Novo Plunges After Slashing Long-Term Growth Profit Target
- Drugmaker ends plans to develop oral insulin treatments
- Profit and sales targets for 2016 also trimmed by company
Novo Nordisk Remains Focused on Diabetes Care: Brandgaard
This article is for subscribers only.
Novo Nordisk A/S plunged by the most in more than 14 years after the world’s biggest maker of insulin slashed long-term profit-growth forecasts by half because of pressure on prices in the U.S., its largest market.
The estimate was pared to 5 percent from the 10 percent projected in February, before it lost key contracts, saw some products being excluded from insurance-coverage plans and promised large rebates in the U.S. on 2017 prices. The drugmaker also cut 2016 targets for the second time, and said it expects “flat to low single-digit” percentage growth in operating profit in 2017.