Novo Nordisk nudges up 2019 sales outlook as new drugs excel

NovoNordiskposted third-quarter operating profit a touch below expectations on Friday on weak insulinsalesand impairments but nudgedupitssalesoutlookon hopes fornewtype 2 diabetes and obesitydrugs.

Novonow sees2019salesgrowth at 5-6 per centversus 4-6 per centpreviously, and held its forecast for operating profit growth at 4-6 per cent, both in local currency terms. It said operating profit rose 9 per centin the last quarter, slightly below analysts' forecasts.

Shares in the healthcare grouptradedup1.6 per centat 0923 GMT, outperforming a 0.3 per centrise in the broader European STOXX 600 index and a 1.4 per centincrease in Copenhagen's main index.

The world's largest maker of diabetesdrugsis betting onnewtreatments, including a first-of-its-kind tablet, to offset pricing pressure from competing insulins and USlawmakers, who have been critical of rising drug costs.

Salesof itsnewonce-weekly injectable treatment, branded Ozempic, reached 6,872 million Danish crownsfor the first nine months, attaining blockbuster status.

Ozempic's third-quartersalescame in 11stronger than expected, said Jefferies analysts.

Thenewdrug is a competitor of Eli Lilly's Trulicity. Bothdrugsbelong to the GLP-1 drug class, which imitate an intestinal hormone that stimulates the production of insulin.

Thesedrugsare more expensive but makeupa growing share of the diabetes market, as they have proved effective in reducing diabetes patients' blood glucose levels and weight.

"We believe we have the better product both in terms of glucose-lowering, weight (reduction) and the cardiovascular safety profile," said chief financial officer Karsten Munk Knudsen, referring to clinical trials.

"Oursalesreps have what they need to go into the market and compete vis-a-vis with Trulicity," he said, adding thatNovois taking market share from Eli Lilly in the GLP-1 market.

Competition in the GLP-1 space is set to further increase asNovorecently won approval for its once-daily oral pill Rybelsus, which is aimed at patients with an aversion to needles used to deliver other diabetes treatments.

Third-quarter Trulicitysalesfell short of Wall Street expectations with some analysts suggesting they were likely hurt by Lilly's efforts to defend its market share against theupcoming launch of Rybelsus.

Novo's third-quarter operating profit came in at 12.9 billion Danish crowns, slightly below the 13.1 billion forecast in a Refinitiv poll partly due to higher impairment charges.

Depreciation, amortisation and impairment losses this year are now seen 1 billion crowns higher than previously anticipated,Novosaid.

SalesofNovo's GLP-1drugsgrew 28 per cent, while total insulinsalesfell 1 per cent.