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UPDATE 1-Novo Nordisk ups outlook as sales of diabetes drug jump
August 9, 2012 / 6:48 AM / 5 years ago

UPDATE 1-Novo Nordisk ups outlook as sales of diabetes drug jump

* Q2 EBIT 7.65 bln crowns vs forecast 6.65 bln

* Sales of diabetes drug Victoza up 83 percent

* Raises 2012 sales, EBIT growth guidance

* Says trial data from IDegLira were positive

COPENHAGEN, Aug 9 (Reuters) - Danish drugmaker Novo Nordisk raised its full-year guidance on Thursday after a rise in sales of diabetes drug Victoza and synthetic insulins boosted second-quarter sales and operating profit, beating forecasts.

Novo, the world’s biggest insulin producer, said sales of Victoza jumped 83 percent and sales of modern insulins -- synthetic rather than human hormones -- grew 23 percent, both exceeding forecasts. The company is benefiting from a boom in diabetes treatments linked to growing obesity rates worldwide.

“It is a very strong result which clearly exceed expectations that were already high,” said Sydbank analyst Soren Hansen.

“A raise of outlook was expected, but even in this area the company delivers with a bigger rise than forecast,” Hansen said, adding the share could rise as much as five percent at open.

Novo said it now expects full-year sales growth in local currencies of 9 percent to 12 percent instead of a previous forecast range of 8 percent to 11 percent, and operating profit growth of 15 percent instead of an earlier forecast “at least 10 percent”.

“We are very satisfied with the financial performance in the first half of 2012, driven by a continued strong performance of our modern insulins and Victoza,” Chief Executive Lars Rebien Sorensen said in a statement.

Novo said phase three study data for combination treatment IDegLira for type two diabetes had shown the benefits of its product Tresiba in combination with Victoza.

Earnings before interest and tax (EBIT) rose to 7.65 billion Danish crowns ($1.27 billion) in April-June from 5.27 billion in the second quarter last year, beating an average 6.65 billion crowns forecast in a Reuters poll of analysts.

Sales grew 21.7 percent year-on-year to 19.47 billion crowns, also beating analysts’ average 18.89 billion estimate. (Reporting by Mette Fraende and Shida Chayesteh; Editing by Sophie Walker)

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