Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — FY2006 Earnings Presentation
49 slides from Novo Nordisk A/s Class B's earnings presentation, 2007
Slide 1: A focused healthcare company
Investor presentation A focused healthcare company Investor presentation – Full year 2006
Slide 2: Forward-looking statements
Investor presentation Full year 2006 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’, ‘Long-term
Slide 3: Agenda
Investor presentation Full year 2006 Slide no 3 Agenda • Highlights and strategy • Sales update • R&D update • Financials
Slide 4: Highlights for 2006
Investor presentation Full year 2006 Slide no 4 Highlights for 2006 Market development: • Robust sales growth: +15% as reported, +16% in local currencies • Sales growth driven by modern insulins: +48% as reported • NovoSeven® growth continued: +11% as reported • Norditropin® showed strong performanc
Slide 5: Highlights for 2006, cont’d
Investor presentation Full year 2006 Slide no 5 Highlights for 2006, cont’d R&D – diabetes care: • Recruitment completed in global liraglutide phase 3 study • Initiation of phase 3 study of liraglutide in Japan • Initiation of phase 2 dose-ranging study of liraglutide within obesity • Initiation of
Slide 6: Novo Nordisk’s corporate strategy
Investor presentation Full year 2006 Slide no 6 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 Expand fra
Slide 7: Sustainability highlights for 2006
Investor presentation Full year 2006 Slide no 7 Sustainability highlights for 2006 Changing Diabetes campaign • Changing Diabetes Bus have been in six countries – and more than 28,000 people have visited the bus UN Resolution on diabetes adopted on 20 December 2006 • “Unite for Diabetes” campaign •
Slide 8: Sales update
Investor presentation Full year 2006 Slide no 8 Sales update
Slide 9: Insulin world market leader with 52% market share
Investor presentation Full year 2006 Slide no 9 Insulin world market leader with 52% market share Europe North America Novo Nordisk #1 Novo Nordisk #1 Market share 57% Japan & Oceania Market share: 41% Novo Nordisk #1 Market share: 76% International Operations Novo Nordisk #1 Market share: 60% Notes
Slide 10: Growth in Novo Nordisk’s insulin franchise looks set to continue
Investor presentation Full year 2006 Slide no 10 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: 5.4% 200 2007 2025 180 Value: 2007: 246 million 160 10.9% DKK 46.1bn 140 2025: 380 mill
Slide 11: Key products continue to drive growth
Investor presentation Full year 2006 Slide no 11 Key products continue to drive growth – full year 2006 Sales as reported Growth analysis Other Norditropin® +2% Local currencies Growth Share of +19% growth 5% 9% Diabetes care Modern insulins 50% 69% +16% Human insulin and 1% 3% NovoSeven ® 15% insul
Slide 12: Modern insulins
Investor presentation Full year 2006 Slide no 12 Modern insulins Modern insulin sales development Modern insulin sales as reported Levemir® +40% DKK 1.4bn 3,200 +187% NovoRapid® DKK 5.6bn 2,800 13% NovoMix® +36% 2,400 DKK 3.8bn DKK million +42% 2,000 35% 52% 1,600 1,200 800 400 0 Q1 Q4 2002 2006 Sal
Slide 13: A continued increase in modern insulin market share
Investor presentation Full year 2006 Slide no 13 A continued increase in modern insulin market share IMS world modern insulin Modern insulin penetration market shares, volume 80% 70% Novo Nordisk 60% Eli Lilly 49% Modern insulin 50% Sanofi-Aventis 7% 40% 30% Human insulin 20% 10% 0% Q1 Q3 Q1 Q3 2000
Slide 14: Levemir reinforces European modern insulin market leadership
Investor presentation Full year 2006 Slide no 14 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 21% 22% 60% Novo Nordisk Eli Lilly 20% Sanofi-Aventis 18% 50% 16% 40% 14% 12% 30%
Slide 15: NovoSeven
Investor presentation Full year 2006 Slide no 15 NovoSeven® NovoSeven® sales development Key observations • Growth in the fourth quarter of 1,600 +6% 6% as reported, 11% in local currencies 1,400 1,200 • Sales growth in all regions DKK million 1,000 • North American sales picked up and was the main
Slide 16: Norditropin
Investor presentation Full year 2006 Slide no 16 Norditropin® Norditropin® Global growth hormone sales development market shares, value 60% Pfizer Novo Nordisk +15% Genentech 900 50% Eli Lilly 800 Serono 700 40% DKK million 600 28% 500 30% 23% 400 20% 300 200 10% 100 0 0% Q1 Q4 Q1 Q3 2002 2006 2002
