Novo Nordisk A/S

For the last five years, Novo Nordisk (NVO) has been trading at higher multiples when compared with peers.

Novartis met Wall Street analysts’ estimates for EPS (earnings per share) in 4Q16, reporting EPS of $1.12 as estimated but missing revenue estimates.

With 642 million people expected to suffer from diabetes globally by 2040, the disease is expected to offer multiple growth opportunities for Novo Nordisk.

Sanofi (SNY) is scheduled to announce its earnings results for the second quarter of fiscal 2018 on July 31.

The Norwegian krone appreciated against the US dollar on October 9, 2015, as a result of positive inflation data.

Accounting for a ~46% market share, Novo Nordisk (NVO) is expected to continue to benefit from the positive trends in the global insulin market

The Danish krone fell against the US dollar on November 10, 2015. The inflation figures for October were below the expectations.

In the second quarter of fiscal 2018, Sanofi (SNY) reported sales of 8.2 billion euros, a YoY (year-over-year) decline in sales as well as profits.

The Japanese pharmaceuticals market is not very welcoming to foreign companies. Similarly, the Japanese population is quite loyal to domestic manufacturers.

Hemophilia treatment primarily includes factor replacement therapy and prolonged half-life therapy such as factor VIII or factor IX infusion.

For investors interested in international mutual funds, the next step is to evaluate the investment style, as well as risk and return metrics like the Sharpe ratio and standard deviation.

The Swedish krona depreciated against the US dollar by more than 1% on December 10, 2015, as inflation levels released below estimates for November.

Novo Nordisk (NVO) stock has risen ~18.6% in 2Q17. It has risen ~16.9% year-to-date as of July 7, 2017.

GSK reported EPS of 24.60 British pence on revenue of 7.22 billion pounds, surpassing Wall Street analysts’ consensus estimates.

In 2018, stock markets, especially in the pharmaceutical sector, have seen heightened volatility.

Due to Pfizer’s (PFE) strong Innovative Products business and product pipeline, analysts estimate that it will generate $0.54 in earnings per share in 1Q16.

At the end of the third quarter, Bristol-Myers Squibb, Celgene, Biogen, UnitedHealth, and Walmart (WMT) were Renaissance Technologies’ top five buys.

Novo Nordisk (NVO) has guided for YoY revenue growth of 2% to 5% at a constant exchange rate in fiscal 2019.

GlaxoSmithKline (GSK) is up by 5.02%, and Novo Nordisk (NVO) is up by 10.51% in 2019 on a YTD basis.

Wall Street analysts estimate that GWPH stock could increase ~6.7% over the next 12 months.

On September 27, Sanofi’s (SNY) closing price was $44.84, and its market capitalization was $110.7 billion.

Novartis (NVS) announced today that it has agreed to sell select portions of its Sandoz US portfolio to Aurobindo Pharma USA.

Novartis’s (NVS) Sandoz reported nearly flat revenues at ~$2.46 billion in Q2 2018 compared to $2.45 billion in the second quarter of 2017.

GlaxoSmithKline’s (GSK) Consumer Healthcare segment includes its wellness, oral health, nutrition, and skin health products.

Tresiba, Novo Nordisk’s (NVO) long-acting insulin, generated revenues of 3.7 billion Danish kroner in the first half of 2018.

Novo Nordisk (NVO) had net revenues of 54.3 billion Danish kroner in H1 2018 compared to 57.1 billion Danish kroner in H1 2017.

Novartis (NVS) released its Q2 2018 earnings on July 18 and surpassed Wall Street analysts’ estimates for revenues and EPS.

Novo Nordisk (NVO) reported Q1 2018 revenues of 26.9 billion Danish kroner, compared to 28.5 billion Danish kroner in Q1 2017—down ~5% YoY.

The healthcare industry has an average dividend yield of 1.9%.

In 4Q17, Novo Nordisk’s (NVO) Tresiba generated revenues of 1.9 billion Danish kroner, which is a ~48% YoY growth in local currencies.

