Updated on 11 December 2013
The Danish Financial Supervisory Authority (FSA) revealed that the firm should have issued a statement about the US decision immediately that its product Tresiba had been refused US approval
Singapore: Novo Nordisk is being investigated by the Danish police for not disclosing the fact that its product Tresiba had been refused US approval. The probe may tarnish the firm's reputation and could leave it open to lawsuits from investors in the US.
The Danish Financial Supervisory Authority (FSA) revealed that the firm should have issued a statement about the US decision immediately. Novo Nordisk said that its announcement about Tresiba was issued "in a timely manner". However, the firm will cooperate with the investigation, which could result in a modest fine.
A police spokesman said it was still awaiting details of the case to be passed on from the FSA. The drugmaker argues that even if the disclosure obligation applied, the time it received the bad news from the FDA, it was entitled to delay an announcement until it had analyzed the implications.
But the situation is complicated by the fact that although the FDA news came after the Danish market was closed, it was still possible to trade Novo shares over the counter and through banking systems. Furthermore, trading in Novo's American depository receipts was still active.