Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Q1 2019 Earnings Presentation
122 slides from Novo Nordisk A/s Class B's earnings presentation, May 3, 2019
Slide 1: Investor presentation First quarter of 2019
Slide 1 Investor presentation First quarter of 2019
Slide 2: Agenda
Investor presentation First quarter of 2019 Slide 2 Agenda Highlights and key events Sales update R&D update Financials and outlook
Slide 3: Forward-looking statements
Investor presentation First quarter of 2019 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 2018 and Form 20-F, which were both filed wit
Slide 4: Highlights – First quarter of 2019
Investor presentation First quarter of 2019 Slide 4 Highlights – First quarter of 2019 Sales update Sales increased by 9% and by 4% at CER to DKK 29.3 billion driven by • International Operations sales growth of 13% and of 13% at CER • North America Operations sales growth of 4% and decline of 4% at
Slide 5: Total sales growth of 4% driven by IO with 13% sales growth partly offset by 4% decline in NAO
Investor presentation First quarter of 2019 Slide 5 Total sales growth of 4% driven by IO with 13% sales growth partly offset by 4% sales decline in NAO Reported sales split for first quarter of 2019 Growth drivers for first quarter of 2019 Insulin GLP-1 Other diabetes IO sales growth of 13% support
Slide 6: Total sales growth of 4% driven by diabetes and obesity sales growth of 5%
Investor presentation First quarter of 2019 Slide 6 Total sales growth of 4% driven by diabetes and obesity sales growth of 5% and stable biopharm sales Added reported sales and growth per therapy area and operational units at CER Growth drivers for first quarter of 2019 International Operations Nor
Slide 7: Global diabetes market leadership strengthened to 28.1%
Investor presentation First quarter of 2019 Slide 7 Global diabetes market leadership strengthened to 28.1%, partly driven by insulin volume market share increase of 0.6%-point Expanded global diabetes value market Global insulin volume market share increased leadership by 0.6%-point to 28.1% 0.6%-p
Slide 8: Ozempic now launched in 19 countries and off to a solid start
Investor presentation First quarter of 2019 Slide 8 Ozempic® now launched in 19 countries and off to a solid start across markets Ozempic® monthly volume market share uptake USA GLP-1 NBRx market share across Europe and Canada NN GLP-1 Victoza® Ozempic® dulaglutide Denmark Switzerland Ireland Nether
Slide 9: Ozempic launch has stabilised total US GLP-1 market share
Investor presentation First quarter of 2019 Slide 9 Ozempic® launch has stabilised Novo Nordisk’s total US GLP-1 market share in a market growing 29% annually USA GLP-1 quarterly prescription market development USA GLP-1 volume market share Annual market growth (RHS)1 exenatide ER NN GLP-1 dulagluti
Slide 10: Saxenda sales growth of 51% in first quarter of 2019
Investor presentation First quarter of 2019 Slide 10 Saxenda® sales growth of 51% in first quarter of 2019 and market development activities continue globally Novo Nordisk has market leadership within the Saxenda® sales growth in both IO and NAO global obesity market DKK International Operations Nor
Slide 11: Stable biopharm sales supported by commercial execution and global product launches
Investor presentation First quarter of 2019 Slide 11 Stable biopharm sales supported by commercial execution and global product launches Stable biopharm sales despite Biopharm sales supported by strong global NovoSeven® sales decline commercial execution Unchanged Biopharm sales driven by Internatio
Slide 12: Oral semaglutide filed in USA, EU and Canada; Ozempic CV indication filed
Investor presentation First quarter of 2019 Slide 12 Oral semaglutide filed in the USA, the EU and Canada, and Ozempic® CV risk reduction indication filed in the USA Expected timelines for the FDA review Oral semaglutide filed in key markets Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Three FDA filings:
Slide 13: Key development milestones
Investor presentation First quarter of 2019 Slide 13 Key development milestones • Oral semaglutide filed with the US FDA for diabetes with six months review time and in the EU and Canada • Oral semaglutide and Ozempic® US FDA filed for CV risk reduction indications with ten months review time Diabet
Slide 14: R&D milestones in 2019
Investor presentation First quarter of 2019 Slide 14 R&D milestones in 2019 Clinical milestones1 Regulatory milestones1 Project Q1 2019 Q2 2019 Q3 2019 Q4 2019 Phase 3b results Tresiba® (vs glargine U300) US submission FOCUS trial initiation FLOW trial initiation Ozempic® (CV label update) (Ou
Slide 15: Financial results – First quarter of 2019
