Novo Nordisk (OMX: NOVO B) reported its Q4 2011 and full-year numbers this morning. In 2011 operating profit grew by 18% and sales by 9%. Diluted 2011 earnings per share were 29.99 DKK. Fourth quarter was by far the strongest of the year with over 18 billion DKK sales and over 6 billion operating profit.
Novo’s board is suggesting a dividend of 14 DKK for 2011, which is a 40% hike on 2010. Novo Nordisk concluded its 2011-2012 12-month share repurchase programme with the purchase of over 18 million shares. The company plans to cancel 20 millon B shares representing 3.4% of the total share capital. The board has also approved a new 12 month share repurchase programme of DKK 12 billion.
Victoza sales in 2011 were 5.991 billion DKK (USD 1.06 billion). The sequantial growth escalated to 35% in Q4. The competitive landscape will change going forward with the approval of Bydureon just days ago. Novo’s President & CEO Lars Rebien Sørensen commented to the press that he expects interesting competition that may expand the market but did not sound too worried.
US FDA also recently approved another drug called Jentadueto (linagliptin/metformin hydrochloride) from Boehringer Ingelheim Pharmaceuticals, Inc. and Eli Lilly (the two companies have formed a ”worldwide diabetes alliance”), for type 2 diabetes, but this drug is seen more as a part of a treatment regime.
Approximately 10% growth in modern insulin analogues NovoRapid and Levemir continued as well. Modern insulins is still by far the highest selling business segment with 7.8 billion DKK (over 1 billion Euros) in Q4 sales.
As far as new product candidates are concerned, regulatory review for ultra-long acting insulins Degludec and DegludecPlu are progressing with US regulatory action date being 29.7.2012 and European review ongoing as well. Phase 3a trial with turoctocog alfa, which is a recombinant FVIII for treatment of haemophilia A, has been completed and Novo plans to file for marketing authorization in H2 2012.
Novo is guiding for 9% sales growth in DKK to continue in 2012 with 7-11% growth in local currencies. Operating growth is expected to be around 10%. The stock is showing strength and is still up by 4% for the day well above 700 DKK a share.
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