Novo Nordisk A/S (NVO) Upbeat on Tresiba Insulin's U.S. Prospects
11/26/2012 4:26:23 PM
Denmark's Novo Nordisk sees strong commercial potential for degludec, its long-acting insulin, which is poised to receive the green light from U.S. regulators. Shares in the company rose 10 percent on Friday morning after a U.S. Food and Drug Administration (FDA) panel on Thursday night recommended approval of the drug, despite possible cardiovascular risk. Novo has estimated that degludec, which will be marketed under the brand name Tresiba, could become a blockbuster drug, generating more than $1 billion in sales within five years of launch. "I think the commercial potential is going to be significant in the U.S.," Chief Executive Officer Lars Rebien Sorensen said on an analysts' call. The labelling of the drug in the United States, where Novo expects to generate the bulk of future sales, will be key. It said on Friday that talks with regulators about the labelling are expected to begin soon. "Until we see that final wording and how that might translate into market material, of course, we should be a little careful about estimating what the commercial potential is," Sorensen said. Shares in Novo Nordisk, the world's biggest insulin producer, climbed nearly 10 percent in early trade and were up 8.9 percent at 1005 GMT.