Novo Nordisk CEO: We Have To Create Market For Obesity Product In U.S., But This Is Going To Take Time

Novo Nordisk A/S (ADR)NVO came out with better than expected quarterly results earlier on Thursday. Revenue for the company were up by 24 percent year-over-year to DKK25.2 billion, while net profit increased from DKK6.46 billion to DKK9.88 billion.

Novo Nordisk CFO, Jesper Brandgaard, was on CNBC post the results to discuss the impact of currency on he results and 

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.”

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 job 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 […] 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”