Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — H1 2008 Earnings Presentation
54 slides from Novo Nordisk A/s Class B's earnings presentation, August 2008
Slide 1: A focused healthcare company
Investor presentation A focused healthcare company Investor presentation – First six months of 2008
Slide 2: Forward-looking statements
Investor presentation First six months of 2008 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 2007 and Form 20-F both filed with the SEC in Februar
Slide 3: Agenda
Investor presentation First six months of 2008 Slide no 3 Agenda • Highlights and strategy • Sales update • R&D update • Financials
Slide 4: Highlights
Investor presentation First six months of 2008 Slide no 4 Highlights Sales development: • Sales of modern insulins increased by 30% (21% as reported) • Sales of NovoSeven® increased by 14% (6% as reported) • Sales of Norditropin® increased by 15% (9% as reported) • Sales in North America increased b
Slide 5: Novo Nordisk's corporate strategy
Investor presentation First six months of 2008 Slide no 5 Novo Nordisk’s corporate strategy Indications Compounds/Capabilities Strategic focus Insulin • Diabetes Maintain leadership GLP-1 Drug delivery and protein expertise Global commercial infrastructure GLP-1 • Obesity/pre-diabetes Explore opport
Slide 6: Insulin world market leader with 52% market share
Investor presentation First six months of 2008 Slide no 6 Insulin world market leader with 52% market share Europe North America Novo Nordisk #1 Novo Nordisk #1 Market share 56% Market share: 43% International Operations Japan & Oceania Novo Nordisk #1 Novo Nordisk #1 Market share: 59% Market share:
Slide 7: Growth in Novo Nordisk's insulin franchise looks set to continue
Investor presentation First six months of 2008 Slide no 7 Growth in Novo Nordisk’s insulin franchise looks set to continue Rapid increase in number of World insulin market growth people with diabetes 2007 2025 Volume: 6.3% 350 DKK: 11.2% 300 2007: 246 million USD: 19.0% 2025: 380 million 250 GR CA 2
Slide 8: New obesity trend data for the US
Investor presentation First six months of 2008 Slide no 8 New obesity trend data for the US 1990 1998 2007 No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30% Note: Obesity Trends among U.S. Adults; Obesity defined as BMI ≥30, or about 30 lbs. overweight for 5’4” person Source: Center for disease cont
Slide 9: GLP-1 will explore virgin territory between OADs and insulins
Investor presentation First six months of 2008 Slide no 9 GLP-1 will explore virgin territory between OADs and insulins World DKK MAT market billion growth OAD 63 -5% OAD Insulin Insulin 55 9% GLP-1 3 18% GLP-1 Note: Absolute data represent MAT May 2008 and growth data represent MAT May 2008 over MA
Slide 10: Sales update
Investor presentation First six months of 2008 Slide no 10 Sales update
Slide 11: Key products continue to drive growth
Investor presentation First six months of 2008 Slide no 11 Key products continue to drive growth – first six months of 2008 Sales as reported Growth analysis HRT Norditropin -5% ® Local currencies Growth Share of +9% 4% growth 9% Modern insulins 30% 71% Diabetes care NovoSeven® +7% Human insulins -3
Slide 12: Modern insulins exhibit steady penetration
Investor presentation First six months of 2008 Slide no 12 Modern insulins exhibit steady penetration World market share of total segment Modern insulin sales as reported 50% Levemir® NovoRapid® DKK 1.7bn NovoRapid® NovoMix®30 +61% DKK 3.6bn 40% Levemir® +12% 22% 30% 45% NovoMix® 20% DKK 2.6bn 33% +
Slide 13: A continued increase in modern insulin market share
Investor presentation First six months of 2008 Slide no 13 A continued increase in modern insulin market share IMS world modern insulin Modern insulin penetration market shares, volume 70% Novo Nordisk 60% Sanofi-Aventis Eli Lilly 55% 50% 24% Modern insulin 40% 30% 20% Human insulin 10% 0% Q1 Q1 Q1
Slide 14: NovoSeven sales development
