Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Q1 2018 Earnings Presentation
113 slides from Novo Nordisk A/s Class B's earnings presentation, May 2, 2018
Slide 1: Investor presentation First three months of 2018
Slide 1 Investor presentation First three months of 2018 Manato Shirley Ohara, diagnosed Adelia Stewart with has type type 1 diabetes 2 diabetes Kanagawa, Japan New Orleans, Louisiana, US
Slide 2: Agenda
Investor Presentation First three months of 2018 Slide 2 Agenda Highlights and key events Sales update R&D update Financials and outlook
Slide 3: Forward-looking statements
Investor Presentation First three months of 2018 Slide 3 Forward-looking statements Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this presentation as well as the company’s statutory Annual Report 2017 and Form 20-F, which are both filed
Slide 4: Highlights – First three months of 2018
Investor Presentation First three months of 2018 Slide 4 Highlights – First three months of 2018 Sales development • Sales decreased by 5% in Danish kroner and increased by 5% in local currencies to DKK 26.9 billion • International Operations sales were flat in Danish kroner and grew by 8% in local
Slide 5: Sales growth driven by both International Operations and North America Operations
Investor Presentation First three months of 2018 Slide 5 Sales growth driven by both International Operations and North America Operations Sales as reported – first quarter of 2018 Growth break down – first quarter of 2018 Region Region Latin America Local currencies Growth Share of growth Japan & K
Slide 6: Sales growth in local currencies of 5% mainly driven by Victoza and Saxenda
Investor Presentation First three months of 2018 Slide 6 Sales growth in local currencies of 5% mainly driven by Victoza® and Saxenda® Sales as reported – first quarter of 2018 Growth break down – first quarter of 2018 Growth Other Local currencies Growth Share of growth hormone biopharmaceuticals L
Slide 7: Novo Nordisk aims for leadership in long-acting insulin and sustained leadership for fast-acting and premix insulin
Investor Presentation First three months of 2018 Slide 7 Novo Nordisk aims for leadership in long-acting insulin and sustained leadership for fast-acting and premix insulin Long-acting insulin1 volume Fast-acting insulin2 volume Premix insulin3 volume market market share across regions market share
Slide 8: Novo Nordisk holds ~35% volume market share of the basal market in the USA
Investor Presentation First three months of 2018 Slide 8 Novo Nordisk holds ~35% volume market share of the basal market in the USA Weekly TRx volume market shares1 in the USA Tresiba® launch in the USA glargine U100 NN Total Basal Levemir® • Tresiba® TRx volume market share is now 11.8% Basal volum
Slide 9: Victoza sales growth of 20% in the USA driven by GLP-1 market volume growth
Investor Presentation First three months of 2018 Slide 9 Victoza® sales growth of 20% in the USA driven by GLP-1 market volume growth of ~23% USA GLP-1 market development USA GLP-1 market monthly TRx USA GLP-1 volume market share MAT GLP-1 Total TRx Growth rate GLP-1 TRx NN GLP-1 dulaglutide GLP-1 T
Slide 10: First phase 3a trial with oral semaglutide, PIONEER 1, completed
Investor Presentation First three months of 2018 Slide 10 First phase 3a trial with oral semaglutide, PIONEER 1, in adults with type 2 diabetes completed Reduction in HbA1c with oral semaglutide, Reduction in body weight with oral semaglutide, administered once daily as a tablet vs placebo administe
Slide 11: All PIONEER trials for oral semaglutide expected to read-out during 2018
Investor Presentation First three months of 2018 Slide 11 All 10 PIONEER trials for oral semaglutide expected to read-out during 2018 2016 2017 Q1 20181 Q2 20181 Q3 20181 Q4 20181 PIONEER 1: monotherapy2 26 weeks, n=704 PIONEER 2: vs empagliflozin2 52 weeks, n=816 PIONEER 3: vs sitagliptin2 78 weeks
Slide 12: Tresiba label in the USA updated based on DEVOTE trial data
Investor Presentation First three months of 2018 Slide 12 Tresiba® label in the USA updated based on DEVOTE trial data Lower rates of severe hypoglycaemia FDA approved a label update for Tresiba® for demonstrated in DEVOTE trial people with type 2 diabetes glargine U100 Tresiba® • Food and Drug Admi
Slide 13: Key development milestones
Investor Presentation First three months of 2018 Slide 13 Key development milestones • Ozempic® granted marketing authorisation by European Commission and approved in Japan • Variation applications for Ozempic® submitted to the EMA for the devices and inclusion of SUSTAIN 7 data • New drug applicati
Slide 14: R&D milestones in 2018
Investor Presentation First three months of 2018 Slide 14 R&D milestones in 2018 Results available1 Regulatory milestone Project Q1 2018 Q2 2018 Q3 2018 Q4 2018 DEVOTE and SWITCH2 Tresiba® US regulatory decision DUAL I Japan Phase 3a Xultophy® Japan submission DUAL II Japan Phase 3a Fiasp® Jap
Slide 15: Financial results – First three months of 2018
