Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — H1 2018 Earnings Presentation
116 slides from Novo Nordisk A/s Class B's earnings presentation, Aug 8, 2018
Slide 1: Investor presentation First six months of 2018
Slide 1 Investor presentation First six months of 2018 Manato Shirley Ohara, diagnosed Adelia Stewart with has type type 1 diabetes 2 diabetes Kanagawa, Japan New Orleans, Louisiana, US
Slide 2: Agenda
Investor Presentation First six months of 2018 Slide 2 Agenda Highlights and key events Sales update R&D update Financials and outlook
Slide 3: Forward-looking statements
Investor Presentation First six months of 2018 Slide 3 Forward-looking statements Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this presentation as well as the company’s statutory Annual Report 2017 and Form 20-F, which are both filed w
Slide 4: Highlights – First six months of 2018
Investor Presentation First six months of 2018 Slide 4 Highlights – First six months of 2018 Sales development • Sales decreased by 5% in Danish kroner and increased by 4% in local currencies to DKK 54.3 billion • International Operations sales increased by 1% in Danish kroner and grew by 8% in loca
Slide 5: Sales growth driven by International Operations
Investor Presentation First six months of 2018 Slide 5 Sales growth driven by International Operations Sales as reported – first six months of 2018 Growth break down – first six months of 2018 Region Region Latin America Local currencies Growth Share of growth Japan & Korea 19% North America Operati
Slide 6: Sales growth of 4% in local currencies driven by Victoza, Ozempic and Saxenda
Investor Presentation First six months of 2018 Slide 6 Sales growth of 4% measured in local currencies mainly driven by Victoza®, Ozempic® and Saxenda® Sales as reported – first six months of 2018 Growth break down – first six months of 2018 Growth Other Local currencies Growth Share of growth disor
Slide 7: International Operations grew by 8% in H1 2018 mainly driven by insulin
Investor Presentation First six months of 2018 Slide 7 International Operations grew by 8% in H1 2018 mainly driven by insulin IO added sales in local currency IO sales as reported by product segment by product segment and region Region Europe Region AAMEO Region LATAM Long-acting insulin1 7% Region
Slide 8: Novo Nordisk volume market share ~36% of basal insulin market in the USA
Investor Presentation First six months of 2018 Slide 8 8 Novo Nordisk volume market share is now ~36% of the basal insulin market in the USA Weekly TRx volume market shares* in the USA Tresiba® launch in the USA glargine U100 NN Total Basal Levemir® • Tresiba® volume market share is now around 13%.
Slide 9: GLP-1 franchise on positive trajectory in the US with Ozempic launched
Investor Presentation First six months of 2018 Slide 9 Novo Nordisk’s GLP-1 franchise on positive trajectory in the US with Ozempic® launched and 24% market volume growth USA GLP-1 market development USA GLP-1 volume market share USA GLP-1 NBRx market share MAT GLP-1 Total TRx Growth rate NN GLP-1 d
Slide 10: Market access for the diabetes portfolio expected broadly unchanged in 2019
Investor Presentation First six months of 2018 Slide 10 Market access for the diabetes portfolio expected to be broadly unchanged in 2019 Current level of unrestricted market access for key Novo Nordisk diabetes products in the USA US formulary negotiations and 2019 pricing Unrestricted Commercial M
Slide 11: Oral semaglutide superior reductions in HbA1c and weight vs sitagliptin
Investor Presentation First six months of 2018 Slide 11 In PIONEER 3 oral semaglutide showed superior reductions in HbA1c and weight vs sitagliptin after 78 weeks Reduction in HbA1c Reduction in body weight with oral semaglutide vs sitagliptin with oral semaglutide vs sitagliptin HbA1c Weight loss r
Slide 12: Oral semaglutide consistent reduction in HbA1c and body weight in PIONEER trials
Investor Presentation First six months of 2018 Slide 12 Oral semaglutide demonstrated a consistent reduction in HbA1c and body weight in the completed PIONEER trials In completed PIONEER trials, oral semaglutide In completed PIONEER trials, oral semaglutide lowered HbA1c by 1.1–1.5%-points by end of
Slide 13: Key development milestones
Investor Presentation First six months of 2018 Slide 13 Key development milestones • Ozempic® label updated in the EU to reflect updated device offering • Xultophy® label updated in the EU based on LEADER and DEVOTE data • Successful completion of additional four phase 3a trials, PIONEER 2, 3, 4 and
Slide 14: R&D milestones in 2018
Investor Presentation First six months of 2018 Slide 14 R&D milestones in 2018 Results available1 Regulatory milestone Project Q1 2018 Q2 2018 Q3 2018 Q4 2018 DEVOTE and SWITCH2 Tresiba® US regulatory decision DUAL I Japan Phase 3a Xultophy® Japan submission DUAL II Japan Phase 3a Fiasp® Japan
Slide 15: Financial results – First six months of 2018
Investor Presentation First six months of 2018 Slide 15 Financial results – First six months of 2018 DKK million Change Change H1 2018 H1 2017 (reported DKK) (local currency) Sales 54,337 57,090 (5%) 4% Gross profit 45,788 48,430 (5%) Gross margin 84.3% 84.8% Sales and distribution costs 13,541 13,5