Investor presentation First quarter of 2019 Slide 15 Financial results – First quarter of 2019 First quarter First quarter Change Change In DKK million of 2019 of 2018 (reported) (CER) Sales 29,291 26,930 9% 4% Gross profit 24,559 22,733 8% Gross margin 83.8% 84.4% Sales and distribution costs 6,946
Slide 16: Financial outlook for 2019
Investor presentation First quarter of 2019 Slide 16 Financial outlook for 2019 Expectations Expectations 3 May 2019 1 Feb 2019 Sales growth – at CER 2% to 5% 2% to 5% Sales growth - reported Around 3%-points higher Around 2%-points higher Operating profit growth – at CER 2% to 6% 2% to 6% Operating
Slide 17: Key take-aways – First quarter of 2019
Investor presentation First quarter of 2019 Slide 17 Key take-aways – First quarter of 2019 Diabetes franchise grew 4% and Novo Nordisk retains world leader position with a market share of 28.1% (up from 27.5%) • Insulin sales increased 2% and Novo Nordisk has expanded its volume market leader posit
Slide 18: Investor contact information
Investor presentation First quarter of 2019 Slide 18 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 York St
Slide 19: Appendix
Investor presentation First quarter of 2019 Slide 19 Appendix 1. Novo Nordisk at a glance 20 2. Insulin 42 3. GLP-1 diabetes 69 4. Obesity 85 5. Biopharmaceuticals & Other serious chronic diseases 94 6. Financials 106 7. Sustainable business 117 NN: Novo Nordisk
Slide 20: Novo Nordisk at a glance
Investor presentation First quarter of 2019 Slide 20 Novo Nordisk at a glance Global leader in diabetes and obesity Global insulin market leadership • A focused pharmaceutical company with leading positions in Global insulin market share: 47% diabetes, obesity, haemophilia and growth hormone Region
Slide 21: Sales growth of 4% mainly driven by the diabetes and obesity segments
Investor presentation First quarter of 2019 Slide 21 Sales growth of 4% mainly driven by the diabetes and obesity segments Reported sales for first quarter of 2019 Growth break down for first quarter of 2019 Growth Other Constant exchange rates Growth Share of growth disorders biopharmaceuticals Lon
Slide 22: Sales growth of 4% driven by IO growth of 13% and 4% decline in NAO
Investor presentation First quarter of 2019 Slide 22 Sales growth of 4% driven by IO sales growth of 13% and 4% sales decline in NAO Reported sales for first quarter of 2019 Growth break down for first quarter of 2019 Region Region Latin America Constant exchange rates Growth Share of growth Japan &
Slide 23: Sales growth driven by the diabetes and obesity franchise
Investor presentation First quarter of 2019 Slide 23 Sales growth driven by the diabetes and obesity franchise Novo Nordisk reported quarterly sales Reported sales split by product segments for by therapy first quarter of 2019 DKK Diabetes and obesity Haemophilia2 Long-acting insulin Premix insulin
Slide 24: Leading positions in diabetes, obesity and haemophilia
Investor presentation First quarter of 2019 Slide 24 Novo Nordisk has leading positions in diabetes, obesity and haemophilia Diabetes Obesity Haemophilia Market value Market value Market value DKK Novo Nordisk value market share DKK Novo Nordisk value market share DKK Novo Nordisk value market share
Slide 25: Global diabetes prevalence is increasing
Investor presentation First quarter of 2019 Slide 25 Global diabetes prevalence is increasing and 629 million people are expected to have diabetes by 2045 Around 10% of all adults globally The number of people with diabetes is expected have diabetes to increase by 48% by 2045 North America Region Eu
Slide 26: Focus on driving global insulin growth
Investor presentation First quarter of 2019 Slide 26 Focus on driving global insulin growth by increasing the number of people benefitting from Novo Nordisk products Around 29 million people are currently treated Only 6% of all people with diabetes are treated with Novo Nordisk insulin and GLP-1 pro
Slide 27: Opportunity in large unmet needs across all therapy areas
Investor presentation First quarter of 2019 Slide 27 Novo Nordisk’s opportunity is in the large unmet needs across all therapy areas in scope DIABETES OBESITY HAEMOPHILIA OTHER SERIOUS CHRONIC DISEASES 650 million 80% of diagnosed NASH patients are obese 425 million and 35% have T2DM 70% of diabetes
Slide 28: Six strategic priorities
Investor presentation First quarter of 2019 Slide 28 Six strategic priorities EXPAND THE DRIVE BUILD THE RETURN TO DRIVE INNOVATE GLP-1 MARKET INSULIN GLOBAL GROWTH IN COMMERCIAL AND EXPAND AND WIN WITH VOLUME AND OBESITY BIOPHARM INNOVATION PATIENT BASE SEMAGLUTIDE VALUE SHARE MARKET
Slide 29: Strong leadership position within the growing diabetes market