Investor Presentation First three months of 2018 Slide 15 Financial results – First three months of 2018 DKK million Change Change Q1 2018 Q1 2017 (reported DKK) (local currency) Sales 26,930 28,452 (5%) 5% Gross profit 22,733 24,201 (6%) Gross margin 84.4% 85.1% Sales and distribution costs (6,451)
Slide 16: Unfavourable currency impact in Q1 2018 driven by hedged and unhedged currencies
Investor Presentation First three months of 2018 Slide 16 Unfavourable currency impact in Q1 2018 driven by development in both hedged and unhedged currencies USD/DKK CNY/DKK JPY/DKK GBP/DKK CAD/DKK 110 Hedged 2017 2018 Spot Impact of a Hedging Index (1 Jan 2017= 100) Currencies average average2 rat
Slide 17: Financial outlook for 2018
Investor Presentation First three months of 2018 Slide 17 Financial outlook for 2018 Expectations Previous expectations 2 May 2018 1 Feb 2018 Sales growth - local currencies 3% to 5% 2% to 5% Sales growth - reported Around 6 percentage point lower Around 7 percentage points lower Operating profit gr
Slide 18: Closing remarks
Investor Presentation First three months of 2018 Slide 18 Closing remarks Solid leadership positions and continued market opportunities Promising pipeline and product launches 27% Novo Nordisk value market share in diabetes • The only company with a full portfolio of novel > > care and solid leaders
Slide 19: Investor contact information
Investor Presentation First three months of 2018 Slide 19 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 Yo
Slide 20: Appendix
Investor Presentation First three months of 2018 Slide 20 Appendix 1. Novo Nordisk at a glance 21 2. Insulin 34 3. GLP-1 diabetes 58 4. Obesity 76 5. Biopharmaceuticals & Other serious chronic diseases 85 6. Financials 97 7. Sustainable business 109
Slide 21: Novo Nordisk at a glance
Investor Presentation First three months of 2018 Slide 21 Novo Nordisk at a glance Global leader in diabetes care Global insulin market leadership • A focused pharmaceutical company with leading positions in Global insulin market share: 46% diabetes, haemophilia and growth hormone Region Europe: Mar
Slide 22: Novo Nordisk strategic foundation
Investor Presentation First three months of 2018 Slide 22 Novo Nordisk strategic foundation STRATEGIC PRIORITIES CORE CAPABILITIES Engineering, Deep disease Efficient Global Expand leadership in formulating, understanding large-scale commercial DIABETES leadership in Strengthen developing production
Slide 23: Sales growth driven by the diabetes pandemic
Investor Presentation First three months of 2018 Slide 23 Sales growth driven by the diabetes pandemic Novo Nordisk reported quarterly sales Reported sales split by product segments for by therapy first three months of 2018 DKK Diabetes and obesity Haemophilia2 Long-acting insulin Premix insulin Fas
Slide 24: Novo Nordisk has leading positions in diabetes, haemophilia and obesity
Investor Presentation First three months of 2018 Slide 24 Novo Nordisk has leading positions in diabetes, haemophilia and obesity Diabetes Obesity Haemophilia DKK Market value DKK Market value DKK Market value billion Novo Nordisk value market share billion Novo Nordisk value market share billion No
Slide 25: Global diabetes prevalence is increasing
Investor Presentation First three months of 2018 Slide 25 Global diabetes prevalence is increasing and 629 million people are expected to have diabetes by 2045 The number of people with diabetes is expected Around 10% of all adults globally have diabetes to increase by 48% by 2045 North America Regi
Slide 26: Focus on driving global insulin growth
Investor Presentation First three months of 2018 Slide 26 Focus on driving global insulin growth by increasing the number of people benefitting from Novo Nordisk products Around 26 million people are currently treated Only 6% of all people with diabetes are treated with Novo Nordisk insulin and GLP-
Slide 27: Strong leadership position within the growing diabetes care market
Investor Presentation First three months of 2018 Slide 27 Novo Nordisk has a strong leadership position within the growing diabetes care market Global diabetes care market Global diabetes care by treatment class value market share DKK OAD GLP-1 Insulin Novo Nordisk Sanofi Eli Lilly Merck Takeda bill
Slide 28: Continued single digit volume growth within the insulin segments globally
Investor Presentation First three months of 2018 Slide 28 Continued single digit volume growth within the insulin segments globally Fast-acting insulin Premix insulin Long-acting insulin Segment volume Segment volume Segment volume Levemir® share NovoRapid® market share NovoMix® market share Tresiba
Slide 29: Biopharm return to growth strategy
Investor Presentation First three months of 2018 Slide 29 Biopharm constitutes 16% of Novo Nordisk sales and a strategy has been defined to return to growth NovoSeven® and Norditropin® ‘Return to Growth’ strategy builds on organic, account for 84% of Biopharm sales1 non-organic and organisational in
Slide 30: Novo Nordisk Corporate Strategy and R&D strategy
