Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Q1 2013 Earnings Presentation
110 slides from Novo Nordisk A/s Class B's earnings presentation, May 2013
Slide 1: Investor presentation First three months of 2013
Slide 1 Investor presentation First three months of 2013
Slide 2: Content
Investor Presentation First three months of 2013 Slide 2 Content Highlights and key events by Jesper Brandgaard, CFO Sales update by Jesper Brandgaard, CFO R&D update by Mads Krogsgaard Thomsen, CSO Financials and outlook by Lars Green, SVP Corporate Finance
Slide 3: Forward-looking statements
Investor Presentation First three months of 2013 Slide 3 Forward-looking statements Novo Nordisk‟s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company‟s Annual Report 2012 and Form 20-F, both filed with the SEC in Februar
Slide 4: Highlights – first three months of 2013
HIGHLIGHTS AND KEY EVENTS Investor Presentation First three months of 2013 Slide 4 Highlights – first three months of 2013 Sales development • Sales increased by 14% in local currencies and 13% in Danish kroner: • North America and International Operations grew by 24% and 17% in local currencies, re
Slide 5: North America is the main contributor to growth
SALES UPDATE Investor Presentation First three months of 2013 Slide 5 North America is the main contributor to growth Sales as reported – First quarter 2013 Growth analysis – First quarter 2013 Japan & Korea Local currencies Growth Share of growth (17%) North America 24% 68% Region China 6% +17% 9%
Slide 6: Growth is driven by Modern insulins and Victoza
SALES UPDATE Investor Presentation First three months of 2013 Slide 6 Growth is driven by Modern insulins and Victoza® Sales as reported – First quarter 2013 Growth analysis – First quarter 2013 Norditropin® Other Local currencies Growth Share of growth +14% +8% Modern insulins 16% 50% 3% NovoSeven®
Slide 7: Novo Nordisk continues to expand leadership position within diabetes care
SALES UPDATE Investor Presentation First three months of 2013 Slide 7 Novo Nordisk continues to expand leadership position within diabetes care Global diabetes care market Global diabetes care by treatment class value market share DKK GLP-1 Insulin OAD Novo Nordisk Lilly BMS billion Takeda Merck Nov
Slide 8: Strong underlying insulin market growth and steady market share development
SALES UPDATE Investor Presentation First three months of 2013 Slide 8 Strong underlying insulin market growth and steady market share development Global insulin market Global modern insulin volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Lilly tMU Penetrati
Slide 9: Novo Nordisk has gained market share in all insulin segments in the US
SALES UPDATE Investor Presentation First three months of 2013 Slide 9 Novo Nordisk has gained market share in all insulin segments in the US US long-acting insulin US rapid-acting insulin US premixed insulin Segment volume Segment volume Segment volume Levemir® market share NovoLog® market share Nov
Slide 10: Continued growth of Victoza - driven by North America and Europe
SALES UPDATE Investor Presentation First three months of 2013 Slide 10 Continued growth of Victoza® - driven by North America and Europe MAT Victoza® sales split per region Victoza® reported sales (MAT) – first quarter of 2013 DKK Region China billion 1% Japan & Korea International 4% 7% Operations
Slide 11: Tresiba launched in UK, Denmark and Japan and first sales recorded
SALES UPDATE Investor Presentation First three months of 2013 Slide 11 Tresiba® launched in UK, Denmark and Japan and first sales recorded Tresiba® launch highlights Country Launch date Market accesss Market value1 Submission of formulary applications UK 4 Mar 2013 DKK 1.3 billion on-going* Denmark
Slide 12: Regulatory update for Tresiba and Ryzodeg
R&D UPDATE Investor Presentation First three months of 2013 Slide 12 Regulatory update for Tresiba® and Ryzodeg® Submitted Approved Launched4 US1 Colombia Canada Malaysia EU South Africa Philippines2 Mexico India Bangladesh Japan Australia Lebanon2 Norway UK Brazil Indonesia Iceland Denmark Russia K
Slide 13: Expected outline of Tresiba cardiovascular outcomes trial
R&D UPDATE Investor Presentation First three months of 2013 Slide 13 Expected outline of Tresiba® cardiovascular outcomes trial Illustration of FDA criteria for evaluating Expected characteristics of CV outcomes trial cardiovascular risk in Type 2 Diabetes1 Design and requirements: 1.3 ruled out at
Slide 14: People with type 2 diabetes achieved 6% weight loss with liraglutide 3 mg in SCALE-diabetes trial
R&D UPDATE Investor Presentation First three months of 2013 Slide 14 People with type 2 diabetes achieved 6% weight loss with liraglutide 3 mg in SCALETM-diabetes trial SCALETM-diabetes (NN8022-1922) trial design Headline results Placebo Liraglutide Liraglutide Liraglutide 3 mg (n=422) 1.8 mg 3 mg 8
