Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Q1 2006 Earnings Presentation
18 slides from Novo Nordisk A/s Class B's earnings presentation, Apr 28, 2006
Slide 1: A focused healthcare company
DR A FT A focused A focused healthcare health company care company First three months of 2006 conference call 28 April 2006, 13.00 CET, 12.00 UK time, 7.00 New York time
Slide 2: Agenda
Agenda • Introduction (Lars Rebien Sørensen, CEO) • Sales update (Lars Rebien Sørensen, CEO) • Pipeline update (Mads Krogsgaard Thomsen, CSO) • Financial results (Jesper Brandgaard, CFO) • Outlook for 2006 (Jesper Brandgaard, CFO) • Questions & answers 1
Slide 3: Forward-looking statements
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 events such as new product introductions, product approvals a
Slide 4: Highlights from first three months of 2006
Highlights from first three months of 2006 Market development: • Sales growth driven by insulin analogues: +60% as reported • NovoSeven® growth continues: +16% as reported • Growth hormone showed strong performance: +19% as reported Research and development: • Liraglutide phase 3 study initiated in
Slide 5: Key products continue to drive growth
Key products continue to drive growth – first three months of 2006 Sales as reported Growth analysis Other +16% Local currencies Growth Share of Norditropin® growth +19% 5% 8% Diabetes care Insulin analogues 54% 60% +26% Human insulin and 6% 15% NovoSeven® 14% insulin-related sales +16% OAD 19% 6% D
Slide 6: Insulin analogues - solid analogue growth continues
Insulin analogues - solid analogue growth continues Analogue sales development Analogue sales split Levemir® DKK 0.3bn NovoRapid® +60% 2,400 NovoMix® DKK 1.2bn 13% DKK 0.8bn 2,000 DKK million 1,600 36% 52% 1,200 800 400 0 Q1 Q1 Sales of DKK 2.3 billion 2002 2006 (+54% growth in local currencies) 5
Slide 7: Continued increase in analogue market share…
Continued increase in analogue market share… Novo Nordisk’s analogue Analogue penetration market share 40% 35% 30% Analogues 44% 25% 7% 20% 15% Human insulin 10% 5% 0% Q1 Q4 Q1 Q4 2000 2005 2000 2005 Note: Quarterly data, volume figures Source: IMS/BW 6
Slide 8: … driven by both NovoRapid and NovoMix
… driven by both NovoRapid® and NovoMix® NovoRapid® share of NovoMix® share of short-acting analogues premixed analogues 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Q1 Q4 Q1 Q4 2002 2005 2002 2005 Note: Quarterly data, volume figures Source: IMS/BW 7
Slide 9: Levemir reinforces European analogue market leadership
Levemir® reinforces European analogue market leadership Share of total analogues Novo Nordisk’s share of long- in Europe acting analogues in Europe 18% 60% Novo Nordisk 16% Eli Lilly 50% Sanofi-Aventis 14% 40% 12% 10% 30% 8% 20% 6% 4% 10% 2% 0% 0% Q1 Q4 Q1 Q4 2003 2005 2004 2005 Note: Quarterly data
Slide 10: NovoSeven - growth continues
NovoSeven® - growth continues NovoSeven® sales development Key observations • Growth in the first quarter of 1,400 +16% 16% as reported, 10% in local currencies 1,200 • Europe and International 1,000 DKK million Operations the main growth 800 drivers 600 • Growth driven by the congenital and acquire
Slide 11: Sales by region
Sales by region - first three months of 2006 Sales as reported Growth analysis Japan & Oceania -1% Europe Local Growth Share of +13% currencies growth 11% International Europe 13% 29% Operations North America 20% 33% +56% 20% 38% International 42% 37% Operations Japan & Oceania 1% 1% 31% North Ameri
Slide 12: North America - regional sales update
North America - regional sales update North America sales development Key observations Index local currencies • Strong growth in the first quarter 300 of 32% as reported, 20% in local % currencies : 29 250 GR • Sales positively impacted by DKK CA 200 100 million due to pre-launch stocking of Levemir
Slide 13: R&D update - diabetes care
R&D update - diabetes care Compound Type Indication Phase Levemir® Insulin analogue Type 1+2 Launched in US, Europe, etc. Filed in JP NovoMix® 50 and 70 Insulin analogue Type 1+2 Approved in EU US filing pending* Liraglutide (NN2211) GLP-1 analogue Type 2 Phase 3 AERx® iDMS (NN1998) Inhaled insulin
Slide 14: R&D update - biopharmaceuticals
R&D update - biopharmaceuticals Compound Indication Phase NovoSeven® Acquired haemophilia Filed* NovoSeven® Trauma Phase 3 NovoSeven® Intracerebral haemorrhage Phase 3 NovoSeven® Spinal surgery (dose escalation) Phase 2 completed NovoSeven® Upper gastro-intestinal bleedings Phase 2 NovoSeven® Cardia
Slide 15: Financial results
Financial results DKK million Q1 2006 Q1 2005 % change Sales 8,946 7,258 23 Gross profit 6,531 5,173 26 Sales and distribution costs 2,728 2,139 28 Research and development costs 1,419 1,106 28 580 483 20 Administrative expenses 1,880 1,512 24 Operating profit Net financials (151) 276 NA Net profit
Slide 16: Currency exposure
Currency exposure 9.00 Effect of 5% depreciation on 8.50 full-year operating profit in 2006* 8.00 avg = 7.88 (DKK million) USD 7.50 USD -350 avg = 6.59 JPY -150 7.00 GBP -90 avg = 6.30 USD rel -100 6.50 avg = 5.99 avg = 6.21 avg = 6.00 * currency-hedging income is recorded as 6.00 avg = 5.68 financi
Slide 17: Outlook 2006
Outlook 2006 • Sales growth expectations: • 11 - 13% as reported • Operating profit growth expectations: Key currency rates • Slightly above 10% DKK 2005 2006 Current • Around 10% excluding currency movements and per 100 average ytd avg rate* non-recurring items USD 600 619 603 • Net financial expen
Slide 18: Investor information
Investor information Share information Investor Relations contacts Novo Nordisk A/S Novo Nordisk’s B shares are Investor Relations Novo Allé, DK-2880 Bagsværd listed on the stock exchanges in Fax (+45) 4443 6633 Copenhagen and London. Its Mogens Thorsager Jensen Tel: (+45) 4442 7945 ADRs are listed