Denmark-based healthcare giant Novo Nordisk (NYSE: NVO, CPH: NOVO-B) reported its first quarter 2019 results today. Novo Nordisk’s profit dropped 3%, while sales increased 9% for the three months ended March 31, 2019. Operating profit grew 8% at constant exchange rates.
Shares of Novo Nordisk, which closed down 0.53% at $48.87 on NYSE, were down about 2% in the pre-market hours. Novo Nordisk stock was trading flat on Copenhagen Stock Exchange at 11:00 AM GMT.
All the regions in the International Operations registered sales growth in both reported and at constant exchange rates. Sales from North America Operations grew 4% on a reported basis, while it declined 4% at constant exchange rates.
Diabetes and Obesity segment sales advanced 10% on a reported basis and 5% at constant exchange rates. Sales from Biopharmaceuticals segment rose 3% on a reported basis and was flat at constant exchange rates.
“We delivered very solid performance in International Operations, driven by sales growth in all regions, meanwhile, sales in the USA were negatively impacted by inventory reductions. The global launch of Ozempic, our new once-weekly GLP-1, is well on track and continues to gain market share,” said CEO Lars Fruergaard Jørgensen.
For 2019, Novo Nordisk expects sales to grow between 2% and 5% and operating profit to increase between 2% and 6%, both at constant exchange rates.
The company stated that pricing pressure within diabetes is expected to conintue, especially in the US. This includes the funding of the Medicare Part D coverage gap, which has been changed based on new legislation with effect from 2019, and with an expected negative impact of approximately DKK 2 billion.