Novo Nordisk Shares Drop After Guidance Cut
February 02 2017 - 4:35AM
Dow Jones News
By Dominic Chopping
Shares in Danish pharmaceutical company Novo Nordisk A/S
(NOVO-B.KO) fell sharply Thursday after it said that sales and
operating profit in local currencies could drop this year as lower
sales prices and intensifying competition in the U.S. weigh on the
insulin-maker's earnings.
"2016 was a challenging year," said Chief Executive Lars
Fruergaard Jorgensen. "While we met our financial guidance for the
year, strong market headwinds in the USA meant that we had to
revise our long-term financial targets."
The company now sees 2017 sales in a range between a decline of
1% to growth of 4% while operating profit will be in a range
between a decline of 2% and a rise of 3% in local currency terms.
It previously saw low single-digit growth in sales and flat to low
single-digit growth in operating profit.
The company reported a 5% rise in fourth-quarter net profit
Thursday to 8.7 billion Danish kroner ($1.26 billion), missing
analysts' expectations for DKK8.92 billion according to a FactSet
poll. Sales were DKK29.57 billion.
The shares fell over 7.5% in early trade in Copenhagen.
Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
February 02, 2017 04:20 ET (09:20 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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