Slide 17: Sales by region
Investor presentation Full year 2006 Slide no 17 Sales by region - full year 2006 Sales as reported Growth analysis Japan & Oceania -1% Europe Local Growth Share of +9% currencies growth 12% International Europe 9% 23% Operations North America 29% 53% +17% 18% 38% International 17% 20% Operations Ja
Slide 18: US diabetes performance
Investor presentation Full year 2006 Slide no 18 US diabetes performance Novo Nordisk’s US insulin US insulin market share sales development development Index 80% local currencies 70% Novo Nordisk 500 Eli Lilly 450 60% Sanofi-Aventis 400 % : 43 50% 350 A GR C 300 40% 250 200 30% 150 20% 100 10% 50 0
Slide 19: Levemir launch in the US
Investor presentation Full year 2006 Slide no 19 Levemir® launch in the US Levemir® share of total basal modern insulin prescriptions Key observations • Increase in US sales force by 700 6% to 1,900 to drive further 5% penetration in 2007 • High level of formulary coverage: 4% close to 75% of total
Slide 20: R&D update
Investor presentation Full year 2006 Slide no 20 R&D update
Slide 21: Development portfolio – diabetes
Investor presentation Full year 2006 Slide no 21 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 Approved in Europe Filed in US Liraglutide GLP-1 analogue Type 2 Pha
Slide 22: Development portfolio – haemostasis
Investor presentation Full year 2006 Slide no 22 Development portfolio – haemostasis Compound Indication Phase NovoSeven® Heat-stable formulation Preparing for filing NovoSeven® Intracerebral haemorrhage Phase 3 NovoSeven® Trauma Phase 3 NovoSeven® Prophylaxis Phase 2 completed NovoSeven® Spinal sur
Slide 23: Development portfolio - other biopharmaceuticals
Investor presentation Full year 2006 Slide no 23 Development portfolio - other biopharmaceuticals Compound Indication Phase Activelle® low dose Hormone replacement therapy Approved in US; Filed in Europe Vagifem® low dose Hormone replacement therapy Phase 3 Norditropin® APCD1 Phase 2 completed Inter
Slide 24: Financials
Investor presentation Full year 2006 Slide no 24 Financials
Slide 25: Financial results
Investor presentation Full year 2006 Slide no 25 Financial results DKK million 2006 2005 % change Sales 38,743 33,760 15 Gross profit 29,158 24,583 19 Gross margin 75.3% 72.8% Sales and distribution costs 11,608 9,691 20 Percent of sales 30.0% 28.7% Research and development costs 6,316 5,085 24 Perc
Slide 26: Strong gross margin development
Investor presentation Full year 2006 Slide no 26 Strong gross margin development Gross margin improvement analysis Key observations 76% • Underlying improvement of 210 bp 10 basis points 75% + 2 75.3 • Productivity gains prime 74% bp contributor – reflecting significant 0 73.2 +9 0.4 improvements in
Slide 27: Long-term financial targets
Investor presentation Full year 2006 Slide no 27 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 70 ROIC 21
Slide 28: Outlook 2007
Investor presentation Full year 2006 Slide no 28 Outlook 2007 • Sales growth expectations: • More than 10% measured in local currencies Key currency rates • Sales growth in DKK lower than sales growth DKK 2006 2007 Current in local currencies per 100 average average rate* • Operating profit growth e
Slide 29: Novo Nordisk - concluding remarks
Investor presentation Full year 2006 Slide no 29 Novo Nordisk - concluding remarks Key growth drivers Strategic position • Leadership in diabetes care with • #1 in the global insulin market full portfolio of modern insulins • #1 in the global modern insulin • NovoSeven® expanding into segment critic
Slide 30: Investor information
Investor presentation Full year 2006 Slide no 30 Investor information Share information Investor Relations contacts Novo Nordisk A/S Novo Nordisk’s B shares are Investor Relations listed on the stock exchanges in Novo Allé, DK-2880 Bagsværd Fax (+45) 4443 6633 Copenhagen and London. Its Mogens Thors
Slide 31: Appendices
Investor presentation Full year 2006 Slide no 31 Appendices
Slide 32: Currency development: USD and JPY
Investor presentation Full year 2006 Slide no 32 Currency development: USD and JPY Spot rates Quarterly average Annual average 660 628 640 621 USD/DKK 620 612 600 577 573 580 592 594 586 560 568 540 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 6.0 Spot rates Quarterly average Annual average 5.50 5.49 JPY
Slide 33: Solid insulin market growth