Investor presentation First quarter of 2019 Slide 29 Novo Nordisk has a strong leadership position within the growing diabetes market Novo Nordisk remain global diabetes Global diabetes market by treatment class value market leader DKK OAD GLP-1 Insulin Novo Nordisk Sanofi Eli Lilly Merck Takeda bil
Slide 30: North America Operations at a glance
Investor presentation First quarter of 2019 Slide 30 North America Operations at a glance Diabetes market by value and Diabetes trend in population Novo Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS Diabetes growth rate DKK NN OAD MS Q1 2019 Sale
Slide 31: International Operations at a glance
Investor presentation First quarter of 2019 Slide 31 International Operations at a glance Diabetes market by value and Diabetes trend in population Novo Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS DKK NN OAD MS Sales Million Diabetes growth rat
Slide 32: Region Europe at a glance
Investor presentation First quarter of 2019 Slide 32 Region Europe at a glance Diabetes market by value and Diabetes trend in population Novo Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS Sales Diabetes growth rate NN OAD MS Q1 2019 Growth2 Milli
Slide 33: Region AAMEO at a glance
Investor presentation First quarter of 2019 Slide 33 Region AAMEO at a glance Diabetes market by value and Diabetes trend in population Novo Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS NN OAD MS Sales Million Diabetes growth rate bDKK Q1 2019 G
Slide 34: Region China at a glance
Investor presentation First quarter of 2019 Slide 34 Region China at a glance Diabetes market by value and Diabetes trend in population Novo Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS Sales Diabetes growth rate NN OAD MS Q1 2019 Growth2 Millio
Slide 35: Region Japan & Korea at a glance
Investor presentation First quarter of 2019 Slide 35 Region Japan & Korea at a glance Diabetes market by value and Diabetes trend in population Novo Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS Sales Diabetes growth rate bDKK NN OAD MS Q1 2019 G
Slide 36: Region Latin America at a glance
Investor presentation First quarter of 2019 Slide 36 Region Latin America at a glance Diabetes market by value and Diabetes trend in population Novo Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS Sales Diabetes growth rate NN OAD MS Q1 2019 Growth
Slide 37: Biopharm 'return to growth' strategy well on track
Investor presentation First quarter of 2019 Slide 37 Biopharm constitutes 15% of Novo Nordisk sales and the ‘return to growth’ strategy is well on track NovoSeven® and Norditropin® ‘Return to Growth’ strategy builds on organic, account for 80% of Biopharm sales1 non-organic and organisational initia
Slide 38: Novo Nordisk Corporate Strategy R&D strategy
Investor presentation First quarter of 2019 Slide 38 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 • Develop nov
Slide 39: Pipeline supports growth across four strategic focus areas
Investor presentation First quarter of 2019 Slide 39 Pipeline supports significant growth opportunities across all four strategic focus areas PHASE 1 PHASE 2 PHASE 3 SUBMITTED APPROVED NN1535 – LAIsema NN1436 – LAI287 Semaglutide obesity Oral semaglutide Tresiba® NN9023 – OG2023SC Anti-IL-21 and lir
Slide 40: Strong global presence in sales and manufacturing
Investor presentation First quarter of 2019 Slide 40 Growth opportunities supported by strong global presence in both sales and manufacturing Employees in sales regions1 Global manufacturing setup Kaluga, Russia North America Operations: ~4,300 Denmark (~9,000 employees) (~270 employees) • Diabetes
Slide 41: Solid patent protection of innovative drugs
Investor presentation First quarter of 2019 Slide 41 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 • Need to show comparabil
Slide 42: Insulin
Investor presentation First quarter of 2019 Slide 42 Insulin 1. Diabetes at a glance 43 2. Diabetes treatment classes 46 3. Branded diabetes market 47 4. Diabetes market segments 49 5. Novo Nordisk Diabetes product portfolio 51 6. Insulin market and NN market share 52 7. NN insulin MS in US 57 8. US
Slide 43: Diabetes – the inability to manage blood sugar levels
Investor presentation First quarter of 2019 Slide 43 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 produce eno
Slide 44: Diabetes pandemic is fuelled by growing rates of obesity
Investor presentation First quarter of 2019 Slide 44 Diabetes pandemic is fuelled by growing rates of obesity Obesity prevalence has increased Diabetes prevalence has increased in recent years in recent years <20% 20%-<25% 25%-<30% 30%-<35% 2.3-5.1% 5.2-6.5% 6.6-7.9% 8.0-9.8% ≥35% No data 9.9-15.2%
Slide 45: Poor diagnosis rates and glycaemic control remain global problems