Slide 16: Unfavourable currency impact in H1 2018
Investor Presentation First six months of 2018 Slide 16 Unfavourable currency impact in H1 2018 driven by development in both hedged and unhedged currencies USD/DKK CNY/DKK JPY/DKK GBP/DKK CAD/DKK 110 Hedged 2017 2018 Spot Impact of a Hedging Index (1 Jan 2017= 100) Currencies average average2 rate2
Slide 17: Financial outlook for 2018
Investor Presentation First six months of 2018 Slide 17 Financial outlook for 2018 Expectations Previous expectations 8 Aug 2018 2 May 2018 Sales growth - local currencies 3% to 5% 3% to 5% Sales growth - reported Around 5 percentage points lower Around 6 percentage point lower Operating profit grow
Slide 18: Closing remarks
Investor Presentation First six months of 2018 Slide 18 Closing remarks Solid leadership positions and continued market opportunities Pipeline and product portfolio 27% Novo Nordisk value market share in diabetes > > • Leading insulin portfolio across long-acting, short- care and solid leadership po
Slide 19: Investor contact information
Investor Presentation First six months of 2018 Slide 19 Investor contact information Share information Investor Relations contacts Novo Nordisk’s B shares are listed on the stock exchange in Novo Nordisk A/S Copenhagen under the symbol ‘NOVO B’. Its ADRs are listed on Investor Relations the New York
Slide 20: Appendix
Investor Presentation First six months of 2018 Slide 20 Appendix 1. Novo Nordisk at a glance 21 2. Insulin 33 3. GLP-1 diabetes 59 4. Obesity 79 5. Biopharmaceuticals & Other serious chronic diseases 88 6. Financials 100 7. Sustainable business 112
Slide 21: Novo Nordisk at a glance
Investor Presentation First six months of 2018 Slide 21 Novo Nordisk at a glance Global leader in diabetes care Global insulin market leadership • A focused pharmaceutical company with leading positions in Global insulin market share: 46% diabetes, haemophilia and growth hormone Region Europe: Marke
Slide 22: Sales growth driven by the diabetes franchise
Investor Presentation First six months of 2018 Slide 22 Sales growth driven by the diabetes franchise Novo Nordisk reported quarterly sales Reported sales split by product segments for by therapy first six months of 2018 DKK Diabetes and obesity Haemophilia2 Long-acting insulin Premix insulin Fast-a
Slide 23: Leading positions in diabetes, obesity and haemophilia
Investor Presentation First six months of 2018 Slide 23 Novo Nordisk has leading positions in diabetes, obesity and haemophilia Diabetes Obesity Haemophilia Market value Market value Market value DKK Novo Nordisk value market share DKK Novo Nordisk value market share DKK Novo Nordisk value market sh
Slide 24: Global diabetes prevalence is increasing
Investor Presentation First six months of 2018 Slide 24 Global diabetes prevalence is increasing and 629 million people are expected to have diabetes by 2045 The number of people with diabetes is expected Around 10% of all adults globally have diabetes to increase by 48% by 2045 North America Region
Slide 25: Focus on driving global insulin growth
Investor Presentation First six months of 2018 Slide 25 Focus on driving global insulin growth by increasing the number of people benefitting from Novo Nordisk products Around 26 million people are currently treated Only 6% of all people with diabetes are treated with Novo Nordisk insulin and GLP-1
Slide 26: Strong leadership position within growing diabetes care market
Investor Presentation First six months of 2018 Slide 26 Novo Nordisk has a strong leadership position within the growing diabetes care market Global diabetes care market Global diabetes care by treatment class value market share DKK OAD GLP-1 Insulin Novo Nordisk Sanofi Eli Lilly Merck Takeda billio
Slide 27: Continued single digit volume growth within insulin segments
Investor Presentation First six months of 2018 Slide 27 Continued single digit volume growth within the insulin segments globally Fast-acting insulin Premix insulin Long-acting insulin Segment volume Segment volume Segment volume Levemir® share NovoRapid® market share NovoMix® market share Tresiba®
Slide 28: Biopharm strategy to return to growth
Investor Presentation First six months of 2018 Slide 28 Biopharm constitutes 16% of Novo Nordisk sales and a strategy has been defined to return to growth NovoSeven® and Norditropin® ‘Return to Growth’ strategy builds on organic, account for 82% of Biopharm sales1 non-organic and organisational init
Slide 29: Novo Nordisk Corporate Strategy and R&D strategy
Investor Presentation First six months of 2018 Slide 29 Novo Nordisk Corporate Strategy R&D strategy and priorities STRATEGIC PRIORITIES R&D PRIORITIES • Develop disruptive insulin and GLP-1 based products with distinct clinical and/or delivery advantages Strengthen leadership in DIABETES CARE • Dev
Slide 30: Significant growth opportunities fuelled by strong pipeline
