Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — FY2009 Earnings Presentation
60 slides from Novo Nordisk A/s Class B's earnings presentation, February 2010
Slide 1: Investor presentation Full-year 2009
Investor presentation Investor presentation Full-year 2009
Slide 2: Forward-looking statements
Investor presentation Full-year 2009 Slide no 2 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 2009 and Form 20-F, both filed with the SEC in February 2010, a
Slide 3: Agenda
Investor presentation Full-year 2009 Slide no 3 Agenda • Highlights • Sales update • R&D update • Financials and outlook
Slide 4: Highlights and key events
Investor presentation Full-year 2009 Slide no 4 Highlights and key events Market development • Robust sales growth: +12% (+11% in local currencies) • Sales growth driven by modern insulins: +24% (+23%) • North America sales growth: +21% (+15%) • International Operations sales growth: +17% (+19%) Res
Slide 5: Rapid growth in diabetes prevalence
Investor presentation Full-year 2009 Slide no 5 Rapid growth in diabetes prevalence Development in IDF diabetes prevalence estimates Estimated prevalence at time of Expected diabetes prevalence Diabetes Atlas updates in Diabetes Atlas Fourth edition, 2009 450 million people with diabetes 2030 400 CA
Slide 6: Diabetes care continues to outgrow the general pharmaceutical industry
Investor presentation Full-year 2009 Slide no 6 Diabetes care continues to outgrow the general pharmaceutical industry Periodic growth (CAGR) in global prescription and diabetes care sales Global prescription sales Global diabetes care sales 14% 13% 10% 9% 7% 3% 1999-2004 2004-2009 2009-2014 Source:
Slide 7: Proteins drive value growth in the global diabetes care market
Investor presentation Full-year 2009 Slide no 7 Proteins drive value growth in the global diabetes care market Global diabetes care market Global diabetes care by treatment class value market share OAD Insulin GLP-1 40 25% 23% 35 Total market: CAGR 10% Quarterly sales (bDKK) 20% 30 25 CAGR 14% 15% 2
Slide 8: Victoza approved in all triad markets and ready for global roll-out
Investor presentation Full-year 2009 Slide no 8 Victoza® approved in all triad markets and ready for global roll-out Market Value share of global diabetes market Regulatory status US 54% Approved Europe 25% Launched Japan 9% Approved China 2% Submitted Source: IMS MAT November 2009 value data
Slide 9: Sales update
Investor presentation Full-year 2009 Slide no 9 Sales update
Slide 10: Key products continue to drive growth
Investor presentation Full-year 2009 Slide no 10 Key products continue to drive growth – full year 2009 Sales as reported Growth analysis HRT Local currencies Growth Share of Norditropin® +8% growth +14% 3% 9% Diabetes care Modern insulins 23% 82% NovoSeven® +12% Human insulins -5% -13% +11% 14% Pro
Slide 11: North America drives sales growth
Investor presentation Full-year 2009 Slide no 11 North America drives sales growth - full year 2009 Sales as reported Growth analysis Japan & Oceania +14% North America Local currencies Growth Share of +21% growth 11% International North America 15% 48% Operations +17% Europe 5% 19% 19% 36% Internat
Slide 12: Sustaining leadership position in an expanding insulin market
Investor presentation Full-year 2009 Slide no 12 Sustaining leadership position in an expanding insulin market World insulin market growth IMS world insulin market shares Novo Nordisk Sanofi-Aventis Eli Lilly Volume: 7.0% 70% DKK: 14.0% 60% GR 51% CA 50% DKK 69.7 40% 30% DKK 36.2 23% billion billion
Slide 13: Continued conversion to modern insulins drives value creation on the insulin market
Investor presentation Full-year 2009 Slide no 13 Continued conversion to modern insulins drives value creation on the insulin market Modern insulin penetration Modern insulin market shares Novo Nordisk Sanofi-Aventis Eli Lilly 70% 60% 59% 50% 45% 32% Modern insulin 40% 34% 30% 20% 20% Human insulin
Slide 14: Solid progress of Victoza roll-out
Investor presentation Full-year 2009 Slide no 14 Solid progress of Victoza® roll-out Diabetes market share in Germany (value) Global roll-out continues Victoza® Exenatide GLP-1 all 4% • Launched in Germany, UK, Denmark, Diabetes market share (value) Ireland, Norway, Greece, Sweden, The 3.1% Netherla
Slide 15: R&D update
Investor presentation Full-year 2009 Slide no 15 R&D update
Slide 16: Record-setting approval time for the US, EU and Japan
Investor presentation Full-year 2009 Slide no 16 Record-setting approval time for the US, EU and Japan Time spent from first submission to last approval in the triad markets Note: Exhibit shows time spent from first submission to last approval in the triad markets (i.e. drugs approved by FDA, EMEA a