Investor Presentation First three months of 2018 Slide 30 Novo Nordisk Corporate Strategy R&D strategy and priorities STRATEGIC PRIORITIES R&D PRIORITIES • Develop disruptive insulin and GLP-1 based products with distinct clinical and/or delivery advantages Strengthen leadership in DIABETES CARE • D
Slide 31: Significant growth opportunities fuelled by strong pipeline
Investor Presentation First three months of 2018 Slide 31 Significant growth opportunities fuelled by strong pipeline across all four strategic focus areas PHASE 1 PHASE 2 PHASE 3 SUBMITTED APPROVED NN1436 – LAI287 Anti-IL-21 and liraglutide Oral semaglutide N8-GP – Long-acting rFVIII Levemir® NN951
Slide 32: Strong global presence in sales and manufacturing
Investor Presentation First three months of 2018 Slide 32 Growth opportunities supported by strong global presence in both sales and manufacturing Employees in sales regions1 Global manufacturing setup Kaluga, Russia Denmark (~9,800 employees) North America Operations: ~4,800 (~265 employees) • Diab
Slide 33: Solid patent protection of innovative drugs
Investor Presentation First three months of 2018 Slide 33 Solid patent protection of innovative drugs Novo Nordisk’s position is protected by patents and value chain setup Barriers to entry for biosimilar players EU patent protection1 US patent protection1 Research & Development 20312 20322 • Need t
Slide 34: Insulin
Investor Presentation First three months of 2018 Slide 34 Insulin 1. Diabetes at a glance 35 2. Diabetes treatment classes 38 3. Insulin market segments 39 4. Novo Nordisk Diabetes product portfolio 41 5. Insulin market growth and market share 43 6. Tresiba® 56-57
Slide 35: Diabetes – the inability to manage blood sugar levels appropriately
Investor Presentation First three months of 2018 Slide 35 Diabetes – the inability to manage blood sugar levels appropriately The aim of insulin therapy is to recreate normal Facts about diabetes blood insulin profile Diabetes is a chronic disease that occurs either when the pancreas does not produc
Slide 36: Diabetes pandemic is fuelled by growing rates of obesity
Investor Presentation First three months of 2018 Slide 36 Diabetes pandemic is fuelled by growing rates of obesity US CDC data on obesity and diabetes prevalence among adults 1994 2000 2014 Obesity prevalence (BMI ≥30 kg/m2) <14.0% 14.0-17.9% 18.0-21.9% 22.0-25.9% 26.0-29.9% ≥30% Diabetes prevalence
Slide 37: Poor diagnosis rates and glycaemic control remain global problems
Investor Presentation First three months of 2018 Slide 37 Poor diagnosis rates, lack of access to optimal treatment and poor glycaemic control remain global problems Diagnosis and optimal treatment The worldwide challenge of glycaemic control: remains a challenge – the rule of halves Mean HbA1C in t
Slide 38: Insulin is the ultimate care for people with diabetes
Investor Presentation First three months of 2018 Slide 38 Insulin is the ultimate care for people with diabetes Progression of type 2 diabetes and treatment Distribution of patients and value across intensification treatment classes Insulin GLP-1 OAD 100% Diet and exercise 80% 38% -cell function OA
Slide 39: The insulin market is comprised of three segments
Investor Presentation First three months of 2018 Slide 39 The insulin market is comprised of three segments Insulin action profiles Global insulin volume market by segment tMU CAGR volume1: 5.0% 500 CAGR value1: 16.4% Fast-acting 400 35% Fast-acting 300 34% Premix 26% 200 Premix 29% Long-acting 100
Slide 40: Medications used for the treatment of type 2 diabetes
Investor Presentation First three months of 2018 Slide 40 Medications used for the treatment of type 2 diabetes Commonly prescribed product classes for the treatment of type 2 diabetes HbA1C Hypoglycae- Weight Dosing Contraindication/ Class CVD risk change mia risk change (pr. day) undesired effects
Slide 41: Product portfolio covers the type 2 diabetes treatment cascade
Investor Presentation First three months of 2018 Slide 41 Novo Nordisk current and future product portfolio covers the type 2 diabetes treatment cascade1 Overview of current and future products in Novo Nordisk’s diabetes portfolio When basal insulin is not enough When When it's time metformin is for
Slide 42: Broad insulin portfolio with three generations of products
Investor Presentation First three months of 2018 Slide 42 Novo Nordisk holds a broad insulin portfolio with three generations of products covering the treatment cascade Novo Nordisk product portfolio includes three Commercial focus depends on market maturity generations of insulin products and marke
Slide 43: Stable global insulin volume growth
Investor Presentation First three months of 2018 Slide 43 Stable global insulin volume growth Regional insulin volume growth Regional insulin volume market split North America Region Europe Region AAMEO North America Region Europe Region AAMEO Region China Region J&K Region LATAM Region China Region