Slide 15: First phase 3a trial with semaglutide initiated in February 2013
R&D UPDATE Investor Presentation First three months of 2013 Slide 15 First phase 3a trial with semaglutide initiated in February 2013 SUSTAIN™ 6 (NN9535-3744) trial design Trial rationale and objective Trial rationale Semaglutide 1.0 mg • To assess the long-term effect of semaglutide on cardiovascul
Slide 16: Other key events within Research and Development
R&D UPDATE Investor Presentation First three months of 2013 Slide 16 Other key events within Research and Development Diabetes care • Results of a 26 week extension of the DUAL™ I trial with IDegLira (NN9068) confirm that the level of glycaemic control obtained after 26 weeks of treatment, as well a
Slide 17: Financial results – first three months of 2013
FINANCIALS AND OUTLOOK Investor Presentation First three months of 2013 Slide 17 Financial results – first three months of 2013 DKK million Q1 2013 Q1 2012 Change Sales 19,983 17,751 13% Gross profit 16,374 14,348 14% Gross margin 81.9% 80.8% Sales and distribution costs 5,530 4,850 14% Percentage o
Slide 18: Current rates for US dollar and Japanese Yen are below 2012 average
FINANCIALS AND OUTLOOK Investor Presentation First three months of 2013 Slide 18 Current rates for US dollar and Japanese Yen are below 2012 average Spot rates Quarterly average Annual average Currency 2012 2013 Current assumptions1 average average2 rate2 USD/DKK USD 579 566 570 JPY 7.27 6.07 5.75 C
Slide 19: Financial outlook for 2013
FINANCIALS AND OUTLOOK Investor Presentation First three months of 2013 Slide 19 Financial outlook for 2013 Expectations Previous expectations 1 May 2013 31 January 2013 Sales growth - local currencies 9-11% 8-11% Sales growth - reported Around 3 percentage points lower Around 4.5 percentage points
Slide 20: Closing remarks
FINANCIALS AND OUTLOOK Investor Presentation First three months of 2013 Slide 20 Closing remarks Solid market performance Promising pipeline • +10% annual diabetes care market growth driven • The only company with a full portfolio of novel by diabetes prevalence insulin products • 26% market share i
Slide 21: Investor contact information
FINANCIALS AND OUTLOOK Investor Presentation First three months of 2013 Slide 21 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 Invest
Slide 22: Appendix
Investor Presentation First three months of 2013 Slide 22 Appendix 1. Novo Nordisk at a glance 2. Diabetes 3. Biopharmaceuticals 4. Financials
Slide 23: Novo Nordisk at a glance
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 23 Novo Nordisk at a glance The core equity story Global leader in diabetes care • A focused pharmaceutical company with leading positions Global insulin market share: 49% in diabetes, haemophilia and hGH Europe: • Doubl
Slide 24: Novo Nordisk's strategy: five strategic focus areas
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 24 Novo Nordisk’s strategy: five strategic focus areas Strategic focus areas Core capabilities Engineering, Deep Efficient Planning Building formulating, disease large-scale Expand and leadership and developing under- pr
Slide 25: Novo Nordisk has leading positions in diabetes, haemophilia and growth disorders
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 25 Novo Nordisk has leading positions in diabetes, haemophilia and growth disorders Growth hormone Diabetes Haemophilia deficiency DKK Market value DKK Market value DKK Market value billion Novo Nordisk market share bill
Slide 26: Double digit top line growth driven by diabetes pandemic
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 26 Double digit top line growth driven by diabetes pandemic Novo Nordisk reported quarterly sales The number of people with diabetes by therapy according to IDF Diabetes care Haemophilia Growth Disorders Other North Amer
Slide 27: Novo Nordisk continues to expand leadership position within diabetes care
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 27 Novo Nordisk continues to expand leadership position within diabetes care Global diabetes care market Global diabetes care by treatment class value market share DKK GLP-1 Insulin OAD Novo Nordisk Lilly BMS billion Tak
Slide 28: Diabetes pandemic is fuelled by growing rates of obesity
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 28 Diabetes pandemic is fuelled by growing rates of obesity US CDC data on obesity and diabetes prevalence among adults 1994 2000 2010 Obesity (BMI ≥30 kg/m2) No Data <14.0% 14.0-17.9% 18.0-21.9% 22.0-25.9% >26.0% Diabet
Slide 29: Insulin is the ultimate care for people with diabetes
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 29 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 Tablets GLP-1 Insulin Diet and excercise
