Novo Nordisk Posts Forecast-Beating 2Q Net Profit on Lower Costs
By Dominic Chopping
Danish pharmaceutical company Novo Nordisk A/S on Thursday
posted forecast-beating second-quarter net profit as lower costs
helped offset fewer new patients and destocking.
In the first quarter, patients in the U.S. and Europe in
particular stockpiled around 2 billion Danish kroner ($318.5
million) of medicines amid the coronavirus pandemic but these
patients destocked during the second quarter. Novo Nordisk also
noted fewer patients initiating treatment as social-distancing
measures around the world were implemented, it said.
The second quarter had strong sales growth of within diabetes
care, offset by lower sales of insulin, obesity treatments and
Net profit for the three months to June 30 rose to DKK10.63
billion from DKK9.6 billion a year earlier, beating the DKK10.13
billion forecast by analysts in a FactSet poll.
Sales were largely unchanged at DKK30.01 billion against
analysts' expectations of DKK30.73 billion.
For 2020, sales growth is still expected to be 3% to 6% at
constant exchange rates, while reported sales growth is now seen
around two percentage points lower, from one percentage point
Operating profit growth is now expected to be 2% to 5% at
constant exchange rates, from 1% to 5%, while reported growth is
now seen around three percentage points lower, from one percentage
The board has decided to pay an interim dividend for 2020 of
Write to Dominic Chopping at firstname.lastname@example.org
(END) Dow Jones Newswires
August 06, 2020 02:42 ET (06:42 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.