Benzinga | May 5, 2021 07:24AM EDT

Novo Nordisk's Q1 Sales Buoyed By GLP-1 Products, Lifts FY21 Guidance

* Denmark's Novo Nordisk A/S (NYSE: NVO) raised its financial forecast after reporting strong first-quarter sales and earnings.

* The company says the sales were still hit by the effect of patients and wholesalers stocking up on drugs last year in preparation for the COVID-19 pandemic, inventory changes, and the timing of shipments had offset that in the first quarter.

* On a constant currency basis, sales rose 7% Y/Y to DKK 33.8 billion but came in flat on a reported basis.

* "Sales growth was driven by all therapy areas and across geographical areas," said CEO Lars Fruergaard Jorgensen.

* Revenues were driven by a 13% rise in sales of its GLP-1 products, offsetting a 7% overall drop in insulin sales.

* Sales of its recently launched once-daily diabetes pill Rybelsus grew 247% to DKK 729 million.

* Operating profit came in at 14.98 billion, 8% Y/Y down on a reported basis but 3% higher on a constant currency basis.

* Novo Nordisk expects FY21 sales growth in local currencies between 6% and 10%, up from a previous forecast of 5% to 9%, and operating profit growth in constant currencies of 5% to 9%, up from an earlier estimate of 4% to 8%.

* In Danish crowns, Novo still forecasts sales growth to be 4% lower than in local currencies and operating profit growth 6% lower than in local currencies.

* The company said its ongoing share buyback program would be expanded to DKK 18 billion.

* See Q1 earnings presentation here.

* Last month, the company will launch a Phase 3a study in obesity in the second half of 2021, planning to measure a 50 mg semaglutide pill compared to a placebo.

* Price Action: NVO shares were up 2.5% at $75.98 in the premarket trading on the last check Wednesday.