NVO Novo Nordisk

By Dominic Chopping

Novo Nordisk AS reported results for the second quarter on Thursday. Here's what you need to know:

SALES: Sales were largely unchanged at 30.01 billion Danish kroner ($4.77 billion) against a FactSet analyst forecast of DKK30.73 billion. In the first quarter, patients in the U.S. and Europe in particular stockpiled around DKK2 billion of medicines during the coronavirus pandemic, but these patients destocked during the second quarter. The Danish pharmaceutical company also noted fewer patients initiating treatment as social-distancing measures around the world were implemented.

NET PROFIT: Net profit rose to DKK10.63 billion from DKK9.6 billion a year earlier, beating the DKK10.13 billion forecast by analysts in a FactSet poll.

WHAT WE WATCHED:

GLUCAGON-LIKE PEPTIDE-1: Sales of Novo Nordisk's glucagon-like peptide-1 drugs, or GLP-1, for type 2 diabetes--Victoza, Ozempic and Rybelsus--increased by 30% measured in Danish kroner and by 28% at constant exchange rates to DKK19.4 billion. The sales increase was positively impacted by Covid-19-related stocking, largely offset by fewer patients initiating treatment. Sales of Ozempic were DKK9.59 billion and Ozempic has now been launched in 43 countries. The GLP-1 segment's value share of the total diabetes market has increased to 20.1% compared with 16.1% a year ago. Novo Nordisk has a GLP-1 market share of 49.1%, up 2.7 percentage points from a year before.

MARGINS: The gross margin in the second quarter of 2020 was 84.1% compared with 83.9% in the same period last year. The increase of 0.2 percentage point of the gross margin reflects positive product mix and a positive currency impact of 0.1 percentage point, partly countered by a negative impact from lower realized prices in the U.S. The earnings before interest and taxes margin rose to 46.1% against 44.8% in the second quarter of 2019.

GUIDANCE: 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 higher previously. 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 point higher.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

August 06, 2020 04:49 ET (08:49 GMT)

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