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Danish pharmaceutical company Novo Nordisk AS on Wednesday released a higher than expected fourth quarter net profit hike, but said fewer new patients were starting treatment due to social distancing regulations around the world.
Novo Nordisk said for continued trials, new patient enrollment is still below pre-coronavirus levels.
The fourth quarter saw strong sales growth in diabetes and obesity care, partially offset by lower insulin sales, fewer new patients due to Covid-19, higher unemployment in the United States United and a destocking linked to Covid.
Net profit for the three months to December 31 rose to DKK 9.32 billion ($ 1.51 billion) from DKK 8.72 billion a year earlier, from DKK 9.08 billion a year earlier. DKK predicted by analysts in a FactSet poll.
Sales slipped 0.9% to DKK 32.14 billion against analysts’ expectations of DKK 31.85 billion.
The company said it expects sales growth of 5% to 9% for the year 2021 and operating profit growth of 4% to 8% year-over-year in local currencies. The reported growth in sales and operating income is approximately four to six percentage points lower than growth in local currencies.
The forecast reflects expectations for growth in sales of the Company’s Ozempic and Rybelsus diabetes care products as well as growth in obesity care. The guidelines also reflect increased competition in both diabetes care and biopharmacy, as well as continued pressure on prices for diabetes care in the United States, he said.
The board has proposed a final dividend of DKK 5.85 per share for 2020 and intends to launch a new 12-month share buyback program of up to DKK 17 billion.
Write to Dominic Chopping at [email protected]
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