Investor presentation Full year 2006 Slide no 33 Solid insulin market growth - Novo Nordisk market leadership Market size Growth rates Novo Nordisk market share Market Novo Nordisk US 11.2% 41% 39% 3.9% Europe 4.1% 51% 57% 5.6% Japan 7.1% 74% 5% 7.2% World 6.6% 52% 100% 5.0% Note: Volume data. Wal-M
Slide 34: Insulin growth driven by NovoRapid and NovoMix
Investor presentation Full year 2006 Slide no 34 Insulin growth driven by NovoRapid® and NovoMix® NovoRapid® share of short- NovoMix® share of acting modern insulin premixed modern insulin 70% 70% 66% 60% 60% 53% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Q1 Q3 Q1 Q3 2002 2006 2002 2006 Note: Qua
Slide 35: European modern insulin conversion - NovoRapid
Investor presentation Full year 2006 Slide no 35 European modern insulin conversion - NovoRapid® Modern insulin penetration short-acting modern insulin Share of short-acting segment NovoRapid® 30% 25% Human insulin 20% Humalog 55% 15% 10% Modern insulin 5% Apidra 0% Q1 Q3 Q1 Q3 2000 2006 2000 2006 N
Slide 36: European modern insulin conversion - NovoMix
Investor presentation Full year 2006 Slide no 36 European modern insulin conversion - NovoMix® 30 Modern insulin penetration premixed segment Share of premixed segment 25% 20% NovoMix® 30 Human insulin 15% 10% Humalog Mix 25 5% 35% Modern insulin 0% Q1 Q3 Q1 Q3 2000 2006 2000 2006 Note: Quarterly da
Slide 37: European modern insulin conversion - Levemir
Investor presentation Full year 2006 Slide no 37 European modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in Europe 22% 21% 20% 18% 16% Human insulin 14% 12% 10% 8% 47% 6% 4% 2% Modern insulin 0% Q1 Q3 Q1 Q3 2000
Slide 38: US modern insulin conversion - NovoLog
Investor presentation Full year 2006 Slide no 38 US modern insulin conversion - NovoLog® Modern insulin penetration short-acting segment Share of short-acting segment 50% Human insulin 40% Humalog 67% 30% NovoLog® 20% 33% Modern insulin 10% 0% Q1 Q3 Q1 Q3 2000 2006 2000 2006 Note: Quarterly data, vo
Slide 39: US modern insulin conversion - NovoLog Mix 70/30
Investor presentation Full year 2006 Slide no 39 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 31% 5% Modern insulin 0% Q1 Q3 Q1 Q3 2000 2006 2000 2006 Note:
Slide 40: US modern insulin conversion - Levemir
Investor presentation Full year 2006 Slide no 40 US modern insulin conversion - Levemir® Modern insulin penetration Levemir® share of total long-acting long-acting segment modern insulin prescriptions 6% 5% Human insulin 4% 3% 60% 2% 1% Modern insulin 0% Q1 Q3 April December 2000 2006 2006 2006 Note
Slide 41: Insulin segmentation - Europe and the US
Investor presentation Full year 2006 Slide no 41 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 Q3 Q1 Q3 2000 2006 2000 2006 Note: Quarterly data, volume figures Source: IMS
Slide 42: Switch from Lantus to Levemir improved HbA1c, while reducing hypoglycaemia and weight
Investor presentation Full year 2006 Slide no 42 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 Overall No
Slide 43: Human versus all-analogue basal-bolus in type diabetes
Investor presentation Full year 2006 Slide no 43 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 Nocturnal M
Slide 44: Biosimilars compete in a declining segment
Investor presentation Full year 2006 Slide no 44 Biosimilars compete in a declining segment Modern insulin conversion in IMS world markets Modern insulin 49% Patent protected Human insulin 2000 Q3 2006 2011 Notes: Quarterly data based on volume figures. From Q3 2006 onwards it is estimated that 6% o
Slide 45: Insulin is the ultimate treatment
Investor presentation Full year 2006 Slide no 45 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 using insulin
Slide 46: Insulin secretion
Investor presentation Full year 2006 Slide no 46 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 47: Attractive profile of rFVIIa analogue
Investor presentation Full year 2006 Slide no 47 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® • Phase 1 in
Slide 48: NovoSeven - a unique mechanism of action
Investor presentation Full year 2006 Slide no 48 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 quality of life
Slide 49: Anti-KIR being developed in collaboration with Innate Pharma
Investor presentation Full year 2006 Slide no 49 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 • Phase 1 c