Investor presentation First quarter of 2019 Slide 45 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 type 2
Slide 46: Insulin is the ultimate care for people with diabetes
Investor presentation First quarter of 2019 Slide 46 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 SGLT-2 DPP-IV Other OADs 100% 6% Diet and exercise 20% OAD
Slide 47: Total branded diabetes market value of USD ~42 billion
Investor presentation First quarter of 2019 Slide 47 The total branded diabetes market has a global value of USD ~42 billion annually FY 2017 FY 2018 Growth USD Global diabetes market growth USD The USA billion billion 30 -1% -7.5% 50 -3% 1% Injectables market value 20 -12% 42 42 23 22 -12% 2018: US
Slide 48: The insulin market is comprised of three segments
Investor presentation First quarter of 2019 Slide 48 The insulin market is comprised of three segments Insulin action profiles Global insulin volume market by segment tMU CAGR volume1: 4.3% 600 CAGR value1: 13.1% Fast-acting 500 35% 400 34% Fast-acting Premix 300 25% 29% Premix 200 Long-acting 100 3
Slide 49: Medications used for treatment of type 2 diabetes
Investor presentation First quarter of 2019 Slide 49 Medications used for 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 (per day) undesired effects Metformi
Slide 50: Product portfolio covers the type 2 diabetes treatment cascade
Investor presentation First quarter of 2019 Slide 50 Novo Nordisk’s 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 in
Slide 51: Global insulin market leadership expanded to 46.7%
Investor presentation First quarter of 2019 Slide 51 Global insulin market leadership expanded by 0.6%-point to 46.7% and the global insulin volume market grew by 2.7% Global Market growth: 2.7% MS: 46.7% North America Operations MS gain/loss: +0.6%-p International Operations Market growth: 0.7% Sal
Slide 52: Stable global insulin volume growth
Investor presentation First quarter of 2019 Slide 52 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 J&K
Slide 53: Continued single digit volume growth within insulin segments
Investor presentation First quarter of 2019 Slide 53 Continued single digit volume growth within the insulin segments globally Long-acting insulin Premix insulin Fast-acting insulin Segment volume Levemir® share Segment volume Segment volume Tresiba® share Combined NN NovoMix® market share NovoRapid
Slide 54: Increased market share in long-acting insulin
Investor presentation First quarter of 2019 Slide 54 Novo Nordisk increased market share in long-acting insulin and sustained leadership in fast-acting and premix insulin Long-acting insulin1 volume Premix insulin2 volume market Fast-acting insulin3 volume market share across regions share across re
Slide 55: Stable global insulin market growth and volume share leadership
Investor presentation First quarter of 2019 Slide 55 Stable global insulin market growth and Novo Nordisk sustains global volume market share leadership Global modern and new-generation insulin Global insulin market volume market shares Device penetration Modern insulin penetration1 Novo Nordisk San
Slide 56: Market leader in the USA in modern and new-generation insulin
Investor presentation First quarter of 2019 Slide 56 Novo Nordisk is 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 penetration
Slide 57: Increased volume share in US long-acting insulin
Investor presentation First quarter of 2019 Slide 57 Novo Nordisk increases volume market share in the US long-acting insulin segment USA long-acting insulin USA premix insulin USA fast-acting insulin Segment volume Levemir® share Segment volume Segment volume Fiasp® share Tresiba® share Combined NN
Slide 58: US health insurance dominated by few large commercial payers
Investor presentation First quarter of 2019 Slide 58 US health insurance is dominated by few large commercial payers with slow expansion of public insurance coverage The US population by health insurance status In 2018, PBMs covered 288 million lives and expected to remain stable in coming years the
Slide 59: US healthcare system is complex and rebates have increased
Investor presentation First quarter of 2019 Slide 59 The US healthcare system is complex and rebates paid by Novo Nordisk have increased significantly in recent years Illustrative example of the Development of Novo Nordisk rebates US healthcare system and net sales in the USA US net sales US rebates
Slide 60: Key diabetes products remain broadly available in the USA
Investor presentation First quarter of 2019 Slide 60 Novo Nordisk’s key diabetes products remain broadly available in the USA Value market shares of Share of unrestricted market access of Novo Nordisk key products in the USA Novo Nordisk key products in the USA Value market Victoza® NovoLog® Levemir
