Thursday 2 February 2017

Finacial results: Novo Nordisk's fourth-quarter profit tops expectations

Novo Nordisk announced Friday that fourth-quarter profit climbed 8 percent year-over-year to 6.5 billion Danish kroner ($988 million), topping analyst estimates of 6.4 billion kroner ($973 million). Sales in the three-month period jumped 13 percent to 24.6 billion kroner ($3.7 billion), boosted by the performance of the company's diabetes therapies Victoza and Levemir.
Quarterly revenue from Victoza surged 24 percent to 4 billion kroner ($608 million), beating analyst forecasts by 6.6 percent, while sales of Levemir lifted 23 percent to 3.8 billion kroner ($577 million). Three-month revenue from modern insulins increased 10 percent versus the year-ago period to 11.2 billion kroner ($1.7 billion), with sales of human insulins rising 3 percent to 2.8 billion kroner ($425 million).
For the full year, Novo Nordisk said that profit increased 5 percent versus 2013 to 26.5 billion kroner ($4 billion), while sales rose 6 percent to 88.8 billion kroner ($13.5 billion). CEO Lars Rebien Sorensen remarked "2014 has not been without challenges," adding that "Levemir and Victoza drove most of our sales growth, and our new long-acting insulin Tresiba continues to perform well."
The executive indicated that prices in the US will be "flat to slightly positive" on average this year due to continuing pressure. Sorensen noted that "2015 will be an important year for us with the first launches of Saxenda," following FDA approval of the obesity treatment in December. For 2015, Novo Nordisk said it expects sales to grow between 6 percent and 9 percent in local currencies, with operating profit increasing around 10 percent.
report in December suggested that Novo Nordisk's board is working to find a replacement for Sorensen before his contract ends in 2019. Sorenson said Friday that he had no timing to give on his succession.