Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Non-Deal Roadshow (May 2004)
50 slides from Novo Nordisk A/s Class B's roadshow presentation, May 2004
Slide 1: Novo Nordisk: A focused healthcare company
Novo Nordisk A focused healthcare company Investor presentation – May 2003 1
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements as the term is defined in the US Private Securities Litigation Reform Act of 1995. Forward-looking statements provide our expectations or forecasts of future events such as new product introductions, product approvals a
Slide 3: Agenda
Agenda • Highlights from the first quarter 2004 • Diabetes care • Pipeline update • Biopharmaceuticals • Pipeline update • Financial update • Outlook 2004 3
Slide 4: Highlights first quarter 2004
Highlights - first quarter 2004 • Sales +14% measured in local currencies • Sales of insulin analogues increased by 94% in local currencies • NovoSeven® sales increased by 20% in local currencies • Operating profit increased by • 9% as reported • More than 20% in local currencies • Earnings per shar
Slide 5: Sales first quarter 2004 by segment and region
Sales first quarter 2004 - by segment and region Diabetes care Biopharmaceuticals* International Japan & Operations Oceania Europe +21% (+28%) +9% (+11%) +4% (+5%) Europe Japan & +12% (+13%) Oceania +5% (+9%) International Operations +5% (+11%) North America North America +11% (+28%) +15% (+33%) Tot
Slide 6: Diabetes care key observations
0 1 2 3 4 5 DKK billion Q1 02 Analogues Q3 02 OADs Q1 03 Diabetes care Q3 03 Human insulin and insulin-related sales +7% Q1 04 Key observations • Sales +12% in local currencies • Analogues +94% in local currencies, now accounting for 20% of insulin sales • Analogues now account for close to 50% of i
Slide 7: Epidemic growth at an increasing diagnostic rate
Epidemic growth - at an increasing diagnostic rate Projected development Number of people diagnosed Number of people with diabetes with diabetes in the US 300 14 250 12 2000 2030 10 200 Millions 8 150 6 100 4 50 2 0 0 US Japan Europe Rest of 1958 1966 1974 1982 1990 1998 World Source: WHO and Harris
Slide 8: Diagnosed but not adequately treated
Diagnosed - but not adequately treated Insulin is the ultimate treatment Only 1/3 are at goal Diet and 100 exercise alone 27 32 80 -Cell function Oral % of subjects therapy Typ 60 15 e 2- 19 slop Oral/insulin e 20 40 22 Insulin 20 38 27 Type 1 - Immediate need for insulin 0 OAD Insulin Time from di
Slide 9: Novo Nordisk devoted to improving control
Novo Nordisk - devoted to improving control NPH insulin formulated (Neutral Protamine Hagedorn) Levemir® NovoMix® 30 First long-acting insulin World’s first purified insulin (zinc protamine) NovoRapid® Start insulin Recombinant human insulin production First human premixed insulin 1920 1940 1960 198
Slide 10: Insulin market overview - volume
Insulin market overview - volume Market size Growth rates Novo Nordisk market share Market Novo Nordisk USA 5.3% 31% ▲ 40% 15.4% Europe 9.1% 49% 9.9% 58% ▲ Japan 12.0% 76% - 5% 11.4% 7.4% World 49% ▲ 100% 11.2% Note: Wal*Mart figures not included. Market size and share as MAT Q4 2003 and growth as M
Slide 11: Analogues driving the market share in short-acting insulins
Analogues driving the market share in short-acting insulins Novo Nordisk’s short-acting market share development Key observations: 50 % • In Europe NovoRapid® has 19% of the total 40 % Share of total short- short-acting segment acting segment 30 % • NovoLog® has 15% of the total short-acting 20 % se
Slide 12: Analogues driving the premix insulin market share
Analogues driving the premix insulin market share Novo Nordisk’s premix market share development Key observations: 60 % • In Europe NovoMix® 30 50 % Share of total has 6% of the total premix segment premixed segment 40 % • NovoLog® Mix has 5% of 30 % the total premixed Share of premix 20 % analogue
Slide 13: Device penetration continues adding to growth
Device penetration continues - adding to growth Device penetration Share of disposable segment 80 % 70 % 23% Disposable devices 60 % Overall disposable 14% 50 % market share 66% 35% 28% Durable devices 40 % 30 % 58% FlexPen® 19% 42% 20 % 10 % InnoLet® 8% Vials 0% Q1 2000 Q4 2003 Q1 2000 Q4 2003 Note
Slide 14: The insulin business case
The insulin business case Improving convenience, Volume growth drivers: compliance and control • Epidemic growth Disposables Vials Durables • Increased life expectancy Insulin • Increasing awareness leading analogues to increasing diagnosis rate Human • Earlier switches from tablets insulin to insul
Slide 15: Pipeline update - diabetes care
