Novo Nordisk net profit rises to DKK8.4bn 9-mo '09

Thu. October 29, 2009; Posted: 03:03 PM

Oct 29, 2009 (M2 PRESSWIRE via COMTEX) -- NVO | Quote | Chart | News | PowerRating -- 29 October 2009 - Danish pharma major Novo Nordisk A/S (CPH: NOVO B) reported today a 15% rise in net profit to DKK8.445bn in the first nine months of 2009 and said its expected its full-year operating profit to grow 18% in Danish crowns.

The company previously guided for an annual growth of 16%-18% in the operating profit. The outlook corresponds to a result of DKK14.6bn in 2009, below the consensus estimate of DKK14.833bn according to an analyst poll by SME Direkt.

Measured in local currencies, the operating profit is expected to rise 15%.

"The robust sales growth for our portfolio of modern insulins is the key driver of the solid business performance in the first nine months of 2009," CEO Lars Rebien Sorensen said in statement. "The launch of Victoza in Europe is progressing well and we are seeing strong in-market penetration in the first-wave launch countries, Germany, the UK and Denmark," Sorensen continued.

In the first nine months of 2009, sales increased 15% to DKK38.016bn. Sales of modern insulins went up 28% to DKK15.757bn, while sales of haemophilia drug NovoSeven rose 15% to DKK5.33bn. Sales in North America grew 29%.

Gross margin went up 2.5 percentage points to 79.5%, primarily due to improved production efficiency, higher average selling prices in the USA and a positive product mix effect. The gross margin was positively impacted by around one percentage point from a positive currency development.

Capital expenditure is now expected to be around DKK2.5bn in 2009, down by DKK500m from the earlier outlook, primarily reflecting timing of activities in relation to the new insulin formulation and filling plant in China. The company still expects depreciation, amortisation and impairment losses of around DKK2.6bn in 2009, whereas free cash flow is seen to be at least DKK11bn, up from DKK10bn expected earlier.

Currently, the preliminary plans for 2010 indicate 5Acae"10% sales growth and more than 5% growth in operating profit, both measured in local currencies, Novo Nordisk said.

(EUR1 = DKK7.4)

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For full details on Novo Nordisk A/S (NVO) click here. Novo Nordisk A/S (NVO) has Short Term PowerRatings of 5. Details on Novo Nordisk A/S (NVO) Short Term PowerRatings is available at This Link.

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