Novo Nordisk Lowers Sales Forecast on Challenges in U.S.; World's Top Insulin Makers Reports 8% Rise in Profit
Novo Nordisk A/S, the world's largest maker of insulin, cut its sales guidance for the full year because of challenges to its U.S. business, even as it reported a greater-than-expected rise in net profit.</br></br>The Danish drug maker cut its sales-growth guidance in local currencies for the full year to a range of 7% to 10%, from the 8%-to-11% range it gave in January, mainly because of a difficult rebate and contract environment in the U.S. and intensifying competition within the diabetes-treatment field.</br></br>The company maintained expectations of operating-profit growth of around 10% for the full year.</br></br>When asked about industry consolidation and Pfizer Inc.'s rebuffed takeover approach for AstraZeneca PLC, Novo's rival in diabetes treatment, Chief Financial Officer Jesper Brandgaard said Novo Nordisk was focused on organic growth rather than mergers and acquisitions.</br></br>"Novo Nordisk has no intentions of participating in the current consolidation in the industry," Mr. Brandgaard said on a conference call Thursday. "We believe that the focus that Novo Nordisk has is a key driver behind the success of the company."