Slide 44: Strong underlying insulin market growth and sustained global market share
Investor Presentation First three months of 2018 Slide 44 Strong underlying insulin market growth and sustained global volume market share Global modern and new-generation insulin Global insulin market volume market shares Device penetration Modern insulin penetration1 Novo Nordisk Sanofi Eli Lilly
Slide 45: Market leader in the USA within modern and new-generation insulin
Investor Presentation First three months of 2018 Slide 45 Novo Nordisk is now the market leader in the USA within the modern and new-generation insulin segment Modern insulin and new-generation insulin USA insulin market by segment volume market shares in the USA Device penetration Modern Insulin pe
Slide 46: Modern and new generation insulins maintain market share in the USA
Investor Presentation First three months of 2018 Slide 46 Novo Nordisk’s modern and new generation insulins maintain market share in the USA insulin market USA fast-acting insulin USA premix insulin USA long-acting insulin Segment volume Segment volume Segment volume Levemir® share NovoLog® share No
Slide 47: US health insurance dominated by few large commercial payers
Investor Presentation First three months of 2018 Slide 47 US health insurance is dominated by few large commercial payers with slow expansion of public insurance coverage US population by health insurance status In 2018, PBMs covered 288 million lives and expected to remain stable in coming years th
Slide 48: Key diabetes care products remain broadly available in the USA
Investor Presentation First three months of 2018 Slide 48 Key Novo Nordisk diabetes care products remain broadly available in the USA Value market shares of key % share of unrestricted market access of key Novo Nordisk products in the USA Novo Nordisk products in the USA Value market Victoza® NovoLo
Slide 49: Leadership in the European modern and new-generation insulin market
Investor Presentation First three months of 2018 Slide 49 Sustained leadership position in the European modern and new-generation insulin market European modern insulin and new-generation European insulin market by segment insulin volume market shares Device penetration MI and NGI penetration Novo N
Slide 50: Stable insulin leadership position in Region AAMEO
Investor Presentation First three months of 2018 Slide 50 Stable insulin leadership position in Region AAMEO comprising Africa, Asia, Middle-East and Oceania Region AAMEO modern and new-generation Region AAMEO insulin market by segment insulin volume market shares Device penetration MI and NGI penet
Slide 51: Solid insulin market leadership in Region Japan & Korea
Investor Presentation First three months of 2018 Slide 51 Solid insulin market leadership position in Region Japan & Korea Japan & Korea modern and new-generation Japan & Korea insulin market by segment insulin volume market shares Device penetration MI and NGI penetration Novo Nordisk Sanofi Eli Li
Slide 52: Solid Tresiba performance strengthens basal insulin share in Japan
Investor Presentation First three months of 2018 Slide 52 Solid Tresiba® performance strengthens basal insulin market share in Japan Japanese basal value market shares Japanese total insulin value market shares Tresiba® Levemir® glargine U100 glargine U300 Novo Nordisk Eli Lilly Sanofi NPH biosimila
Slide 53: Solid volume growth in the Chinese insulin market
Investor Presentation First three months of 2018 Slide 53 Solid volume growth in the Chinese insulin market Chinese insulin market by segment Chinese insulin volume market shares Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Tonghua Dongbao tMU Penetration Sanofi Gan & Lee Oth
Slide 54: Continued value growth in the Chinese long-acting insulin segment
Investor Presentation First three months of 2018 Slide 54 Continued value growth in the Chinese long-acting insulin segment Chinese insulin market by segment Chinese total insulin value market shares Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Tonghua Dongbao bDKK Penetratio
Slide 55: Strengthened insulin volume market share in Region Latin America
Investor Presentation First three months of 2018 Slide 55 Strengthened insulin volume market share in Region Latin America Latin America modern and new-generation Latin America insulin market by segment insulin volume shares Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Sanofi
Slide 56: Tresiba sets a new standard for basal insulin initiation
Investor Presentation First three months of 2018 Slide 56 Tresiba® sets a new standard for basal insulin initiation by lowering the risk of hypoglycaemia Tresiba® is a leap on the innovation ladder by Tresiba® has consistently demonstrated further reducing nocturnal hypoglycaemia relevant reductions
Slide 57: Competitive Tresiba label across the USA, Europe and Japan
Investor Presentation First three months of 2018 Slide 57 Competitive Tresiba® label across the USA, Europe and Japan Tresiba® label characteristics in the USA, Europe and Japanese markets USA Europe Japan • Duration of action up to 26 hours in • Half-life of 25 hours and duration of • Duration of a
