Novo Nordisk sees 10 pct rise in operating profit for 2014

Danish pharmaceutical company Novo Nordisk revealed Friday a 10 percent increase in its operating profit in 2014.

Operating profits stood at 34.5 billion Danish kroner (5.25 billion U.S. dollars), up from 31.5 billion kroner in 2013, the company said in its annual financial statement.

Net profit rose 5 percent to 26.5 billion kroner, up from 25.2 billion kroner in 2013, it added.

Overall, sales grew 6 percent year-on-year to 88.8 billion kroner, while sales of its flagship diabetes drug Victoza increased 15 percent to 13.4 billion kroner in 2014.

"We are pleased with Novo Nordisk's financial performance in 2014, a more challenging year than usual," said Novo Nordisk President and CEO Lars Rebien Soerensen, adding that Victoza and its modern insulin Levemir drove most of the sales growth.

In 2015, Novo Nordisk expects sales growth between 6 and 9 percent, measured in local currencies.

Given the current level of exchange rates versus the Danish kroner, the reported sales growth for 2015 is now expected to be around 12 percentage points higher than growth measured in local currencies, it added.

Moreover, operating profit growth is forecast at around 10 percent in 2015, measured in local currencies, while the reported operating profit growth is expected to be at around 29 percent.

Novo Nordisk expects a net financial loss of around 5 billion kroner in 2015, considering losses associated with foreign exchange hedging contracts, particularly following the appreciation of the U.S. dollar against the Danish kroner, the company said. (1 U.S. dollar = 6.59 Danish kroner) Enditem