Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — H1 2016 Earnings Presentation
20 slides from Novo Nordisk A/s Class B's earnings presentation, Aug 5, 2016
Slide 1: Investor conference call First half of 2016
Slide 1 Investor conference call First half of 2016 Shanghai – part of Cities Changing Diabetes
Slide 2: Agenda
Investor conference call First half of 2016 Slide 2 Agenda Highlights and key events By Lars Rebien Sørensen, president and CEO Sales update By Lars Rebien Sørensen, president and CEO R&D update By Mads Krogsgaard Thomsen, CSO Financials and outlook By Jesper Brandgaard, CFO Questions and answers se
Slide 3: Forward-looking statements
Investor conference call First half of 2016 Slide 3 Forward-looking statements Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including the company’s Annual Report 2015 and Form 20-F, which are both filed with the SEC in February 2016 in continuati
Slide 4: Highlights – First half of 2016
Investor conference call First half of 2016 Slide 4 Highlights – First half of 2016 Sales development • Sales increased by 7% in local currencies and 5% in Danish kroner • USA grew by 7% in local currencies and accounted for 50% share of growth in local currencies • International Operations and Regi
Slide 5: All regions contribute to local sales currencies growth in the first half of 2016
Investor conference call First half of 2016 Slide 5 All regions contribute to local sales currencies growth in the first half of 2016 Sales as reported – first half of 2016 Growth analysis – first half of 2016 Pacific Local currencies Growth Share of growth +9% USA 7% 50% Region China +5% 8% Europe
Slide 6: Modest US sales growth in the second quarter reflects more challenging competitive environment
Investor conference call First half of 2016 Slide 6 Modest US sales growth in the second quarter reflects more challenging competitive environment Modest sales growth in Q2 2016 Key factors impacting growth Sales as reported MAT quarterly local currency growth • Sales growth primarily driven by Tres
Slide 7: Sales growth is driven by Victoza and new-generation insulin
Investor conference call First half of 2016 Slide 7 Sales growth is driven by Victoza® and new-generation insulin Sales as reported – first half of 2016 Growth analysis – first half of 2016 Local currencies Growth Share of growth Other biopharmaceuticals Norditropin® +9% New-generation insulin1 174%
Slide 8: Victoza maintains leadership in the faster growing US GLP-1 market
Investor conference call First half of 2016 Slide 8 Victoza® maintains leadership in the faster growing US GLP-1 market US GLP-1 market development US GLP-1 market TRx volume US GLP-1 market shares MAT Total TRx MAT volume GLP-1 TRx Victoza® exenatide GLP-1 TRx Victoza® exenatide GLP-1 TRx Growth ra
Slide 9: Roll-out of new-generation insulin portfolio is progressing
Investor conference call First half of 2016 Slide 9 Roll-out of new-generation insulin portfolio is progressing Tresiba® value share of basal insulin segment Key launch observations in selected countries, excl USA Switzerland Netherlands UK India • Tresiba® launched in 45 countries with solid penetr
Slide 10: Steady uptake of Tresiba in the USA
Investor conference call First half of 2016 Slide 10 Steady uptake of Tresiba® in the USA Weekly US NBRx volume market shares Tresiba® launched in the USA Tresiba® Levemir® NN Total Basal • Full commercial launch in January 2016 following specialist Basal glargine U100 glargine U300 engagement in Q4
Slide 11: Broad market access across the diabetes portfolio is expected to be maintained in the USA for 2017
Investor conference call First half of 2016 Slide 11 Broad market access across the diabetes portfolio is expected to be maintained in the USA for 2017 Current level of unrestricted market access for key Novo Nordisk products in the USA US formulary negotiations and 2017 pricing Unrestricted Commerc
Slide 12: Victoza statistically significantly reduced the risk of major adverse cardiovascular events in the LEADER trial
Investor conference call First half of 2016 Slide 12 Victoza® statistically significantly reduced the risk of major adverse cardiovascular events in the LEADER trial 13% reduction in 3-point MACE with Victoza® compared with placebo Key results and next step Patients1 with an Victoza® Placebo • Super
Slide 13: Tresiba showed lower variability in the glucose-lowering effect compared to glargine U300 in PK/PD trial
Investor conference call First half of 2016 Slide 13 Tresiba® showed lower variability in the glucose-lowering effect compared to glargine U300 in PK/PD trial Within-subject variability in steady state Key results and next step Day-to-day Tresiba® glargine U300 variability1 • The day-to-day variabil
Slide 14: Key development milestones
Investor conference call First half of 2016 Slide 14 Key development milestones IDegLira (NN9068) received a positive 16-0 vote in favour of approval from the FDA Advisory Committee Phase 2a trial with oral insulin OI338GT (NN1953) completed with generally encouraging results, while OI320GT (NN1957)
Slide 15: R&D news flow with several regulatory decisions expected in the next six months
Investor conference call First half of 2016 Slide 15 R&D news flow with several regulatory decisions expected in the next six months Results available Regulatory milestone Project Past 3-6 months Past 3 months Within 3 months In ~3-6 months Variation application Tresiba® SWITCH 1 √ in the USA DEVOTE
Slide 16: Financial results – first half of 2016
Investor conference call First half of 2016 Slide 16 Financial results – first half of 2016 DKK million H1 2016 H1 2015 Change Sales 54,671 52,259 5% Gross profit 46,392 44,526 4% Gross margin 84.9% 85.2% Sales and distribution costs (13,608) (13,322) 2% Percentage of sales 24.9% 25.5% Research and
Slide 17: Negative currency impact in 2016 driven by unfavourable development in both hedged and unhedged currencies
Investor conference call First half of 2016 Slide 17 Negative currency impact in 2016 driven by unfavourable development in both hedged and unhedged currencies USD/DKK CNY/DKK JPY/DKK GBP/DKK CAD/DKK 140 Hedged 2015 2016 Spot Impact of a Hedging Index (1 Jan 2015= 100) Currencies average average2 ra
Slide 18: Financial outlook for 2016
Investor conference call First half of 2016 Slide 18 Financial outlook for 2016 Expectations Previous expectations 5 Aug 2016 29 Apr 2016 Sales growth - local currencies 5-7% 5-9% Sales growth - reported Around 2 percentage points lower Around 3 percentage point lower Operating profit growth - local
Slide 19: Closing remarks
Investor conference call First half of 2016 Slide 19 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 • 27% value market share in diabetes care and
Slide 20: Investor contact information
Investor conference call First half of 2016 Slide 20 Investor contact information Share information Investor Relations contacts Novo Nordisk’s B shares are listed on the stock exchange in Novo Nordisk A/S Copenhagen under the symbol ‘NOVO B’. Its ADRs are listed on Investor Relations the New York St