Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — 9M 2012 Earnings Presentation
98 slides from Novo Nordisk A/s Class B's earnings presentation, October 2012
Slide 1: Investor presentation First nine months of 2012
Investor presentation Investor presentation First nine months of 2012
Slide 2: Forward-looking statements
Investor presentation First nine months of 2012 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 2011 and Form 20-F, both filed with the SEC in Febru
Slide 3: Content
Investor presentation First nine months of 2012 Slide no 3 Content Highlights and key events Sales update R&D update Financials and outlook
Slide 4: Highlights – first nine months of 2012
Investor presentation First nine months of 2012 Slide no 4 Highlights – first nine months of 2012 Sales development • Sales increased by 11% in local currencies and 18% in Danish kroner: • North America and International Operations increased by 19% and 16% in local currencies, respectively • Victoza
Slide 5: North America is the main contributor to growth
Investor presentation First nine months of 2012 Slide no 5 North America is the main contributor to growth – first nine months of 2012 Sales as reported Growth analysis Region China Local currencies Growth Share of +30% growth Japan & Korea North America 19% 64% +11% 9% Europe 2% 4% 9% International
Slide 6: Growth is driven by Modern insulins and Victoza
Investor presentation First nine months of 2012 Slide no 6 Growth is driven by Modern insulins and Victoza® – first nine months of 2012 Sales as reported Growth analysis Local currencies Growth Share of Norditropin® Other +3% growth +14% 3% Modern insulins 14% 54% NovoSeven® 8% Human insulins (2%) (
Slide 7: Growth in insulin is supported by strong underlying growth in modern insulin
Investor presentation First nine months of 2012 Slide no 7 Growth in insulin is supported by strong underlying growth in modern insulin and a stable market share Global insulin market Global modern insulin volume market shares tMU Device penetration Penetration Novo Nordisk Sanofi Eli Lilly Modern I
Slide 8: Strong underlying growth of Victoza supported by all regions
Investor presentation First nine months of 2012 Slide no 8 Strong underlying growth of Victoza® supported by all regions Victoza® sales split per region Reported Victoza® sales – first nine months of 2012 DKK North America Europe Region China billion Int. Operations Japan & Korea 5%1% 6% 25% 63% Q4
Slide 9: Continued expansion of the US GLP-1 market
Investor presentation First nine months of 2012 Slide no 9 Continued expansion of the US GLP-1 market Key observations for Victoza® US GLP-1 market in the US market GLP-1 TRx scripts (thousands) GLP-1 % of diabetes market value of TRx retail value (right axis) • Victoza ® market share within the GLP
Slide 10: Victoza continues to expand the GLP-1 class in key European markets
Investor presentation First nine months of 2012 Slide no 10 Victoza® continues to expand the GLP-1 class in key European markets Development in key European markets following Victoza® launch Germany UK France Market value*: DKK 11 billion Market value*: DKK 6 billion Market value*: DKK 7 billion Dia
Slide 11: Regulatory update for Tresiba and Ryzodeg
Investor presentation First nine months of 2012 Slide no 11 Regulatory update for Tresiba® (insulin degludec) and Ryzodeg® (insulin degludec/insulin aspart) • FDA disclosed that the advisory committee meeting on 8 November 2012 will focus on the benefits USA of a lower risk of hypoglycaemia and the
Slide 12: Competitive label for Tresiba secured in Japan and expected in Europe
Investor presentation First nine months of 2012 Slide no 12 Competitive label for Tresiba® secured in Japan and expected in Europe European label (expected) Japanese label • Duration of action beyond 42 hours • Duration of action tested up to 26 hours in Japanese patients • Four times lower day-to-d
Slide 13: Once Long trial comparing Tresiba to insulin glargine
Investor presentation First nine months of 2012 Slide no 13 “Once Long” trial comparing one year of treatment with Tresiba® to insulin glargine; published in Diabetes Care Diabetes care paper Excerpts from scientific paper “Insulins degludec and glargine administered once daily in combination with O
