Industry Trend Analysis - Price Pressures To Challenge Novo Nordisk Revenue Stream - JAN 2018


BMI View : Going into 2018, investors will be keeping a close eye on Novo Nordisk revenues. The company is facing significant price pressures in the US, its largest market by sales. The company has specifically warned that bills in some states in the US could impact its business with increased transparency. While challenges still face its core product portfolio, the firm's success at growing its new generation insulin products through international launches, in addition to operational efficiency, bodes well. Novo Nordisk is also broadening its portfolio outside of diabetes into conditions such as cardiovascular disease, fatty liver disease and diabetic kidney disease.

In Q317, Novo Nordisk reported a 2% increase in net sales in local currency terms (-3% in DKK terms) to DKK26.61bn (USD4.13bn). In the same quarter, the company reported a 5% year-on-year increase in operating profit to DKK12.0bn (USD1.86bn) in local currency terms (-3% in DKK terms). The firm expects full-year 2017 sales to grow in the range of 2% to 3% - backed by continued robust performance for Victoza (liraglutide) and Tresiba (insulin degludec), as well as a contribution from Saxenda (liraglutide) and Xultophy (insulin degludec/liraglutide).

New-Generation Insulin Products To Offset Pricing Challenges

An Decrease In Revenues In DKK
Novo Nordisk: Q317 Financial Snapshot
Source: Novo Nordisk

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