Danish chemical group Novo Nordisk - with a market capitalisation of DK72.0bn - will likely deliver a 'lacklustre' set of results for the first nine months of the year but strong enough to put the company on track to deliver its guidance of 'low single-digit EBIT growth' on a reported basis for the year, predicted Goldman Sachs.
In a research report released this week Goldman Sachs said it expects the market to focus on the progress of Levemir and NovoSeven rather than on Novo's operational performance.
"We only expect an updateon the US launch of Levemir with Novo's full year results on 4 February next year, after the company has met with the FDA and clarified the FDA's additional requirements for Levemir," said the analysts. With regards to NovoSeven, Goldman Sachs believes that the 280-patient trauma trial has been completed and that an announcement is possible by the year-end as the data is currently being analysed.
However, we believe that it is more likely that the results of this trauma trial will be presented with Novo's full year results in February 2003," added the analysts.
"Despite the forecast of above-average 13 per cent EPS growth in 2002-2007 period, Novo trades at a 8 per cent discount tothe Pan-European drug sector on 2004 P/Es and at a 16 per cent discount on 2004 EV/EBITDA. We believe this is inappropriate and reiterates our Outperform rating on the stock within an Attractive sector coverage view."