Slide 14: Other key events within Research and Development
Investor presentation First nine months of 2012 Slide no 14 Other key events within Research and Development Diabetes care • In a 26 week randomized extension trial in type 2 patients, once-daily Victoza® successfully improved HbA1c , and reduced body weight with a low risk of hypoglyceamia when add
Slide 15: Financial results – first nine months of 2012
Investor presentation First nine months of 2012 Slide no 15 Financial results – first nine months of 2012 DKK million First nine months 2012 First nine months 2011 Change Sales 57,064 48,226 18% Gross profit 46,752 38,759 21% Gross margin 81.9% 80.4% Sales and distribution costs 15,352 13,617 13% Pe
Slide 16: US dollar and Japanese Yen remain well above 2011 average
Investor presentation First nine months of 2012 Slide no 16 US dollar and Japanese Yen remain well above 2011 average 650 Spot rates Quarterly average Annual average Currency 2011 2012 Current assumptions1 average average rate2 600 USD/DKK USD 536 580 578 550 JPY 6.73 7.32 7.23 CNY 83 92 92 500 GBP
Slide 17: Financial outlook 2012
Investor presentation First nine months of 2012 Slide no 17 Financial outlook 2012 Expectations Previous expectations 31 October 2012 9 August 2012 Sales growth - local currencies 10-12% 9-12% Sales growth - reported Around 6 percentage points higher Around 7 percentage points higher Operating profi
Slide 18: Closing remarks
Investor presentation First nine months of 2012 Slide no 18 Closing remarks Solid market performance Promising pipeline • +10% annual diabetes care market growth • The only company with two new generation driven by diabetes prevalence1 insulins approaching the market • 25% market share in diabetes c
Slide 19: Investor information
Investor presentation First nine months of 2012 Slide no 19 Investor 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 Sto
Slide 20: Appendix
Investor presentation First nine months of 2012 Slide no 20 Appendix 1. Novo Nordisk at a glance 2. Diabetes 3. Biopharmaceuticals 4. Financials
Slide 21: Novo Nordisk at a glance
Investor presentation First nine months of 2012 Slide no 21 Novo Nordisk at a glance The core equity story Global leader in diabetes care Global insulin market share: 49% • A focused pharmaceutical company with leading positions in diabetes, haemophilia and hGH Europe: • Double digit top line growth
Slide 22: Novo Nordisk's strategic focus is based on a set of core capabilities
Investor presentation First nine months of 2012 Slide no 22 Novo Nordisk’s strategic focus is based on a set of core capabilities Therapeutic area Core capabilities Strategic priorities Expand leadership in positions in emerging markets Diabetes care Deep disease understanding diabetes care Fast and
Slide 23: Leading positions in diabetes, haemophilia and growth disorders
Investor presentation First nine months of 2012 Slide no 23 Novo Nordisk has leading positions in diabetes, haemophilia and growth disorders Diabetes Haemophilia Growth hormone deficiency DKK Market value DKK Market value DKK Market value billion Novo Nordisk market share billion Novo Nordisk market
Slide 24: Double digit top line growth driven by diabetes pandemic
Investor presentation First nine months of 2012 Slide no 24 Double digit top line growth driven by diabetes pandemic Novo Nordisk reported quarterly The number of people with diabetes sales by therapy according to IDF DKK Million North America Europe China billion Diabetes care Haemophilia Growth di
Slide 25: Novo Nordisk continues to expand leadership position within diabetes care
Investor presentation First nine months of 2012 Slide no 25 Novo Nordisk continues to expand leadership position within diabetes care Global diabetes care market Global diabetes care by treatment class value market share DKK billion Novo Nordisk Lilly BMS GLP-1 Insulin OAD Takeda Merck Novartis Sano
Slide 26: Diabetes pandemic is fuelled by growing rates of obesity
Investor presentation First nine months of 2012 Slide no 26 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% 4.5-5.
