Novo Nordisk CFO: U.S. Obesity Market Must Emerge, But It Will Take Time

Novo Nordisk A/S (ADR) (NYSE: NVO) came out with better-than-expected quarterly results earlier on Thursday. Revenue for the company was up by 24 percent year-over-year to DKK 25.2 billion kroner, while net profit increased from DKK 6.46 billion to DKK 9.88 billion (DKK = Danish krone).

Novo Nordisk CFO, Jesper Brandgaard, was on CNBC following the results to discuss the impact of currency on the company's results.

Currency Benefits

"It hits our currency exposure to the tune of 10 month a hit," Brandgaard said. "We have in the first quarter had a positive impact on operating profit of 2.1 billion and we have lost 1.4 of that in our hedging activity.

"So, a net positive from currency hedging to the tune of 700 million – so still very positive on reported net profit."

Related Link: Novo Nordisk Posts Rise In Profits

Saxenda

On the company's new weight-loss product Saxenda, Brandgaard said, "I think the opportunity for us with an obesity product in the U.S. is to basically build a market. Currently, we are only seeing a market to the tune of $200 million U.S. dollar for the obesity product in the U.S.

"We have to create that market. I think we have a unique draw for doing so, but this is going to take time."

European Launch

Brandgaard was asked about the European launch of Saxenda and the competition it will face. He replied, "In Europe, I think it's going to be a gradual roll out. Our product offering is a quite expensive one; it is based on a diabetes-care product Victoza, which is already in the market.

"You are using double the volume as you are using in the diabetes care setting, and hence, it's a relative costly product. So, I think the roll out in Europe is going to be very gradual and it's going to be extremely challenging to obtain reimbursement," Brandgaard concluded.

 
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