Breaking News

Tweet TWEET

Novo Advances as Pfizer Drops Diabetics Deal: Copenhagen Mover

Novo Nordisk A/S (NOVOB), the world’s biggest insulin manufacturer, rose to a record-high in Copenhagen trading after Pfizer Inc. (PFE) pulled out of a deal to sell diabetics products.

Novo rose as much as 1.1 percent to 812 kroner, an all-time high. The stock advanced 4.5 kroner, or 0.6 percent, to 807.50 kroner at 11:08 a.m. in the Danish capital.

Pfizer, the world’s biggest drugmaker, yesterday returned products rights to Biocon Ltd. (BIOS) Pfizer agreed in October 2010 to pay $200 million to the Bangalore-based company for four types of insulin, including a generic version of Novo’s NovoLog. Bagsvaerd, Denmark-based Novo generates about three-quarters of its annual revenue from sales from its diabetes care unit.

“We see this news as a clear positive for Novo,” Michael Novod, a Copenhagen-based analyst with Nordea Markets, said in a note today, repeating a strong buy recommendation on Novo shares. “We believe this highlights how difficult and challenging it is -- and will be -- to bring competitive biosimilar insulins to the U.S. and EU markets.”

To contact the reporter on this story: Christian Wienberg in Copenhagen at cwienberg@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.