Slide 27: Insulin is the ultimate care for people with diabetes
Investor presentation First nine months of 2012 Slide no 27 Insulin is the ultimate care for people with diabetes Progression of type 2 diabetes and Distribution of patients and value across treatment intensification treatment classes Tablets GLP-1 Insulin Diet and excercise -cell function Tablets
Slide 28: Only company with a full portfolio of modern insulins
Investor presentation First nine months of 2012 Slide no 28 Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulins Brand share Sales of segment Patent Brand name Type Launch 2011 Aug 2012 expiration Fast-acting EU: 1999 12.8 bDKK EU: 2017* 49% insulin US:
Slide 29: Significant growth opportunities fuelled by strong R&D pipeline
Investor presentation First nine months of 2012 Slide no 29 Significant growth opportunities fuelled by strong R&D pipeline OI338GT - LATIN T1D - Tresiba® - Ultra-long- Oral insulin GLP-1 analogue acting basal insulin Diabetes care OI362GT - OG987GT - IDegLira - GLP-1 & Ryzodeg® - New Oral insulin O
Slide 30: Strong global presence in sales and manufacturing
Investor presentation First nine months of 2012 Slide no 30 Growth opportunities supported by strong global presence in both sales and manufacturing FTEs in sales regions excl. headquarter and manufacturing Global manufacturing setup • API production North America: ~4,600 • Formulation & filling • A
Slide 31: High barriers to entry in biologics
Investor presentation First nine months of 2012 Slide no 31 High barriers to entry in biologics Novo Nordisk position is protected by ...and significant barriers to entry value chain setup, patents... for biosimilar players Unique value Chain position Patent protection1 Research & Development • Need
Slide 32: Operating profit growth targeting 15%
Investor presentation First nine months of 2012 Slide no 32 Operating profit growth targeting 15%, driven by gross margin improvements and operational leverage The fundamental drivers of Operating profit operating profit growth DKK billion Gross margin improvement Operating profit growth vs. last ye
Slide 33: Operating profit after tax to net operating assets and free cash flow targeting 90%
Investor presentation First nine months of 2012 Slide no 33 Operating profit after tax to net operating assets, and Free Cash flow to earnings both targeting 90% Operating profit after tax to net operating assets and Invested capital Free cash flow DKK DKK billion billion Note: Operating profit afte
Slide 34: Cash returned to shareholders via dividends and share buybacks
Investor presentation First nine months of 2012 Slide no 34 Cash generated is returned to shareholders in form of dividends and share buybacks Dividend and payout ratio Share repurchases programmes DKK Payout DKK Share repurchase programme 2007-2010 Dividend paid Payout ratio billion ratio billion E
Slide 35: Diabetes
Investor presentation First nine months of 2012 Slide no 35 Diabetes
Slide 36: Diabetes – the inability to manage blood sugar levels
Investor presentation First nine months of 2012 Slide no 36 Diabetes – the inability to manage blood sugar levels appropriately Definition Insulin secretion profile ‟A metabolic disorder of multiple aetiology characterised by chronic hyperglycaemia with disturbances of carbohydrate, fat and protein
Slide 37: Insulin – a hormone enabling blood sugar to enter cells
Investor presentation First nine months of 2012 Slide no 37 Insulin – a hormone enabling blood sugar to enter cells The aim of insulin therapy is to recreate Insulin enables food to become energy normal blood insulin profile • Facilitates uptake of blood sugar into cells 70 Short-lived, rapidly gene
Slide 38: The diabetes pandemic and poor glycaemic control remain global problems
Investor presentation First nine months of 2012 Slide no 38 The diabetes pandemic and poor glycaemic control remain global problems The number of people with diabetes Differences in glycaemic control according to IDF between select countries Million North America Europe China people UK Netherlands I
Slide 39: Diabetes pandemic is fuelled by growing rates of obesity
Investor presentation First nine months of 2012 Slide no 39 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% 4.5-5.