Investor Presentation First six months of 2018 Slide 30 Significant growth opportunities fuelled by strong pipeline across all four strategic focus areas PHASE 1 PHASE 2 PHASE 3 SUBMITTED APPROVED NN1436 – LAI287 Anti-IL-21 and liraglutide Oral semaglutide N8-GP – Long-acting rFVIII Levemir® NN9513
Slide 31: Strong global presence in sales and manufacturing
Investor Presentation First six months of 2018 Slide 31 Growth opportunities supported by strong global presence in both sales and manufacturing Employees in sales regions1 Global manufacturing setup Kaluga, Russia Denmark (~9,800 employees) North America Operations: ~4,800 (~265 employees) • Diabet
Slide 32: Solid patent protection of innovative drugs
Investor Presentation First six months of 2018 Slide 32 Solid patent protection of innovative drugs Novo Nordisk’s position is protected by patents and value chain setup Barriers to entry for biosimilar players EU patent protection1 US patent protection1 Research & Development 20312 20322 • Need to
Slide 33: Insulin
Investor Presentation First six months of 2018 Slide 33 Insulin 1. Diabetes at a glance 34 2. Diabetes treatment classes 37 3. Branded diabetes market 38 4. Diabetes market segments 39 4. Novo Nordisk Diabetes product portfolio 41 5. Insulin market growth and market share 43 6. Tresiba® 57-58
Slide 34: Diabetes – the inability to manage blood sugar levels
Investor Presentation First six months of 2018 Slide 34 Diabetes – the inability to manage blood sugar levels appropriately The aim of insulin therapy is to recreate normal Facts about diabetes blood insulin profile Diabetes is a chronic disease that occurs either when the pancreas does not produce
Slide 35: Diabetes pandemic is fuelled by growing rates of obesity
Investor Presentation First six months of 2018 Slide 35 Diabetes pandemic is fuelled by growing rates of obesity US CDC data on obesity and diabetes prevalence among adults 1994 2000 2014 Obesity prevalence (BMI ≥30 kg/m2) <14.0% 14.0-17.9% 18.0-21.9% 22.0-25.9% 26.0-29.9% ≥30% Diabetes prevalence <
Slide 36: Poor diagnosis rates and lack of access to optimal treatment
Investor Presentation First six months of 2018 Slide 36 Poor diagnosis rates, lack of access to optimal treatment and poor glycaemic control remain global problems Diagnosis and optimal treatment The worldwide challenge of glycaemic control: remains a challenge – the rule of halves Mean HbA1C in typ
Slide 37: Insulin is the ultimate care for people with diabetes
Investor Presentation First six months of 2018 Slide 37 Insulin is the ultimate care for people with diabetes Progression of type 2 diabetes and treatment Distribution of patients and value across intensification treatment classes Insulin GLP-1 OAD 100% Diet and exercise 80% 38% -cell function OAD
Slide 38: Branded diabetes market has a global value of DKK ~250 billion
Investor Presentation First six months of 2018 Slide 38 The branded diabetes market has a global value of DKK ~250 billion annual DKK Rest of World USA billion 160 2016/17 total: DKK 253 billion Growth: -7% 2017/18 total: DKK 249 billion 144 140 134 120 78 100 68 80 Growth: -5% 56 53 Growth: 21% 60
Slide 39: The insulin market is comprised of three segments
Investor Presentation First six months of 2018 Slide 39 The insulin market is comprised of three segments Insulin action profiles Global insulin volume market by segment tMU CAGR volume1: 4.8% 600 CAGR value1: 15.3% Fast-acting 500 35% 400 Fast-acting 34% Premix 300 Premix 25% 200 29% Long-acting 10
Slide 40: Medications used for the treatment of type 2 diabetes
Investor Presentation First six months of 2018 Slide 40 Medications used for the treatment of type 2 diabetes Commonly prescribed product classes for the treatment of type 2 diabetes HbA1C Hypoglycae- Weight Dosing Contraindication/ Class CVD risk change mia risk change (pr. day) undesired effects M
Slide 41: Product portfolio covers the type 2 diabetes treatment cascade
Investor Presentation First six months of 2018 Slide 41 Novo Nordisk current and future product portfolio covers the type 2 diabetes treatment cascade1 Overview of current and future products in Novo Nordisk’s diabetes portfolio When basal insulin is not enough When When it's time metformin is for i
Slide 42: Broad insulin portfolio with three generations of products
Investor Presentation First six months of 2018 Slide 42 Novo Nordisk holds a broad insulin portfolio with three generations of products covering the treatment cascade Novo Nordisk product portfolio includes three Commercial focus depends on market maturity generations of insulin products and market
Slide 43: Increased market share in long-acting insulin
Investor Presentation First six months of 2018 Slide 43 Novo Nordisk increased market share in long-acting insulin and sustained leadership in fast-acting and premix insulin Long-acting insulin1 volume Fast-acting insulin2 volume Premix insulin3 volume market market share across regions market share
Slide 44: Stable global insulin volume growth
Investor Presentation First six months of 2018 Slide 44 Stable global insulin volume growth Regional insulin volume growth Regional insulin volume market split North America Region Europe Region AAMEO North America Region Europe Region AAMEO Region China Region J&K Region LATAM Region China Region J