Overall, the innovative medicines business accounted for ~67.8% of Novartis’s total revenues.

AstraZeneca’s (AZN) other products portfolio reported revenues of ~$1.1 billion during 4Q17, a 17% decline in operating revenues.

AstraZeneca (AZN) reported 2% growth in operating revenues to ~$5.8 billion during 4Q17 as compared to the revenues of ~$5.6 billion during 4Q16.

Novo Nordisk plans to initiate its Phase 3a program, STEP, to study the efficacy of 2.4 mg of semaglutide once per week in obesity indications in 1H18.

In November 2017, Novo Nordisk (NVO) submitted an application to European regulatory authorities to update Xultophy’s label.

In 2017, Novo Nordisk’s (NVO) Saxenda sales reached 2.6 billion Danish kroner, a YoY (year-over-year) rise of 64%.

Novo Nordisk’s (NVO) Xultophy reported sales close to 729 million Danish kroner in 2017.

Novo Nordisk has been creating awareness about the risks of hypoglycemia and the benefits of Tresiba among general practitioners and primary care physicians.

Novo Nordisk (NVO) is anticipating the FDA’s decision related to the inclusion of hypoglycemia data from its DEVOTE and SWITCH studies by the end of 1Q18.

In 2017, Novo Nordisk’s (NVO) basal insulin therapy, Tresiba, reported revenue of nearly 7.3 billion Danish kroner and attained blockbuster status.

Novo Nordisk (NVO) has adopted a market-fit strategy, offering insulin products that are suitable for the different demands of patients in different geographies.

According to IQVIA, the global insulin market value grew at a compound average growth rate (or CAGR) of 16.8% from November 2012 to November 2017.

In 3Q17, Novo Nordisk managed to update Victoza’s label in the United States and Europe.

According to IQVIA, glucagon-like peptide products currently account for only a 12% share of the global diabetes care market by value.

Renagel and Renvela reported revenues of 155.0 million euros in 4Q17, a 28.5% decline in operating revenues compared to 4Q16.

Sanofi Pasteur reported revenues of ~1.4 billion euros in 4Q17 for 8.7% growth in operating revenues compared to its 4Q16 revenues.

On January 29, 2018, Sanofi (SNY) announced that it had agreed to acquire Ablynx (ABLX) for 3.9 billion euros.

On January 29, 2018, Sanofi announced its acquisition of Belgium-based Ablynx for 45 euros per share, amounting to a total of 3.9 billion euros (or $4.8 billion) in cash.

In this article, we’ll have a look at Wall Street’s recommendations and target prices following Sanofi’s Bioverativ acquisition announcement.

According to Sanofi’s (SNY) 2020 roadmap, the company is focused on sustaining a position of leadership in some of its key markets, including the rare diseases space.

Novartis (NVS) is expected to report earnings per share of $1.26 in 1Q18 compared to EPS of $1.13 in 1Q17.

Sandoz reported a decline of 4.0% in operating revenues, offset by a 4.0% positive impact of foreign exchange.

On January 29, 2018, Sanofi entered an agreement with Ablynx where Sanofi will acquire all of the outstanding ordinary shares of Ablynx.

For 4Q17, Alcon is expected to report growth in revenues, driven by the increased demand for contact lenses and surgical products.

The Innovative Medicines segment is expected to report growth in operating revenues for 4Q17.

Analysts expect Novartis’s revenues to rise ~3.9% to $12.8 billion in 4Q17, driven by growth in operating revenues across all three segments.

In 3Q17, Bioverativ’s (BIVV) Eloctate generated revenue of $186.3 million, reflecting a 41% rise on a year-over-year (or YoY) basis.

Roche’s (RHHBY) Hemlibra is used for the prevention and reduction of the frequency of bleeding episodes in individuals with hemophilia A with factor VIII inhibitors.

In December 2017, the U.S. FDA (Food and Drug Administration) approved Novo Nordisk’s (NVO) Ozempic as an addition to diet and exercise for the improvement of blood sugar levels in individuals with type two diabetes mellitus.

