Novo Nordisk 1Q Earnings Beat Expectations Due to Patient Stockpiling
May 06 2020 - 2:45AM
Dow Jones News
By Dominic Chopping
Danish pharmaceutical company Novo Nordisk A/S on Wednesday
posted a forecast-beating rise in first-quarter earnings as
patients in the U.S. and Europe in particular stockpiled medicines
during the coronavirus outbreak.
Despite stockpiling boosting results in the quarter, Novo
Nordisk said its underlying performance remained firm, helped by
strong sales growth of its diabetes and obesity treatments and
prompting the company to maintain full-year guidance.
Net profit for the first three months of the year rose to 11.9
billion Danish kroner ($1.74 billion) from DKK10.45 billion a year
earlier, beating the DKK11.1 billion forecast by analysts in a
FactSet poll. Sales rose 16% to DKK33.88 billion against analysts'
expectations of DKK31.79 billion.
All of its manufacturing sites continue to operate and products
are still being distributed and made available to patients
world-wide, the company said. However, during the current period of
social distancing, fewer new patients are expected to start
treatment on the company's products.
For 2020, sales growth is still expected to be 3% to 6% measured
in local currencies, reflecting expectations for robust sales of
the company's diabetes care products Ozempic, Victoza and Rybelsus,
obesity care product Saxenda, the portfolio of new-generation
insulin, and biopharm products.
The guidance also reflects intensifying competition both within
diabetes care and biopharm, as well as continued pricing pressure
within diabetes care and affordability initiatives in the U.S., it
added.
Sales growth reported in Danish kroner is still anticipated to
be one percentage point higher than in local currencies.
Operating profit growth is still expected to be 1% to 5%
measured in local currencies, while reported in Danish kroner it is
still expected to be one percentage point higher than in local
currencies.
Capital expenditure guidance of around DKK6.5 billion is also
maintained, but the loss from financial items is now seen at around
DKK2.5 billion from DKK1.5 billion previously.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
May 06, 2020 02:30 ET (06:30 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Novo Nordisk (NYSE:NVO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Novo Nordisk (NYSE:NVO)
Historical Stock Chart
From Apr 2023 to Apr 2024