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Novo Nordisk 9-Month Profit Rises, Lifts FY17 Forecast; Sees Growth In FY18

Denmark-based healthcare company Novo Nordisk (NVO) reported Wednesday that its nine-month net profit increased 2% to 29.88 billion Danish kroner from last year's 29.23 billion kroner. Earnings per share grew 5% to 12.03 kroner from 11.50 kroner a year ago.

Operating profit increased 5% year-over-year to 38.9 billion kroner.

Net sales grew 2 percent to 83.7 billion kroner from 82.21 billion kroner last year. Net sales increased 3% in local currencies.

Sales within biopharmaceuticals declined 18%, primarily reflecting an impact from the introduction of a generic version of the hormone replacement therapy product Vagifem and from rebate adjustments for human growth hormone in the first quarter last year, both in the USA.

However, sales within International Operations increased 3% driven by sales growth in all business regions.

Sales within diabetes and obesity care increased 7%. Sales of Tresiba increased by 117%, Victoza increased 15% and Saxenda climbed 80%.

Looking ahead, for fiscal 2017, the company revised upward its forecast. Sales growth measured in local currencies is now expected to be in the range of 2% to 3%, compared with the previous range of 1% to 3%. A negative currency impact of 2 percentage points is now expected.

Operating profit growth measured in local currencies is now expected to be in the range of 3% to 6%, compared with the previous range of 1% to 5%.

Further, the preliminary outlook for 2018 in local currencies indicates low to mid single-digit growth in both sales and operating profit. Sales growth reported in Danish kroner is expected to be 3 percentage points lower than in local currencies, and reported operating profit growth is expected to be 4 percentage points lower.

Lars Fruergaard Jørgensen, president and CEO said, "We continue to deliver on our plans for 2017, and we are very pleased with the recent clinical and regulatory progress for our key products. We are currently preparing the global launch of semaglutide, which provides a unique opportunity to improve the treatment of people with type 2 diabetes."

by RTTNews Staff Writer

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