Slide 61: Sustained leadership in European modern and new-generation insulin
Investor presentation First quarter of 2019 Slide 61 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 Nordis
Slide 62: Stable insulin leadership position in Region AAMEO
Investor presentation First quarter of 2019 Slide 62 Stable insulin leadership position in Region AAMEO Region AAMEO modern and new-generation Region AAMEO insulin market by segment insulin volume market shares Device penetration MI and NGI penetration Novo Nordisk Sanofi Eli Lilly Other tMU Penetra
Slide 63: Stable insulin leadership in Region Japan & Korea
Investor presentation First quarter of 2019 Slide 63 Stable insulin market leadership position in Region Japan & Korea Region Japan & Korea insulin market Region Japan & Korea modern and new- by segment generation insulin volume market shares Device penetration MI and NGI penetration Novo Nordisk Sa
Slide 64: Solid Tresiba performance strengthens basal share in Japan
Investor presentation First quarter of 2019 Slide 64 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 biosimilar gla
Slide 65: Continued growth in Chinese insulin segments
Investor presentation First quarter of 2019 Slide 65 Continued value and volume growth in the Chinese insulin segments Chinese insulin market by segment Chinese total insulin value market shares DKK Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Tonghua Dongbao billion Penetrat
Slide 66: Insulin volume share strengthened in Region Latin America
Investor presentation First quarter of 2019 Slide 66 Novo Nordisk strengthens insulin volume market share in Region Latin America Region Latin America insulin market Region Latin America modern and new- by segment generation insulin volume shares Device penetration Modern insulin penetration Novo No
Slide 67: Tresiba sets new standard for basal insulin initiation
Investor presentation First quarter of 2019 Slide 67 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 in s
Slide 68: GLP-1
Investor presentation First quarter of 2019 Slide 68 GLP-1 1. GLP-1 treatment 69 2. GLP-1 market 70 3. Regional GLP-1 growth 71 4. GLP-1 patient profile 72 5. Victoza® 73 6. Ozempic® 74 7. GLP-1 market value and MS in Regions 75 8. Clinical trials (SUSTAIN & PIONEER) 82
Slide 69: GLP-1 effect dependent on level of blood glucose
Investor presentation First quarter of 2019 Slide 69 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 patients,
Slide 70: GLP-1 segment accounts for 15% of global diabetes market value
Investor presentation First quarter of 2019 Slide 70 The GLP-1 segment accounts for 15% of the global diabetes market value GLP-1 value and patient share of the total Global GLP-1 market diabetes market Victoza® Ozempic® GLP-1 value share of total diabetes GLP-1 value exenatide other Share of total
Slide 71: Strong GLP-1 volume growth in all regions
Investor presentation First quarter of 2019 Slide 71 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 Region J&
Slide 72: Main GLP-1 source of business comes from OAD patients
Investor presentation First quarter of 2019 Slide 72 Main GLP-1 source of business comes from OAD patients as many OAD patients are not in good control GLP-1 source of business Share of patients on OADs achieving (new-to-brand prescription market share) HbA1c below 7% in major European countries Ins
Slide 73: Significant growth in GLP-1 market with leading share for Victoza
Investor presentation First quarter of 2019 Slide 73 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 market value leading in all regions except Japan & Korea Victoza® Ozempic® dulagl
Slide 74: Ambition to maintain global GLP-1 market leadership
Investor presentation First quarter of 2019 Slide 74 Ambition to maintain global GLP-1 market leadership with diverse and long-term GLP-1 portfolio Promotional focus shifted from Victoza® to Aim for Ozempic® and oral semaglutide Ozempic® as market access increases to replace Victoza® as market leade
Slide 75: GLP-1 segment accounts for 18% of diabetes value in North America
Investor presentation First quarter of 2019 Slide 75 GLP-1 segment accounts for 18% of total diabetes market value in North America North America GLP-1 market Key points on Victoza® and Ozempic® in the USA Victoza® Ozempic® exenatide Other dulaglutide GLP-1 market value • Victoza® and Ozempic® value
Slide 76: GLP-1 around 8% of diabetes market value in International Operations
Investor presentation First quarter of 2019 Slide 76 GLP-1 segment accounts for around 8% of total diabetes market value in International Operations IO GLP-1 market GLP-1 value market share in IO Victoza® Ozempic® dulaglutide exenatide Victoza® Ozempic® dulaglutide DKK other GLP-1 market value Share