Slide 58: GLP-1
Investor Presentation First three months of 2018 Slide 58 GLP-1 1. GLP-1 treatment 59 2. GLP-1 market growth and market share 60 3. Victoza® market share 62 4. GLP-1 vs OAD 63 5. Victoza® value growth and market share 64 6. GLP-1 pipeline 65 7. Ozempic® 66 8. GLP-1 market value in Regions 67 9. SUST
Slide 59: GLP-1 effect dependent on level of blood glucose
Investor Presentation First three months of 2018 Slide 59 GLP-1 effect dependent on level of blood glucose GLP-1 mechanism of action when blood GLP-1 lowers blood glucose in patients sugar levels increase with type 2 diabetes • Increases insulin secretion in the pancreas Glucose Type 2 diabetes pati
Slide 60: The GLP-1 segment accounts for 12% of global diabetes care market value
Investor Presentation First three months of 2018 Slide 60 The GLP-1 segment accounts for 12% of the global diabetes care market value GLP-1 value and patient share of the total Global GLP-1 market diabetes care market GLP-1 value Victoza® Ozempic® Share of total Share of total GLP-1 value share of t
Slide 61: Strong GLP-1 volume growth in all regions
Investor Presentation First three months of 2018 Slide 61 Strong GLP-1 volume growth in all regions Regional GLP-1 volume growth Regional GLP-1 volume market split North America Region Europe Region AAMEO North America Region Europe Region AAMEO Region China Region J&K Region LATAM Region China Regi
Slide 62: Victoza maintains a 14% value market share
Investor Presentation First three months of 2018 Slide 62 Victoza® maintains a 14% value market share in the GLP-1, SGLT-2 and DPP-IV segment Segment value Share of segment value growth Segment value market shares DKK Victoza® Other GLP-1 SGLT-2 DPP-IV billion 250 100% 100% 12% 12% 200 80% 80% CAGR1
Slide 63: GLP-1 patients primarily switch from OADs
Investor Presentation First three months of 2018 Slide 63 GLP-1 patients primarily switch from OADs and untapped potential is large with many OAD patients not in control GLP-1 source of business Share of patients on OADs achieving (new-to-brand prescription market share) HbA1c below 7% in major Euro
Slide 64: Significant GLP-1 market growth with leading share for Victoza
Investor Presentation First three months of 2018 Slide 64 Significant growth in GLP-1 market with leading market share for Victoza® Global GLP-1 market value and share of total Novo Nordisk GLP-1 value market share diabetes care market value leading in all regions except Japan & Korea Victoza® dulag
Slide 65: Ambition for Ozempic to become leading weekly GLP-1
Investor Presentation First three months of 2018 Slide 65 Ambition for Ozempic® to become leading weekly GLP-1, with daily GLP-1 use shifting to oral semaglutide Promotional focus to shift from Victoza® Aim for Ozempic® and oral semaglutide towards Ozempic® as market access emerges to replace Victoz
Slide 66: Ozempic approved in the USA and in the EU
Investor Presentation First three months of 2018 Slide 66 approved in the USA and in the EU CV data from SUSTAIN 6 trial Ozempic® label in the USA in Ozempic® EU label • Adjunct to diet and exercise to improve Profile glycaemic control Safety Ozempic® label Victoza® label • Two therapeutic dosages,
Slide 67: GLP-1 segment accounts for 15% of diabetes care market value in North America
Investor Presentation First three months of 2018 Slide 67 The GLP-1 segment accounts for 15% of total diabetes care market value in North America North America GLP-1 market Key observations for Victoza® in the US market GLP-1 value Victoza® Ozempic® Share of total in bDKK dulaglutide other diabetes
Slide 68: GLP-1 segment accounts for around 11% of diabetes care value in Europe
Investor Presentation First three months of 2018 Slide 68 The GLP-1 segment accounts for around 11% of total diabetes care market value in Europe European GLP-1 market Victoza® value market share in Europe GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dulaglutide in bDKK exena
Slide 69: GLP-1 segment accounts for 3% of diabetes care value in Region AAMEO
Investor Presentation First three months of 2018 Slide 69 The GLP-1 segment accounts for 3% of total diabetes care market value in Region AAMEO Region AAMEO GLP-1 market Victoza® value market share in Region AAMEO GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dulaglutide in bD
Slide 70: GLP-1 segment accounts for around 1% of diabetes care value in Region China
Investor Presentation First three months of 2018 Slide 70 The GLP-1 segment accounts for around 1% of the total diabetes care market value in Region China China GLP-1 market Victoza® value market share in China GLP-1 value Victoza® exenatide Share of total GLP-1 value Victoza® exenatide in bDKK diab
Slide 71: GLP-1 segment accounts for around 5% in Region Japan & Korea
