We will now take your final question. One moment please. And your final question comes from the line of Michael Novod from Nordea. Please go ahead.

Michael Novod : Thank you very much. Michael from Nordea. So going back to the CMS guidance and some of the access you are getting, can you comment on how many of the insurance companies are following CMS guidance and also in that connection, how do you see then the potential progress for the TROA Act in the U.S.? Could something happen in 2024 or 2025?

Daniel Bohsen : Thank you, Michael. Doug, over to you for the last answer.

Doug Langa: Thank you, Michael. So we’re seeing a couple million, you could say around 4 million lives today that we’re seeing as a result of the impact of the label update with CMS allowing for reimbursement in Medicare Part D. Again, this is going to be gradual, right. There’s still some work to do as I mentioned earlier with planned sponsors to the exact criteria of reimbursement. So it’s going to be gradual, but we certainly see this as a very positive step in the right direction and it’s certainly encouraging. Now as far as TROA, again as I’ve said, many quarters, I’m not going to get into the predicting game, but again we think it’s just a matter of time. Certainly there’s support on both sides. So we still think it’s just a matter of time. So we’re positive. I just can’t give you an indication as to when, but we’re hard at work there as well.