Slide 40: UKPDS: Tight glycaemic control reduces risk of complications
Investor presentation First nine months of 2012 Slide no 40 UKPDS: Tight glycaemic control reduces risk of micro- and macro-vascular complications UKPDS 10 year follow-up: Risk reduction by lowering HbA1c by 1% Legacy effect of tight glycaemic control Diabetes- Peripheral related Myocardial Microvas
Slide 41: Insulin is the ultimate care for people with diabetes
Investor presentation First nine months of 2012 Slide no 41 Insulin is the ultimate care for people with diabetes Progression of type 2 diabetes and Distribution of patients and value across treatment intensification treatment classes Tablets GLP-1 Insulin Diet and excercise -cell function Tablets
Slide 42: Medications used for the treatment of type 2 diabetes
Investor presentation First nine months of 2012 Slide no 42 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 Diabetes co-morbidity/ Class change glycaemia change factors (pr. day) contraindicati
Slide 43: Injectable segment is the key driver of growth in diabetes care market
Investor presentation First nine months of 2012 Slide no 43 The injectable segment is the key driver of growth in the global diabetes care market Global diabetes care market Global diabetes care by treatment class value market share DKK billion Novo Nordisk Lilly BMS GLP-1 Insulin OAD Takeda Merck N
Slide 44: Sustained double-digit insulin market growth
Investor presentation First nine months of 2012 Slide no 44 Sustained double-digit insulin market growth Global insulin market growth The fundamental growth drivers 2007-2012 of the insulin market DKK CAGR: CAGR: billion 8%* 15%* Volume 28 • Prevalence of diabetes CAGR: bDKK • Rising diagnosis rates
Slide 45: Solid insulin growth across diverse regions
Investor presentation First nine months of 2012 Slide no 45 Solid insulin growth across diverse regions Novo Nordisk Market Market volume Volume market regions value size & growth composition shares 15% Basal Novo Nordisk 53.4 4% 18% 64.5 48% North America 37% Fast-acting 58% 42% Rest Premix 24.3 2%
Slide 46: Global insulin volume growth remains at around 5%
Investor presentation First nine months of 2012 Slide no 46 Global insulin volume growth remains at around 5% Regional insulin volume growth Regional insulin volume market shares North America China IO North America Region China Europe Japan & Korea Europe International Operations 6% Japan & Korea W
Slide 47: The insulin market is comprised of three segments
Investor presentation First nine months of 2012 Slide no 47 The insulin market is comprised of three segments Action profiles of insulins Global insulin volume market by segments tMU CAGR volume: 7.0% Fast acting CAGR value*: 15.2% 33% Fast acting 32% Premix 29% Premix 34% Long acting Long acting 38
Slide 48: Maintaining insulin leadership by sustaining modern insulin market share
Investor presentation First nine months of 2012 Slide no 48 Maintaining insulin leadership by sustaining modern insulin market share Novo Nordisk volume market share across insulin classes tMU Novo Nordisk segment MS (%) Segment volume Human insulin Modern insulin Total insulin Market value*: DKK 17
Slide 49: Only company with a full portfolio of modern insulins
Investor presentation First nine months of 2012 Slide no 49 Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulins Brand share Sales of segment Patent Brand name Type Launch 2011 Aug 2012 expiration Fast-acting EU: 1999 12.8 bDKK EU: 2017* 49% insulin US:
Slide 50: Modern insulin performance within the respective segments
Investor presentation First nine months of 2012 Slide no 50 Novo Nordisk modern insulin performance within the respective segments Long-acting insulin Rapid-acting insulin Premixed insulin tMU Segment volume tMU Segment volume tMU Segment volume Levemir® NovoRapid® NovoMix® market share market share
Slide 51: Significant potential on the US modern insulin market
Investor presentation First nine months of 2012 Slide no 51 Still a significant potential for Novo Nordisk on the US modern insulin market US insulin market by segments US modern insulin volume market shares Modern insulin penetration tMU Penetration Novo Nordisk Sanofi Eli Lilly Device penetration
Slide 52: Leadership position on the European modern insulin market
Investor presentation First nine months of 2012 Slide no 52 Maintaining the solid leadership position on the European modern insulin market EU insulin market by segments EU modern insulin volume market shares Modern insulin penetration tMU Penetration Novo Nordisk Sanofi Eli Lilly Device penetration
Slide 53: Leadership position on the Chinese insulin market
Investor presentation First nine months of 2012 Slide no 53 Stable leadership position on the rapidly growing Chinese insulin market China insulin market by segments China insulin volume market shares Modern insulin penetration Novo Nordisk Sanofi Eli Lilly tMU Penetration Device penetration Shangha
Slide 54: Leadership position in International Operations
Investor presentation First nine months of 2012 Slide no 54 Stable leadership position in International Operations International Operations insulin International Operations insulin market by segments volume market shares Modern insulin penetration Novo Nordisk Sanofi tMU Penetration Device penetrati
Slide 55: Sustained leadership position in Japan
Investor presentation First nine months of 2012 Slide no 55 Sustained leadership position in Japan Japan insulin market by segments Japan modern insulin volume market shares Modern insulin penetration Novo Nordisk Sanofi Eli Lilly tMU Penetration Device penetration CAGR volume: 2.4% CAGR value*: 12.
