Novo Nordisk posts strong results, reassures with guidance

Global diabetes care giant, Denmark’s Novo Nordisk (NOV: N) saw its shares gain 4% to 265.80 Danish kroner this morning, after posting a strong set of financials for the third-quarter and nine months of 2014.

Third-quarter net profit rose 1.2% to 6.5 billion kroner ($1.1 billion), on revenue up 8.5% to 22.25 billion kroner. Operating profit for the quarter rose to 8.57 billion kroner, slightly above an average forecast of 8.47 billion kroner in a Reuters poll of analysts. The roll-out of Tresiba (insulin degludec) continues. In Japan, Tresiba now represents 24% of the basal insulin market measured in monthly value market share, the company noted.

Sales increased by 8% in local currencies and by 4% in Danish kroner to 64.2 billion kroner for the nine-month period of 2014 compared to the same period in 2013. North America was the main contributor with 65% share of growth measured in local currencies, followed by International Operations and Region China.

Nine-month operating profit increased 11% in local currencies and by 5% in Danish kroner to 25.3 billion kroner. Net profit increased 4% to 20.0 billion kroner. Diluted earnings per share increased 7% to 7.56 kroner. Gross margin improved by 1.0 percentage point in Danish kroner to 83.6% driven by a favorable price development as well as a positive impact from product mix and productivity.