Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Non-Deal Roadshow (August 2007)
55 slides from Novo Nordisk A/s Class B's roadshow presentation, Aug 30, 2007
Slide 1: A focused healthcare company
Investor presentation A focused healthcare company Investor presentation – First six months of 2007 Tokyo, Japan, August 30-31, 2007
Slide 2: Forward-looking statements
Investor presentation First six months of 2007 Slide no 2 Forward-looking statements The above contains forward-looking statements as the term is defined in the US Private Securities Litigation Reform Act of 1995. This in particular relates to information included under the headings ‘Outlook 2007’,
Slide 3: Agenda
Investor presentation First six months of 2007 Slide no 3 Agenda • Highlights and strategy • Sales update • R&D update • Financials
Slide 4: Highlights
Investor presentation First six months of 2007 Slide no 4 Highlights Sales development: • Sales of modern insulins increased by 37% (31% as reported) • Sales of NovoSeven® increased by 11% (5% as reported) • Sales of Norditropin® increased by 13% (7% as reported) • Sales in North America increased b
Slide 5: Novo Nordisk's corporate strategy
Investor presentation First six months of 2007 Slide no 5 Novo Nordisk’s corporate strategy Focus areas Compounds/Capabilities Strategic focus Insulin Drug delivery and protein expertise 1. Diabetes Maintain Leadership GLP-1 Global specialist reach Other proteins rFVIIa 2. Biopharmaceuticals rFXIII
Slide 6: Sales update
Investor presentation First six months of 2007 Slide no 6 Sales update
Slide 7: Insulin world market leader with 52% market share
Investor presentation First six months of 2007 Slide no 7 Insulin world market leader with 52% market share Europe North America Novo Nordisk #1 Novo Nordisk #1 Market share 57% Market share: 42% International Operations Japan & Oceania Novo Nordisk #1 Novo Nordisk #1 Market share: 59% Market share:
Slide 8: Solid insulin market growth - Novo Nordisk market leadership
Investor presentation First six months of 2007 Slide no 8 Solid insulin market growth - Novo Nordisk market leadership Market size Growth rates Novo Nordisk market share Market Novo Nordisk US 10,1% 42% 39% 4,3% Europe 3,8% 51% 57% 4,9% Japan 6,2% 74% 5% 6,2% World 6,1% 52% 100% 4,9% Note: Volume da
Slide 9: Growth in Novo Nordisk's insulin franchise looks set to continue
Investor presentation First six months of 2007 Slide no 9 Growth in Novo Nordisk’s insulin franchise looks set to continue IMS developed world insulin Rapid increase in number of market growth people with diabetes Volume: 2007 2025 350 6.1% 300 2007: 246 million Value: 10.4% 250 2025: 380 million DK
Slide 10: Key products continue to drive growth
Investor presentation First six months of 2007 Slide no 10 Key products continue to drive growth – first six months of 2007 Sales as reported Growth analysis Other Norditropin® +2% Local currencies Growth Share of +7% growth 5% 8% Diabetes care Modern insulins 37% 68% NovoSeven® +11% Human insulins
Slide 11: Modern insulins
Investor presentation First six months of 2007 Slide no 11 Modern insulins Market share of total segment (IMS developed world) Modern insulin sales as reported 50% Levemir® NovoLog® DKK 1.1bn NovoRapid® NovoMix® +79% DKK 3.2bn 40% Levemir® 16% +23% 30% NovoMix® DKK 2.3bn 35% 49% +25% 20% 10% 0% Janu
Slide 12: A continued increase in modern insulin market share
Investor presentation First six months of 2007 Slide no 12 A continued increase in modern insulin market share IMS world modern insulin Modern insulin penetration market shares, volume 80% Novo Nordisk 70% Eli Lilly 60% Sanofi-Aventis 52% 20% Modern insulin 50% 40% 30% Human insulin 20% 10% 0% Q1 Q1
Slide 13: NovoSeven
Investor presentation First six months of 2007 Slide no 13 NovoSeven® NovoSeven® sales development Key observations • Growth in the second quarter of 1,600 5% in local currencies and : 13 % unchanged as reported 1,400 GR CA 1,200 • North American sales main DKK million contributor to growth 1,000 •
Slide 14: Norditropin
Investor presentation First six months of 2007 Slide no 14 Norditropin® Norditropin® sales development Key observations • Growth in the second quarter of 10% in local currencies and 5% 1,000 as reported 900 1 5% 800 GR: • North American sales main CA contributor to growth DKK million 700 600 • Nordi
Slide 15: Sales by region
