Novo Nordisk A/S, the world’s biggest insulin manufacturer, rose to a record-high in Copenhagen trading after Pfizer Inc. 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. 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.”