1st-Half Net Turnover Increase For Novo Nordisk

Danish company Novo Nordisk has reported a consolidated sales increaseof 12% in the first half of 1997 to 7.9 billion Danish kroner ($1.2 billion). Net income was 960 million kroner, compared with 873 million kroner a year earlier, and earnings per share rose 10% on that achieved during the first six months of 1996, reaching 12.80 kroner.

The group's total license fees and other operating revenue soared 53% to 310 million kroner, due principally to fees from the antidepressant Seroxat (paroxetine) which accounted for 267 million kroner. Novo Nordisk claims that this considerable increase is a result of a 20% rise in the average sterling-kroner rate of exchange from the first half of 1996 to June 30, 1997. Favorable developments in the group's other key currencies, notably the yen and US dollar, are expected to offset lower-than-anticipated sales.

The firm's health care business achieved turnover of 5.8 billion kroner, up 11%, while revenues from diabetes products rose 13% to 4.1 billion kroner. Japan, Russia and markets in central Europe contributed to the sales increase, although turnover in the USA fell by 3% compared to the first half of 1996. The company attributed the fall to various factors including a change in customer mix towards larger sales to wholesalers, as well as the loss of a number of staff to competitors. Novo Nordisk's enzyme business achieved an increase in turnover of 13% in the first half of 1997 to 1.8 billion kroner due to development in volume/product mix and favorable exchange rates with the US dollar.