Slide 77: GLP-1 around 12% of diabetes market value in Region Europe
Investor presentation First quarter of 2019 Slide 77 GLP-1 segment accounts for around 12% of total diabetes market value in Region Europe European GLP-1 market GLP-1 value market share in Region Europe Victoza® Ozempic® dulaglutide exenatide Victoza® Ozempic® NN combined DKK other GLP-1 market valu
Slide 78: GLP-1 3% of diabetes market value in Region AAMEO
Investor presentation First quarter of 2019 Slide 78 GLP-1 segment accounts for 3% of total diabetes market value in Region AAMEO Region AAMEO GLP-1 market Victoza® value market share in Region AAMEO Victoza® dulaglutide exenatide GLP-1 value Victoza® dulaglutide exenatide DKK lixisenatide GLP-1 mar
Slide 79: GLP-1 around 1% of diabetes market value in Region China
Investor presentation First quarter of 2019 Slide 79 The GLP-1 segment accounts for around 1% of the total diabetes market value in Region China Chinese GLP-1 market Victoza® value market share in Region China Victoza® exenatide Victoza® exenatide DKK Share of total GLP-1 value billion GLP-1 market
Slide 80: GLP-1 around 6% of diabetes market in Region Japan & Korea
Investor presentation First quarter of 2019 Slide 80 GLP-1 segment accounts for around 6% of the total diabetes market in Region Japan & Korea Victoza® value market share in Region Region Japan & Korea GLP-1 market Japan & Korea Victoza® dulaglutide exenatide Victoza® dulaglutide DKK Share of total
Slide 81: GLP-1 around 6% of diabetes market in Region Latin America
Investor presentation First quarter of 2019 Slide 81 GLP-1 segment accounts for around 6% of the total diabetes market in Region Latin America Victoza® value market share Region Latin America GLP-1 market in Region Latin America Victoza® dulaglutide exenatide Victoza® dulaglutide Share of total GLP-
Slide 82: SUSTAIN trials with semaglutide
Investor presentation First quarter of 2019 Slide 82 SUSTAIN trials with semaglutide SUSTAIN 1 2 3 4 5 6 7 Baseline 8.1% 8.1% 8.3% 8.2% 8.4% 8.7% 8.2% 0.0 -0.1 -0.4 -0.5 Change in HbA1c (%) -0.9 -0.8 -1.1* -1.1 -1.3* -1.2* -1.4* -1.3 -1.5* -1.5* -1.4* -1.6* -1.6* -1.5* -1.6* -1.8* -1.8* 1.2 Baseline
Slide 83: PIONEER programme completed for oral semaglutide
Investor presentation First quarter of 2019 Slide 83 PIONEER programme completed for oral semaglutide and global trials showed consistent efficacy profile PIONEER 1 2 3 4 5 7 8 Baseline 8.0% 8.1% 8.3% 8.0% 8.0% 8.3% 8.2% -0.1 -0.1 -0.1 Change in -0.5 HbA1c (%) -0.6 -0.8 -0.8 -0.7 -0.9 -1.0 -1.1 -1.3
Slide 84: Obesity
Investor presentation First quarter of 2019 Slide 84 Obesity 1. Obesity as a chronic disease 85 2. Obesity treatment 86 3. Saxenda® 88 4. Obesity pipeline 90 5. STEP and SELECT 91
Slide 85: Obesity is a chronic disease that requires treatment
Investor presentation First quarter of 2019 Slide 85 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 defen
Slide 86: Treatment rate is low and requires change of mindset
Investor presentation First quarter of 2019 Slide 86 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 • Belief t
Slide 87: Healthcare cost associated with obesity expected to increase
Investor presentation First quarter of 2019 Slide 87 Healthcare cost associated with obesity expected to increase Global healthcare cost related to obesity Increase in healthcare costs primarily driven expected to increase by 50% by 2025 by obesity-related comorbidities • Today, 650 million people h
Slide 88: Saxenda now launched in 41 countries
Investor presentation First quarter of 2019 Slide 88 Saxenda® now launched in 41 countries Saxenda® value share of anti-obesity Reported Saxenda® sales for medications in selected countries first quarter of 2019 Mexico Australia USA Canada DKK Sales growth at CER Germany Italy Brazil Denmark billion
Slide 89: Saxenda has rapidly grown value market share
Investor presentation First quarter of 2019 Slide 89 Saxenda® has rapidly grown value market share, but market development efforts are required to expand the market Despite strong Saxenda® growth, US obesity care Novo Nordisk is investing in overcoming the market remains small at around USD 853 mill
Slide 90: Obesity pipeline addresses appetite reduction and energy expenditure
Investor presentation First quarter of 2019 Slide 90 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: 2019 expectations Saxenda® Launched Weight W
Slide 91: Semaglutide demonstrated unprecedented weight loss in phase 2 obesity trial
Investor presentation First quarter of 2019 Slide 91 Semaglutide demonstrated unprecedented weight loss in a 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 hig
Slide 92: Phase 3a programme STEP and CV outcomes study SELECT
