Novo Rises as Barclays Sees U.S. Market Gains: Copenhagen MoverFrances Schwartzkopff
Novo Nordisk A/S rose the most in more than a month after Barclays Research upgraded the world’s biggest insulin producer, citing an improved outlook in the U.S., the drugmaker’s fastest growing market.
Novo rose as much as 2.2 percent, making it the second biggest winner in the Nasdaq OMX Copenhagen 20 Index. Shares in the Bagsvaerd, Denmark-based drugmaker increased 2.1 percent to 948 kroner at 12:02 p.m. local time. Trading volume was 40 percent of the three-month daily average.
Novo plunged the most in more than five months on Sept. 3 after losing a contract to provide diabetes treatments including insulin and Victoza to Express Scripts Holding Co, the largest U.S. processor of prescription drug claims. In the second quarter, North American sales climbed 20 percent, outpacing other regions and helping make up lost revenue in Japan and Korea.
While the loss of Express contract heightens the importance of Novo successfully renewing a contract with pharmacy benefits provider CVS Caremark Corp in coming months, the U.S. market will continue to grow by more than 10 percent, Barclays said today. It upgraded its recommendation for Novo to overweight from underweight and raised its price target to 1,000 kroner, from 905 kroner.
“Our upgrade is predicated on a more positive outlook for the U.S. insulin market and improved profitability going forward,” Barclays said in its note to investors.