Slide 17: Victoza label characteristics across triad markets
Investor presentation Full-year 2009 Slide no 17 Victoza® label characteristics across triad markets Europe US Japan Monotherapy • No • Yes; not first line • Yes Indication Combination therapy • Yes • Yes • Yes Contraindications • Hypersensitivity • Personal or family • Hypersensitivity; history of
Slide 18: R&D pipeline: Diabetes and obesity
Investor presentation Full-year 2009 Slide no 18 R&D pipeline: Diabetes and obesity Compound Type Indication Status (phase) 1 2 3 Filed Appr. Victoza® Once-daily GLP-1 analogue Type 2 Degludec* Ultra LA basal insulin Type 1+2 DegludecPlus* Ultra LA basal insulin with a bolus boost Type 1+2 Semagluti
Slide 19: R&D pipeline: Haemostasis
Investor presentation Full-year 2009 Slide no 19 R&D pipeline: Haemostasis Compound Type Indication Status (phase) 1 2 3 Filed Appr. NovoSeven® RT rFVIIa Haemophilia w. inhibitors NN1841 rFXIII Congenital FXIII deficiency NN7008 rFVIII Haemophilia A NN1731 FA rFVIIa analogue Haemophilia w. inhibitor
Slide 20: R&D pipeline: Other biopharmaceuticals
Investor presentation Full-year 2009 Slide no 20 R&D pipeline: Other biopharmaceuticals Compound Type Indication Phase 1 2 3 Filed Appr. NN8630 LA hGH GHD & AGHD Vagifem® Low Dose Topical product Menopausal symptoms Anti-IL20 Monoclonal antibody PSA / RA Anti-C5aR Monoclonal antibody RA NN8555 Monoc
Slide 21: Financials and outlook
Investor presentation Full-year 2009 Slide no 21 Financials and outlook
Slide 22: Financial results
Investor presentation Full-year 2009 Slide no 22 Financial results DKK million 2009 2008 change Sales 51,078 45,553 12% Gross profit 40,640 35,444 15% Gross margin 79.6% 77.8% Sales and distribution costs 15,420 12,866 20% Percent of sales 30.2% 28.2% Research and development costs 7,864 7,856 0% Pe
Slide 23: Solid gross margin development key driver for financial achievements since 2005
Investor presentation Full-year 2009 Slide no 23 Solid gross margin development key driver for financial achievements since 2005 Gross margin improvement Key observations 80% Annual average 79.6 • Solid gross margin improvement of 1.8 percentage points in 2009 78% 77.8 • Positive currency impact of
Slide 24: Cash return to shareholders
Investor presentation Full-year 2009 Slide no 24 Cash return to shareholders Dividend and payout ratio Share repurchase programme Dividend (DKK) Payout ratio DKK billion Dividend proposed for 2009 8 8 45% DKK 19 billion 7.5 Dividend 7 7 6.5 Payout ratio 40% 6 6 5 5 4.8 4.7 35% 4 4 30% 3.0 3 3 2 2 25
Slide 25: Currency development – key currencies close to 2009 average
Investor presentation Full-year 2009 Slide no 25 Currency development – key currencies close to 2009 average Annual impact on operating 650 profit of a 5% movement in Spot rates Quarterly average Annual average currency (DKK million) 2010 USD/DKK 600 USD 580 CNY 100 550 JPY 150 GBP 80 500 CAD 40 450
Slide 26: Financial guidance for 2010
Investor presentation Full-year 2009 Slide no 26 Financial guidance for 2010 Key currency rates • Sales growth expectations: DKK 2009 2010 Current per 100 average average* rate* • 6-10% in local currencies USD 536 528 529 • Reported at a similar level as in local currencies JPY 5.73 5.88 5.91 • Oper
Slide 27: Closing remarks
Investor presentation Full-year 2009 Slide no 27 Closing remarks Solid market performance Promising pipeline • 10% annual diabetes market growth • Victoza® launch expands product driven by diabetes prevalence offering for early stage type 2 diabetes • 51% insulin market share with leadership positio
Slide 28: Investor information
Investor presentation Full-year 2009 Slide no 28 Investor information Share information Investor Relations Novo Nordisk’s B shares are listed contacts on the stock exchange in Novo Nordisk A/S Investor Relations Copenhagen. Its ADRs are listed on Novo Allé, DK-2880 Bagsværd the New York Stock Exchan
Slide 29: Appendix
Investor presentation Full-year 2009 Slide no 29 Appendix 1. Strategy 2. Financials 3. Performance of key products 4. R&D 5. Detailed market shares
Slide 30: Appendix 1: Strategy
Investor presentation Full-year 2009 Slide no 30 Appendix 1: Strategy
Slide 31: Novo Nordisk's corporate strategy
Investor presentation Full-year 2009 Slide no 31 Novo Nordisk’s corporate strategy Indications Compounds/Capabilities Strategic focus Insulin • Diabetes Expand leadership Expand leadership GLP-1 Drug delivery and protein expertise Global commercial infrastructure GLP-1 • Obesity/pre-diabetes Explore
