We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Novo Nordisk's (NVO) Q4 Earnings and Sales Beat Estimates
Read MoreHide Full Article
Novo Nordisk A/S (NVO - Free Report) reported fourth-quarter 2021 earnings of 73 cents per American Depositary Receipt ("ADR"), which surpassed the Zacks Consensus Estimate of 71 cents. The company had reported earnings of 64 cents in the year-ago quarter.
Revenues of $5.75 billion increased 19% in terms of Danish kroner and were up 16% at constant exchange rate (CER) in the reported quarter. Revenues surpassed the Zacks Consensus Estimate of $5.62 billion. Year over year, sales were driven by higher Diabetes and Obesity care sales as GLP-1 sales increased.
Full-Year Results
For full-year 2021, Novo Nordisk reported earnings of DKK 20.74 per ADR compared with DKK 18.01 per ADR reported in 2020.
The company generated revenues of DKK 140,800 million in 2021 compared with DKK 126,946 million in 2020. Revenues increased 11% in Danish kroner and 14% at CER.
Shares of Novo Nordisk have rallied 41.7% in the past year compared with the industry’s rise of 18.1%.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis.
Quarter in Details
Novo Nordisk operates under two segments, namely, Diabetes and Obesity Care, and Biopharmaceuticals.
The Diabetes and Obesity Care segment sales grew 18% at CER. In Diabetes Care, fast-acting insulin, Fiasp revenues rose 34% at CER. NovoRapid revenues increased 1% at CER and Human insulin revenues were up 18% at CER. Premix insulin (Ryzodeg and NovoMix) revenues declined 4% at CER. Sales of long-acting insulins (Tresiba, Xultophy and Levemir) decreased 9% at CER. Ozempic had a strong launch and recorded sales of DKK 10.7 billion for the quarter, up 70% at CER.
Obesity Care (Saxenda and Wegovy) sales were up 73% at CER year over year.
In December 2021, Novo Nordisk announced that a contract manufacturer in the United States, which was filling syringes for Wegovy pens, has temporarily stopped deliveries and manufacturing after issues with goods-manufacturing practices. As a result, the company now expects to meet demand for the product in the United States in the second half of 2022, which was earlier expected in the first half.
Sales in the Biopharma segment were up 6% at CER year over year to DKK 4,713 million. Sales of rare blood disorder products were DKK 2,490 million, up 13% at CER. Sales of hemophilia A products increased 33% at CER. Also, Hemophilia B products’ sales rose 20% at CER. Sales of NovoSeven were up 8% at CER to DKK 1,690 million.
Sales and distribution costs climbed 19% in Danish kroner and increased 16% at CER year over year. This increase was due to International Operations and North America Operations reflecting the launch of Rybelsus and promotional activities related to Ozempic.
Research and development costs were up 26% in Danish kroner and increased 24% at CER from the respective year-ago quarter’s levels. Higher costs are driven by the cardiovascular outcomes studies as well as other late-stage studies.
Administrative costs decreased 1% in both Danish kroner and at CER from the respective levels registered in the same period of 2020.
2022 Outlook
Novo Nordisk expects 6-10% sales growth at CER. The guidance indicates steady sales growth in North America Operations and International Operations, primarily driven by Diabetes and Obesity care. The guidance also reflects the expectation of meeting the demand for Wegovy in the United States. This apart, the outlook implies intensifying competition in both Diabetes care and Biopharm units.
Persistent pricing pressure within Diabetes Care, especially in the United States, might also negatively impact sales.
Our Take
Novo Nordisk's revenues and earnings beat estimates in the fourth quarter of 2021. Ozempic is off to a solid start and the launch of Rybelsus looks encouraging. Saxenda, too has witnessed strong uptake so far. Also, the approval for Wegovy in the EU for the treatment of obesity in January 2022 is likely to boost sales of the drug in the days ahead.
Image: Shutterstock
Novo Nordisk's (NVO) Q4 Earnings and Sales Beat Estimates
Novo Nordisk A/S (NVO - Free Report) reported fourth-quarter 2021 earnings of 73 cents per American Depositary Receipt ("ADR"), which surpassed the Zacks Consensus Estimate of 71 cents. The company had reported earnings of 64 cents in the year-ago quarter.
Revenues of $5.75 billion increased 19% in terms of Danish kroner and were up 16% at constant exchange rate (CER) in the reported quarter. Revenues surpassed the Zacks Consensus Estimate of $5.62 billion. Year over year, sales were driven by higher Diabetes and Obesity care sales as GLP-1 sales increased.