In 3Q17, Novo Nordisk’s (NVO) NovoMix reported revenues of 2.4 billion Danish krone (or DKK), which reflected ~1% growth on year-over-year (or YoY) basis.

In 3Q17, Novo Nordisk’s (NVO) hemophilia segment reported revenues of 2.4 billion Danish krone (or DKK), a ~10% increase on a YoY basis.

In 3Q17, Novo Nordisk’s (NVO) Victoza reported revenues of 5.3 billion Danish krone (or DKK), which reflected ~9% growth on a year-over-year (or YoY) basis.

In 3Q17, Novo Nordisk’s (NVO) NovoRapid reported revenues of 5.0 billion Danish krone (or DKK), which reflected ~9% growth on year-over-year (or YoY) basis.

Novo Nordisk’s (NVO) Xultophy (insulin degludec and liraglutide combination) is used as an addition to diet and exercise for improvement of blood sugar levels in adults with type-2 diabetes mellitus whose blood sugar level could not be controlled adequately with basal insulin.

In 3Q17, Novo Nordisk’s (NVO) new generation insulin generated revenues of 2.1 billion Danish krone (or DKK), which reflected ~93% growth on a year-over-year (or YoY) basis.

Sanofi’s (SNY) general medicines and emerging markets sub-segment reported revenues of 433 million euros in 3Q17, representing a 0.9% YoY fall.

In 3Q17, Eli Lilly’s (LLY) Trajenta generated revenues of $153.3 million, ~33% growth on a year-over-year (or YoY) basis and ~8% growth on a quarter-over-quarter basis.

In 3Q17, Eli Lilly’s (LLY) Humalog generated revenues of $696.2 million, ~9% growth on year-over-year (or YoY) basis and 3% growth on a quarter-over-quarter basis.

In 3Q17, Eli Lilly’s (LLY) Forteo generated revenues of $441.7 million, ~13% growth on a year-over-year (or YoY) basis and a 1% decline on a quarter-over-quarter basis.

Wall Street analysts estimate that GlaxoSmithKline’s (GSK) top line could fall 0.8% to ~7.5 billion pounds in 4Q17.

Sanofi (SNY) reported a growth of 4.7% in revenues at constant exchange rates to 9.05 billion euros, compared with 9.03 billion euros in 3Q16.

Novo Nordisk stock has risen ~12.3% in 3Q17. It has risen ~41.3% year-to-date as of October 20, 2017.

GSK stock fell ~4.7% in 3Q17 but has risen ~6.0% YTD (year-to-date) as of October 16.

In 1H17, Eli Lilly’s (LLY) Basaglar generated revenues of around $132.6 million, compared with $27.2 million in 1H16.

MRK stock rose ~0.6% in 3Q17 and has risen ~7.7% YTD (year-to-date) as of October 16.

In the first half of 2017, Novo Nordisk’s (NVO) Victoza generated revenues of DKK (Danish kroner) 11.5 billion, which reflected a ~21.0% rise on a YoY (year-over-year) basis.

In the first half of 2017, Novo Nordisk’s (NVO) Xultophy generated revenues of DKK (Danish kroner) 284.0 million.

After success in the company’s phase 1/2 trial with BMN 270, an investigational gene therapy for hemophilia A, BioMarin Pharmaceuticals (BMRN) is expected to start phase 3 trials.

Merck’s (MRK) Gardasil franchise includes vaccines for the prevention of certain strains of HPV infections that are sexually transmitted.

In June 2017, the FDA accepted Bioverativ’s investigative new drug application for BIVV001, a drug designed to treat prophylaxis from bleeding associated with hemophilia A.

In 2Q17, Bioverativ’s Alprolix generated revenues of ~$89.7 million, which represents ~12% growth YoY (year-over-year) and ~4% growth sequentially.

AstraZeneca (AZN) reported a decrease of ~10% in its top line at ~$5.1 billion for 2Q17, compared to revenues of $5.6 billion for 2Q16.

