Novo Nordisk increased adjusted operating profit by 8% in local currencies in the first six months of 2016

Sales increased by 7% in local currencies

Sales increased by 7% in local currencies and by 5% in Danish kroner to DKK 54.7 billion.

• Sales of Victoza^® increased by 14% (13% in Danish kroner).
• Sales of Tresiba^® increased by 167% (161% in Danish kroner).
• Sales in the USA increased by 7% (7% in Danish kroner).
• Sales in International Operations increased by 11% (decreased 2% in Danish kroner).
• Sales in Region China increased by 10% (5% in Danish kroner).

Operating profit decreased by 3% reported in local currencies and by 6% in Danish kroner to DKK 24.8 billion. Adjusted for the non-recurring income related to the partial divestment of NNIT and the income related to out-licensing of assets for inflammatory disorders, both in 2015, operating profit in local currencies increased by 8%. 

Net profit increased by 7% to DKK 19.4 billion. Diluted earnings per share increased by 9% to DKK 7.63. Adjusted for the partial divestment of NNIT, net profit and diluted earnings per share increased by 22% and 23% respectively. 

In May, IDegLira the combination of insulin degludec (Tresiba^®) and liraglutide (Victoza^®) received a positive 16-0 vote from FDA's Advisory Committee recommending the approval of the treatment for adults with type 2 diabetes. 

In June, at an American Diabetes Association (ADA) hosted symposium the detailed results from the LEADER trial were presented, demonstrating that Victoza^® significantly reduced the risk of major cardiovascular events by 13% versus placebo when added to standard of care in 9,340 adults with type 2 diabetes at high cardiovascular risk. 

The Board of Directors has decided to introduce an interim dividend for 2016 of DKK 3.00 per share of DKK 0.20 that will be paid in August 2016. 

For 2016, the range for expected sales growth has been narrowed to 5-7% and growth in adjusted operating profit is now expected to be 5-8%, both 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.   

Lars Rebien Sørensen, president and CEO: "Overall, we are satisfied with the performance in the first six months of 2016 where Victoza^® and Tresiba^® continued to deliver strong sales growth and Region China improved faster than expected. In the USA, the market environment is becoming increasingly challenging and contract negotiations for 2017 have reflected an intensifying price competition. In spite of this, we see significant growth opportunities based on our strong diabetes care portfolio".

Contacts for further information

Company announcement No 55 / 2016

HUG#2033412