Full-Year Results
For full-year 2021, Novo Nordisk reported earnings of DKK 20.74 per ADR compared with DKK 18.01 per ADR reported in 2020.
The company generated revenues of DKK 140,800 million in 2021 compared with DKK 126,946 million in 2020. Revenues increased 11% in Danish kroner and 14% at CER.
Shares of Novo Nordisk have rallied 41.7% in the past year compared with the industry’s rise of 18.1%.
All growth rates mentioned below are on a year-over-year basis.
Quarter in Details
Novo Nordisk operates under two segments, namely, Diabetes and Obesity Care, and Biopharmaceuticals.
The Diabetes and Obesity Care segment sales grew 18% at CER. In Diabetes Care, fast-acting insulin, Fiasp revenues rose 34% at CER. NovoRapid revenues increased 1% at CER and Human insulin revenues were up 18% at CER. Premix insulin (Ryzodeg and NovoMix) revenues declined 4% at CER. Sales of long-acting insulins (Tresiba, Xultophy and Levemir) decreased 9% at CER. Ozempic had a strong launch and recorded sales of DKK 10.7 billion for the quarter, up 70% at CER.
Obesity Care (Saxenda and Wegovy) sales were up 73% at CER year over year.
In December 2021, Novo Nordisk announced that a contract manufacturer in the United States, which was filling syringes for Wegovy pens, has temporarily stopped deliveries and manufacturing after issues with goods-manufacturing practices. As a result, the company now expects to meet demand for the product in the United States in the second half of 2022, which was earlier expected in the first half.
Sales in the Biopharma segment were up 6% at CER year over year to DKK 4,713 million. Sales of rare blood disorder products were DKK 2,490 million, up 13% at CER. Sales of hemophilia A products increased 33% at CER. Also, Hemophilia B products’ sales rose 20% at CER. Sales of NovoSeven were up 8% at CER to DKK 1,690 million.
Sales and distribution costs climbed 19% in Danish kroner and increased 16% at CER year over year. This increase was due to International Operations and North America Operations reflecting the launch of Rybelsus and promotional activities related to Ozempic.
Research and development costs were up 26% in Danish kroner and increased 24% at CER from the respective year-ago quarter’s levels. Higher costs are driven by the cardiovascular outcomes studies as well as other late-stage studies.
Administrative costs decreased 1% in both Danish kroner and at CER from the respective levels registered in the same period of 2020.
2022 Outlook
Novo Nordisk expects 6-10% sales growth at CER. The guidance indicates steady sales growth in North America Operations and International Operations, primarily driven by Diabetes and Obesity care. The guidance also reflects the expectation of meeting the demand for Wegovy in the United States. This apart, the outlook implies intensifying competition in both Diabetes care and Biopharm units.
Persistent pricing pressure within Diabetes Care, especially in the United States, might also negatively impact sales.
Our Take
Novo Nordisk's revenues and earnings beat estimates in the fourth quarter of 2021. Ozempic is off to a solid start and the launch of Rybelsus looks encouraging. Saxenda, too has witnessed strong uptake so far. Also, the approval for Wegovy in the EU for the treatment of obesity in January 2022 is likely to boost sales of the drug in the days ahead.
Novo Nordisk AS Price, Consensus and EPS Surprise
Novo Nordisk AS price-consensus-eps-surprise-chart | Novo Nordisk AS Quote
Zacks Rank & Stocks to Consider
Novo Nordisk currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the healthcare sector include Pfizer Inc. (PFE - Free Report) , Vertex Pharmaceuticals Incorporated (VRTX - Free Report) and Eli Lilly and Company (LLY - Free Report) . While Pfizer and Vertex both sport a Zacks Rank #1 (Strong Buy), Eli Lilly carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pfizer’s earnings estimates have been revised 39.6% upward for 2022 over the past 60 days. The stock has rallied 51.7% in the past year.
Pfizer’s earnings have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion.
Vertex’s earnings estimates have been revised 7.6% upward for 2022 over the past 60 days. The stock has increased 13% in the past year.
Vertex’s earnings have surpassed estimates in each of the trailing four quarters.
Eli Lilly’s earnings estimates have been revised 3.5% upward for 2022 over the past 60 days. The stock has surged 25.7% in the past year.
Eli Lilly’s earnings have surpassed estimates in one of the trailing four quarters and missed the same on the other three occasions.