Novo’s (NVO) Biopharmaceuticals segment rose by 5.2 billion Danish kroner during 3Q16. The segment’s contribution stood at 19% of total sales. The segment consists of hemophilia drugs, growth hormones such as Norditropin, and other biopharmaceuticals. For detailed information on Novo’s biopharmaceuticals business, you can refer to Analyzing Novo’s Haemophilia and Growth Hormone Portfolio.
During the first nine months of 2016, hemophilia drug sales fell 1% to 7.7 billion Danish kroner. NovoSeven, being the largest contributor, added 6.9 billion Danish kroner during the period. Pfizer’s (PFE) Xyntha, Biogen’s (BIIB) Eloctate, and Shire’s (SHPG) Advate and Adynovate, dominate the hemophilia space along with Novo’s NovoSeven.
The lower diagnosis and treatment rates for hemophilia present severe unmet medical need. The mid-single-digit growth of the global hemophilia market should offer more opportunities for Novo’s wider portfolio of NovoSeven, NovoEight, N8-GP, N9-GP, and NovoThirteen. Novo has filed an application for N9-GP with FDA (US Food and Drug Administration) and EMA (European Medicines Agency). N8-GP is in phase 3 and Novo expects to file an application for it by 2018.
Any positive pipeline news might result in a jump in Novo’s share price. If you want exposure to Novo, you can invest in the Vanguard FTSE All-World ex-US ETF (VEU). VEU offers a 0.33% weight to Novo.
Norditropin, a growth hormone therapy, posted sales of 6.6 billion Danish kroner, translating to an increase of 16% in local currency terms. Although the volume fell, the sales growth was supported by non-recurring positive adjustments to rebates in the Medicaid patient segment for the period of 2010–2015. In the global growth hormone segment, Novo holds 23% market share in volume terms.
Other biopharmaceuticals sales primarily consist of HRT-related (hormone replacement therapy) products. Sales grew 4% to 2.9 billion Danish kroner during the nine-month period. Sales growth was driven by the positive pricing impact for Vagifem in the US.
Continue to the next part for the latest analyst recommendations on Novo.