Novo Nordisk AS (NYSE: NVO) posted better than expected results for the fiscal year. Shares were up over 8 percent after open on Thursday.
The pharmaceutical company reported an 8 percent in operating profits in the first six months of the 2017.
The company reported a 4 percent increase in Danish kroner and by 3 percent in local currencies to DKK $57.1 billion.
It also reported increased sales of Tresiba by 155 percent, Victoza by 21 percent, Saxenda by 98 percent. Sales in obesity and diabetes care products increased by 11 percent, but sales in biopharmaceutical decreased by 19 percent. Regardless of the dip in sales from the biopharmaceutical products, Novo still posted increased sales in North America operation sales increasing by 5 percent and International operation sales increasing by 4 percent.
Net profit increased by 4 percent to DKK 20.1 billion and increased EPS by 6 percent to DKK 8.07.
Lars Fruergaard Jorgensen, president and CEO: "We are well on track to deliver on our targets for 2017 based on sales growth driven by our new, innovative products within diabetes and obesity care and a continued focus on cost control. Although the formulary negotiations in the USA reflect the tough competitive environment, we remain confident that our long-term financial growth targets are achievable."
With the better than expected results, Novo has raised its full year guidance. The company posted in the report that it now expects sales growth to be in the range of 1 percent to 3 percent, increased previously from 0 percent to 3 percent estimate.
The company also expects a negative currency impact of 3 percentage points, reflecting the recent and significant depreciation of the US dollar and most other key invoicing currencies versus the Euro and the Danish krone.
Operating profit growth is expected to be in the range of 1 percent to 5 percent compared with the previous range of -1 percent to 3 percent. A negative currency impact of 4 percentage points is now expected.
Shares were up over 8 percent after open on Wednesday.