Novo Nordisk lowered its earnings guidance as competition intensifies and pressure on generic versions of its blockbuster drugs Ozempic and Wegovy slows sales.
Compounding pharmacies in the U.S. have been producing lower-cost versions of the drugs, a practice the U.S. Food and Drug Administration (FDA) allows while supplies of the authentic treatments are in short supply. However, distribution of the cheaper versions was expected to stop until the end of May, when they were removed from the shortage list.
“Novo Nordisk is focused on preventing illegal and unsafe tampering; however, market research shows that mass tampering continues,” the company said in a statement.
The Danish drugmaker now expects operating profit growth of 4% to 7% at constant exchange rates this year, up from 4% to 10% previously. Sales growth is expected between 8% and 11% (from 8% to 14% previously).
Net profit in the third quarter fell 27% to 20 billion Danish kroner ($3.08 billion), while sales rose 5.1% to 74.98 billion kroner. Profits were hit by 9 billion crowns in one-off restructuring costs after the company recently announced plans to cut 9,000 jobs, or 11% of its workforce.
A FactSet analyst forecast put net profit at 19.48 billion crowns on sales of 76.53 billion crowns. Source: Dow Jones Newswires.
