Excellent quarter for Novo Nordisk, but US insulin market raises concern

Denmark-based group Novo Nordisk today has published its financial report for the first six months of the year. Despite the consistent accounting situation, with sound performances from all the key products, shares have declined by almost 5%. The main concern for investors is that Novo’s analysts expect the price war in the US market to escalate, especially affecting producers of insulins–a key business to Novo–who will see product prices declining over the next few years. Novo Nordisk’s CEO Lars Fruergaard Jorgensen has said he is highly satisfied of the sales generated by obesity therapy Saxenda (+50% at constant exchange rates) and diabetes therapies Victoza (+12%), Tresiba (+11%) and Xultophy (+165%).  Moreover, the launch of Ozempic–the new weekly GLP-1 treatment–in the US is positively progressing. The diabetes business was up 5%, revenues were DKr45bn. The biopharmaceuticals division has decreased by 9% (DKr8.7bn). EBIT was DKr24.7bn, that is 4% vs PY at constant rates.

(Source Novo Nordisk)