Investor presentation First six months of 2007 Slide no 15 Sales by region - first six months of 2007 Sales as reported Growth analysis Japan & Oceania -5% Europe Local Growth Share of +7% currencies growth 10% International Europe 7% 19% Operations North America 25% 54% +12% 18% 39% International 1
Slide 16: Levemir reinforces European modern insulin market leadership
Investor presentation First six months of 2007 Slide no 16 Levemir® reinforces European modern insulin market leadership Share of total modern insulin Novo Nordisk’s share of long- sales in Europe acting modern insulin in Europe 25% 23% 80% Novo Nordisk Eli Lilly 70% Sanofi-Aventis 20% 60% 50% 15% 4
Slide 17: US diabetes performance
Investor presentation First six months of 2007 Slide no 17 US diabetes performance Novo Nordisk’s US insulin US insulin market share sales development development Index 80% local currencies 70% Novo Nordisk 600 Eli Lilly 60% Sanofi-Aventis 500 % : 39 50% A GR 400 C 40% 300 30% 200 20% 100 10% 0 0% Q
Slide 18: Levemir launch in the US
Investor presentation First six months of 2007 Slide no 18 Levemir® launch in the US Levemir® share of total basal modern insulin prescriptions Key observations • Increase in US sales force by 700 7% to 1,900 completed in June 6% • High level of formulary coverage: 5% 80% of total lives at co-prefer
Slide 19: Steady insulin market growth in Japan
Investor presentation First six months of 2007 Slide no 19 Steady insulin market growth in Japan 12% 10% 8% 12 months +5.5% 6% 3 months 4% +3.1% 2% 0% 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 2004 2005 2006 2007 3 month 12 month Source : IMS-JPM, Volume
Slide 20: Solid market shares in Japan with modern insulins penetrating the market
Investor presentation First six months of 2007 Slide no 20 Solid market shares in Japan with modern insulins penetrating the market 110% 100% 100% 90% 90% 26,0 % 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 75,8 46.4% % 30% 30% 20% 20% 10% 10% 75% 76% 76% 76% 77% 76% 76% 77% 77% 77% 77% 77% 77% 77% 76% 7
Slide 21: Novo Nordisk drives the conversion to modern insulins
Investor presentation First six months of 2007 Slide no 21 Novo Nordisk drives the conversion to modern insulins 16% 14.8% 14% 13.9% 12% 10% 8% 7.2% 6% 4.9% 4% 4.2% 2% 0% 1 2 3 4 5 6 7 8 9 1011121 2 3 4 5 6 7 8 9 1011121 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 2004 2005 2006 2007 NovoRapid® 300 NovoRapid
Slide 22: R&D update
Investor presentation First six months of 2007 Slide no 22 R&D update
Slide 23: Development portfolio – diabetes
Investor presentation First six months of 2007 Slide no 23 Development portfolio – diabetes Compound Type Indication Phase Levemir® Modern insulin Types 1+2 Launched in US, Europe, etc., filed in JP NovoMix® 50 and 70 Modern insulin Types 1+2 Launched in Europe, filed in US Liraglutide GLP-1 analogu
Slide 24: Liraglutide phase 3 programme
Investor presentation First six months of 2007 Slide no 24 Liraglutide phase 3 programme Overall objective Primary Comparator Number of Overall inclusion Results (effect of) endpoint arms subjects criterion expected LEAD 1: Liraglutide HbA1c a) glimepiride 1026 Subjects with type 2 Completed in comb
Slide 25: Strong clinical profile of liraglutide
Investor presentation First six months of 2007 Slide no 25 Strong clinical profile of liraglutide First three of five phase 3 studies successfully completed • Significant HbA1c reduction: • 1.5 - 2.0% in monotherapy • 1.0 – 1.5% in combination with OADs • Significant relative weight reduction of 2 –
Slide 26: Development portfolio – haemostasis
Investor presentation First six months of 2007 Slide no 26 Development portfolio – haemostasis Compound Indication Phase NovoSeven® Heat-stable formulation Filed in Europe and US NovoSeven® Trauma Phase 3 NovoSeven® Prophylaxis Phase 2 completed NovoSeven® Spinal surgery (dose escalation) Phase 2 co
Slide 27: Development portfolio - other biopharmaceuticals
Investor presentation First six months of 2007 Slide no 27 Development portfolio - other biopharmaceuticals Compound Indication Phase Activelle® low dose Hormone replacement therapy Launched in US, filed in Europe Vagifem® low dose Hormone replacement therapy Phase 3 completed in US, phase 3 in Euro
Slide 28: Financials
Investor presentation First six months of 2007 Slide no 28 Financials
Slide 29: Financial results
