NovoNordisk (NVO) - Get Report shares slumped after the world's largest diabetes drug maker reported disappointing fourth-quarter operating profits due to price pressure and increased competition in the U.S.
Novo Nordisk also lowered its 2017 operating profit and sales growth outlook, which pushed shares down more than 5.3% by at 0920 GMT in Copenhagen to change hands at Dkr236 each and wiping out all of the gains recorded in the past three months.
The company lowered its 2017 sales forecast to be in the range of a decline of 1% to a growth of 4%, and operating profit growth to be between a decline of 2% and growth of 3%, both in local currency.
"2016 was a challenging year. While we met our financial guidance for the year, strong market headwinds in the USA meant that we had to revise our long-term financial targets. However, 2016 was also a year in which we announced very encouraging clinical data for our key products, providing a solid foundation for future growth," Novo Nordisk CEO Lars Fruergaard Jorgensen said in a statement.
The company on Thursday reported a fourth-quarter operating profit of Dkr 11.2 billion ($1.62 billion) on revenue of Dkr 29.6 billion, up just 1% from a year earlier. Analysts had been expecting profit of Dkr 11.2 billion.
Pharmaceutical companies have been under pressure after comments made by President Donald Trump.
"Two days ago the U.S pharma CEOs met with the Trump administration ... Overall I felt it was a positive meeting. There was a lot of talk about the importance of investments and innovation," Fruergaard Jorgensen said on a call to journalists on Thursday, Reuters reported.
"What Trump is after in terms of commitment and investments, Novo Nordisk is fully committed to and we decided to do it way before Trump took over, so we are not concerned about Trump," he added.