Slide 45: Strong underlying insulin market growth and sustained market share
Investor Presentation First six months of 2018 Slide 45 Strong underlying insulin market growth and sustained global volume market share Global modern and new-generation insulin Global insulin market volume market shares Device penetration Modern insulin penetration1 Novo Nordisk Sanofi Eli Lilly tM
Slide 46: Market leader in the USA in modern and new-generation insulin
Investor Presentation First six months of 2018 Slide 46 Novo Nordisk is the market leader in the USA within the modern and new-generation insulin segment Modern insulin and new-generation insulin USA insulin market by segment volume market shares in the USA Device penetration Modern Insulin penetrat
Slide 47: Stable market position in the USA insulin market
Investor Presentation First six months of 2018 Slide 47 Novo Nordisk’s modern and new generation insulins have a stable market position in the USA insulin market USA fast-acting insulin USA premix insulin USA long-acting insulin Segment volume Segment volume Segment volume Levemir® share NovoLog® sh
Slide 48: US health insurance dominated by few large commercial payers
Investor Presentation First six months of 2018 Slide 48 US health insurance is dominated by few large commercial payers with slow expansion of public insurance coverage US population by health insurance status In 2018, PBMs covered 288 million lives and expected to remain stable in coming years the
Slide 49: Key diabetes care products remain broadly available in the USA
Investor Presentation First six months of 2018 Slide 49 Key Novo Nordisk diabetes care products remain broadly available in the USA Value market shares of key % share of unrestricted market access of key Novo Nordisk products in the USA Novo Nordisk products in the USA Value market Victoza® NovoLog®
Slide 50: Leadership in European modern and new-generation insulin market
Investor Presentation First six months of 2018 Slide 50 Sustained leadership position in the European modern and new-generation insulin market European modern insulin and new-generation European insulin market by segment insulin volume market shares Device penetration MI and NGI penetration Novo Nor
Slide 51: Stable insulin leadership position in Region AAMEO
Investor Presentation First six months of 2018 Slide 51 Stable insulin leadership position in Region AAMEO comprising Africa, Asia, Middle-East and Oceania Region AAMEO modern and new-generation Region AAMEO insulin market by segment insulin volume market shares Device penetration MI and NGI penetra
Slide 52: Solid insulin market leadership in Region Japan & Korea
Investor Presentation First six months of 2018 Slide 52 Solid insulin market leadership position in Region Japan & Korea Japan & Korea modern and new-generation Japan & Korea insulin market by segment insulin volume market shares Device penetration MI and NGI penetration Novo Nordisk Sanofi Eli Lill
Slide 53: Solid Tresiba performance strengthens basal insulin share in Japan
Investor Presentation First six months of 2018 Slide 53 Solid Tresiba® performance strengthens basal insulin market share in Japan Japanese basal value market shares Japanese total insulin value market shares Tresiba® Levemir® glargine U100 glargine U300 Novo Nordisk Eli Lilly Sanofi NPH biosimilar
Slide 54: Solid volume growth in the Chinese insulin market
Investor Presentation First six months of 2018 Slide 54 Solid volume growth in the Chinese insulin market Chinese insulin market by segment Chinese insulin volume market shares Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Tonghua Dongbao tMU Penetration Sanofi Gan & Lee Other
Slide 55: Continued value growth in Chinese long-acting insulin segment
Investor Presentation First six months of 2018 Slide 55 Continued value growth in the Chinese long-acting insulin segment Chinese insulin market by segment Chinese total insulin value market shares DKK Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Tonghua Dongbao billion Penet
Slide 56: Strengthened insulin volume market share in Latin America
Investor Presentation First six months of 2018 Slide 56 Strengthened insulin volume market share in Region Latin America Latin America modern and new-generation Latin America insulin market by segment insulin volume shares Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Sanofi t
Slide 57: Tresiba sets a new standard for basal insulin initiation
Investor Presentation First six months of 2018 Slide 57 Tresiba® sets a new standard for basal insulin initiation by lowering the risk of hypoglycaemia Tresiba® is a leap on the innovation ladder by Tresiba® has consistently demonstrated further reducing nocturnal hypoglycaemia relevant reductions i
Slide 58: Competitive Tresiba label across the USA, Europe and Japan
Investor Presentation First six months of 2018 Slide 58 Competitive Tresiba® label across the USA, Europe and Japan Tresiba® label characteristics in the USA, Europe and Japanese markets USA Europe Japan • Duration of action up to 26 hours in • Half-life of 25 hours and duration of • Duration of act