Investor Presentation First three months of 2018 Slide 71 The GLP-1 segment accounts for around 5% of the total diabetes care market in Region Japan & Korea Japan & Korea GLP-1 market Victoza® value market share in Japan & Korea GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® du
Slide 72: Strong Victoza market leadership in Region Latin America
Investor Presentation First three months of 2018 Slide 72 Strong Victoza® market leadership in Region Latin America Latin America GLP-1 market Victoza® value market share in Latin America GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dulaglutide in bDKK exenatide other diabete
Slide 73: SUSTAIN phase 3a trials with semaglutide successfully completed
Investor Presentation First three months of 2018 Slide 73 SUSTAIN phase 3a trials with semaglutide successfully completed SUSTAIN 1 2 3 4 5 6 Baseline 8.1% 8.1% 8.3% 8.2% 8.4% 8.7% 0.0 -0.1 -0.5 Change in -0.8 -0.4 -0.9 HbA1c (%) -1.1 -1.3 -1.2 -1.4 -1.4 -1.6 -1.5 -1.5 * -1.6 * -1.6 * * * -1.8 * * *
Slide 74: Semaglutide superiority vs dulaglutide in SUSTAIN 7 trial
Investor Presentation First three months of 2018 Slide 74 Semaglutide demonstrated superiority on both glucose control and weight loss vs dulaglutide in SUSTAIN 7 trial dulaglutide 0.75 mg dulaglutide 1.5 mg semaglutide 0.5 mg semaglutide 1.0 mg HbA1c (%) Weight loss (kg) 8.5 0.0 8.0 -2.3 kg -2.0 -3
Slide 75: Oral semaglutide reduced HbA1c and body weight in phase 2 trial
Investor Presentation First three months of 2018 Slide 75 Oral semaglutide reduced HbA1c and body weight in a 26-week phase 2 trial in type 2 diabetes HbA1c reduction from a mean baseline of 7.9% Weight loss from a mean base line of 92 kg Placebo Sema 2.5 mg Sema 5 mg Sema 10 mg Sema 20 mg Sema 40 m
Slide 76: Obesity
Investor Presentation First three months of 2018 Slide 76 Obesity 1. Obesity as a chronic disease 77 2. Obesity treatment 78 3. Saxenda® 80 4. Obesity pipeline 82 5. STEP and SELECT 84
Slide 77: Obesity is a chronic disease that requires treatment
Investor Presentation First three months of 2018 Slide 77 Obesity is a chronic disease that requires treatment The set-point theory portrays how metabolic The body fights weight loss for changes affect the ability to lose weight people with obesity • The body “remembers” its highest body weight and
Slide 78: Treatment rate is low and requires change of mindset and physician engagement
Investor Presentation First three months of 2018 Slide 78 Treatment rate is low and an increase requires a change of mindset and physician engagement Only 2% of the 650 million people with obesity are treated with prescription medication Key barriers to effective obesity management 650 million • Bel
Slide 79: The healthcare cost associated with obesity expected to increase
Investor Presentation First three months of 2018 Slide 79 The healthcare cost associated with obesity expected to increase Global healthcare costs related to obesity Increase in healthcare costs primarily driven expected to increase by 50% by 2025 by obesity-related comorbidities • Today, 650 millio
Slide 80: Saxenda now launched in 25 countries
Investor Presentation First three months of 2018 Slide 80 Saxenda® now launched in 25 countries Saxenda® value share of anti-obesity medications in selected countries Countries with highest Saxenda® sales in 20171 Mexico Australia USA Canada DKK Saxenda® value market share Germany Italy Brazil Denma
Slide 81: Saxenda has rapidly grown value market share
Investor Presentation First three months of 2018 Slide 81 Saxenda® has rapidly grown value market share, but market development efforts are required to expand the market Despite strong Saxenda® growth, US obesity Novo Nordisk is investing in overcoming the care market remains small at USD ~740 milli
Slide 82: The obesity pipeline addresses appetite reduction and energy expenditure
Investor Presentation First three months of 2018 Slide 82 The obesity pipeline consists of projects addressing both appetite reduction and energy expenditure How to address obesity from a medical perspective Novo Nordisk obesity products and pipeline Projects: Status: 2018 expected: Saxenda® Launche
Slide 83: Semaglutide demonstrated unprecedented weight loss in phase 2 obesity trial
Investor Presentation First three months of 2018 Slide 83 Semaglutide demonstrated unprecedented weight loss in phase 2 obesity trial 16.2% weight reduction with the highest semaglutide dose in phase 2 obesity trial Key results and next steps Change in sema 0.05 mg sema 0.1 mg • Participants in the
Slide 84: Phase 3a programme STEP and CV outcomes study SELECT
Investor Presentation First three months of 2018 Slide 84 Phase 3a programme STEP and CV outcomes study SELECT with semaglutide 2.4 mg in obesity to be initiated Semaglutide in obesity phase 3a programme, Cardiovascular outcomes study, SELECT, STEP, expected to include ~4,500 patients1 planned for s
Slide 85: Biopharm and other chronic areas
Investor Presentation First three months of 2018 Slide 85 Biopharm and other chronic areas 1. Biopharm at a glance 86 2. Haemophilia – a rare disease 87 3. Haemophilia market 88 4. NovoSeven® 89 5. NovoEight® 90 6. Refixia®/Rebinyn® 91 7. N8-GP 92 8. Growth Hormone market 93 9. Other chronic disease