Investor presentation First six months of 2008 Slide no 14 NovoSeven® NovoSeven® sales development Key observations • Growth in the first six months of % : 11 2008 of 14% in local currencies 1,600 GR A C and 6% as reported 1,400 1,200 • North American and International DKK million Operations sales m
Slide 15: Norditropin sales development
Investor presentation First six months of 2008 Slide no 15 Norditropin® Norditropin® sales development Key observations • Growth in the first six months of % 2008 of 15% in local currencies 1,000 13 A GR : and 9% as reported 900 C 800 • North America main contributor to growth with more than 50% DKK
Slide 16: Sales by region
Investor presentation First six months of 2008 Slide no 16 Sales by region - first six months of 2008 Sales as reported Growth analysis Japan & Oceania +2% Europe Local Growth Share of +6% currencies growth 10% International Europe 7% 21% Operations North America 19% 46% +14% 19% 39% International 2
Slide 17: Levemir reinforces modern insulin market leadership in Europe
Investor presentation First six months of 2008 Slide no 17 Levemir® reinforces modern insulin market leadership in Europe… Share of total modern insulin Novo Nordisk’s share of long- sales in Europe acting modern insulin in Europe 30% 80% Novo Nordisk Eli Lilly 70% Sanofi-Aventis 25% 60% 20% 50% 40%
Slide 18: … and total market leadership in the US
Investor presentation First six months of 2008 Slide no 18 … and total market leadership in the US US total insulin market Novo Nordisk’s share of long- share development acting modern insulin in the US 80% 10% 70% Novo Nordisk 9% Eli Lilly 60% Sanofi-Aventis 8% 7% 50% 6% 40% 5% 30% 4% 3% 20% 2% 10%
Slide 19: Solid leadership position within emerging markets
Investor presentation First six months of 2008 Slide no 19 Solid leadership position within emerging markets International Operations International Operations insulin sales development insulin market shares Index 70% local currencies 300 60% 56% 1% :2 50% Novo Nordisk 250 A GR C Eli Lilly 40% Sanofi
Slide 20: R&D update
Investor presentation First six months of 2008 Slide no 20 R&D update
Slide 21: Development portfolio – diabetes and obesity
Investor presentation First six months of 2008 Slide no 21 Development portfolio – diabetes and obesity Compound Type Indication Phase NovoMix® 50 Modern insulin Type 1+2 Launched in Europe, filed in the US NovoMix® 70 Modern insulin Type 1+2 Launched in Europe, filed in Japan PrandiMetTM OAD Type 2
Slide 22: Competitive profile of liraglutide reinforced in a phase 3b clinical study
Investor presentation First six months of 2008 Slide no 22 Competitive profile of liraglutide reinforced in a a phase 3b clinical study • 26-week study including 464 people with type 2 diabetes randomised to once-daily liraglutide treatment or twice-daily exenatide treatment • Average HbA1c at the b
Slide 23: Development portfolio – haemostasis
Investor presentation First six months of 2008 Slide no 23 Development portfolio – haemostasis Compound Indication Phase NovoSeven® Room-temperature stable formulation Approved in US and EU NN1731 Fast-acting factor VIIa analogue Phase 2 NN71281 Long-acting factor VIIa analogue Phase 1 rFVIIa Subcut
Slide 24: Development portfolio - other biopharmaceuticals
Investor presentation First six months of 2008 Slide no 24 Development portfolio - other biopharmaceuticals Compound Indication Phase Activelle® Low Dose Hormone replacement therapy Launched in the US, Positive CHMP opinion Vagifem® Low Dose Hormone replacement therapy Filed in the US, phase 3 in Eu
Slide 25: Financials
Investor presentation First six months of 2008 Slide no 25 Financials
Slide 26: Financial results
Investor presentation First six months of 2008 Slide no 26 Financial results DKK million 6M 2008 6M 2007 % change Sales 21,724 20,381 7 Gross profit 16,757 15,703 7 Gross margin 77.1% 77.0% Sales and distribution costs 6,153 6,158 0 Percent of sales 28.3% 30.2% Research and development costs 3,838 3
Slide 27: Solid gross margin development