Slide 59: GLP-1
Investor Presentation First six months of 2018 Slide 59 GLP-1 1. GLP-1 treatment 60 2. GLP-1 market growth and market share 61 3. Victoza® market share 63 4. GLP-1 vs OAD 64 5. Victoza® value growth and market share 65 6. GLP-1 pipeline 66 7. Ozempic® 67 8. GLP-1 market value in Regions 68 9. Clinic
Slide 60: GLP-1 effect dependent on level of blood glucose
Investor Presentation First six months of 2018 Slide 60 GLP-1 effect dependent on level of blood glucose GLP-1 mechanism of action when blood GLP-1 lowers blood glucose in patients sugar levels increase with type 2 diabetes • Increases insulin secretion in the pancreas Glucose Type 2 diabetes patien
Slide 61: GLP-1 segment accounts for 13% of global diabetes care market value
Investor Presentation First six months of 2018 Slide 61 The GLP-1 segment accounts for 13% of the global diabetes care market value GLP-1 value and patient share of the total Global GLP-1 market diabetes care market GLP-1 value Victoza® Ozempic® Share of total Share of total GLP-1 value share of tot
Slide 62: Strong GLP-1 volume growth in all regions
Investor Presentation First six months of 2018 Slide 62 Strong GLP-1 volume growth in all regions Regional GLP-1 volume growth Regional GLP-1 volume market split North America Region Europe Region AAMEO North America Region Europe Region AAMEO Region China Region J&K Region LATAM Region China Region
Slide 63: Victoza maintains 14% value market share
Investor Presentation First six months of 2018 Slide 63 Victoza® maintains a 14% value market share in the GLP-1, SGLT-2 and DPP-IV segment Segment value Share of segment value growth Segment value market shares DKK Victoza® Other GLP-1 SGLT-2 DPP-IV billion 250 100% 100% 12% 13% 200 80% 80% CAGR1 v
Slide 64: GLP-1 patients primarily switch from OADs
Investor Presentation First six months of 2018 Slide 64 GLP-1 patients primarily switch from OADs and untapped potential is large with many OAD patients not in control GLP-1 source of business Share of patients on OADs achieving (new-to-brand prescription market share) HbA1c below 7% in major Europe
Slide 65: Significant growth in GLP-1 market with leading Victoza share
Investor Presentation First six months of 2018 Slide 65 Significant growth in GLP-1 market with leading market share for Victoza® Global GLP-1 market value and share of total Novo Nordisk GLP-1 value market share diabetes care market value leading in all regions except Japan & Korea Victoza® dulaglu
Slide 66: Ambition for Ozempic to become leading weekly GLP-1
Investor Presentation First six months of 2018 Slide 66 Ambition for Ozempic® to become leading weekly GLP-1, with daily GLP-1 use shifting to oral semaglutide Promotional focus to shift from Victoza® Aim for Ozempic® and oral semaglutide towards Ozempic® as market access emerges to replace Victoza®
Slide 67: Ozempic approved in the USA and in the EU
Investor Presentation First six months of 2018 Slide 67 approved in the USA and in the EU CV data from SUSTAIN 6 trial Ozempic® label in the USA in Ozempic® EU label • Adjunct to diet and exercise to improve Profile glycaemic control Safety Ozempic® label Victoza® label • Two therapeutic dosages, 0.
Slide 68: GLP-1 segment accounts for 15% of market value in North America
Investor Presentation First six months of 2018 Slide 68 The GLP-1 segment accounts for 15% of total diabetes care market value in North America North America GLP-1 market Key observations for Victoza® in the US market GLP-1 value Victoza® Ozempic® Share of total in DKK dulaglutide other diabetes car
Slide 69: GLP-1 segment around 11% of market value in Europe
Investor Presentation First six months of 2018 Slide 69 The GLP-1 segment accounts for around 11% of total diabetes care market value in Europe European GLP-1 market Victoza® value market share in Europe GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dulaglutide in DKK exenatid
Slide 70: GLP-1 segment 3% of market value in Region AAMEO
Investor Presentation First six months of 2018 Slide 70 The GLP-1 segment accounts for 3% of total diabetes care market value in Region AAMEO Region AAMEO GLP-1 market Victoza® value market share in Region AAMEO GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dulaglutide in DKK
Slide 71: GLP-1 segment around 1% of market value in Region China
Investor Presentation First six months of 2018 Slide 71 The GLP-1 segment accounts for around 1% of the total diabetes care market value in Region China China GLP-1 market Victoza® value market share in China GLP-1 value Victoza® exenatide Share of total GLP-1 value Victoza® exenatide in DKK diabete
Slide 72: GLP-1 segment around 5% in Region Japan & Korea
Investor Presentation First six months of 2018 Slide 72 The GLP-1 segment accounts for around 5% of the total diabetes care market in Region Japan & Korea Japan & Korea GLP-1 market Victoza® value market share in Japan & Korea GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dula