Slide 30: Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulins
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 30 Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulins Brand share of Sales segment Brand name Type Launch 2012 Jan 2013 Patent expiration Fast-acting EU: 1999 15.7 bDKK EU
Slide 31: Significant growth opportunities fuelled by strong R&D pipeline
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 31 Significant growth opportunities fuelled by strong R&D pipeline OI338GT - OG987GT - Oral insulin Oral GLP-1 OI362GT - OG217SC - IDegLira - GLP-1 & Tresiba® - Ultra long- Diabetes care and obesity Oral insulin Oral GLP
Slide 32: Growth opportunities supported by strong global presence in both sales and manufacturing
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 32 Growth opportunities supported by strong global presence in both sales and manufacturing FTEs in sales regions excl. headquarter and manufacturing Global manufacturing setup North America: ~5,000 • API production • Fo
Slide 33: High barriers to entry in biologics
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 33 High barriers to entry in biologics Novo Nordisk position is protected by patents ...and significant barriers to entry for and value chain setup... biosimilar players Patent protection1 Unique value Chain position EU/
Slide 34: Operating profit continues to grow, driven by gross margin improvements and operational leverage
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 34 Operating profit continues to grow, driven by gross margin improvements and operational leverage The fundamental drivers of Operating profit operating profit growth DKK Operating profit Operating profit as % of sales
Slide 35: Stable net operating profit assets drives growth in operating profit after tax to net operating assets and free cash flow
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 35 Stable net operating profit assets drives growth in Operating profit after tax to net operating assets and free cash flow Operating profit after tax to net operating assets Free cash flow DKK Net operating assets DKK
Slide 36: Cash generated is returned to shareholders in the form of dividends and share buybacks
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 36 Cash generated is returned to shareholders in the form of dividends and share buybacks Dividend and payout ratio Share repurchases programmes (year of dividend pay) (year of repurchase) DKK Dividend paid Payout ratio
Slide 37: Diabetes
Investor Presentation First three months of 2013 Slide 37 Diabetes
Slide 38: Diabetes – the inability to manage blood sugar levels appropriately
DIABETES Investor Presentation First three months of 2013 Slide 38 Diabetes – the inability to manage blood sugar levels appropriately Definition Insulin secretion profile ‟A metabolic disorder of multiple aetiology characterised by 70 chronic hyperglycaemia with disturbances of carbohydrate, fat an
Slide 39: Insulin – a hormone enabling blood sugar to enter cells
DIABETES Investor Presentation First three months of 2013 Slide 39 Insulin – a hormone enabling blood sugar to enter cells The aim of insulin therapy is to recreate normal Insulin enables food to become energy blood insulin profile 70 Short-lived, rapidly generated • Facilitates uptake of blood suga
Slide 40: The diabetes pandemic and poor glycaemic control remain global problems
DIABETES Investor Presentation First three months of 2013 Slide 40 The diabetes pandemic and poor glycaemic control remain global problems Number of people with diabetes according to Differences in glycaemic control between IDF (Novo Nordisk reported regions) select countries North America Europe Ja
Slide 41: Poor diabetes diagnosis rates is leading to death and significant costs to world society
DIABETES Investor Presentation First three months of 2013 Slide 41 Poor diabetes diagnosis rates is leading to death and significant costs to world society Diabetes prevalence and diagnosis rates by IDF Comments to the diabetes pandemic and reported regions impact on society made by IDF Diabetes Pre
Slide 42: Diabetes pandemic is fuelled by growing rates of obesity
DIABETES Investor Presentation First three months of 2013 Slide 42 Diabetes pandemic is fuelled by growing rates of obesity US CDC data on obesity and diabetes prevalence among adults 1994 2000 2010 Obesity (BMI ≥30 kg/m2) No Data <14.0% 14.0-17.9% 18.0-21.9% 22.0-25.9% >26.0% Diabetes No Data <4.5%
Slide 43: UKPDS: Tight glycaemic control reduces risk of micro- and macrovascular complications
