Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — 9M 2006 Earnings Presentation
47 slides from Novo Nordisk A/s Class B's earnings presentation, October 2006
Slide 1: A focused healthcare company
Investor presentation A focused A focused healthcare healthcare company company Investor presentation – First nine months of 2006
Slide 2: Forward-looking statements
Investor presentation First nine months of 2006 Slide no 2 Forward-looking statements This presentation contains forward-looking statements as the term is defined in the US Private Securities Litigation Reform Act of 1995. Forward-looking statements provide our expectations or forecasts of future ev
Slide 3: Agenda
Investor presentation First nine months of 2006 Slide no 3 Agenda • Highlights • Sales update • R&D update • Financials
Slide 4: Highlights from first nine months of 2006
Investor presentation First nine months of 2006 Slide no 4 Highlights from first nine months of 2006 Market development: • Sales growth driven by insulin analogues: +52% as reported • NovoSeven® growth continues: +13% as reported • Norditropin® shows strong performance: +21% as reported Research and
Slide 5: Sales update
Investor presentation First nine months of 2006 Slide no 5 Sales update
Slide 6: Key products continue to drive growth
Investor presentation First nine months of 2006 Slide no 6 Key products continue to drive growth – first nine months of 2006 Sales as reported Growth analysis Other Norditropin® +2% Local currencies Growth Share of +21% growth 5% 9% Insulin analogues 52% 69% Diabetes care +17% Human insulin and 1% 2
Slide 7: Insulin analogues sales - solid analogue growth continues
Investor presentation First nine months of 2006 Slide no 7 Insulin analogues sales - solid analogue growth continues Analogue sales development Analogue sales as reported Levemir® +40% DKK 0.9bn 2,800 +214% NovoRapid® DKK 4.0bn 2,400 12% +39% NovoMix® DKK 2.8bn DKK million 2,000 +46% 1,600 36% 52% 1
Slide 8: A continued increase in analogue market share
Investor presentation First nine months of 2006 Slide no 8 A continued increase in analogue market share Novo Nordisk’s analogue Analogue penetration market share 39% 40% 35% Analogues 47% 30% 25% 7% 20% 15% Human insulin 10% 5% 0% Q1 Q2 Q1 Q2 2000 2006 2000 2006 Note: Quarterly data, volume figures
Slide 9: Levemir reinforces European analogue market leadership
Investor presentation First nine months of 2006 Slide no 9 Levemir® reinforces European analogue market leadership Share of total analogues Novo Nordisk’s share of long- in Europe acting analogues in Europe 22% 21% 60% Novo Nordisk Eli Lilly 20% Sanofi-Aventis 18% 50% 16% 40% 14% 12% 30% 10% 8% 20%
Slide 10: Growth in Novo Nordisk's insulin franchise looks set to continue
Investor presentation First nine months of 2006 Slide no 10 Growth in Novo Nordisk’s insulin franchise looks set to continue Volume and value size of the IMS world IMS world insulin market insulin market shares, value 60% Volume: 5.9% 50% Value: 11.8% 40% GR DKK 44.2bn Novo Nordisk CA 30% Eli Lilly
Slide 11: NovoSeven - growth continues
Investor presentation First nine months of 2006 Slide no 11 NovoSeven® - growth continues NovoSeven® sales development Key observations • Growth in the third quarter of 1,600 +4% 4% as reported, 7% in local currencies 1,400 1,200 • Sales growth in all regions DKK million 1,000 • Sales growth in Nort
Slide 12: Norditropin - growth continues
Investor presentation First nine months of 2006 Slide no 12 Norditropin® - growth continues Norditropin® sales development Key observations +17% • Growth in the third quarter of 900 17% as reported, 21% in local 800 currencies 700 • Solid growth driven by market DKK million 600 share gains in North
Slide 13: Sales by region
Investor presentation First nine months of 2006 Slide no 13 Sales by region - first nine months of 2006 Sales as reported Growth analysis Japan & Oceania 0% Europe Local Growth Share of +10% currencies growth 12% International Europe 10% 26% Operations North America 26% 47% +22% 19% 38% Internationa
Slide 14: North America - continued solid growth driven by insulin analogues
Investor presentation First nine months of 2006 Slide no 14 North America - continued solid growth driven by insulin analogues North America sales development Key observations Index local currencies • Strong growth in the third 350 quarter of 24% as reported, % 29% in local currencies 300 : 30 GR •
Slide 15: US diabetes performance