Slide 73: Strong Victoza market leadership in Latin America
Investor Presentation First six months of 2018 Slide 73 Strong Victoza® market leadership in Region Latin America Latin America GLP-1 market Victoza® value market share in Latin America GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dulaglutide in DKK exenatide other diabetes c
Slide 74: SUSTAIN phase 3a trials with semaglutide successfully completed
Investor Presentation First six months of 2018 Slide 74 SUSTAIN phase 3a trials with semaglutide successfully completed SUSTAIN 1 2 3 4 5 6 Baseline 8.1% 8.1% 8.3% 8.2% 8.4% 8.7% 0.0 -0.1 -0.5 Change in -0.8 -0.4 -0.9 HbA1c (%) -1.1 -1.3 -1.2 -1.4 -1.4 -1.6 -1.5 -1.5 * -1.6 * -1.6 * * * -1.8 * * * *
Slide 75: Semaglutide superiority vs dulaglutide in SUSTAIN 7
Investor Presentation First six months of 2018 Slide 75 Semaglutide demonstrated superiority on both glucose control and weight loss vs dulaglutide in SUSTAIN 7 trial dulaglutide 0.75 mg dulaglutide 1.5 mg semaglutide 0.5 mg semaglutide 1.0 mg HbA1c (%) Weight loss (kg) 8.5 0.0 8.0 -2.3 kg -2.0 -3.0
Slide 76: Oral semaglutide in 26-week phase 2 trial
Investor Presentation First six months of 2018 Slide 76 Oral semaglutide reduced HbA1c and body weight in a 26-week phase 2 trial in type 2 diabetes HbA1c reduction from a mean baseline of 7.9% Weight loss from a mean base line of 92 kg Placebo Sema 2.5 mg Sema 5 mg Sema 10 mg Sema 20 mg Sema 40 mg
Slide 77: 5 of 10 PIONEER trials completed
Investor Presentation First six months of 2018 Slide 77 77 5 out of 10 PIONEER trials for oral semaglutide are completed, rest are expected to read out during H2 2018 2016 2017 Q1 20181 Q2 20181 Q3 20181 Q4 20181 PIONEER 1: monotherapy2 26 weeks, n=704 PIONEER 2: vs empagliflozin2 52 weeks, n=816
Slide 78: 52–80% of patients on oral semaglutide achieved HbA1c <7%
Investor Presentation First six months of 2018 Slide 78 In the completed PIONEER trials between 52–80% of patients on oral semaglutide achieved an HbA1c level <7% In completed PIONEER trials 52–80% of patients In completed PIONEER trials 28–49% of patients achieved an HbA1c level <7.0% (ADA guidance
Slide 79: Obesity
Investor Presentation First six months of 2018 Slide 79 Obesity 1. Obesity as a chronic disease 80 2. Obesity treatment 81 3. Saxenda® 83 4. Obesity pipeline 85 5. STEP and SELECT 87
Slide 80: Obesity is a chronic disease that requires treatment
Investor Presentation First six months of 2018 Slide 80 Obesity is a chronic disease that requires treatment The set-point theory portrays how metabolic The body fights weight loss for changes affect the ability to lose weight people with obesity • The body “remembers” its highest body weight and de
Slide 81: Treatment rate is low and requires a change of mindset
Investor Presentation First six months of 2018 Slide 81 Treatment rate is low and an increase requires a change of mindset and physician engagement Only 2% of the 650 million people with obesity are treated with prescription medication Key barriers to effective obesity management 650 million • Belie
Slide 82: Healthcare cost associated with obesity expected to increase
Investor Presentation First six months of 2018 Slide 82 The healthcare cost associated with obesity expected to increase Global healthcare costs related to obesity Increase in healthcare costs primarily driven expected to increase by 50% by 2025 by obesity-related comorbidities • Today, 650 million
Slide 83: Saxenda now launched in 30 countries
Investor Presentation First six months of 2018 Slide 83 Saxenda® now launched in 30 countries Saxenda® value share of anti-obesity medications in selected countries Saxenda® sales in H1 20181 Mexico Australia USA Canada DKK Saxenda® local currency growth Germany Italy Brazil Denmark million UAE Spai
Slide 84: Saxenda has rapidly grown value market share
Investor Presentation First six months of 2018 Slide 84 Saxenda® has rapidly grown value market share, but market development efforts are required to expand the market Despite strong Saxenda® growth, US obesity care Novo Nordisk is investing in overcoming the market remains small at around USD 787 m
Slide 85: Obesity pipeline addressing appetite reduction and energy expenditure
Investor Presentation First six months of 2018 Slide 85 The obesity pipeline consists of projects addressing both appetite reduction and energy expenditure How to address obesity from a medical perspective Novo Nordisk obesity products and pipeline Projects: Status: 2018 expected: Saxenda® Launched
Slide 86: Semaglutide unprecedented weight loss in phase 2 obesity trial
Investor Presentation First six months of 2018 Slide 86 Semaglutide demonstrated unprecedented weight loss in phase 2 obesity trial 16.2% weight reduction with the highest semaglutide dose in phase 2 obesity trial Key results and next steps Change in sema 0.05 mg sema 0.1 mg • Participants in the hi
Slide 87: Phase 3a programme STEP initiated and SELECT to be initiated
Investor Presentation First six months of 2018 Slide 87 Phase 3a programme STEP has been initiated and CV outcomes study SELECT to be initiated during 2018 Semaglutide in obesity phase 3a programme, Cardiovascular outcomes study, SELECT, STEP, expected to include ~4,500 patients1 planned for semaglu
