Novo Nordisk accepts fine for violating disclosure obligation in Denmark

Novo Nordisk A/S has accepted a DKK 500,000 fine imposed by the Public Prosecutor in a suit filed by the Danish Financial Supervisory Authority and detailed in a press release issued by Novo Nordisk on 10 December 2013. In December 2013, the Danish Financial Supervisory Authority reported the company to the police for violating its obligation under Section 27 (1) of the Danish Securities Trading Act to disclose inside information as soon as possible. The reporting concerned the company’s receipt of a Complete Response Letter from the US Food and Drug Administration (FDA) in the evening of Friday 8 February 2013. In the letter, the FDA stated that approvals for the insulin products Tresiba® and Ryzodeg® could not be granted on the basis given.

Novo Nordisk published the FDA’s decision in a company announcement on Sunday 10 February 2013 following an intensive investigation and evaluation of the implications and impact of the agency’s decision. In the opinion of the Danish Financial Supervisory Authority and the Public Prosecutor, Novo Nordisk should have issued a company announcement already on the Friday evening.

Novo Nordisk is of the opinion that the company announcement was issued in a timely manner. The company maintains that even if the disclosure obligation could be said to apply already on the Friday evening, the company was entitled to delay public disclosure until the implications of the decision had been adequately analysed, which they had been on the Sunday. However, for resource reasons Novo Nordisk’s management has chosen to accept the fine to avoid a lengthy lawsuit. This will finally settle the case.

On 12 February 2013, NASDAQ OMX Copenhagen launched a similar investigation into whether Novo Nordisk had violated the disclosure obligations applicable to all companies listed on the stock exchange. On 8 May 2013, NASDAQ OMX Copenhagen informed Novo Nordisk that the stock exchange found no basis for concluding that Novo Nordisk had violated the rules, and that it considered the matter closed.