DIABETES Investor Presentation First three months of 2013 Slide 43 UKPDS: Tight glycaemic control reduces risk of micro- and macrovascular complications UKPDS 10 year follow-up: Risk reduction by lowering HbA1c by 1% Legacy effect of tight glycaemic control Diabetes- Peripheral related Myocardial Mi
Slide 44: Insulin is the ultimate care for people with diabetes
DIABETES Investor Presentation First three months of 2013 Slide 44 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 Tablets GLP-1 Insulin Diet and excercise -cell function T
Slide 45: Medications used for the treatment of type 2 diabetes
DIABETES Investor Presentation First three months of 2013 Slide 45 Medications used for the treatment of type 2 diabetes Commonly prescribed products for the treatment of type 2 diabetes HbA1C Hypo- Weight CVD risk Dosing Contraindication/ Class change glycaemia change factors (pr. day) undesired ef
Slide 46: Novo Nordisk continues to expand leadership position within diabetes care
DIABETES Investor Presentation First three months of 2013 Slide 46 Novo Nordisk continues to expand leadership position within diabetes care Global diabetes care market Global diabetes care by treatment class value market share DKK GLP-1 Insulin OAD Novo Nordisk Lilly BMS billion Takeda Merck Novart
Slide 47: Sustained double-digit insulin market growth
DIABETES Investor Presentation First three months of 2013 Slide 47 Sustained double-digit insulin market growth Global insulin market growth The fundamental growth drivers 2008-2013 of the insulin market DKK Volume billion CAGR: CAGR: 9%1 16%1 • Prevalence of diabetes CAGR: • Rising diagnosis rates
Slide 48: Solid insulin growth across diverse regions
DIABETES Investor Presentation First three months of 2013 Slide 48 Solid insulin growth across diverse regions Novo Nordisk Market Market volume Volume market regions value size & growth composition shares 21% 70.9 14% Basal Novo Nordisk 56.2 5% 41% North America 49% Fast-acting Rest 37% 58% Premix
Slide 49: Global insulin volume growth remains at around 5%
DIABETES Investor Presentation First three months of 2013 Slide 49 Global insulin volume growth remains at around 5% Regional insulin volume growth Regional insulin volume market shares North America Europe China North America Europe Japan & Korea Int. Operations Japan & Korea World Int. Operations
Slide 50: The insulin market is comprised of three segments
DIABETES Investor Presentation First three months of 2013 Slide 50 The insulin market is comprised of three segments Action profiles of insulins Global insulin volume market by segments tMU CAGR volume1: 6.8% Fast acting CAGR value1: 15.8% 33% Fast acting Premix 32% 29% 34% Premix Long acting Long a
Slide 51: Maintaining insulin leadership by sustaining modern insulin market share
DIABETES Investor Presentation First three months of 2013 Slide 51 Maintaining insulin leadership by sustaining modern insulin market share Novo Nordisk volume market share across insulin classes Novo Nordisk segment MS (%) Segment volume tMU tMU tMU Human insulin Modern insulin Total insulin Market
Slide 52: Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulins
DIABETES Investor Presentation First three months of 2013 Slide 52 Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulins Brand share of Sales segment Brand name Type Launch 2012 Jan 2013 Patent expiration Fast-acting EU: 1999 15.7 bDKK EU: 20171 50% insu
Slide 53: Novo Nordisk modern insulin performance within the respective segments
DIABETES Investor Presentation First three months of 2013 Slide 53 Novo Nordisk modern insulin performance within the respective segments Long acting insulin Rapid-acting insulin Premixed insulin Segment volume Segment volume Segment volume Levemir® market share NovoRapid® market share Novomix® mark
Slide 54: Still a significant potential for Novo Nordisk on the US modern insulin market
DIABETES Investor Presentation First three months of 2013 Slide 54 Still a significant potential for Novo Nordisk on the US modern insulin market US insulin market by segments US modern insulin volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Lilly tMU CAGR
Slide 55: Maintaining the solid leadership position on the European modern insulin market
DIABETES Investor Presentation First three months of 2013 Slide 55 Maintaining the solid leadership position on the European modern insulin market EU insulin market by segments EU modern insulin volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Lilly tMU CAGR
Slide 56: Stable leadership position on the rapidly growing Chinese insulin market
DIABETES Investor Presentation First three months of 2013 Slide 56 Stable leadership position on the rapidly growing Chinese insulin market China insulin market by segments China insulin volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Lilly Shanghai Fosun T
Slide 57: Stable leadership position in International Operations