Investor presentation First nine months of 2006 Slide no 15 US diabetes performance Novo Nordisk’s US insulin US insulin market share sales development development Index 80% local currencies 70% Novo Nordisk 450 Eli Lilly 400 60% Sanofi-Aventis 350 % : 38 50% 300 A GR C 250 40% 200 30% 150 20% 100 5
Slide 16: Levemir launched in the US
Investor presentation First nine months of 2006 Slide no 16 Levemir® launched in the US Key observations on Levemir® Levemir® share of basal launch analogue prescriptions • Monthly market share gain of 0.5- 1.0 percentage points expected to 7% New prescriptions continue 6% Total prescriptions • High
Slide 17: R&D update
Investor presentation First nine months of 2006 Slide no 17 R&D update
Slide 18: Development portfolio – diabetes care
Investor presentation First nine months of 2006 Slide no 18 Development portfolio – diabetes care Compound Type Indication Phase Levemir® Insulin analogue Types 1+2 Launched in the US, Europe, etc. Filed in JP NovoMix® 50 and 70 Insulin analogue Types 1+2 Approved in Europe Filed in the US Liragluti
Slide 19: Development portfolio – haemostasis
Investor presentation First nine months of 2006 Slide no 19 Development portfolio – haemostasis Compound Indication Phase NovoSeven® Acquired Haemophilia Approved EU, US and JP NovoSeven® Trauma Phase 3 NovoSeven® Intracerebral haemorrhage Phase 3 NovoSeven® Prophylaxis Phase 2 completed NovoSeven®
Slide 20: Development portfolio - other biopharmaceuticals
Investor presentation First nine months of 2006 Slide no 20 Development portfolio - other biopharmaceuticals Compound Indication Phase Activelle® low dose Hormone replacement therapy Filed in Europe and the US Vagifem® low dose Hormone replacement therapy Phase 3 Norditropin® APCD1 Phase 2 completed
Slide 21: Liraglutide as an anti-obesity agent for non-diabetics
Investor presentation First nine months of 2006 Slide no 21 Liraglutide as an anti-obesity agent for non-diabetics • Experiments in non-diabetic animals have shown that • liraglutide leads to decreased food intake and weight loss • liraglutide leads to decrease in average meal size • Studies in non-
Slide 22: Financials
Investor presentation First nine months of 2006 Slide no 22 Financials
Slide 23: Financial results
Investor presentation First nine months of 2006 Slide no 23 Financial results DKK million 9M 2006 9M 2005 % change Sales 28,256 24,334 16 Gross profit 21,252 17,681 20 Sales and distribution costs 8,277 6,808 22 Research and development costs 4,406 3,534 25 Administrative expenses 1,742 1,498 16 Ope
Slide 24: Strong gross margin development
Investor presentation First nine months of 2006 Slide no 24 Strong gross margin development Gross margin improvement analysis Key observations 76% • Underlying improvement of 190 bp basis points 75% 90 + 1 75.2 • Productivity gains prime contributor – reflecting significant improvements 74% bp 73.3
Slide 25: Outlook 2006
Investor presentation First nine months of 2006 Slide no 25 Outlook 2006 • Sales growth expectations: Key currency rates • maintained at 13−15% as reported DKK 2005 2006 Current • Operating profit growth expectations: per 100 average ytd avg rate* USD 600 600 594 • maintained at around 13% as report
Slide 26: Novo Nordisk - concluding remarks
Investor presentation First nine months of 2006 Slide no 26 Novo Nordisk - concluding remarks Key growth drivers Strategic position • Leadership in diabetes care with • #1 in the global insulin market full portfolio of insulin analogues • #1 in the global insulin • NovoSeven® expanding into analogue
Slide 27: Investor information
Investor presentation First nine months of 2006 Slide no 27 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 M
Slide 28: Appendices
Investor presentation First nine months of 2006 Slide no 28 Appendices
Slide 29: Novo Nordisk's corporate strategy
Investor presentation First nine months of 2006 Slide no 29 Novo Nordisk’s corporate strategy Focus areas Compounds/Capabilities Strategic focus Insulin 1. Diabetes Liraglutide Maintain Leadership Drug delivery and protein expertise Novel OADs Global specialist reach NovoSeven® 2. Biopharmaceuticals
Slide 30: New long-term financial targets
Investor presentation First nine months of 2006 Slide no 30 New long-term financial targets Long-term financial targets In % 2001 2002 2003 2004 2005 Old New targets targets Operating profit growth 15.0 9.6 8.4 8.7 15.9 15 15 Operating margin 23.1 23.8 24.6 24.0 24.0 25 25 Cash to earnings* 5.1 12.1
Slide 31: Solid insulin market growth - Novo Nordisk market leadership
Investor presentation First nine months of 2006 Slide no 31 Solid insulin market growth - Novo Nordisk market leadership Market size Growth rates Novo Nordisk market share Market Novo Nordisk US 12.5% 40% ↑ 39% 4.2% Europe 4.6% 51% 58% → 5.8% Japan 7.2% 74% → 5% 7.4% World 7.2% 52% ↑ 100% 5.2% Note:
Slide 32: Insulin growth driven by NovoRapid and NovoMix
Investor presentation First nine months of 2006 Slide no 32 Insulin growth driven by NovoRapid® and NovoMix® NovoRapid® share of NovoMix® share of short-acting analogues premixed analogues 70% 70% 66% 60% 60% 52% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Q1 Q2 Q1 Q2 2002 2006 2002 2006 Note: Qua
Slide 33: European analogue conversion - NovoRapid
Investor presentation First nine months of 2006 Slide no 33 European analogue conversion - NovoRapid® Analogue penetration short-acting segment Share of short-acting segment 30% NovoRapid® 25% Humalog Human insulin 20% 55% 15% 10% Analogues 5% Apidra 0% Q1 Q2 Q1 Q2 2000 2006 2000 2006 Note: Quarterl
Slide 34: European analogue conversion - NovoMix
Investor presentation First nine months of 2006 Slide no 34 European analogue conversion - NovoMix® 30 Analogue penetration premixed segment Share of premixed segment 25% 20% NovoMix® 30 Human insulin 15% 10% Humalog Mix 25 5% 34% Analogues 0% Q1 Q2 Q1 Q2 2000 2006 2000 2006 Note: Quarterly data, vo
Slide 35: European analogue conversion - Levemir
Investor presentation First nine months of 2006 Slide no 35 European analogue conversion - Levemir® Analogue penetration Novo Nordisk’s share of long- long-acting segment acting analogues in Europe 22% 20% 20% 18% 16% Human insulin 14% 12% 10% 8% 46% 6% 4% 2% Analogues 0% Q1 Q2 Q1 Q2 2000 2006 2004
Slide 36: US analogue conversion - NovoLog
Investor presentation First nine months of 2006 Slide no 36 US analogue conversion - NovoLog® Analogue penetration short-acting segment Share of short-acting segment 50% 40% Human insulin Humalog 67% 30% NovoLog® 20% 33% Analogues 10% 0% Q1 Q2 Q1 Q2 2000 2006 2000 2006 Note: Quarterly data, volume f
Slide 37: US analogue conversion - NovoLog Mix 70/30
Investor presentation First nine months of 2006 Slide no 37 US analogue conversion - NovoLog® Mix 70/30 Analogue penetration premixed segment Share of premixed segment 30% 25% Humalog Mix 25 Human insulin 20% 15% 10% NovoLog® Mix 70/30 31% 5% Analogues 0% Q1 Q2 Q1 Q2 2000 2006 2000 2006 Note: Quarte
Slide 38: US long-acting analogue conversion
Investor presentation First nine months of 2006 Slide no 38 US long-acting analogue conversion Analogue penetration long-acting segment (US) Human insulin 58% Analogues Q1 Q2 2000 2006 Note: Quarterly data, volume figures Source: IMS
Slide 39: Insulin segmentation - Europe and the US
Investor presentation First nine months of 2006 Slide no 39 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 Q2 Q1 Q2 2000 2006 2000 2006 Note: Quarterly data, volume figures So
Slide 40: Recent phase 2 liraglutide data from Japan confirms strong profile
Investor presentation First nine months of 2006 Slide no 40 Recent phase 2 liraglutide data from Japan confirms strong profile • Approximately 200 type 2 patients previously treated with diet and exercise and/or a single oral anti-diabetic agent • Liraglutide treatment reduced HbA1c levels around 2
Slide 41: Levemir reduced hypoglycaemia risk in 10,000 patients
Investor presentation First nine months of 2006 Slide no 41 Levemir® reduced hypoglycaemia risk in 10,000 patients Mean number of events/month Convincing safety profile: Only 0.1% SAEs probably 4 related to treatment 3.69 3.5 3 2.5 2 1.5 * 1.04 1 0.58 * 0.5 0.13 0 Type 1 (n=2584) Type 2 (n=7437) Pre
Slide 42: Switch from Lantus to Levemir improved HbA1c, while reducing hypoglycaemia and weight
Investor presentation First nine months of 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
Slide 43: Human versus all-analogue basal-bolus in type 1 diabetes
Investor presentation First nine months of 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
Slide 44: Biosimilars compete in a declining segment
Investor presentation First nine months of 2006 Slide no 44 Biosimilars compete in a declining segment Analogue conversion in IMS world insulin market Analogues 47% Patent protected Human insulin 2000 Q2 2006 2011 Notes: Quarterly data based on volume figures. From 2006 onwards it is estimated that
Slide 45: Insulin is the ultimate treatment
Investor presentation First nine months of 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 us
Slide 46: Insulin secretion
Investor presentation First nine months of 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: NovoSeven - a unique mechanism of action
Investor presentation First nine months of 2006 Slide no 47 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 quali