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A Look at Novo Nordisk’s Financial Position

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Jul. 3 2018, Updated 5:06 p.m. ET

Revenue trends

Novo Nordisk (NVO) reported revenues of 26.9 billion Danish kroner in the first quarter, compared to 28.5 billion Danish kroner in the first quarter of 2017, which reflected an ~5.0% year-over-year (or YoY) decline.

Wall Street analysts expect Novo Nordisk to generate revenues of 27.43 billion Danish kroner in the second quarter, representing an ~4.2% YoY decline.

Novo Nordisk’s first-quarter gross profit was 22.7 billion Danish kroner, and its first-quarter gross margin was 84.4%. In the first quarter of 2017, its gross profit was 24.2 billion Danish kroner, and its gross margin was 85.1%. Wall Street analysts expect Novo Nordisk to report gross income of 23.1 billion Danish kroner in the second quarter.

Novo Nordisk reported a net profit of 10.75 billion Danish kroner in the first quarter, compared to 10.16 billion Danish kroner in the first quarter of 2017, reflecting ~6.0% YoY growth.

Novo Nordisk reported diluted earnings per share of 4.40 Danish kroner in the first quarter, compared to 4.06 Danish kroner in the first quarter of 2017

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Expense trends

Novo Nordisk (NVO) reported sales and distribution costs of 6.45 billion Danish kroner in the first quarter, which is ~24.0% of net sales. In the first quarter, Novo Nordisk’s sales and distribution costs witnessed an ~5.0% YoY decline.

In the first quarter, Novo Nordisk reported R&D (research and development) and administrative costs of 3.32 billion Danish kroner and 864.0 million Danish kroner, respectively. In the first quarter of 2017, it reported R&D costs of 3.29 billion Danish kroner and administrative costs of 913.0 million Danish kroner in the first quarter of 2017.

In the first quarter, Novo Nordisk’s R&D expenses rose ~1.0% and its administrative expenditures fell ~5.0% decline on a YoY basis. Wall Street analysts expect Novo Nordisk to report R&D expenditures of 3.4 billion Danish kroner in the second quarter.

Among Novo Nordisk’s peers in the biopharmaceuticals market, Merck (MRK), AstraZeneca (AZN), and Johnson & Johnson (JNJ) reported first-quarter revenues of $10.0 billion, $5.18 billion, and $20.0 billion, respectively.

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