Financial report for the period 1 January 2020 to 30 June 2020
6 August 2020
Novo Nordisk's operating profit increased by 9% in Danish kroner and by 8% at constant exchange rates (CER) in the first six months of 2020
Sales increased by 8% in Danish kroner and by 7% at CER to DKK 63.9 billion. Sales in International Operations increased by 11% in Danish kroner (12% at CER) and sales in North America Operations increased by 4% in Danish kroner (1% at CER). Sales growth was positively impacted by COVID-19-related stocking, largely offset by fewer patients initiating treatment.
Sales within Diabetes and Obesity care increased by 8% to DKK 53.9 billion (7% at CER), driven by GLP-1 sales increasing by 30% in Danish kroner (28% at CER) reflecting the uptake of Ozempic® and the Rybelsus® launch, Obesity care grew by 8% in Danish kroner (9% at CER) and Biopharm sales increased by 8% (6% at CER).
Sales in the second quarter were unchanged in both Danish kroner and at CER compared to the second quarter of 2019. Sales were negatively impacted by fewer patients initiating treatment and COVID-19-related destocking.
During the second quarter, Novo Nordisk reported the successful completion of the phase 3 programme with semaglutide 2.4 mg, the phase 2 trial with AM833 and the phase 1 combination trial with AM833 and semaglutide 2.4 mg, all in Obesity care. Further, Novo Nordisk signed an agreement to acquire Corvidia Therapeutics including their lead candidate, ziltivekimab, currently being investigated in a phase 2b trial in cardiovascular disease.
For the 2020 outlook, sales growth is still expected to be 3-6% at CER, and operating profit growth is now expected to be 2-5% at CER.
PROFIT AND LOSS
Diluted earnings per share (in DKK)
* CER: Constant exchange rates (average 2019)
Lars Fruergaard Jørgensen, president and CEO: "Despite COVID-19, we are satisfied by the performance in the first half of 2020 and by the progress made on our strategic aspirations. We saw a strong uptake of our GLP-1 portfolio and we continue to increase our diabetes value market share. Within R&D, the obesity clinical trial results are very encouraging. As COVID-19 continues to severely impact societies around the world, our priorities continue to be to safeguard our employees, continue supply of our life-saving medicines and help societies around the world to fight the pandemic."
On 6 August 2020 at 13.00 CEST, corresponding to 7.00 am EDT, a conference call will be held. Investors will be able to listen in via a link on novonordisk.com, which can be found under ‘Investors’.
Contacts for further information
Mette Kruse Danielsen
+45 3079 3883
Ken Inchausti (US)
+1 609 240 9429
Daniel Muusmann Bohsen
+45 3075 2175
Valdemar Borum Svarrer
+45 3079 0301
Ann Søndermølle Rendbæk
+45 3075 2253
Mark Joseph Root
+45 3079 4211
Kristoffer Due Berg (US)
+1 609 235 2989
Company announcement No 49 / 2020