Slide 88: Biopharm and other chronic areas
Investor Presentation First six months of 2018 Slide 88 Biopharm and other chronic areas 1. Biopharm at a glance 89 2. Haemophilia – a rare disease 90 3. Haemophilia market 91 4. NovoSeven® 92 5. NovoEight® 93 6. Refixia®/Rebinyn® 94 7. N8-GP 95 8. Growth Hormone market 96 9. Other chronic disease 9
Slide 89: Biopharm R&D efforts reflect commitment to unmet patient needs
Investor Presentation First six months of 2018 Slide 89 Biopharm R&D efforts reflect Novo Nordisk’s commitment to satisfy unmet patient needs Aim to develop subcutaneous haemophilia products and long-acting growth hormone Novo Nordisk Biopharm portfolio Haemophilia Growth hormone Pursue subcutaneous
Slide 90: Haemophilia is a rare disease with severe unmet medical needs
Investor Presentation First six months of 2018 Slide 90 Haemophilia is a rare disease with severe unmet medical needs Number of people with haemophilia A and B Low diagnosis and treatment rates and haemophilia with inhibitors within haemophilia Number of Average percentage of people people (000) wit
Slide 91: Global haemophilia market is growing by high-single digit
Investor Presentation First six months of 2018 Slide 91 Global haemophilia market is growing by high-single digit Strategic positioning of Novo Nordisk’s Sales of recombinant coagulation factors haemophilia portfolio NovoSeven® Recombinate®/Advate® Idelvion® Novo Nordisk Coagil VII® Kogenate®/Helixa
Slide 92: ~50% of historic NovoSeven sales exposed to competition
Investor Presentation First six months of 2018 Slide 92 ~50% of historic NovoSeven® sales exposed to competition, but opportunities remain in other indications Opportunities and challenges for Estimated NovoSeven® sales by indication1 NovoSeven® franchise CHwI PPx (A&B) CHwI on demand (A&B) Challeng
Slide 93: NovoEight volumes continue to grow
Investor Presentation First six months of 2018 Slide 93 NovoEight® volumes continue to grow despite increasing penetration of long-acting FVIII products NovoEight® roll-out continues and the number NovoEight® has potential to increase volume of patients has steadily increased share in select segment
Slide 94: Strong growth among long-acting haemophilia B products
Investor Presentation First six months of 2018 Slide 94 Strong growth among long-acting haemophilia B products as Refixia®/Rebinyn® is set for launch in the EU and the USA Reported recombinant FIX sales Refixia®/Rebinyn® launched in first countries Sales Benefix® Alprolix® Idelvion® • Launched in th
Slide 95: N8-GP reduces median bleeding rate in phase 3 trial
Investor Presentation First six months of 2018 Slide 95 N8-GP administered every fourth day reduces median bleeding rate to 1.3 episode per year in phase 3 trial N8-GP phase 1 pharmacokinetics Pathfinder 2 headline results (phase 3) FVIII activity FVIII N8-GP • PK documented single dose half-life of
Slide 96: Novo Nordisk maintains leadership within growth disorder
Investor Presentation First six months of 2018 Slide 96 Novo Nordisk maintains leadership within growth disorder Development in global growth disorder market Growth disorder volume market share DKK MAT volume kg MAT value DKK Novo Nordisk Pfizer Sandoz billion kg Eli Lilly Merck Kgaa CAGR volume1: 1
Slide 97: Somapacitan phase 3 extension trial in adults and phase 2 in children
Investor Presentation First six months of 2018 Slide 97 Phase 3 extension trial in adults and phase 2 trial in children for once-weekly somapacitan to conclude in 2018 Somapacitan IGF-1 levels similar to daily Phase 3a AGHD trial and phase 2 GHD Norditropin® in REAL 1 phase 3 AGHD trial successfully
Slide 98: Other serious chronic diseases
Investor Presentation First six months of 2018 Slide 98 Other serious chronic diseases Serious chronic diseases are often associated New therapeutic areas represent patient with diabetes and obesity populations with high unmet medical needs • 70% of people with diabetes Estimated patients Number of
Slide 99: Trials in obesity and other serious chronic disease areas
Investor Presentation First six months of 2018 Slide 99 Trials in obesity and other serious chronic disease areas building on the semaglutide molecule Planned or ongoing trials with semaglutide Ongoing phase 2 trial with daily semaglutide vs addressing other serious chronic diseases placebo in patie
Slide 100: Financials
Investor Presentation First six months of 2018 Slide 100 Financials 1. Sales growth 101 2. Operating Profit growth 103 3. Cost distribution 104 4. COGS & CAPEX as percent of sales 105 5. Cash return to shareholders 106 6. Currency impact 108 7. Ownership structure 111
Slide 101: Solid sales growth driven by diabetes care
Investor Presentation First six months of 2018 Slide 101 Solid sales growth driven by diabetes care Reported annual sales 2013-2017 Reported annual sales split by region North America Region Europe Region AAMEO DKK Diabetes Biopharmaceuticals Region China Region J&K Region LATAM billion 120 CAGR1 7.