Slide 56: Assessment of the insulin industry
Investor presentation First nine months of 2012 Slide no 56 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 pressure from
Slide 57: GLP-1 effect dependent on level of blood glucose
Investor presentation First nine months of 2012 Slide no 57 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 Type 2 diabetes patients, no
Slide 58: Victoza, the only once-daily human GLP-1 analogue
Investor presentation First nine months of 2012 Slide no 58 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 weight • Red
Slide 59: The global GLP-1 market continues to expand
Investor presentation First nine months of 2012 Slide no 59 The global GLP-1 market continues to expand Victoza® is driving the expansion of North America constitutes the majority of the global GLP-1 market the GLP-1 value market* GLP-1 sales in bDKK (right axis) DKK North America Europe China billi
Slide 60: Continued expansion of the US GLP-1 market
Investor presentation First nine months of 2012 Slide no 60 Continued expansion of the US GLP-1 market Key observations for Victoza® US GLP-1 market in the US market GLP-1 TRx scripts (thousands) GLP-1 % of diabetes market value of TRx retail value (right axis) • 77% of lives are covered without res
Slide 61: Victoza expands the GLP-1 class in key European markets
Investor presentation First nine months of 2012 Slide no 61 Victoza® continues to expand the GLP-1 class in key European markets Development in key European markets following Victoza® launch Germany UK France Market value*: DKK 11 billion Market value*: DKK 6 billion Market value*: DKK 7 billion Dia
Slide 62: Semaglutide selected as once-weekly GLP-1 candidate to enter phase 3
Investor presentation First nine months of 2012 Slide no 62 Semaglutide selected as Novo Nordisk’s once-weekly GLP-1 candidate to enter phase 3 Comparison of HbA1c reductions over 12 weeks Summary and conclusions Semaglutide Liraglutide • 12-week, randomised, double-blind, placebo-controlled Baselin
Slide 63: R&D pipeline: Diabetes and obesity
Investor presentation First nine months of 2012 Slide no 63 R&D pipeline: Diabetes and obesity Compound Type Indication Status (phase) 1 2 3 Filed Appr. Tresiba® (NN1250) Ultra-long-acting basal insulin Type 1+2 Ryzodeg® (NN5401) Ultra-long-acting basal insulin with a bolus boost Type 1+2 IDegLira (
Slide 64: Phase 3a programmes for Tresiba and Ryzodeg completed
Investor presentation First nine months of 2012 Slide no 64 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=629) NN12
Slide 65: BEGIN and BOOST confirm the profiles of Tresiba and Ryzodeg
Investor presentation First nine months of 2012 Slide no 65 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 and • First basal-prandial combination product of a doubli
Slide 66: Meta-analysis confirms hypoglycaemic profile of insulin degludec
Investor presentation First nine months of 2012 Slide no 66 Meta-analysis across type 1 and type 2 diabetes trials confirms hypoglycaemic profile of insulin degludec Confirmed hypoglycaemia Nocturnal hypoglycaemia Total period Subjects Total period Maintenance period2 Maintenance period2 Rate ratio
Slide 67: Tresiba and Ryzodeg phase 3b trials
Investor presentation First nine months of 2012 Slide no 67 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 = 222, T2
Slide 68: IDegLira phase 3 trial programme
Investor presentation First nine months of 2012 Slide no 68 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 N = 1663, T2 52 weeks1 H1 2013e liraglutide IDegLira vs. NN9068-3912 3a Pivo
Slide 69: IDegLira lowered HbA1c while reducing weight and hypoglycaemia risk
Investor presentation First nine months of 2012 Slide no 69 In a 26-week trial, IDegLira successfully lowered HbA1c while reducing weight and the risk of hypoglycaemia DUALTM I (NN9068-3690) trial design1 Headline results Tresiba® Victoza® IDegLira IDegLira once-daily (n=834) Baseline HbA1c 8.3% 8.3
Slide 70: Liraglutide 3.0mg phase 3a trial programme in obesity
Investor presentation First nine months of 2012 Slide no 70 Liraglutide 3.0mg 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 mg (n=2400) E