Slide 32: R&D strategy: Innovation across multiple dimensions enables promising R&D portfolio
Investor presentation Full-year 2009 Slide no 32 R&D strategy: Innovation across multiple dimensions enables promising R&D portfolio Future assets • New generation insulins Commercial assets Action • Next generation GLP-1s • Next generation devices • NovoRapid® Next generation • Short-acting rFVIIa
Slide 33: Sustainability of protein based franchises
Investor presentation Full-year 2009 Slide no 33 Sustainability of protein based franchises Share of market Animal Human Modern New generation 1st generation 2nd generation 3rd generation • Degludec Insulin • NovoMix® • NovoRapid® • DegludecPlus • New concepts • Levemir® tim e Share of market Plasma
Slide 34: Insulin leadership position in all regions
Investor presentation Full-year 2009 Slide no 34 Insulin leadership position in all regions Global diabetes pandemic driven by International Operations North America Europe International Operations Market share 42% Market share 54% Market share 56% People with diabetes: People with diabetes: People
Slide 35: There is a need for better treatment options to bring blood glucose levels in control
Investor presentation Full-year 2009 Slide no 35 There is a need for better treatment options to bring blood glucose levels in control Major diabetic complications Diabetes control 100% HbA1c > 7% 56% 44% HbA1c < 7% Prevalence Direct costs related to T2DM 7% Antidiabetic drugs Retinopathy 28% Nephro
Slide 36: Appendix 2: Financials
Investor presentation Full-year 2009 Slide no 36 Appendix 2: Financials
Slide 37: Long term financial targets: Operating profit growth and operating margin
Investor presentation Full-year 2009 Slide no 37 Long term financial targets: Operating profit growth and operating margin Operating profit growth Operating margin Current long term financial target Current long term financial target 25% 35% 30% 20% 25% 15% 20% 15% 10% 15.9 12.7 12.6 23.7 20.7 10% 2
Slide 38: Long term financial targets: Return on invested capital and cash to earnings
Investor presentation Full-year 2009 Slide no 38 Long term financial targets: Return on invested capital and cash to earnings Cash to earnings Return on invested capital (three years’ average) Current long term financial target Current long term financial target 60% 120% 50% 100% 40% 80% 30% 60% 20%
Slide 39: Appendix 3: Performance of key products
Investor presentation Full-year 2009 Slide no 39 Appendix 3: Performance of key products
Slide 40: Modern insulins exhibit steady penetration
Investor presentation Full-year 2009 Slide no 40 Modern insulins exhibit steady penetration Global market share of total segment Modern insulin sales as reported NovoRapid® NovoMix®30 Levemir® Levemir® DKK 5.2bn 50% NovoRapid® +36% DKK 9.7bn +25% 40% 24% 30% 46% NovoMix® 20% DKK 6.5bn 30% +15% 10% 0
Slide 41: Solid NovoSeven sales
Investor presentation Full-year 2009 Slide no 41 Solid NovoSeven® sales NovoSeven® sales development Key observations • Sales growth in 2009 of 11% as 2,000 8% reported and 10% in local currencies 1,800 R: CAG 1,600 • Growth driven by Europe and 1,400 International Operations DKK million 1,200 • The
Slide 42: Strong sales growth with Norditropin
Investor presentation Full-year 2009 Slide no 42 Strong sales growth with Norditropin® Norditropin® development Key observations 1,200 • Sales growth in 2009 of 14% as % reported and 10% in local currencies R : 12 1,000 CAG • North America contributes nearly 60% of growth DKK million 800 • Worldwide
Slide 43: Appendix 4: R&D
Investor presentation Full-year 2009 Slide no 43 Appendix 4: R&D
Slide 44: Degludec: True basal insulin enabling greater flexibility
Investor presentation Full-year 2009 Slide no 44 Degludec*: True basal insulin enabling greater flexibility Clinical profile (phase 2) Degludec* versus glargine (once-daily): Simulation based on phase 1 data • A neutral, soluble, long-acting Degludec insulin glargine insulin with a flat and predicta
Slide 45: DegludecPlus: A true long acting basal insulin with a boost of bolus insulin
Investor presentation Full-year 2009 Slide no 45 DegludecPlus*: A true long acting basal insulin with a boost of bolus insulin Clinical profile (phase 2) DegludecPlus* vs. insulin glargine and BIAsp Simulation based on phase 1 data • A neutral, soluble, fixed combination insulin with no 8 need for r
Slide 46: BEGIN and BOOST: The largest diabetes development programme in history