DIABETES Investor Presentation First three months of 2013 Slide 57 Stable leadership position in International Operations International Operations insulin market by International Operations insulin volume segments market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Li
Slide 58: Sustained leadership position in Japan
DIABETES Investor Presentation First three months of 2013 Slide 58 Sustained leadership position in Japan Japan insulin market by segments Japan modern insulin volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Lilly tMU CAGR volume1: 2% Penetration CAGR value
Slide 59: Assessment of the insulin industry
DIABETES Investor Presentation First three months of 2013 Slide 59 Assessment of the insulin industry • Suppliers Resistor Enabler for biosimilar competitor Driver Uniqueness of suppliers High Low • Customers Size of target audience Large Small Administration of drug Patients Physicians Cost pressur
Slide 60: GLP-1 effect dependent on level of blood glucose which reduces risk of hypoglycaemia
DIABETES Investor Presentation First three months of 2013 Slide 60 GLP-1 effect dependent on level of blood glucose -which reduces risk of hypoglycaemia When blood sugar levels increase then GLP-1 GLP-1 lowers blood glucose in patients with does the following: type 2 diabetes • Increases insulin sec
Slide 61: Victoza, the only once-daily human GLP-1 analogue for type 2 diabetes
DIABETES Investor Presentation First three months of 2013 Slide 61 Victoza®, the only once-daily human GLP-1 analogue for type 2 diabetes Characteristics of Victoza® • Reduces blood glucose levels with a very low risk of hypoglycaemia • 13 hours half-life allows for once-daily dosing • Reduces weigh
Slide 62: The global GLP-1 market continues to expand
DIABETES Investor Presentation First three months of 2013 Slide 62 The global GLP-1 market continues to expand Victoza® is driving the expansion of the global North America constitutes the majority of the GLP-1 market GLP-1 value market1 GLP-1 sales in bDKK (right axis) North America Europe Internat
Slide 63: Continued expansion of the US GLP-1 market
DIABETES Investor Presentation First three months of 2013 Slide 63 Continued expansion of the US GLP-1 market Key observations for Victoza® US GLP-1 market in the US market GLP-1 TRx scripts GLP-1 % of diabetes market • Victoza ® market share within the GLP-1 segment is now (thousands) more than 60%
Slide 64: Victoza continues to expand the GLP-1 class in key European markets
DIABETES Investor Presentation First three months of 2013 Slide 64 Victoza® continues to expand the GLP-1 class in key European markets Development in key European markets following Victoza® launch Germany UK France Market value1: DKK 11 billion Market value1: DKK 6 billion Market value1: DKK 7 bill
Slide 65: R&D pipeline: Diabetes and obesity
DIABETES Investor Presentation First three months of 2013 Slide 65 R&D pipeline: Diabetes and obesity Compound Type Indication Status (phase) 1 2 3 Filed Appr. Tresiba® (NN1250)1 Ultra long-acting basal insulin Type 1+2 Ryzodeg® (NN5401)1 Ultra long-acting basal insulin with a bolus boost Type 1+2 I
Slide 66: Phase 3a programmes for Tresiba and Ryzodeg completed in less than 18 months
DIABETES Investor Presentation First three months of 2013 Slide 66 Phase 3a programmes for Tresiba® and Ryzodeg® completed in less than 18 months BEGINTM and BOOSTTM timeline NN1250-3579: 12 mth vs. IGlar, T2 (N=1030) NN1250-3582: 12 mth vs. IGlar, T2 (N=1006) NN1250-3583: 12 mth vs. IGlar, T1 (N=62
Slide 67: BEGIN and BOOST confirm the profiles of Tresiba and Ryzodeg
DIABETES Investor Presentation First three months of 2013 Slide 67 BEGINTM and BOOSTTM confirm the profiles of Tresiba® and Ryzodeg® Tresiba® OD vs insulin glargine OD1 Ryzodeg® BD vs NovoMix® BD2 • Basal insulin with flatter, less variable profile • First basal-prandial combination product and a do
Slide 68: Meta-analysis confirms hypoglycaemic profile of insulin degludec
DIABETES Investor Presentation First three months of 2013 Slide 68 Meta-analysis across type 1 and type 2 diabetes trials confirms hypoglycaemic profile of insulin degludec = statistical significance Confirmed hypoglycaemia Nocturnal hypoglycaemia Total period Maintenance period2 Total period Mainte
Slide 69: Competitive label for Tresiba in Europe and Japan
DIABETES Investor Presentation First three months of 2013 Slide 69 Competitive label for Tresiba® in Europe and Japan European label Japanese label • Duration of action beyond 42 hours • Duration of action tested up to 26 hours in Japanese patients • Four times lower day-to-day variability compared
Slide 70: Competitive label for Ryzodeg in Europe and Japan
