Novo Nordisk increased adjusted operating profit by 6% in local currencies in 2016

Sales increased by 6% in local currencies and by 4% in Danish kroner to DKK 111.8 billion.

Sales of Tresiba® increased by 221% to DKK 4.1 billion (219% in Danish kroner). Sales of Victoza® increased by 12% to DKK 20.0 billion (11% in Danish kroner). Sales of Saxenda® increased by 245% to DKK 1.6 billion (243% in Danish kroner).   Sales in the USA increased by 4% (4% in Danish kroner). Sales in International Operations increased by 14% (2% in Danish kroner). Sales in Region China increased by 12% (6% in Danish kroner). Operating profit was unchanged in local currencies and decreased by 2% in Danish kroner to DKK 48.4 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 6%, in line with the most recent guidance of a '5-7% growth in local currencies' provided in October 2016. 

Net profit increased by 9% to DKK 37.9 billion. Diluted earnings per share increased by 11% to DKK 14.96. Adjusted for the partial divestment of NNIT, net profit and diluted earnings per share increased by 17% and 19%, respectively.

In November 2016, Novo Nordisk announced that Tresiba® demonstrated a safe cardiovascular profile and a statistically significant 40% reduced risk of severe hypoglycaemia compared to insulin glargine U100 in the DEVOTE trial. 

Also in November 2016, Novo Nordisk received the FDA approval of Xultophy® 100/3.6, the once-daily combination of insulin degludec (Tresiba®) and liraglutide (Victoza®). In January 2017, Novo Nordisk received EU approval of Fiasp®, the new-generation fast-acting insulin. 

On 1 January 2017, Lars Fruergaard Jørgensen replaced Lars Rebien Sørensen as president and CEO, who retired after 34 years of loyal service with the company, the last 16 years as CEO.  

For 2017, reported sales growth is expected to be 1-6% measured in Danish kroner, positively impacted by currencies of 2 percentage points. Reported operating profit growth is expected to be 0-5% measured in Danish kroner, positively impacted by currencies of 2 percentage points.  

At the Annual General Meeting on 23 March 2017, the Board of Directors will propose a final dividend of DKK 4.60 for 2016 per share of DKK 0.20. The expected total dividend for 2016 of DKK 7.60 per share, of which DKK 3.00 per share was paid as interim dividend in August 2016, corresponds to an increase of 19% compared to 2015. The Board of Directors furthermore intends to initiate a new 12-months share repurchase programme of up to DKK 16 billion.  

Lars Fruergaard Jørgensen, president and CEO: 2016 was a challenging year. While we met our financial guidance for the year, strong market headwinds in the USA meant that we had to revise our long-term financial targets. However, 2016 was also a year in which we announced very encouraging clinical data for our key products, providing a solid foundation for future growth. 

Contacts for further information 

Company announcement No 7 / 2017

PR170202_Full_year_UK


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Source: Novo Nordisk A/S via Globenewswire

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