Today’s news / Novo Nordisk Soars on Rival’s Upgrade
The Danish pharmaceutical company Novo Nordisk has risen on the stock exchange, after a rival has raised its expectations for the year. (Archive photo). Photo: Tom Little/Reuters

Novo Nordisk Soars on Rival’s Upgrade

Novo Nordisk’s stock rose approximately 2% following an earnings forecast upgrade by its competitor Eli Lilly, which increased its annual revenue expectations by $2 billion. This optimism affected Novo Nordisk’s shares on the Danish stock exchange, despite having dropped over 1% earlier on the same day. Such market reactions are common when similar industry players announce positive news. Eli Lilly’s anticipation of higher revenues partly stems from more clarity on ramping up production capacities. However, Søren Løntoft Hansen of Sydbank suggests it’s uncertain if Novo Nordisk will adjust its forecast as early in the year. Novo Nordisk, which reports its quarterly results soon, has recently invested heavily in production facilities, with a budget of 45 billion Danish kroner for this year to expand their Hillerød and Kalundborg factories.