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How Is Novo Nordisk’s Victoza Positioned after 2Q17?

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Victoza revenue trends

In the first half of 2017, Novo Nordisk’s (NVO) Victoza generated revenues of DKK (Danish kroner) 11.5 billion, which reflected a ~21.0% rise on a YoY (year-over-year) basis. In 2Q17, Victoza generated revenues of DKK 5.8 billion compared to DKK 5.0 billion in 2Q16.

The above graph represents the revenue curve of Victoza from 2Q16 to 2Q17.

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About Victoza

Victoza (liraglutide) is used along with diet and exercise for the management of blood sugar levels in adults with type 2 diabetes.

In August 2017, the FDA (U.S. Food & Drug Administration) approved Victoza for a new indication. It approved it for reducing the risk of major adverse cardiovascular events (or MACE) in adult individuals with type 2 diabetes and an established cardiovascular disease. The FDA approval was grounded on the results of the LEADER trial. In the LEADER trial, Victoza showed a statistically substantial reduction in the risk of cardiovascular death and non-fatal heart attack by 13.0% compared to a placebo. The LEADER trial demonstrated that the risk of cardiovascular death was 3.7 times higher for patients who had a severe hypoglycemic episode. In the LEADER trial, Victoza demonstrated a 31.0% reduction in severe hypoglycemia compared to a placebo.

In July 2017, the European Commission approved Victoza for label expansion to include the use of the drug for the prevention of MACE along with the management of blood sugar levels.

Novo Nordisk’s Victoza competes with Eli Lilly’s (LLY) Trulicity (dulaglutide). Novo Nordisk’s peers in the diabetes care market include Eli Lilly, Sanofi (SNY), AstraZeneca (AZN), Boehringer Ingelheim, Merck & Co., and others. The growth in sales of Novo Nordisk’s Victoza could boost the share price of the Vanguard International Dividend Appreciation Index ETF (VIGI). Novo Nordisk makes up ~2.2% of VIGI’s total portfolio holdings.

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