GlaxoSmithKline (GSK) added new products and improved the supply chain for consumer healthcare products in the last few years.

GlaxoSmithKline’s Pharmaceuticals segment reported revenues of 4.36 billion pounds during 2Q17—12% growth compared to 2Q16.

Medical devices segment Johnson & Johnson’s (JNJ) medical devices segment reported revenue of $6.7 billion in 2Q17, a growth of 4.9% from the revenue of $6.4 billion reported in 2Q16. This figure included 5.9% growth in operating revenue, and was partially offset by a 1% foreign exchange impact. Cardiovascular care franchise The cardiovascular care franchise […]

General Medicines Sanofi’s (SNY) generic business contributed ~5.1% of its total revenue in 2Q17. The business reported revenue of 442 million euros in 2Q17, an 8% decrease from 2Q16. Revenue fell due to lower sales in US markets, European markets, and emerging markets. This fall was partially offset by the growth in the rest of […]

Established products Sanofi’s (SNY) established products contributed over 29.5% of its total revenue in 2Q17. Established product revenue, which fell 2.3% at constant exchange rates in 2Q17, stood at 2.6 billion euros. Lower sales of Plavix, Lovenox, Allegra, Myslee, Lasix, and a few other drugs were substantially offset by strong performance by Renagel, Renvela, Aprovel, Synvisc, […]

Sanofi Genzyme In 2Q17, Sanofi Genzyme (SNY) reported revenue growth of 13.5% to 1.7 billion euros. Considering a constant structure and constant exchange rates, the growth was 14.4%. Sanofi Genzyme, which includes product revenue from the multiple sclerosis, rare disease, oncology, and immunology franchises, reported a sales increase of ~14.6% to 1.7 billion euros. This rise was […]

Sanofi’s revenue in 2Q17 At constant exchange rates, Sanofi (SNY) reported revenue growth of ~5.5% between 2Q16 and 2Q17, with revenue rising to 8.7 billion euros from 8.1 billion euros. Structure of the group The above chart shows Sanofi’s segment-wise revenue over the last few quarters. In 2016, Sanofi reorganized itself into five business units: Sanofi […]

Pfizer’s (PFE) innovative health business and essential health business are focusing on growth. To strengthen the innovative health business, the company is focusing on the development of new drugs…

On July 28, 2017, GlaxoSmithKline (GSK) traded at a forward PE multiple of 13.4x, which is slightly lower than the industry average of 15.2x.

Bioverativ (BIVV) plans to improve compliance rates for hemophilia patients further by launching therapies with lower dosage frequency.

In 1Q17, Bioverativ’s Eloctate witnessed revenues close to $155.9 million, which is about $48.0 million more YoY (year-over-year).

Wall Street analysts expect AstraZeneca’s top line to fall ~9.5% to $5.1 billion in 2Q17, compared to $5.6 billion in 2Q16. Its earnings per share are expected to be $0.42 in 2Q17.

Sandoz contributed ~20.0% of total revenues at $2.45 billion in 2Q17, a 5.0% fall compared to $2.58 billion in 2Q16.

In its earnings release on July 8, 2017, Novartis (NVS) reported flat revenues at constant currencies for 2Q17.

The consumer segment Johnson & Johnson’s (JNJ) consumer segment revenue rose 1.7% to $3.5 billion in 2Q17, compared with $3.4 billion in 2Q16. This rise includes operational growth of 2.3%, which was offset by a 0.6% impact of foreign exchange. Baby care franchise The baby care franchise reported revenue of $494 million in 2Q17, a […]

The overall contribution of Novartis’s (NVS) Innovative Medicines segment is ~67.0% of its total revenues.

Analysts expect Novartis’s (NVS) revenues to fall ~1.6% to $12.3 billion in 2Q17 due to the effects of the acquisition and divestiture of some of its products.

Johnson & Johnson (JNJ) missed Wall Street analysts’ revenue estimates in 1Q17. It reported revenue of $17.8 billion in the quarter.