Investor presentation First six months of 2008 Slide no 27 Solid gross margin development Gross margin improvement analysis Key observations 80% Annual average • Productivity gains are prime 78% 77.1 contributor – reflecting significant improvements in insulin 76.6 76% production efficiency 75.3 74%
Slide 28: Currency development
Investor presentation First six months of 2008 Slide no 28 Currency development Spot rates Quarterly average Annual average 650 650 Annual impact on operating USD/DKK 600 600 profit of a 5% movement in currency (DKK million) 550 550 2008 USD 470 500 500 USD-related 100 JPY 140 450 450 GBP 85 Q106 Q2
Slide 29: Outlook 2008
Investor presentation First six months of 2008 Slide no 29 Outlook 2008 • Sales growth expectations: Key currency rates • Between 11-13% in local currencies DKK 2007 2008 Current per 100 average average* rate* • Around 6 %-points negative currency impact USD 545 485 479 • Operating profit growth exp
Slide 30: Cash returned to shareholders
Investor presentation First six months of 2008 Slide no 30 Cash returned to shareholders Dividend and payout ratio Share repurchase programme 35% 5.0 35 5 5 4.8 4.7 Dividend per share, DKK 4.5 33 4 4 Payout ratio, % DKK billion 3.0 31 3 3 29 2 2 Payout ratio 27 Dividend per share 1 1 25 0 0 2003 200
Slide 31: Novo Nordisk - concluding remarks
Investor presentation First six months of 2008 Slide no 31 Novo Nordisk - concluding remarks Strategic position Key growth drivers #1 in the global insulin market • Leadership in diabetes care with full portfolio of modern insulins #1 in the global modern insulin segment • Promising GLP-1 compound #
Slide 32: Investor information
Investor presentation First six months of 2008 Slide no 32 Investor information Share information Investor Relations Novo Nordisk’s B shares are listed contacts on the stock exchanges in Novo Nordisk A/S Investor Relations Copenhagen and London. Its ADRs Novo Allé, DK-2880 Bagsværd are listed on the
Slide 33: Appendices
Investor presentation First six months of 2008 Slide no 33 Appendices
Slide 34: Solid insulin market growth
Investor presentation First six months of 2008 Slide no 34 Solid insulin market growth - Novo Nordisk market leadership Market size Growth rates Novo Nordisk market share Market Novo Nordisk US 5,7% 42% 34% 5,1% Europe 3,1% 46% 56% 5,3% Japan 3,6% 73% 4% 4,6% World 5,1% 52% 100% 6,7% Note: Volume da
Slide 35: Solid insulin leadership position in China
Investor presentation First six months of 2008 Slide no 35 Solid insulin leadership position in China China sales China insulin market shares Index 70% local currencies 61% 600 60% 50% Novo Nordisk 500 Eli Lilly % Sanofi-Aventis : 37 40% 400 R Sh. Biochem & Phar C AG JS. Wanbang Biochemical 300 30%
Slide 36: Long-term financial targets
Investor presentation First six months of 2008 Slide no 36 Long-term financial targets Performance against long-term financial targets Financial In % 2003 2004 2005 2006 2007 targets Operating profit growth 8.4 8.7 15.9 12.7 (1.9) 15 Operating profit growth excl AERx®1) - - - - 12.6 Operating margin
Slide 37: European modern insulin conversion - NovoRapid
Investor presentation First six months of 2008 Slide no 37 European modern insulin conversion - NovoRapid® Modern insulin penetration short-acting segment Share of short-acting segment 35% NovoRapid® 30% Human insulin 25% Humalog 20% 61% 15% 10% Modern insulin 5% Apidra 0% Q1 Q1 Q1 Q1 2003 2008 2003
Slide 38: European modern insulin conversion - NovoMix
Investor presentation First six months of 2008 Slide no 38 European modern insulin conversion - NovoMix® 30 Modern insulin penetration premixed segment Share of premixed segment 35% NovoMix® 30 30% 25% Human insulin 20% 15% Humalog Mix 25 & 50 45% 10% Modern insulin 5% 0% Q1 Q1 Q1 Q1 2003 2008 2003
Slide 39: European modern insulin conversion - Levemir
Investor presentation First six months of 2008 Slide no 39 European modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in Europe 30% 27% 25% Human insulin 20% 15% 58% 10% Modern insulin 5% 0% Q1 Q1 Q2 Q1 2003 2008 2
Slide 40: US modern insulin conversion - NovoLog
