E Finns And Danes

Wednesday took us back into the reporting nightmare as we have 3 companies with intricate results, from Finland, Israel, and Denmark. Plus plenty of other news as well. Archegos is bust according to the Financial Times.

Stock markets are still uncertain whether to rise or fall after the Tuesday débâcle, which I think I may have been the first to blame on commentary by Janet Yellen, our US Secy of the Treasury. She has now walked back the comments she should never have made.

shallow focus photograph of black and gray compass

Image Source: Unsplash

So it's off to the races:

*Israeli BiolineRX BLRX fell 16% today on news which doesn't appear in my brokerage account or in Israeli sites in English. It jumped Tuesday on results from its Genesis phase III trial of Motixafortide stem cells against rejection in autologous bone marrow transplants for multiple myeloma patients.

*Danish drug-maker Novo Nordisk shares are down 0.28% at the opening after a Q1 report heavier on hope than results. Sales at DKK 33.8 mn were essentially flat while gross margins were down by 2% because of costs for R&D (good) and administration (bad). Operating profits fell 8% to DKK 14.982 mn but pretax profits gained 6% at DKK15.938 mn and taxes did too. Net profit rose 8% to DKK5.45/sh from last Q1 level of 5.05/sh.

The results in DKK leave out the impact of currencies, which fell in major market like the US and Canada, but which rose in the UK. NVO upped its forecasts from Feb. when it reported on the prior year. It now expects full-year operating profit to rise 5-9% versus 4-8% estimated in Feb. Free cash flow will be DKK 37-44 bn, up from February's estimate of 36-41 bn. However, reported net profit is still expected to fall 6% because of currencies. International sales were up 9%, mostly thanks to diabetes drug Ozempic hitting the Chinese market. But US sales were up only 6%, more than half from new medicines NVO launched since 2015. Basic insulin sales are barely growing whereas GLP sales to the US rose 20%.

NVO's report included information on an initiative with Toronto to develop diabetes prevention in emerging markets, and its plan to become carbon-neutral by 2030. It carbon toll fell 48% in Q1 compared to 2019 levels. More importantly, NVO also has 2 phase III trials coming for oral semaglutide, against obesity, and to treat non-alcoholic stearohepatitis liver disease. The latter has begun already and the former will launch in the current quarter. More drugs below.

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William K. 1 month ago Member's comment

I certainly listen to V.L.! Quite an interesting article, and yes, things have been a bit scrambled. But that happens when emotions drive the truck. When sanity returns and logic prevails stability may begin to reappear.