Novo Nordisk Posts Forecast-Beating Rise in 4Q Earnings
By Dominic Chopping
Danish pharmaceutical company Novo Nordisk AS on Wednesday
posted a forecast-beating rise in fourth-quarter net profit but
said fewer new patients are starting treatment due to
social-distancing regulations around the world.
Novo Nordisk said that for continuing trials, recruitment of new
patients is still below pre-coronavirus levels.
The fourth quarter had strong sales growth within diabetes and
obesity care, partially offset by lower sales of insulin, fewer new
patients as a result of Covid-19, higher unemployment in the U.S.
and Covid-related destocking.
Net profit for the three months to Dec. 31 rose to 9.32 billion
Danish kroner ($1.51 billion) from DKK8.72 billion a year earlier,
above the DKK9.08 billion forecast by analysts in a FactSet
Sales slipped 0.9% to DKK32.14 billion against analysts'
expectations of DKK31.85 billion.
The company said it expects full-year 2021 sales growth of 5%-9%
and operating profit growth of 4%-8% on the year in local
currencies. Reported growth in sales and operating profit is seen
around four and six percentage points lower than growth in local
The guidance reflects expectations for sales growth of the
company's diabetes-care products Ozempic and Rybelsus as well as
growth within obesity care. The guidance also reflects intensifying
competition both within diabetes care and biopharm, as well as
continued pricing pressure within diabetes care in the U.S., it
The board proposed a final dividend of DKK5.85 a share for 2020
and intends to initiate a new 12-month share repurchase programme
of up to DKK17 billion.
Write to Dominic Chopping at firstname.lastname@example.org
(END) Dow Jones Newswires
February 03, 2021 02:50 ET (07:50 GMT)
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