Novo Nordisk (NYSE:NVO) has settled a securities lawsuit in Denmark filed in August 2019 in the district court of Glostrup.
In 2019, Novo Nordisk vowed to fight the allegations contained in the lawsuit, which alleged that the company’s insulin-related profits fell at the same time prices and sales increased from February 2015 and February 2017. The dip in profits resulted from an uptick in rebates to pharmacy benefit managers.
Investors behind the suit claimed that Novo Nordisk had exaggerated its U.S. insulin revenue in this time period.
In the settlement, the Bagsværd, Denmark–based company did not admit any liability or wrongdoing.
The lawsuit was related to several shareholders alleging that Novo Nordisk did not appropriately disclose facts related to its U.S. sales of insulin products. The shareholders initially sought DKK 11,785,192,218 (approximately $1.8 billion) in damages.
NVO shares have fallen steadily in January 2022 in the wake of the company announcing a contract manufacturing setback in late 2021 related to semaglutide, an antidiabetic medication also indicated for chronic weight management. Novo Nordisk projected that supplies of its Wegovy semaglutide pens in the U.S. market would be limited in the first half of 2022.
A Form 483 from the FDA revealed that the contract manufacturer involved in the setback was a Catalent syringe plant in Brussels.