DIABETES Investor Presentation First three months of 2013 Slide 70 Competitive label for Ryzodeg® in Europe and Japan European label Japanese label • Duration of action beyond 24 hours with a single injection • Duration of action beyond 24 hours in Japanese patients with a • An action profile reflec
Slide 71: Tresiba and Ryzodeg phase 3b trials – published trials
DIABETES Investor Presentation First three months of 2013 Slide 71 Tresiba® and Ryzodeg® phase 3b trials – published trials Trial ID Trial arms Trial Purpose Participants Duration LPLV IDeg OD + met (stepwise titration) vs. NN1250-3846 Define clinical use of IDeg by testing titration algorithm N = 2
Slide 72: IDegLira phase 3 trial programme – published trials
DIABETES Investor Presentation First three months of 2013 Slide 72 IDegLira phase 3 trial programme – published trials Trial ID Phase Trial arms Trial Purpose Participants Duration LPLV IDegLira vs. NN9068-3697 3a IDeg vs. Pivotal: Compare efficacy and safety N = 1663, T2 52 weeks1 Reported liraglut
Slide 73: FIAsp approved for phase 3 after successful phase 1 results
DIABETES Investor Presentation First three months 2013 Slide 73 FIAsp1, a faster-acting formulation of insulin aspart, was approved for phase 3 after successful phase 1 results Comparison of pharmacokinetic profiles of bolus insulins Key results from phase 1 trials pmol/L FIAsp Insulin aspart • FIAs
Slide 74: In DUAL I, IDegLira successfully lowered HbA1c while reducing weight and hypoglycaemia risk
DIABETES Investor Presentation First three months of 2013 Slide 74 In DUALTM I, IDegLira successfully lowered HbA1c while reducing weight and the risk of hypoglycaemia DUALTM I (NN9068-3697) trial design Headline results Tresiba® Victoza® IDegLira IDegLira once-daily (n=834) Baseline HbA1c 8.3% 8.3%
Slide 75: DUAL II completes the pivotal programme for IDegLira
DIABETES Investor Presentation Full year 2012 Slide 75 DUALTM II completes the pivotal programme for IDegLira, a fixed ratio combination of Victoza® and Tresiba® DUALTM II (NN9068-3912) trial design Headline results IDegLira2 398 people IDegLira once-daily2 (n=199) Baseline HbA1c 8.7% with type 2 di
Slide 76: Semaglutide selected as Novo Nordisk's once-weekly GLP-1 candidate
DIABETES Investor Presentation First three months of 2013 Slide 76 Semaglutide selected as Novo Nordisk’s once- weekly GLP-1 candidate Comparison of HbA1c reductions over 12 weeks Summary and conclusions Semaglutide Liraglutide • 12-week, randomised, double-blind, placebo-controlled phase 2 trial in
Slide 77: First phase 3a trial with semaglutide initiated in February 2013
DIABETES Investor Presentation First three months of 2013 Slide 77 First phase 3a trial with semaglutide initiated in February 2013 SUSTAIN™ 6 (NN9535-3744) trial design Trial rationale and objective Trial rationale Semaglutide 1.0 mg • To assess the long-term effect of semaglutide on cardiovascular
Slide 78: The oral project portfolio is expanding
DIABETES Investor Presentation First three months of 2013 Slide 78 The oral project portfolio is expanding Overview of oral insulin projects1 Overview of oral GLP-1 projects2 OI338GT OI362GT OI287GT OG217SC OG987GT OG987SC (NN1953) (NN1954 (NN1956) (NN9924) (NN9926) (NN9927) Molecule Insulin 338 Ins
Slide 79: SCALE: Liraglutide 3 mg phase 3a trial programme in obesity
DIABETES Investor Presentation First three months of 2013 Slide 79 SCALE™: Liraglutide 3 mg phase 3a trial programme in obesity Trial Arms Duration Status • Liraglutide 3 mg (n=210) 56 weeks + 12 Completed SCALETM-Maintenance • Placebo (n=210) weeks follow-up in Q3 2010 56 weeks + 12 • Liraglutide 3
Slide 80: In a 56-week trial, liraglutide 3 mg promoted weight maintenance and additional weight loss
DIABETES Investor Presentation First three months of 2013 Slide 80 In a 56-week trial, liraglutide 3 mg promoted weight maintenance and additional weight loss in obese adults Conclusions on the Change in body weight by week SCALETM-Maintenance trial • Subjects lost >5% (6 kg) during 12 week hypo-cal
Slide 81: People with type 2 diabetes achieved 6% weight loss with liraglutide 3 mg in SCALE-diabetes trial
R&D UPDATE Investor Presentation First three months of 2013 Slide 81 People with type 2 diabetes achieved 6% weight loss with liraglutide 3 mg in SCALETM-diabetes trial SCALETM-diabetes (NN8022-1922) trial design Headline results Placebo Liraglutide Liraglutide Liraglutide 3 mg (n=422) 1.8 mg 3 mg 8
Slide 82: Obesity burden – US market
DIABETES Investor Presentation First three months of 2013 Slide 82 Obesity burden – US market US obesity market statistics Comments to the US obesity burden • Cost of obesity to health care systems of US $147 billion Obese Over- annually2 with continued growth Million weight Class I Class II Class I
Slide 83: ~35% of the US adult population is obese, but the market for obesity medication is small and declining
