Novo Nordisk H1 Profit Rises, To Pay Dividend; Cuts FY16 Growth View

(RTTNews) - Novo Nordisk (NVO) reported Friday that its first-half net profit increased 7 percent to 19.4 billion Danish kroner. Earnings per share increased 9 percent to 7.63 kroner. Adjusted for the partial divestment of NNIT, net profit and earnings per share increased 22 percent and 23 percent, respectively.

Sales increased 5 percent from last year to 54.7 billion kroner. Sales increased 7 percent in local currencies. Sales of Victoza increased 13 percent and sales of Tresiba increased 161 percent. Sales in the USA increased 7 percent, while International Operations sales decreased 2 percent.

Sales in Region China increased 5 percent.

Further, the Board of Directors has decided to introduce an interim dividend for 2016 of 3.00 kroner per share of 0.20 krone that will be paid in August 2016.

Looking ahead, for 2016, the range for expected sales growth has been narrowed to 5 percent-7 percent and growth in adjusted operating profit is now expected to be 5 percent-8 percent, both measured in local currencies.

Previously, the company expected growth in sales and adjusted operating profit to be 5 percent-9 percent measured in local currencies.

For 2017, Novo Nordisk has completed the majority of formulary negotiations in the USA and average prices after rebates are expected to be moderately lower, while the market access for the Novo Nordisk products is expected to remain largely unchanged.