2:35 PM
Aug 08, 2018
 |  BC Extra  |  Company News

Novo Nordisk's Tresiba, Victoza sales disappoint amid sliding U.S. sales

Novo Nordisk A/S (CSE:NOVO B; NYSE:NVO) shares dipped Wednesday after reporting declining U.S. sales and disappointing revenues for diabetes drugs Tresiba insulin degludec and Victoza liraglutide in its 2Q18 earnings. Novo also predicted lower U.S. drug prices for next year.

The pharma lost DKK19.25 to DKK303.65 in Copenhagen and $3.12 to $47.11 in New York.

Novo's 2Q18 U.S. sales fell 4% in local currencies to DKK13 billion ($2 billion) from DKK14.6 billion in 2Q17, and the pharma expects lower postrebate drug prices in the region next year due primarily to basal insulin pricing and legislation changes for the Medicare Part D coverage gap. In a presentation Wednesday, Novo said it has about 36% market share by volume of the U.S. basal insulin market.

U.S. sales of Novo's long-acting insulin analog Tresiba fell 17% in local currencies to DKK1.2 billion ($190.6 million), and the drug's 2Q18 global sales of DKK2 billion ($302.6 million) missed consensus estimates of DKK2.2 billion ($339.8 million).

Long-acting glucagon-like peptide-1 (GLP-1) analog Victoza similarly fell shy of the Street's expectations. It generated 2Q18 worldwide sales of DKK5.7 billion ($889.2 million), missing the consensus of DKK6.2 billion ($957.4 million). The drug's share of the U.S. GLP-1 market slipped to 45% in May from 51% last May. The company said Victoza's sales were partially offset by the February launch of Novo's once-weekly long-acting GLP-1 analog Ozempic subcutaneous semaglutide. Novo did not break out 2Q18 sales for Ozempic but noted the drug brought in DKK264 million ($41 million) in 1H18.

For the quarter, Novo reported EPS of DKK4.26, beating consensus estimates of DKK4.12. It recorded worldwide sales of DKK27.41 billion ($4.3 billion), marking a 2% increase in local currencies. The figure was roughly in-line with the consensus of DKK27.64 billion ($4.3 billion).

Consensus figures provided by FactSet.

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