Troubled Novo Nordisk Committed to Insulin Market ‘Whatever it Costs’

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Slumping prices for insulin products in the U.S. market have forced Novo Nordisk and other producers of insulin into the position of having to reduce or flatten their prices as powerful middlemen that buy drugs on behalf of insurers and employers seek better deals, reports the Wall Street Journal.

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For Novo Nordisk this is especially apparent as the company last week lowered long-term profit guidance to 5 percent from 10 percent –an announcement that saw the company’s shares drop by as much as 19 percent, its worst selloff in 14 years.

Novo Nordisk Chief Executive Lars Rebien Sorensen told Reuters on Friday that the Danish company remains committed to the U.S. insulin market, where price pressure are expected to continue into 2019.

“We have no intentions of leaving the U.S. market, whatever it costs,” Sorensen said following the company’s release of third-quarter results.

 

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