Investor presentation First six months of 2007 Slide no 29 Financial results DKK million 6M 2007 6M 2006 % change Sales 20,381 18,673 9 Gross profit 15,703 14,006 12 Gross margin 77.0% 75.0% Sales and distribution costs 6,158 5,578 10 Percent of sales 30.2% 29.9% Research and development costs 3,401
Slide 30: Solid gross margin development
Investor presentation First six months of 2007 Slide no 30 Solid gross margin development Gross margin improvement analysis Key observations 80% 79% Annual average • Expected gross margin 78% improvement in 2007 of close to 77% 77.0 150 basis points 76% 75% 75.3 • Productivity gains are prime 74% co
Slide 31: Long-term financial targets
Investor presentation First six months of 2007 Slide no 31 Long-term financial targets Long-term financial targets In % Financial 2002 2003 2004 2005 2006 targets Operating profit growth 9.6 8.4 8.7 15.9 12.7 15 Operating margin 23.8 24.6 24.0 24.0 23.5 25 Cash to earnings* 12.1 79.6 85.3 82.4 73.0
Slide 32: Currency development
Investor presentation First six months of 2007 Slide no 32 Currency development Spot rates Quarterly average Annual average 640 Annual impact on operating profit of a 5% 620 movement in currency USD/DKK USD DKK 400m 600 USD-related DKK 110m 580 JPY DKK 150m GBP DKK 90m 560 USD-related currencies: CN
Slide 33: Outlook 2007
Investor presentation First six months of 2007 Slide no 33 Outlook 2007 • Sales growth expectations: Key currency rates • 11-14% in local currencies DKK 2006 2007 Current per 100 average average rate* • 7-10% as reported USD 595 558 543 • Operating profit growth expectations increased to: JPY 5.11 4
Slide 34: Novo Nordisk - concluding remarks
Investor presentation First six months of 2007 Slide no 34 Novo Nordisk - concluding remarks Strategic position Key growth drivers #1 in the global insulin market • Leadership in diabetes care with full portfolio of modern insulins #1 in the global modern insulin segment • Promising GLP-1 compound #
Slide 35: Investor information
Investor presentation First six months of 2007 Slide no 35 Investor information Share information Investor Relations Novo Nordisk’s B shares are listed contacts on the stock exchanges in Novo Nordisk A/S Investor Relations Copenhagen and London. Its ADRs Novo Allé, DK-2880 Bagsværd are listed on the
Slide 36: Appendices
Investor presentation First six months of 2007 Slide no 36 Appendices
Slide 37: GLP-1 will explore virgin territory between OADs and insulins
Investor presentation First six months of 2007 Slide no 37 GLP-1 will explore virgin territory between OADs and insulins World DKK MAT market billion growth OAD 67 2% OAD Insulin Insulin 51 10% GLP-1 3 114% GLP-1 Note: Absolute data represent MAT June 2007 and growth data represent MAT June 2007 ove
Slide 38: Insulin growth driven by NovoRapid and NovoMix
Investor presentation First six months of 2007 Slide no 38 Insulin growth driven by NovoRapid® and NovoMix® NovoRapid® share of short- NovoMix® share of acting modern insulin premixed modern insulin 70% 70% 67% 60% 60% 54% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Q1 Q1 Q1 Q1 2002 2007 2002 2007
Slide 39: European modern insulin conversion - NovoRapid
Investor presentation First six months of 2007 Slide no 39 European modern insulin conversion - NovoRapid® Modern insulin penetration short-acting modern insulin Share of short-acting segment 35% NovoRapid® 30% 25% Humalog Human insulin 20% 55% 15% 10% Modern insulin 5% Apidra 0% Q1 Q1 Q1 Q1 2000 20
Slide 40: European modern insulin conversion - NovoMix
Investor presentation First six months of 2007 Slide no 40 European modern insulin conversion - NovoMix® 30 Modern insulin penetration premixed segment Share of premixed segment 30% 25% NovoMix® 30 20% Human insulin 15% 10% Humalog Mix 25 39% 5% Modern insulin 0% Q1 Q1 Q1 Q1 2000 2007 2000 2007 Note
Slide 41: European modern insulin conversion - Levemir
Investor presentation First six months of 2007 Slide no 41 European modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in Europe 24% 23% 22% 20% 18% Human insulin 16% 14% 12% 10% 50% 8% 6% 4% 2% Modern insulin 0% Q1
Slide 42: US modern insulin conversion - NovoLog
Investor presentation First six months of 2007 Slide no 42 US modern insulin conversion - NovoLog® Modern insulin penetration short-acting segment Share of short-acting segment 50% 40% Humalog Human insulin 70% 30% NovoLog® 20% 32% Modern insulin 10% 0% Q1 Q1 Q1 Q1 2000 2007 2000 2007 Note: Quarterl
Slide 43: US modern insulin conversion - NovoLog Mix 70/30
