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Analysts’ Recommendations for Novo Nordisk and Peers in 2018

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Novo Nordisk in 2017

Novo Nordisk (NVO) reported sales of ~112 billion Danish kroner in fiscal 2017, which represents 2.3% growth YoY (year-over-year) in local currency but flat performance in kroner. North America operations contributed almost 52% of the company’s total 2017 sales. Europe, AAMEO (Africa, Asia, the Middle East, and Oceania), China, Japan and Korea, and Latin America contributed approximately 19%, 11%, 10%, 5%, and 3%, respectively, of Novo Nordisk’s 2017 revenue.

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Analysts’ recommendations for Novo Nordisk

Of the 32 analysts covering Novo Nordisk in February 2018, four have recommended “strong buy,” 13 have recommended “buy,” ten have recommended “hold,” four have recommended “sell,” and one has recommended “strong sell.”

Analysts’ recommendations for peers

Of the 30 analysts covering GlaxoSmithKline (GSK) stock in February 2018, 40% have recommended “buy.” About 50% of the 30 analysts covering Novartis (NVS) stock have recommended “buy,” and 52.2% of the 23 analysts tracking Pfizer (PFE) have recommended “buy.”

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Revenue growth trends

In fiscal 2017, Novo Nordisk’s product sales in its North American operations portfolio were almost flat in local currency, while its international operations revenue grew 5% YoY in local currency.

Novo Nordisk’s healthy revenue performance in fiscal 2017 was mainly attributable to the company’s diabetes care and obesity segment, which saw robust sales of ~92.9 billion kroner. These sales marked 4% YoY growth and 7% YoY growth in local currency.

  • Tresiba reported sales of ~7.3 billion kroner, marking 81% YoY growth and 85% YoY growth in local currency.
  • Victoza reported sales of ~23.2 billion kroner, marking 16% YoY growth and 18% YoY growth in local currency.
  • Weight loss drug Saxenda reported sales of ~2.6 billion kroner, marking 62% YoY growth and 64% YoY growth in local currency.

In the next article, we’ll discuss Novo Nordisk’s revenue growth prospects.

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