NVO Novo Nordisk

By Anna Molin

Novo Nordisk A/S, the world's largest insulin maker, Thursday said it expects a continued robust performance of its portfolio of modern insulins to generate mid-to-high single-digit percentage growth in sales and operating profit next year, as it reported a bigger-than-expected 29% rise in third-quarter net profit.

Third-quarter net profit rose to 8.38 billion Danish kroner ($1.24 billion) from DKK6.5 billion in the same period a year earlier, above analysts' expectations for DKK8.17 billion, according to a FactSet poll.

Operating profit rose 40% to DKK11.98 billion on net sales of DKK26.79 billion, up 20% on the year.

In its first guidance for 2016, the Danish diabetes drug company forecast mid-to-high single-digit growth in sales and mid-to-high single-digit growth in operating profit next year. However, it said higher costs for launching its long-acting diabetes treatment Tresiba in the U.S. would bring its 2016 result below long-term targets.

For this year, the company said it still expects around 7%-9% growth in local currency sales and around 20% growth in local currency operating profit, slightly higher than the 19% forecast in August.

The company said its expects continued robust sales of its modern insulin portfolio and a few other drugs to drive sales higher, although intensifying competition, increased U.S. price rebates and challenging market conditions in China would be limiting factors.

Write to Anna Molin at anna.molin@wsj.com

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(END) Dow Jones Newswires

October 29, 2015 03:19 ET (07:19 GMT)

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