DIABETES Investor Presentation First three months of 2013 Slide 83 ~35% of the US adult population is obese, but the market for obesity medication is small and declining Factors that have impacted the obesity market US obesity market statistics in recent years DKK Global US • Safety concerns with ma
Slide 84: Biopharmaceuticals
Investor Presentation First three months of 2013 Slide 84 Biopharmaceuticals
Slide 85: Biopharmaceuticals – global leadership in select, high-value disease areas
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 85 Biopharmaceuticals – global leadership in select, high-value disease areas Haemophilia Growth Hormone Inflammation with inhibitors Therapy 2012 sales: DKK 8.9 billion 2012 sales: DKK 5.7 billion 2012 sales: DKK 0 Global mar
Slide 86: Haemophilia: Location of bleedings and the consequences
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 86 Haemophilia: Location of bleedings and the consequences • Bleeding in the joint space causes a strong inflammatory Head and neck reaction which predisposes to further bleeding Nose and gums • Inadequate or delayed treatment
Slide 87: Haemophilia – a significant market suited for Novo Nordisk's core strengths within human proteins
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 87 Haemophilia – a significant market suited for Novo Nordisk’s core strengths within human proteins Number of people with haemophilia A and B and haemophilia with inhibitors Sales of recombinant coagulation factors Novoseven®
Slide 88: NovoSeven - a unique biologic for the treatment of a rare bleeding disorders
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 88 NovoSeven® - a unique biologic for the treatment of a rare bleeding disorders Reported sales Key NovoSeven® properties DKK • Product characteristics: powder and solvent for solution billion for i.v. injection, available in
Slide 89: Characteristics of the haemophilia market
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 89 Characteristics of the haemophilia market Resistor Enabler for biosimilar competitor Driver • Suppliers Uniqueness of suppliers High Low • Customers Size of target audience Large Small Administration of drug Patients Physic
Slide 90: Core capabilities are applied within haemophilia to expand the product portfolio
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 90 Core capabilities are applied within haemophilia to expand the product potfolio development development development development Plasma- Recombinant FVIIa Recombinant FVIIa Market Factor VIIa derived analogues FVIIa1 Plasma-
Slide 91: R&D pipeline: Haemophilia and hGH
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 91 R&D pipeline: Haemophilia and hGH Compound Type Indication Status (phase) 1 2 3 Filed Appr. Catridecacog1 (NN1841) rFXIII Congenital FXIII deficiency Turoctocog alfa (NN7008) rFVIII Haemophilia A N9-GP (NN7999) Long-acting
Slide 92: In a phase 1 trial turoctocog alfa showed bioequivalence with existing rFVIII product
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 92 In a phase 1 trial turoctocog alfa showed bioequivalence with existing rFVIII product PK profile of rFVIII products from phase 1 trial Key results from phase 3a trial programme FVIII turoctocog alfa Advate® • Positive safet
Slide 93: In a phase 1 trial the pharmacokinetic profile of N8-GP supported less frequent dosing
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 93 In a phase 1 trial the pharmacokinetic profile of N8-GP supported less frequent dosing PK profile of N8-GP1 compared with other rFVIII product Key results from phase 1 trial FVIII 25 IU/kg previous FVIII product • N8-GP was
Slide 94: Based on phase 1 data N9-GP appears to have a very long acting profile
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 94 Based on phase 1 data N9-GP appears to have a very long acting profile PK profile of FIX products Key results from phase 1 trial FIX N9-GP1 rFIX pdFIX • N9-GP was well tolerated (IU/mL) • N9-GP appeared safe with no patient
Slide 95: NovoThirteen, a recombinant FXIII, provides efficacious and safe haemostatic coverage
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 95 NovoThirteen®, a recombinant FXIII, provides efficacious and safe haemostatic coverage FXIII activity levels in mentor™ 1 phase 3 trial Key results from pivotal phase 3 trial Berichrom FXIII • NovoThirteen® was effective in
Slide 96: Novo Nordisk maintains stable market position in the human growth hormone market
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 96 Novo Nordisk maintains stable market position in the human growth hormone market Development in global hGH market Growth hormone volume market share MAT volume kg (left axis) Pfizer Novo Nordisk MAT Value DKK (right axis) E