Slide 71: Liraglutide promoted weight maintenance and additional weight loss
Investor presentation First nine months of 2012 Slide no 71 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 Run-in Treatment period Follow-up • Subjects lost >5% (6
Slide 72: Biopharmaceuticals
Investor presentation First nine months of 2012 Slide no 72 Biopharmaceuticals
Slide 73: Biopharmaceuticals – global leadership in select disease areas
Investor presentation First nine months of 2012 Slide no 73 Biopharmaceuticals – global leadership in select, high-value disease areas Haemophilia Growth Hormone Inflammation with inhibitors Therapy 2011 sales: DKK 8.3 billion 2011 sales: DKK 5.0 billion 2011 sales: DKK 0 Global market position: #1
Slide 74: Haemophilia: Location of bleedings and the consequences
Investor presentation First nine months of 2012 Slide no 74 Haemophilia: Location of bleedings and the consequences Head and neck • Bleeding in the joint space causes a strong Nose and gums inflammatory reaction which predisposes to further bleeding Joints • Inadequate or delayed treatment of repeat
Slide 75: Haemophilia – a significant market suited for Novo Nordisk
Investor presentation First nine months of 2012 Slide no 75 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 USD Novoseven® Xyntha®/Refa
Slide 76: NovoSeven – a unique biologic for rare bleeding disorders
Investor presentation First nine months of 2012 Slide no 76 NovoSeven® - a unique biologic for the treatment of a rare bleeding disorders Reported sales Key NovoSeven® properties DKK billion • Product characteristics: powder and CAGR 8.6% solvent for solution for i.v. injection, available in multipl
Slide 77: Characteristics of the haemophilia market
Investor presentation First nine months of 2012 Slide no 77 Characteristics of the haemophilia market • 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 78: Core capabilities applied within haemophilia to expand the portfolio
Investor presentation First nine months of 2012 Slide no 78 Core capabilities are applied within haemophilia to expand the product portfolio development Plasma- Recombinant FVIIa Recombinant FVIIa Market Factor VIIa derived analogues FVIIa* development Plasma-derived Recombinant Longer-acting Market
Slide 79: R&D pipeline: Haemophilia and hGH
Investor presentation First nine months of 2012 Slide no 79 R&D pipeline: Haemophilia and hGH Compound Type Indication Status (phase) 1 2 3 Filed Appr. Catridecacog* (NN1841) rFXIII Congenital FXIII deficiency Turoctocog alfa (NN7008) rFVIII Haemophilia A N9-GP (NN7999) Long-acting rFIX derivative H
Slide 80: Turoctocog alfa showed bioequivalence with existing rFVIII product
Investor presentation First nine months of 2012 Slide no 80 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 (IU/mL) • Positive safety profile with no patients develo
Slide 81: N8-GP pharmacokinetic profile supported less frequent dosing
Investor presentation First nine months of 2012 Slide no 81 In a phase 1 trial the pharmacokinetic profile of N8-GP* supported less frequent dosing PK profile of N8-GP compared with other rFVIII product Key results from phase 1 trial FVIII (U/mL or IU/mL) • N8-GP was well tolerated at single iv dose
Slide 82: N9-GP appears to have a very long acting profile
Investor presentation First nine months of 2012 Slide no 82 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 (IU/mL) • N9-GP was well tolerated 0.8 • N9-GP appeared safe with no patients developing NN7999 rFIX pdFIX
Slide 83: NovoThirteen provides efficacious and safe haemostatic coverage
Investor presentation First nine months of 2012 Slide no 83 NovoThirteen® (catridecacog), a recombinant FXIII, provides efficacious and safe haemostatic coverage FXIII activity levels in mentor™ phase 1 trial Key results from phase 1 trial Berichrom FXIII Activity (%) • Catridecacog was effective in
Slide 84: Stable market position in the human growth hormone market
Investor presentation First nine months of 2012 Slide no 84 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 kg bDKK MAT Value DKK (right axis) Eli Lilly