Investor presentation First quarter of 2019 Slide 92 Phase 3a programme STEP and CV outcomes study SELECT were initiated in 2018 Semaglutide in obesity phase 3a programme, Cardiovascular outcomes study, SELECT, STEP, expected to include ~4,500 patients1 initiated for semaglutide in obesity 2018 2019
Slide 93: Biopharm and other chronic areas
Investor presentation First quarter of 2019 Slide 93 Biopharm and other chronic areas 1. Biopharm at a glance 94 2. Haemophilia – a rare disease 95 3. Haemophilia market 96 4. NovoSeven® 97 5. NovoEight® 98 6. Refixia®/Rebinyn® 99 7. Esperoct® (N8-GP) 100 8. Growth hormone market 101 9. Clinical tri
Slide 94: Biopharm R&D efforts reflect commitment to unmet patient needs
Investor presentation First quarter of 2019 Slide 94 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 subcutaneous Re
Slide 95: Haemophilia is a rare disease with severe unmet medical needs
Investor presentation First quarter of 2019 Slide 95 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) with h
Slide 96: Global haemophilia market is growing by high-single digit
Investor presentation First quarter of 2019 Slide 96 Global haemophilia market is growing by high-single digit Strategic positioning of Novo Nordisk’s Sales of recombinant haemophilia products haemophilia portfolio NovoSeven® Advate®/Adynovate® Idelvion® Novo Nordisk Coagil VII® Kogenate®/Kovaltry®/
Slide 97: ~50% of historic NovoSeven sales exposed to competition
Investor presentation First quarter of 2019 Slide 97 ~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) Challenge C
Slide 98: NovoEight launched in 46 countries
Investor presentation First quarter of 2019 Slide 98 Strong commercial execution and temperature stability key for NovoEight®, which has been launched in 46 countries NovoEight® has potential to increase volume NovoEight® global roll-out continues share in selected segments and markets Number of lau
Slide 99: Strong growth in long-acting haemophilia B market; Refixia in 14 countries
Investor presentation First quarter of 2019 Slide 99 Strong growth in the long-acting haemophilia B market and Refixia® has now been launched in 14 countries Reported recombinant FIX sales Refixia® launched in 14 countries Benefix® Rixubis® Alprolix® Idelvion® • Refixia® offers a unique clinical pro
Slide 100: N8-GP every fourth day reduces median bleeding rate
Investor presentation First quarter of 2019 Slide 100 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 of 1
Slide 101: Novo Nordisk maintains leadership within growth disorder
Investor presentation First quarter of 2019 Slide 101 Novo Nordisk maintains leadership within growth disorder Development in global growth disorder market Growth disorder volume market share DKK MAT volume kg MAT value Novo Nordisk Pfizer Sandoz Eli Lilly billion kg Merck Kgaa Takeda Other1 CAGR vo
Slide 102: Phase 3 extension trial in adults and phase 2 trial in children for somapacitan
Investor presentation First quarter of 2019 Slide 102 Phase 3 extension trial in adults and phase 2 trial in children for once-weekly somapacitan Somapacitan IGF-1 levels similar to daily Phase 3a AGHD extension trial and phase 2 Norditropin® in REAL 1 phase 3 AGHD trial GHD successfully completed C
Slide 103: Other serious chronic diseases
Investor presentation First quarter of 2019 Slide 103 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 of re
Slide 104: Trials in obesity and other serious chronic diseases with semaglutide
Investor presentation First quarter of 2019 Slide 104 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 patient
Slide 105: Financials
Investor presentation First quarter of 2019 Slide 105 Financials 1. Sales growth 106 2. Operating Profit growth 107 3. Cost distribution 108 4. COGS & CAPEX as percent of sales 109 5. Long-term financial targets 110 6. Cash return to shareholders 111 7. Currency impact 112 8. Ownership structure 115
Slide 106: Solid sales growth driven by diabetes and obesity
Investor presentation First quarter of 2019 Slide 106 Solid sales growth driven by diabetes and obesity Reported annual sales 2014-2018 Reported annual sales split by region North America Region Europe Region AAMEO DKK Diabetes and obesity Biopharmaceuticals Region China Region J&K Region LATAM bill
Slide 107: Solid operating profit growth driven by diabetes
Investor presentation First quarter of 2019 Slide 107 Solid operating profit growth driven by diabetes Operating profit Operating profit split per franchise DKK Operating profit Operating profit as % of sales Diabetes and obesity Biopharm billion Reported operating profit growth 60 Operating profit
Slide 108: Higher profitability in biopharmaceuticals driven by lower S&D costs
