Novo Nordisk lift growth targets in spite of lacklustre second quarter performance

The Danish group said sales in the quarter got a slight leg-up thanks to sales of its new diabetes and obesity drugs, but North American sales were held back due to competition from generic drugs and rebate adjustments.

It projected full-year 2017 sales growth of between 1% and 3% in local currencies, a slight improvement on the previous forecast for between 0% and 3%.

Operating profits also saw a bump in expectations as well, with management now looking for a rise of between 1% and 5% as opposed to the -1% to 3% it thought likely back in March.

Net profits saw little change, DKK 9.95b over the quarter against the DKK 9.97b it posted last year as sales rose from DKK 27.46b to DKK 28.64b.

Lars Fruergaard Jørgensen, president and chief executive said, "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. Although the formulary negotiations in the USA reflect the tough competitive environment, we remain confident that our long-term financial growth targets are achievable."

During the first six months of the year, a positive vote from the US Food and Drug Authority (FDA) advisory committee on clinical trial data for its Victoza treatment against cardiovascular risks and EU approvals for updates of the Victoza and Saxenda (obseity treatment) labels improved financial outlook for the second half of the year.

As of 0950 BST, shares had remained stable, down 1.22% to $41.15.