Analyst: Chinese reforms will impact sales and earnings at Novo Nordisk

Chinese healthcare reforms, meant to reduce healthcare expenses, could negatively affect Novo Nordisk, assesses Jyske Bank analyst, lowering forecasts for the company's revenue and earnings.

BY MARKETWIRE, TRANSLATED BY DANIEL PEDERSEN

Published: 28.09.21 at 12:53

Danish Jyske Bank reduces its 2022 revenue and earnings estimates for Novo Nordisk by a respective 3.1 and 4.8 percent as a consequence of China's healthcare reform efforts to keep costs down, writes Chief Analyst at Jyske Bank Henrik Hallengreen Laustsen. The analyst has the recommendation "hold" with a share price target of DKK 645 for Novo Nordisk.

Medicine prices have been a recurrent theme recently, particularly in the US. China has also jumped on the bandwagon by introducing volume-based procurement (VBP) with a sixth round including insulin, which will affect prices, the bank says.

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