Novo Nordisk, which operates a huge insulin manufacturing plant in Clayton, took a big hit in its share price Friday after lowering its growth forecast.

The Denmark-based company said it has lowered its long-term guidance for 2016 due to a difficult U.S. market, sparking a nearly 14 percent drop in share prices in early Friday trading.

The group says the U.S. market environment “has become significantly more challenging” adding it “no longer deems it achievable” to reach the operating profit growth target of 10 percent, lowering it to 5 percent.

“We have reassessed our long-term target for operating profit growth and our R&D strategy in the light of the challenging market environment in the USA,” said CEO Lars Rebien Sørensen.

“As a result, we are reducing our global cost base and parting company with some of our valued employees. Going forward we are confident that our strong product portfolio with innovative products like Tresiba, Victoza and semaglutide will enable us to deliver on our revised growth targets.”

Novo Nordisk, one of the world’s leading makers of diabetes medicines, reported a 3-percent increase in sales and a 17-percent profit increase in the third quarter.

Last month, it announced plans to lay off some 1,000 employees globally to reduce operating costs mainly because of the U.S. markets.

However, the company remains committed to expansion of its Clayton plant.


Novo Nordisk’s statement on reducing earnings guidance:

“During 2016, the market environment in the USA has become significantly more challenging, negatively impacting future pricing for Novo Nordisk’s products. Consequently, the preliminary outlook for 2017 indicates low single-digit growth in sales and flat to low single-digit growth in operating profit, both measured in local currencies. In terms of long-term financial targets, Novo Nordisk no longer deems it achievable to reach the operating profit growth target of 10% set in February 2016. As a result, the target has been revised and Novo Nordisk is now aiming for an average operating profit growth of 5%. The two other financial targets remain unchanged.”