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Novo Nordisk’s New-Generation Insulins: Growth Driver for 2018?

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New-generation insulin: 4Q17 revenue trends

Novo Nordisk’s (NVO) new-generation insulin portfolio consists of Tresiba, Xultophy, Ryzodeg, and Fiasp.

In 4Q17, Novo Nordisk’s new-generation insulins generated net revenues of 2.4 billion Danish kroner, which reflected a ~48% YoY (year-over-year) growth in local currency.

In 4Q17 in the US market, new-generation insulins reported net revenues of 1.4 billion Danish kroner, a ~46% YoY growth in local currency.

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In 4Q17 in Europe, AAMEO (Asia, the Middle East, and Oceania), Japan and Korea, and Latin America, new-generation insulins generated revenues of 461 million Danish kroner, 144 million Danish kroner, 280 million Danish kroner, and 117 million Danish kroner, respectively. That’s a ~62%, ~63%, ~32%, and 43% YoY growth, respectively, in local currency.

New-generation insulin: Fiscal 2017 revenue trends

In fiscal 2017, Novo Nordisk’s new-generation insulins generated revenues of 8.6 billion Danish kroner, which is a ~98% YoY growth in local currency.

In 2017 in the United States, Europe, AAMEO, Japan and Korea, and Latin America, Novo Nordisk’s new-generation insulin generated revenues of 5.1 billion Danish kroner, 1.6 billion Danish kroner, 451 million Danish kroner, 992 million Danish kroner, and 407 million Danish kroner, respectively. That’s a ~133%, ~87%, ~64%, ~35%, and ~50% YoY growth, respectively, in local currency.

In 2018 and beyond, Novo Nordisk is expected to continue leading the global insulin market. Its peers in new-generation insulins include Sanofi’s (SNY) Lantus, Eli Lilly’s (LLY) Humulin, and Merck & Co.’s (MRK) Lusduna Nexvue.

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Ryzodeg revenue trends

In fiscal 2017, Novo Nordisk’s Ryzodeg generated net revenues of 492 million Danish kroner compared to 196 million Danish Kroner in 2016, which is a 158% YoY growth in local currency.

Ryzodeg is a soluble dosage form of insulin degludec and insulin aspart. Growth in international operations, especially in Japan and Korea and AAMEO, primarily attributed to Ryzodeg’s revenue growth. Presently, Ryzodeg has been commercialized in 18 countries.

In December 2017 at the International Federation Congress 2017, Novo Nordisk presented results of the clinical trial in which Ryzodeg demonstrated a 62% reduction in the overall rate of hypoglycemia and a 74% reduction in the rate of nocturnal hypoglycemia. That compared to biphasic insulin aspart 30 in individuals with Type 2 diabetes who fast during Ramadan. The superior data in the clinical trial could strengthen Ryzodeg’s commercialization capabilities.

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