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Business

Novo Nordisk lowers sales expectations after rough first quarter

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May 1st, 2014


This article is more than 10 years old.

It is the first time for 47 quarters that sales growth has fallen under 10 percent for the year

After a rough first quarter, pharmaceutical giant Novo Nordisk has lowered its sales forecast for 2014 from 8-11 percent to 7-10 percent, according to the company's quarterly financial report (here in English).

Denmark’s most valuable company posted sales revenue of 20.3 billion kroner for the first quarter of 2014, a rise of under five percent on the same period in 2013 – the first time in 47 quarters that sales growth has failed to increase by at least 10 percent. Profit forecasts for 2014 will remain at around 10 percent.

“We are pleased to reiterate our expectations for our operating profit growth in 2014 despite a challenging start of the year and a lower outlook for sales growth,” Lars Rebien Sørensen, the head of Novo Nordisk, said in a press release.

READ MORE: Novo Nordisk in health co-operation with Mexico City

US losses hurt
The company reaped operating profits of 8 billion kroner and net profits before tax of 8.3 billion kroner.

Experts had expected Novo Nordisk would experience a tough start to 2014 after it lost a huge contract with the US health group Express Scripts, which provides health insurance to 45 million Americans.

Novo Nordisk’s share of the total global insulin market fell by 1 percent compared to last year. Its market shares in the US, China and Japan all fell by 2 percent.


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

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At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”