Novo Nordisk increased reported operating profit by 8% in the first six months of 2017
Wednesday, August 09, 2017 1:31:16 AM ET
Sales increased by 4% measured in Danish kroner
Sales increased by 4% in Danish kroner and by 3% in local currencies to DKK 57.1 billion.
- Sales of Tresiba(R) increased by 155% to DKK 3.7 billion (149% in local currencies)
- Sales of Victoza(R) increased by 21% to DKK 11.5 billion (18% in local currencies).
- Sales of Saxenda(R) increased by 98% to DKK 1.2 billion (90% in local currencies)
- Sales in North America Operations increased by 5% (2% in local currencies).
- Sales in International Operations increased by 4% (5% in local currencies).
Sales within diabetes and obesity care increased by 11% to DKK 47.5 billion (10% in local currencies). Sales within biopharmaceuticals declined by 19% to DKK 9.6 billion (20% in local currencies), primarily reflecting an impact from the introduction of a generic version of the hormone replacement therapy product Vagifem(R) and from rebate adjustments for human growth hormone in Q1 2016, both in the USA, whereas sales within haemophilia were broadly unchanged.
Operating profit increased by 8% reported in Danish kroner and by 6% in local currencies to DKK 26.9 billion.
Net profit increased by 4% to DKK 20.1 billion. Diluted earnings per share increased by 6% to DKK 8.07.
In June, Victoza(R) received a positive 17-2 vote from the FDA Advisory Committee acknowledging that clinical trial data provided substantial evidence of cardiovascular risk reduction. Furthermore, Novo Nordisk received EU approval for an update of both the Victoza(R) and Saxenda(R) labels reflecting the evidence of cardiovascular risk reduction.
The Board of Directors has approved an interim dividend for 2017 of DKK 3.00 per share of DKK 0.20 that will be paid in August 2017.
The financial outlook for 2017 has been updated and sales growth measured in local currencies is now expected to be in the range of 1% to 3% compared with the previous range of 0% to 3%. A negative currency impact of 3 percentage points is now expected, reflecting the recent and significant depreciation of the US dollar and most other key invoicing currencies versus the Euro and the Danish krone. Operating profit growth measured in local currencies is now expected to be in the range of 1% to 5% compared with the previous range of -1% to 3%. A negative currency impact of 4 percentage points is now expected.
For 2018, formulary negotiations with Pharmacy Benefit Managers and managed care organisations in the USA are progressing. Subject to the final outcome of these negotiations, average prices after rebates are expected to be lower compared with the levels in 2017, predominantly driven by the basal insulin segment. The market access for Novo Nordisks key products is, however, expected to remain broadly unchanged compared to 2017.
Lars Fruergaard Jorgensen, president and CEO: "We are well on track to deliver on our targets for 2017 based on sales growth driven by our new, innovative products within diabetes and obesity care and a continued focus on cost control. Although the formulary negotiations in the USA reflect the tough competitive environment, we remain confident that our long-term financial growth targets are achievable."
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Company announcement No 60 / 2017
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Source: Novo Nordisk A/S via Globenewswire
PR170809_Q2_2017_UK - http://hugin.info/2013/R/2126247/811740.pdf