Slide 86: Biopharm R&D efforts reflect commitment to unmet patient needs
Investor Presentation First three months of 2018 Slide 86 Biopharm R&D efforts reflect Novo Nordisk’s commitment to satisfy unmet patient needs Aim to develop subcutaneous haemophilia products and long-acting growth hormone Novo Nordisk Biopharm portfolio Haemophilia Growth hormone Pursue subcutaneo
Slide 87: Haemophilia is a rare disease with severe unmet medical needs
Investor Presentation First three months of 2018 Slide 87 Haemophilia is a rare disease with severe unmet medical needs Number of people with haemophilia A and B Low diagnosis and treatment rates and haemophilia with inhibitors within haemophilia Number of Average percentage of people people (000) w
Slide 88: Global haemophilia market is growing by high-single digit
Investor Presentation First three months of 2018 Slide 88 Global haemophilia market is growing by high-single digit Strategic positioning of Novo Nordisk’s Sales of recombinant coagulation factors haemophilia portfolio NovoSeven® Recombinate®/Advate® Idelvion® Novo Nordisk Coagil VII® Kogenate®/Heli
Slide 89: ~50% of historic NovoSeven sales exposed to competition
Investor Presentation First three months of 2018 Slide 89 ~50% of historic NovoSeven® sales exposed to competition, but opportunities remain in other indications Opportunities and challenges for Estimated NovoSeven® sales by indication1 NovoSeven® franchise CHwI PPx (A&B) CHwI on demand (A&B) Challe
Slide 90: NovoEight volumes continue to grow
Investor Presentation First three months of 2018 Slide 90 NovoEight® volumes continue to grow despite increasing penetration of long-acting FVIII products NovoEight® roll-out continues and the number NovoEight® has potential to increase volume of patients has steadily increased share in select segme
Slide 91: Strong growth among long-acting haemophilia B products
Investor Presentation First three months of 2018 Slide 91 Strong growth among long-acting haemophilia B products as Refixia®/Rebinyn® is set for launch in the EU and the USA Reported recombinant FIX sales Refixia®/Rebinyn® launched in first countries Sales Benefix® Alprolix® Idelvion® • Launched in
Slide 92: N8-GP reduces median bleeding rate in phase 3 trial
Investor Presentation First three months of 2018 Slide 92 N8-GP administered every fourth day reduces median bleeding rate to 1.3 episode per year in phase 3 trial N8-GP phase 1 pharmacokinetics Pathfinder 2 headline results (phase 3) FVIII activity FVIII N8-GP • PK documented single dose half-life
Slide 93: Novo Nordisk maintains leadership within growth disorder
Investor Presentation First three months of 2018 Slide 93 Novo Nordisk maintains leadership within growth disorder Development in global growth disorder market Growth disorder volume market share DKK MAT volume kg MAT value DKK Novo Nordisk Pfizer Sandoz billion kg Eli Lilly Merck Kgaa CAGR volume1:
Slide 94: Somapacitan phase 3 extension and phase 2 trials to conclude in 2018
Investor Presentation First three months of 2018 Slide 94 Phase 3 extension trial in adults and phase 2 trial in children for once-weekly somapacitan to conclude in 2018 Somapacitan IGF-1 levels similar to daily Phase 3a AGHD trial succesfully completed, Norditropin® in REAL 1 phase 3 AGHD trial pha
Slide 95: Other serious chronic diseases
Investor Presentation First three months of 2018 Slide 95 Other serious chronic diseases Serious chronic diseases are often associated New therapeutic areas represent patient with diabetes and obesity populations with high unmet medical needs • 70% of people with diabetes Estimated patients Number o
Slide 96: Trials in other serious chronic disease areas building on semaglutide
Investor Presentation First three months of 2018 Slide 96 Trials in obesity and other serious chronic disease areas building on the semaglutide molecule Planned or ongoing trials with semaglutide Ongoing phase 2 trial with daily semaglutide vs addressing other serious chronic diseases placebo in pat
Slide 97: Financials
Investor Presentation First three months of 2018 Slide 97 Financials 1. Sales growth 98 2. Operating Profit growth 100 3. Cost distribution 101 4. COGS & CAPEX as percent of sales 102 5. Cash return to shareholders 104 6. Currency impact 105 7. Ownership structure 108
Slide 98: Solid sales growth driven by diabetes care
Investor Presentation First three months of 2018 Slide 98 Solid sales growth driven by diabetes care Reported annual sales 2013-2017 Reported annual sales split by region DKK North America Region Europe Region AAMEO billion Diabetes Biopharmaceuticals Region China Region J&K Region LATAM 120 CAGR1 7
Slide 99: Victoza accounts for 22% of total sales in first three months of 2018
Investor Presentation First three months of 2018 Slide 99 Victoza® accounts for 22% of total sales in first three months of 2018 Reported currencies Sales Q1 2018 (mDKK) Sales split Sales full year 2017 (mDKK) Sales split Tresiba® 1,755 7% 7,327 7% Levemir® 2,780 10% 14,118 13% NovoRapid® 4,695 17%
