Diabetes drugmaker Novo Nordisk (NYSE:NVO) posted Street-beating second quarter results today, lifting its full-year sales forecast despite lingering concerns relating to U.S. drug pricing pressures.
Last year, the Danish company saw shares drop more than 40% after it slashed its long-term operating profit forecasts, citing price pressures in the U.S. market. Today, Novo Nordisk raised its full-year sales growth forecast in local currencies from o% – 3% to 1% – 3%.
Nordisk posted an operating profit of 13.4 billion crowns ($2.1 billion) in the second quarter, topping estimates.
Insulin-makers have come under pressure in the last year over the rising cost of their drugs. Chief executive Lars Fruergaard Jorgensen said that moving forward, average prices for insulin treatments are likely to fall.
“Although the formulary negotiations in the USA reflect the tough competitive environment, we remain confident that our long-term financial growth targets are achievable,” he said in prepared remarks.
“We are well on track to deliver on our targets for 2017 based on sales growth driven by our new, innovative products within diabetes and obesity care and a continued focus on cost control.”
As its diabetes drugs face pricing pressures, Novo Nordisk is betting on its new obesity drugs, Saxenda and Semaglutide, to promote growth in the coming years.
Saxenda brought in $194 million in sales in the second quarter – 2% of the company’s overall sales. Analysts estimate that the drug could top $1 billion per year by 2023, according to Reuters.
NVO shares were trading at $44.05 today in morning activity, up +7%.
Material from Reuters was used in this report.