Investor presentation Full-year 2009 Slide no 46 BEGINTM and BOOSTTM: The largest diabetes development programme in history Estimated timeline for last patient last treatment for clinical trials NN5401-3594: 6 months vs Levemir® in 500 type 1 diabetes patients NN5401-3592: 6 months vs NovoMix®30 in
Slide 47: BEGIN and BOOST: Initiated trials in details
Investor presentation Full-year 2009 Slide no 47 BEGINTM and BOOSTTM: Initiated trials in details Trial Area Comparators Background Patients Duration NN1250-3579 T2DM Degludec OD vs. Lantus® OD ±Met, ±DPP-IV 984 12 mths Degludec OD + NovoRapid® TID vs. NN1250-3582 T2DM ±Met, ±Pio 984 12 mths Lantus®
Slide 48: Mitogenic response and mitogenic potency tested in insulin analogue development
Investor presentation Full-year 2009 Slide no 48 Mitogenic response and mitogenic potency tested in insulin analogue development Receptor affinity is key to safety Insulin receptor IGF-1R Insulin receptor Metabolic Mitogenic affinity potency potency affinity off rate Insulin Human =100 =100 =100 =10
Slide 49: Liraglutide more effectively achieves A1C below 7% than alternatives
Investor presentation Full-year 2009 Slide no 49 Liraglutide more effectively achieves A1C below 7% than alternatives
Slide 50: Liraglutide more effectively achieves a composite endpoint than alternatives
Investor presentation Full-year 2009 Slide no 50 Liraglutide more effectively achieves a composite endpoint than alternatives
Slide 51: LEAD study comparing liraglutide and exenatide treatment
Investor presentation Full-year 2009 Slide no 51 LEAD 6 study comparing liraglutide and exenatide treatment Proportion of subjects with nausea by Proportion of subjects with nausea by week and treatment week and treatment liraglutide -> liraglutide liraglutide 9,0 Exenatide -> liraglutide Exenatide
Slide 52: Haemostasis R&D strategy
Investor presentation Full-year 2009 Slide no 52 Haemostasis R&D strategy NovoSeven® rFXIII single dose NovoSeven® room rFIX products temperature stable R&D Commitment NovoSeven® rFVIII for prophylaxis products Subcutaneous Fast-acting administration rFVIIa Long-acting rFVIIa
Slide 53: NN1731: Attractive profile of the next generation factor seven, rFVIIa analogue
Investor presentation Full-year 2009 Slide no 53 NN1731: Attractive profile of the next generation factor seven, 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
Slide 54: Appendix 5: Detailed market share slides
Investor presentation Full-year 2009 Slide no 54 Appendix 5: Detailed market share slides
Slide 55: Global insulin volume growth above 5%
Investor presentation Full-year 2009 Slide no 55 Global insulin volume growth above 5% Regional volume shares Regional insulin volume growth of insulin market IO North America World IO North America Europe Japan & Oceania Europe Japan & Oceania 25% 100% 15% 20% 80% 6% 15% 60% 43% 10% 40% 5% 20% 36%
Slide 56: Still a significant potential for Novo Nordisk on the US modern insulin market
Investor presentation Full-year 2009 Slide no 56 Still a significant potential for Novo Nordisk on the US modern insulin market US insulin market by segments US modern insulin market shares Modern insulin penetration Novo Nordisk Sanofi-Aventis Eli Lilly tMU Penetration 30 80% 60% CAGR volume: 5.8%
Slide 57: Maintaining the solid leadership position on the European modern insulin market
Investor presentation Full-year 2009 Slide no 57 Maintaining the solid leadership position on the European modern insulin market EU insulin market by segments EU modern insulin market shares Modern insulin penetration Novo Nordisk Sanofi-Aventis Eli Lilly tMU Penetration 35 CAGR volume: 5.4% 70% 60%
Slide 58: Stable leadership position on the rapidly growing Chinese insulin market
Investor presentation Full-year 2009 Slide no 58 Stable leadership position on the rapidly growing Chinese insulin market China insulin market by segments China insulin market shares Modern insulin penetration Novo Nordisk Sanofi-Aventis Eli Lilly tMU Penetration Shanghai Fosun Tonghua Dongbao 5 70%
Slide 59: US modern insulin conversion and product performance
Investor presentation Full-year 2009 Slide no 59 US modern insulin conversion and product performance Share of short-acting segment Share of pre-mixed segment Share of long-acting segment Share of market converted: 74% Share of market converted: 40% Share of market converted: 77% 50% 50% 80% NovoRap
Slide 60: European modern insulin conversion and product performance
Investor presentation Full-year 2009 Slide no 60 European modern insulin conversion and product performance Share of short-acting segment Share of pre-mixed segment Share of long-acting segment Share of market converted: 59% Share of market converted: 52% Share of market converted: 66% 50% 50% 50% L