Investor presentation First quarter of 2019 Slide 108 Higher profitability in the biopharmaceuticals segment driven by lower S&D costs Diabetes & Obesity P&L – full year 2018 Biopharmaceuticals P&L – full year 2018 DKK DKK billion Sales ratios billion Sales ratios 100 -16% 20 -16% -28% -17% 80 15 -1
Slide 109: Stable COGS level and increasing CAPEX level
Investor presentation First quarter of 2019 Slide 109 Stable COGS level as percentage of sales and increasing CAPEX level for new production facilities Cost of goods sold Capital expenditure DKK COGS DKK CAPEX Expected CAPEX billion billion COGS as % of sales (RHS) CAPEX as % of sales (RHS) 20 25% 1
Slide 110: Long-term financial targets
Investor presentation First quarter of 2019 Slide 110 Long-term financial targets support focus on profitable growth, capital allocation and cash conversion Operating profit growth Operating profit after tax to Cash to earnings at CER net operating assets (three-year average) Current long-term finan
Slide 111: Cash return to shareholders in 2019
Investor presentation First quarter of 2019 Slide 111 Cash return to shareholders in 2019 Annual cash return to shareholders Cash return priorities DKK Share repurchase Interim dividend Dividend • Share repurchase programme of up to DKK 15 billion to be billion Free cash flow Free cash flow guidance
Slide 112: Currency impact on Novo Nordisk's P/L
Investor presentation First quarter of 2019 Slide 112 EXAMPLE 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
Slide 113: Currency impact on operating profit
Investor presentation First quarter of 2019 Slide 113 EXAMPLE Currency impact on operating profit Operational currency impact Yearly impact of Estimated impact Key Avg. FX Avg. FX %-change 5% change2 from key currencies rate 2017 rate 2018 Operational currency impact in 2018 (mDKK) currencies • The
Slide 114: Hedged and non-hedged currencies
Investor presentation First quarter of 2019 Slide 114 Favourable currency impact in first quarter of 2018 from hedged currencies Avg. Q1 2019 vs. Q1 2018 Exp. avg. FY 20191 vs. FY 2018 Hedged Q1 2018 Q1 2019 Impact of a Hedging Currencies avg. avg. Spot rate3 5% move4 (months) 10% USD2 606 657 665 2
Slide 115: Stable ownership structure
Investor presentation First quarter of 2019 Slide 115 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 a sta
Slide 116: Sustainability
Investor presentation First quarter of 2019 Slide 116 Sustainability 1. Sustainable business 118 2. Novo Nordisk Way and Triple Bottom Line 119 3. Changing Diabetes® 120 4. Circular for Zero 123
Slide 117: Ambition to be a sustainable business
Investor presentation First quarter of 2019 Slide 117 Novo Nordisk’s ambition is to be a sustainable business …creating long-term value for patients, employees, partners and shareholders by developing innovative and competitive solutions to patients’ unmet needs By sustainable business, …doing busin
Slide 118: The Triple Bottom Line is the foundation for value creation
Investor presentation First quarter of 2019 Slide 118 The Triple Bottom Line is the foundation for how Novo Nordisk creates value and stays successful The Triple Bottom Line Business Principle The Novo Nordisk Way Financially responsible Socially Environmentally responsible responsible The Triple Bo
Slide 119: Cities Changing Diabetes aims to break the Rule of Halves
Investor presentation First quarter of 2019 Slide 119 Cities Changing DiabetesTM aims to break the ‘Rule of Halves’ by tackling urban diabetes Global partnership platform to develop At present nineteen partner cities an approach to fight urban diabetes with more than 130 million citizens • Beijing •
Slide 120: Enhancing access to affordable medicines is a key priority
Investor presentation First quarter of 2019 Slide 120 Enhancing access to affordable medicines is a key priority Product quality and patient safety is material Access to insulin commitment expanded 29.2 million 5 million people Novo Nordisk guarantees to make low-priced human insulin patients reache
Slide 121: Healthy, engaging and inclusive workplace
Investor presentation First quarter of 2019 Slide 121 Novo Nordisk offers a healthy, engaging and inclusive workplace with development opportunities for employees Employee health, safety and engagement Novo Nordisk is committed to building are key focus areas for management a diverse and inclusive c
Slide 122: Ambition of zero negative environmental impact
Investor presentation First quarter of 2019 Slide 122 Novo Nordisk has set a bold ambition to have zero negative environmental impact – based on a circular mindset Use of resources, emissions and waste On track to have all production sites with a focus on recovery and re-use run 100% on renewable po