Slide 100: Solid operating profit growth driven by diabetes
Investor Presentation First three months of 2018 Slide 100 Solid operating profit growth driven by diabetes Operating profit Operating profit therapy split DKK Operating profit Operating profit as % of sales Diabetes Biopharm billion Reported operating profit growth 60 Operating profit growth in loc
Slide 101: Higher profitability in the biopharmaceuticals segment
Investor Presentation First three months of 2018 Slide 101 Higher profitability in the biopharmaceuticals segment driven by lower COGS and S&D costs Diabetes & Obesity P&L – full year 2017 Biopharmaceuticals P&L – full year 2017 DKK DKK billion Sales ratios billion Sales ratios 100 -16% 30 -27% 80 2
Slide 102: Stable COGS level as % of sales and increasing CAPEX level
Investor Presentation First three months of 2018 Slide 102 Stable COGS level as % of sales and increasing CAPEX level Cost of Goods Sold (COGS) Capital Expenditure (CAPEX) DKK COGS as % of sales DKK CAPEX Expected CAPEX CAPEX as % of sales billion COGS billion 20 25% Thousands 12 10% 20% 15 10 8% 15
Slide 103: Long-term financial targets support profitable growth and cash conversion
Investor Presentation First three months of 2018 Slide 103 Long-term financial targets support focus on profitable growth, capital allocation and cash conversion Operating profit growth in Operating profit after tax to Cash to earnings local currencies net operating assets (three-year average) Curre
Slide 104: Cash return to shareholders in 2018
Investor Presentation First three months of 2018 Slide 104 Cash return to shareholders in 2018 Annual cash return to shareholders Cash return priorities DKK Share repurchase Interim dividend Dividend • Share repurchase programme of up to DKK 14 billion to be billion Free cash flow Free cash flow gui
Slide 105: Currency impact on Novo Nordisk's P/L
Investor Presentation First three months of 2018 Slide 105 Currency impact on Novo Nordisk’s P/L Operational currency impact Financial currency impact • All movements in currencies will directly • All gain/losses from hedging contracts are impact the individual reported functional included in the fi
Slide 106: Currency impact on operating profit
Investor Presentation First three months of 2018 Slide 106 Currency impact on operating profit Operational currency impact Avg FX Yearly impact of Estimated impact Key Avg FX rate %-change 5% change from key currencies rate 2016 Operational currency impact in 2017 2017 (mDKK) currencies • The operat
Slide 107: Key currency development 2017 vs 2018
Investor Presentation First three months of 2018 Slide 107 Key currency development 2017 vs 2018 Average FX Q1 Q1 Q1 Q2 Q22 Q2 Q3 Q3 Q3 Q4 Q4 Q4 FY FY FY rates1 2017 2018 Change 2017 2018 Change 2017 2018 Change 2017 2018 Change 2017 20183 Change USD/DKK 698 606 -13% 676 610 -10% 633 612 -3% 632 612
Slide 108: Stable ownership structure
Investor Presentation First three months of 2018 Slide 108 Stable ownership structure - secured through A and B-share structure Share structure The Novo Nordisk Foundation • The Novo Nordisk Foundation is a self-governing institution Novo Nordisk Foundation that: Institutional and private • provides
Slide 109: Sustainability
Investor Presentation First three months of 2018 Slide 109 Sustainability 1. Novo Nordisk Way and Triple Bottom line 110 2. Employee Heath and Safety 111 3. Business Environment 112 4. Novo Nordisk on Natural Resources 113
Slide 110: Sustainable business
Investor Presentation First three months of 2018 Slide 110 Sustainable business The Novo Nordisk Way The Triple Bottom Line Business Principle Financially responsible Socially Environmentally responsible responsible We build on the purpose set by our founders and live by their The Triple Bottom Line
Slide 111: Healthy, engaging and inclusive workplace
Investor Presentation First three months of 2018 Slide 111 Novo Nordisk offers a healthy, engaging and inclusive workplace with development opportunities for employees Employee health and safety and engagement Novo Nordisk is committed to building a are key focus areas for management diverse and inc
Slide 112: Shaping and adapting to conditions in the business environment
Investor Presentation First three months of 2018 Slide 112 Shaping and adapting to conditions in the business environment Enhancing access to affordable, high quality Cities Changing Diabetes works to insulin is a key priority bend the curve on urban diabetes 5 million people 6 product recalls with
Slide 113: Minimisation in use of non-depletable or scarce natural resources
Investor Presentation First three months of 2018 Slide 113 Novo Nordisk prioritises minimisation in use of non-depletable or scarce natural resources Least possible use of resources, lower On track to have all production sites emissions and less waste are priorities run 100% on renewable power by 20