Slide 85: Solid Norditropin sales growth
Investor presentation First nine months of 2012 Slide no 85 Solid Norditropin® sales growth Reported Norditropin® sales Key Norditropin® properties DKK billion 1.5 • Product characteristics: Premixed, prefilled CAGR 10.6% multi-use delivery systems available in multiple strengths, some stable at roo
Slide 86: R&D pipeline: Inflammation
Investor presentation First nine months of 2012 Slide no 86 R&D pipeline: Inflammation Type Indication Status (phase) 1 2a 2b 3 Filed Appr. Anti-IL-20 (NN8226) Monoclonal antibody Rheumatoid arthritis Anti-NKG2D (NN8555) Monoclonal antibody Crohn‟s disease Anti-IL-21 (NN8828) Monoclonal antibody Rhe
Slide 87: Inflammation well suited to leverage Novo Nordisk's core capabilities
Investor presentation First nine months of 2012 Slide no 87 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 Protein for all autoimmune di
Slide 88: Financial performance
Investor presentation First nine months of 2012 Slide no 88 Financial performance
Slide 89: Solid sales growth driven by North America and International Operations
Investor presentation First nine months of 2012 Slide no 89 Solid sales growth driven by North America and International Operations Reported annual sales Reported annual sales split by region DKK Diabetes Biopharmaceuticals billion North America Europe China Int. Operations Japan CAGR 9.7% 17% 14% 8
Slide 90: Solid operating profit growth driven by diabetes
Investor presentation First nine months of 2012 Slide no 90 Solid operating profit growth driven by diabetes Operating profit Operating profit therapy split DKK billion Diabetes Biopharm Operating profit 18% growth vs. last year 27% 21% 24% 13% 54% 46% 65% 35% 2007 2011 Note: 2007 and 2008 operating
Slide 91: Profitability per segment
Investor presentation First nine months of 2012 Slide no 91 Profitability per segment Diabetes P&L, 2011 Biopharmaceuticals P&L, 2011 DKK DKK billion billion -21% -33% -13% -5% -11% +1% 29% -16% -20% -5% +1% 49%
Slide 92: Continued gross margin improvement combined with stable investment level
Investor presentation First nine months of 2012 Slide no 92 Continued gross margin improvement combined with stable investment level COGS CAPEX DKK DKK billion billion
Slide 93: Growing profits converted into free cash flow
Investor presentation First nine months of 2012 Slide no 93 Growing profits converted into free cash flow Net profit Free cash flow (absolute) DKK DKK billion DKK billion
Slide 94: Long-term financial targets
Investor presentation First nine months of 2012 Slide no 94 Long-term financial targets Performance against long-term financial targets Average Result Previous Updated 2007-2011** 2011 targets targets Operating profit growth 20% 18% 15% 15%* Operating margin 29% 34% 35% 35%* Operating profit after t
Slide 95: Long term financial targets: Operating profit growth and operating margin
Investor presentation First nine months of 2012 Slide no 95 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 30% Previous long term financial targets 40% Previous long term
Slide 96: Long term financial targets: Operating profit after tax to net operating assets
Investor presentation First nine months of 2012 Slide no 96 Long term financial targets: Operating profit after tax to net operating assets, and cash to earnings Operating profit after tax to net Cash to earnings operating assets (three years’ average) New long term financial target New long term fi
Slide 97: Cash returned to shareholders via dividends and share buybacks
Investor presentation First nine months of 2012 Slide no 97 Cash generated is returned to shareholders in form of dividends and share buybacks Dividend and payout ratio Share repurchases programmes DKK Payout DKK Share repurchase programme 2007-2010 Dividend paid Payout ratio billion ratio billion E
Slide 98: Stable ownership structure
Investor presentation First nine months of 2012 Slide no 98 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- Foundation Institutional and governing institution that: private investor