Novo Nordisk trims 2016 profit growth target

(Adds CEO, details)

COPENHAGEN, Aug 5 (Reuters) - Danish drug maker Novo Nordisk cut its forecast for full-year profit growth to the lower end of its target range, and said it expected tough competition in the United States to pressure prices next year.

The world's largest insulin maker gets around half its revenue from the United States where there are around 30 million diabetics, but prices have been squeezed in the past few years by pharmacy benefit managers (PBMs), which administer drug benefits for employers and health plans.

Novo said in its second-quarter report on Friday, that it has completed the majority of the contract negotiations with the PBMs for next year, and that average drug prices after rebates were expected to be moderately lower.

"In the USA, the market environment is becoming increasingly challenging and contract negotiations for 2017 have reflected an intensifying price competition," chief executive Lars Rebien Sorensen said.

Novo's shares fell earlier this week after it was revealed that its flagship drug Victoza will remain excluded from Express Scripts, the largest PBM, next year.

U.S. rival Eli Lilly launches a cheaper version of Sanofi's top-selling insulin Lantus in December, which is expected to put pressure on insulin prices.

Novo Nordisk now expects 2016 growth of 5-8 percent in operating profit in local currencies, down from an earlier forecast of 5-9 percent. Sales are now expected to grow by 5-7 percent, down from an earlier forecast of 5-9 percent.

Second-quarter operating profit was 12.50 billion Danish crowns ($1.87 billion), in line with both the same quarter last year and with analysts' expectations. Revenue for the quarter rose 1 percent to 27.49 billion, missing the 28.54 billion seen by analysts.

Novo's board has decided to introduce an interim dividend of 0.20 crowns per share to be paid out in August.

($1 = 6.6756 Danish crowns) (Reporting by Teis Jensen; Editing by Kenneth Maxwell and Jane Merriman)