Slide 102: Victoza accounts for 22% of total sales in H1 2018
Investor Presentation First six months of 2018 Slide 102 Victoza® accounts for 22% of total sales in first six months of 2018 Reported currencies Sales Q2 2018 (mDKK) Sales split Sales full H1 2018 (mDKK) Sales split Tresiba® 1,952 7% 3,707 7% Levemir® 3,023 11% 5,803 11% NovoRapid® 4,799 18% 9,494
Slide 103: Solid operating profit growth driven by diabetes
Investor Presentation First six months of 2018 Slide 103 Solid operating profit growth driven by diabetes Operating profit Operating profit therapy split DKK Operating profit Operating profit as % of sales Diabetes Biopharm billion Reported operating profit growth 60 Operating profit growth in local
Slide 104: Higher profitability in the biopharmaceuticals segment
Investor Presentation First six months of 2018 Slide 104 Higher profitability in the biopharmaceuticals segment driven by lower COGS and S&D costs Diabetes & Obesity P&L – full year 2017 Biopharmaceuticals P&L – full year 2017 DKK DKK billion Sales ratios billion Sales ratios 100 -16% 30 -27% 80 24
Slide 105: Stable COGS level and increasing CAPEX level
Investor Presentation First six months of 2018 Slide 105 Stable COGS level as % of sales and increasing CAPEX level Cost of Goods Sold (COGS) Capital Expenditure (CAPEX) DKK COGS as % of sales DKK CAPEX Expected CAPEX CAPEX as % of sales billion COGS billion 20 25% Thousands 12 10% 20% 15 10 8% 15%
Slide 106: Long-term financial targets
Investor Presentation First six months of 2018 Slide 106 Long-term financial targets support focus on profitable growth, capital allocation and cash conversion Operating profit growth in Operating profit after tax to Cash to earnings local currencies net operating assets (three-year average) Current
Slide 107: Cash return to shareholders in 2018
Investor Presentation First six months of 2018 Slide 107 Cash return to shareholders in 2018 Annual cash return to shareholders Cash return priorities DKK Share repurchase Interim dividend Dividend • Share repurchase programme of up to DKK 14 billion to be billion Free cash flow Free cash flow guida
Slide 108: Currency impact on Novo Nordisk's P/L
Investor Presentation First six months of 2018 Slide 108 EXAMPLE Currency impact on Novo Nordisk’s P/L Operational currency impact Financial currency impact • All movements in currencies will directly • All gain/losses from hedging contracts are impact the individual reported functional included in
Slide 109: Currency impact on operating profit
Investor Presentation First six months of 2018 Slide 109 EXAMPLE Currency impact on operating profit Operational currency impact Avg FX Yearly impact of Estimated impact Key Avg FX rate %-change 5% change from key currencies rate 2016 Operational currency impact in 2017 2017 (mDKK) currencies • The
Slide 110: Key currency development 2017 vs 2018
Investor Presentation First six months of 2018 Slide 110 Key currency development 2017 vs 2018 Average FX Q1 Q1 Q1 Q2 Q2 Q2 Q3 Q32 Q3 Q4 Q4 Q4 FY FY FY rates1 2017 2018 Change 2017 2018 Change 2017 2018 Change 2017 2018 Change 2017 20183 Change USD/DKK 698 606 -13% 676 625 -8% 633 640 1% 632 642 2%
Slide 111: Stable ownership structure
Investor Presentation First six months of 2018 Slide 111 Stable ownership structure - secured through A and B-share structure Share structure The Novo Nordisk Foundation • The Novo Nordisk Foundation is a self-governing institution Novo Nordisk Foundation that: Institutional and private • provides a
Slide 112: Sustainability
Investor Presentation First six months of 2018 Slide 112 Sustainability 1. Novo Nordisk Way and Triple Bottom line 113 2. Employee Heath and Safety 114 3. Business Environment 115 4. Novo Nordisk on Natural Resources 116
Slide 113: Sustainable business
Investor Presentation First six months of 2018 Slide 113 Sustainable business The Novo Nordisk Way The Triple Bottom Line Business Principle Financially responsible Socially Environmentally responsible responsible We build on the purpose set by our founders and live by their The Triple Bottom Line P
Slide 114: Healthy, engaging and inclusive workplace
Investor Presentation First six months of 2018 Slide 114 Novo Nordisk offers a healthy, engaging and inclusive workplace with development opportunities for employees Employee health and safety and engagement Novo Nordisk is committed to building a are key focus areas for management diverse and inclu
Slide 115: Shaping and adapting to conditions in the business environment
Investor Presentation First six months of 2018 Slide 115 Shaping and adapting to conditions in the business environment Enhancing access to affordable, high quality Cities Changing Diabetes works to insulin is a key priority bend the curve on urban diabetes 5 million people 6 product recalls with di
Slide 116: Minimisation in use of scarce natural resources
Investor Presentation First six months of 2018 Slide 116 Novo Nordisk prioritises minimisation in use of non-depletable or scarce natural resources Least possible use of resources, lower On track to have all production sites emissions and less waste are priorities run 100% on renewable power by 2020