Slide 97: Solid Norditropin sales growth
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 97 Solid Norditropin® sales growth Reported Norditropin® sales Key Norditropin® properties • Product characteristics: Premixed, prefilled multi-use DKK delivery systems available in multiple strengths, some stable billion CAGR
Slide 98: R&D pipeline: Inflammation
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 98 R&D pipeline: Inflammation Type Indication Status (phase) 1 2a 2b 3 Filed Appr. Anti-IL-20 (NN8226) Monoclonal antibody Rheumatoid arthritis Anti-IL-21 (NN8828) Monoclonal antibody Rheumatoid arthritis Anti-IL-21 (NN8828) M
Slide 99: Inflammation well suited to leverage Novo Nordisk's core capabilities
BIOPHARMACEUTICALS Investor Presentation First three months of 2013 Slide 99 Inflammation well suited to leverage Novo Nordisk’s core capabilities Protein focus • Mainstay of modern anti-inflammatory therapies Immunology focus • Novo Nordisk core competence • Direct pathogenic mechanism for Protein
Slide 100: Financials
Investor Presentation First three months of 2013 Slide 100 Financials
Slide 101: Solid sales growth with especially North America, International Operations and China expanding
FINANCIALS Investor Presentation First three months of 2013 Slide 101 Solid sales growth with especially North America, International Operations and China expanding Reported annual sales Reported annual sales split by region Diabetes Biopharmaceuticals North America Europe Japan & Korea DKK China In
Slide 102: Solid operating profit growth driven by diabetes
FINANCIALS Investor Presentation First three months of 2013 Slide 102 Solid operating profit growth driven by diabetes Operating profit Operating profit therapy split Operating profit Operating profit as % of sales Diabetes Biopharm DKK Operating profit growth vs. last year billion 32% 18% 28% 27% 3
Slide 103: Profitability per segment
FINANCIALS Investor Presentation First three months of 2013 Slide 103 Profitability per segment Diabetes P&L, 2012 Biopharmaceuticals P&L, 2012 DKK DKK billion billion -19% -31% -12% -4% +1% 35% -12% -16% -15% -4% +1% 55%
Slide 104: Continued decline in relative COGS level combined with stable investment level
FINANCIALS Investor Presentation First three months of 2013 Slide 104 Continued decline in relative COGS level combined with stable investment level Cost of Goods Sold (COGS) Capital expenditures (CAPEX) COGS CAPEX DKK COGS as % of sales DKK CAPEX as % of sales billion billion 2008 2009 2010 2011 20
Slide 105: Growing profits converted into free cash flow
FINANCIALS Investor Presentation First three months of 2013 Slide 105 Growing profits converted into free cash flow Net profit Free cash flow (absolute) Net profit DKK Free cash flow DKK EPS diluted DKK Free cash flow as % of net profit billion billion 2008 2009 2010 2011 2012 2008 2009 2010 2011 20
Slide 106: Long-term financial targets
FINANCIALS Investor Presentation First three months of 2013 Slide 106 Long-term financial targets Performance against long-term financial targets Average Result Previous Updated 2008-20121 2012 targets targets2 Operating profit growth 27% 32% 15% 15% Operating margin 32% 38% 35% 40% Operating profit
Slide 107: Long term financial targets: Operating profit growth and operating margin
FINANCIALS Investor Presentation First three months of 2013 Slide 107 Long term financial targets: Operating profit growth and operating margin Operating profit growth Operating margin New long term financial target New long term financial target Previous long term financial targets Previous long te
Slide 108: Long term financial targets: Operating profit after tax to net operating assets, and cash to earnings
FINANCIALS Investor Presentation First three months of 2013 Slide 108 Long term financial targets: Operating profit after tax to net operating assets, and cash to earnings Operating profit after tax to net operating Cash to earnings assets (three years’ average) New long term financial target New lo
Slide 109: Cash generated is returned to shareholders in the form of dividends and share buybacks
NOVO NORDISK AT A GLANCE Investor Presentation First three months of 2013 Slide 109 Cash generated is returned to shareholders in the form of dividends and share buybacks Dividend and payout ratio Share repurchases programmes (year of dividend pay) (year of repurchase) DKK Dividend paid Payout ratio
Slide 110: Stable ownership structure
FINANCIALS Investor Presentation First three months of 2013 Slide 110 Stable ownership structure - secured through A and B-share structure Share structure The Novo Nordisk Foundation Novo Nordisk • The Novo Nordisk Foundation is a self-governing institution Foundation that: Institutional and • provi