Investor presentation First six months of 2008 Slide no 40 US modern insulin conversion - NovoLog® Modern insulin penetration short-acting segment Share of short-acting segment 50% 40% NovoLog® Human insulin 73% 30% Humalog 20% Modern insulin 10% Apidra 0% Q1 Q1 Q1 Q1 2003 2008 2003 2008 Note: Quart
Slide 41: US modern insulin conversion - NovoLog Mix 70/30
Investor presentation First six months of 2008 Slide no 41 US modern insulin conversion - NovoLog® Mix 70/30 Modern insulin penetration premixed segment Share of premixed segment 30% 25% NovoLog® Mix 70/30 Human insulin 20% 15% Humalog Mix 25 & 50 10% 36% 5% Modern insulin 0% Q1 Q1 Q1 Q1 2003 2008 2
Slide 42: US modern insulin conversion - Levemir
Investor presentation First six months of 2008 Slide no 42 US modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in the US 10% 9% 8% Human insulin 7% 6% 69% 5% 4% 3% 2% Modern insulin 1% 0% Q1 Q1 Q2 Q1 2003 2008 200
Slide 43: Insulin segmentation - Europe and the US
Investor presentation First six months of 2008 Slide no 43 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 Q1 Q1 Q1 2003 2008 2003 2008 Note: Quarterly volume data Source: IMS
Slide 44: Insulin segmentation - Japan
Investor presentation First six months of 2008 Slide no 44 Insulin segmentation - Japan Japan 60% 50% 40% 30% 20% Long-acting 10% Premix Short-acting 0% Q1 Q1 2003 2008 Note: Quarterly volume data Source: IMS
Slide 45: Invention across multiple dimensions will build future R&D portfolio
Investor presentation First six months of 2008 Slide no 45 Invention across multiple dimensions will build future R&D portfolio… Future assets Next gereration insulins Next generation devices Action Short-acting rFVIIa analogue Next generation Long-acting hGH Commercial assets Ultra low-dose HRT New
Slide 46: Strong clinical profile of liraglutide
Investor presentation First six months of 2008 Slide no 46 Strong clinical profile of liraglutide Key observations • Submitted for regulatory approval in the US and EU in May and Japan in July 2008 • Significant HbA1c reduction: • 1.5 - 2.0% in monotherapy • 1.0 – 1.5% in combination with OADs • Sig
Slide 47: Biosimilars compete in a declining segment
Investor presentation First six months of 2008 Slide no 47 Biosimilars compete in a declining segment Modern insulin 55% Patent protected Human insulin Q1 2003 Q1 2008 Q4 2010 Notes: Quarterly volume data. From Q1 2008 onwards it is estimated that 6% of the market will be converted each year and tha
Slide 48: Insulin is the ultimate treatment
Investor presentation First six months of 2008 Slide no 48 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 usi
Slide 49: Insulin secretion
Investor presentation First six months of 2008 Slide no 49 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 50: Superior dosing accuracy of FlexPen
Investor presentation First six months of 2008 Slide no 50 Superior dosing accuracy of FlexPen® Key observations • Dosing accuracy was tested at 5, 10 and 30 unit doses • At all doses, FlexPen® delivered mean doses closer to the intended dose than SoloStar® • The difference between pens was statisti
Slide 51: Hormone replacement therapy area supported by low-dose versions
Investor presentation First six months of 2008 Slide no 51 Hormone replacement therapy area supported by low-dose versions Novo Nordisk HRT Strategic HRT products market share worldwide Activelle®/Activella® • Combined oestrogen and 70% Wyeth progestogen treatment of hot Novo Nordisk 60% flushes and
Slide 52: Attractive profile of rFVIIa analogue
Investor presentation First six months of 2008 Slide no 52 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® •
Slide 53: NovoSeven - a unique mechanism of action
Investor presentation First six months of 2008 Slide no 53 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 qualit
Slide 54: IL-21 clinical programme
Investor presentation First six months of 2008 Slide no 54 IL-21 clinical programme IL-21 mode of action Four indications CD4+ T • Malignant melanoma as TH cells monotherapy, phase 2 trial with up to 40 patients • Renal cell carcinoma in IL-21 combination with Sutent® (sunitinib), phase 1/2 with up