Investor presentation First six months of 2007 Slide no 43 US modern insulin conversion - NovoLog® Mix 70/30 Modern insulin penetration premixed segment Share of premixed segment 30% 25% Humalog Mix 25 Human insulin 20% 15% NovoLog® Mix 10% 70/30 33% 5% Modern insulin 0% Q1 Q1 Q1 Q1 2000 2007 2000 2
Slide 44: US modern insulin conversion - Levemir
Investor presentation First six months of 2007 Slide no 44 US modern insulin conversion - Levemir® Modern insulin penetration Levemir® share of total long-acting long-acting segment modern insulin prescriptions 7% 6% 5% Human insulin 4% 64% 3% 2% Modern insulin 1% 0% Q1 Q1 April May 2000 2007 2006 2
Slide 45: Insulin segmentation - Europe and the US
Investor presentation First six months of 2007 Slide no 45 Insulin segmentation - Europe and the US Europe US 60% 60% 50% 50% 40% 40% 30% 30% 20% Long-acting 20% Long-acting Premix Premix 10% 10% Short-acting Short-acting 0% 0% Q1 Q1 Q1 Q1 2000 2007 2000 2007 Note: Quarterly data, volume figures. So
Slide 46: Switch from Lantus to Levemir improved HbA1c, while reducing hypoglycaemia and weight
Investor presentation First six months of 2007 Slide no 46 Switch from Lantus to Levemir® improved HbA1c, while reducing hypoglycaemia and weight No. hypoglycaemic episodes /patient year 10 7.8 HbA1c change: -0.59 %-points vs. Lantus Change in body weight: -0.8 kilograms 2.2 * 0.5 * * 0.1 0.3 0.0 0
Slide 47: Human versus all-analogue basal-bolus in type 1 diabetes
Investor presentation First six months of 2007 Slide no 47 Human versus all-analogue basal-bolus in type 1 diabetes: Switch to Levemir® + NovoRapid® 60 55 No. hypoglycaemic episodes/patient year 50 HbA1c change (%-points): -0.65 vs. human basal-bolus 40 30 20 18.3 * 11 10 * * 1.7 1.2 0.0 0 Overall N
Slide 48: Biosimilars compete in a declining segment
Investor presentation First six months of 2007 Slide no 48 Biosimilars compete in a declining segment Modern insulin conversion in IMS world markets Modern insulin 52% Patent protected Human insulin 2000 Q1 2007 2011 Notes: Quarterly data based on volume figures. From Q1 2007 onwards it is estimated
Slide 49: Insulin is the ultimate treatment
Investor presentation First six months of 2007 Slide no 49 Insulin is the ultimate treatment Insulin is the ultimate treatment Key observations • A clear focus on the need for intensifying treatment of diabetes, both via the use of OADs and insulin β-Cell function • The number of type 2 patients usi
Slide 50: Insulin secretion
Investor presentation First six months of 2007 Slide no 50 Insulin secretion 800 People without diabetes Insulin Secretion (pmol/min) 700 Type 2 diabetes 600 500 400 300 200 100 0600 1000 1400 1800 2200 0200 0600 Source: O'MEARA et al. Am. J. Medicine, 1990; 89.
Slide 51: Hormone replacement therapy area supported by low-dose versions
Investor presentation First six months of 2007 Slide no 51 Hormone replacement therapy area supported by low-dose versions Novo Nordisk HRT Strategic HRT products market share worldwide Activelle®/Activella® • Combined oestrogen and 70% Wyeth progestogen treatment of hot Novo Nordisk flushes and oth
Slide 52: Attractive profile of rFVIIa analogue
Investor presentation First six months of 2007 Slide no 52 Attractive profile of rFVIIa analogue Velocity (mm*100/sec) 20 Severe haemophilia A + rFVIIa 2 µg/mL + NN1731 2 µg/mL Healthy male • NN1731 has been found to 15 induce a faster rate of thrombin formation than 10 obtainable with NovoSeven® •
Slide 53: NovoSeven - a unique mechanism of action
Investor presentation First six months of 2007 Slide no 53 NovoSeven® - a unique mechanism of action FVIIa/NovoSeven® Faster haemostasis leads to Tissue factor • Fewer transfusions / transfusion- free surgery • Reduced re-bleeding • Faster recovery • Reduced morbidity and mortality • Improved qualit
Slide 54: IL-21 clinical programme
Investor presentation First six months of 2007 Slide no 54 IL-21 clinical programme Clinical programme pursuing IL-21 mode of action three indications CD4+ T TH • Malignant Melanoma as cells monotherapy, phase 2 trial with up to 40 pts. IL-21 • Renal Cell Carcinoma as combination therapy with Sutent
Slide 55: Anti-KIR being developed in collaboration with Innate Pharma
Investor presentation First six months of 2007 Slide no 55 Anti-KIR being developed in collaboration with Innate Pharma Mode of action Key observations Anti-KIR MoA • Unmet need in AML Tumour • Most common leukaemia in NK Cell adults: around 12,000 new cases per year in the US of which 75% die 100 •