Novo Nordisk Raises Fiscal Year Guidance, Increases Share Buyback
May 05 2021 - 2:34AM
Dow Jones News
By Dominic Chopping
Danish pharmaceutical company Novo Nordisk AS on Wednesday
raised full-year guidance and increased the size of its share
buyback program after posting a forecast-beating rise in
first-quarter net profit.
The quarter was marked by strong sales within diabetes and
obesity care, but growth this year was negatively affected by the
pandemic-related stocking in the first quarter of 2020, partially
offset by inventory changes and timing of shipments in 2021, the
company said.
Net profit rose to 12.62 billion Danish kroner ($2.04 billion)
from DKK11.9 billion, above the DKK11.73 billion forecast by
analysts in a FactSet poll.
Sales slipped 0.2% to DKK33.8 billion against analysts'
expectations of DKK32.32 billion.
The company said it now expects 2021 sales growth of 6%-10% from
5%-9% previously, and operating profit growth of 5%-9% from 4%-8%
in local currencies. Reported growth in sales and operating profit
is still seen around four and six percentage points lower than in
local currencies, it said.
The guidance reflects expectations for sales growth of the
company's diabetes-care products Ozempic and Rybelsus as well as
growth within obesity care, but also intensifying competition
within diabetes care and biopharm and pricing pressure within
diabetes care in the U.S., the company said.
The share-buyback program has been expanded by DKK1 billion to
DKK18 billion, the company said.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
May 05, 2021 02:19 ET (06:19 GMT)
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