Pipeline update - diabetes care • Positive opinion received for Levemir® from CPMP in Europe • Expected launch in key European markets during H2 2004 • Phase 3 safety study AERx® iDMS interim analysis • No adverse effect on any measure of pulmonary safety • Meal-related blood glucose regulation in t
Slide 16: Superior treatment with Levemir and NovoRapid versus human insulin regimen
Superior treatment with Levemir® and NovoRapid® versus human Change in Hb1Ac insulin regimen 0.5 p < 0.001 0 -0.5 -0.28 Better effect with fewer side Levemir®/NovoRapid® -0.5 effects Human insulin Change in body Nocturnal hypoglycaemia Hypoglycaemia all weight p < 0.001 p < 0.001 p < 0.001 1 3 15 -0
Slide 17: Levemir launch in Europe
Levemir® launch in Europe - completing the analogue portfolio Segmentation - Europe 31% Short-acting 27% 40% Levemir® observations: 42% Premix • Positive CPMP opinion obtained in the EU 29% • Levemir® launched in Switzer- 31% Long-acting land in Q1 2004 • To be launched in key European Q1 2000 Q4 20
Slide 18: Biopharmaceuticals
Biopharmaceuticals DKK billion 2.5 Key observations: • Sales +21% in local currencies +13% 2 • Solid performance of NovoSeven® and growth hormone therapy 1.5 • Share of growth: • NovoSeven®: 51% 1 • Growth hormone: 20% • Hormone replacement therapy: 23% 0.5 0 Q1 02 Q3 02 Q1 03 Q3 03 Q1 04 NovoSeven®
Slide 19: NovoSeven key observations
0 200 400 600 800 1,000 1,200 DKK Million Q1 02 Q3 02 Q1 03 NovoSeven® Q3 03 Q1 04 +11% Key observations • Solid overall sales growth • +20% in local currencies • Growth driven by further penetration into the acquired haemophilia segment as well a perceived increase in investigational use • Sales in
Slide 20: Pipeline update - biopharmaceuticals
Pipeline update - biopharmaceuticals • NovoSeven®: • The phase 2 study in intracerebral haemorrhage to report mid-2004 • A phase 2 study on the use of NovoSeven® in connection with variceal bleeding in patients with advanced cirrhosis initiated • Phase 3 on the use of NovoSeven® in trauma still expe
Slide 21: Efforts in expansion of NovoSeven are extensive
Efforts in expansion of NovoSeven® are extensive Congenital High single-dose clotting Bleedings in Trauma disorders FVII deficiency emergencies Acquired Intracerebral Prophylaxis haemophilia haemorrhage Glanzmann’s UGI Orthopedic Variceal surgery bleeding s Liver transplantation Hepatectomy Critical
Slide 22: NovoSeven in trauma - less transfusions and fewer complications
NovoSeven® in trauma - less transfusions and fewer complications rFVIIa reduces the need for Use of rFVIIa indicates fewer transfusion in trauma complications after trauma 100 n=22 30 90 Placebo rFVIIa n=17 80 25 Percent of patients Percent of patients 70 60 P= 0.019 20 n=12 50 rFVIIa (n=52) 15 40 P
Slide 23: Getting ready to start phase in trauma
Getting ready to start phase 3 in trauma Blood transfusion in trauma Presenting the data Number of trauma victims receiving blood transfusions 300,000 Conference Month/year 250,000 Number of victims WCTSIS √ 03/2004 200,000 ISICEM √ 03/2004 150,000 WCA √ 04/2004 100,000 ASS 06/2004 AAST 09/2004 50,0
Slide 24: Intracerebral haemorrhage - next to report
Intracerebral haemorrhage - next to report Study design Intracerebral haemorrhage: Placebo 10-15% of all cases of strokes are n = 100 intracerebral bleedings (ICH) Major endpoints at 24 Estimated more than 100,000 cases hours per year in the Western world rFVIIa 40 µg/kg Efficacy No real treat
Slide 25: Still increasing awareness of NovoSeven
Still increasing awareness of NovoSeven® Patients enrolled in Articles and abstracts* clinical programmes 2,500 7,000 6,000 2,000 5,000 1,500 4,000 3,000 1,000 2,000 500 1,000 0 0 2000 2001 2002 2003 1988 1993 1998 2003 Source: Literature search in Medline, Embase and Biosis for articles and abstrac
Slide 26: Financial results
WY) = =) Ww) ce) _ o UO Cc 140) i= LL
Slide 27: Financial results
Financial results DKK million Q1 2004 Q1 2003 % change Sales 6,567 6,056 8 Operating profit 1,516 1,397 9 Net financials 87 234 (63) Profit before tax 1,603 1,631 (2) Net profit 1,074 1,073 0 EPS (DKK)* 3.16 3.11 2 * EPS on a fully-diluted basis. 27
Slide 28: Currency exposure
Currency exposure Effect of 5% depreciation on full- year operating profit* 9.0 USD (DKK million) avg = 7.88 USD -210 JPY -130 8.0 GBP -75 avg = 6.59 USD rel. -50 7.0 JPY YTD 2004 * currency hedging income is recorded as financial avg = 6.01 income 6.0 avg = 6.30 YTD 2004 avg = 5.68 avg = 5.61 5.0 2
Slide 29: New share repurchase programme initiated
New share repurchase programme initiated Long-term financial targets In % 1999 2000 2001 2002 2003 Targets Average Operating profit growth 20.3 36.5 16.6 6.5 6.8 15 17% Operating margin 21.5 23.1 23.6 23.7 24.1 25 23% Cash to earnings* 76.6 87.9 4.8 12.1 79.2 60 52% ROIC 15.3 22.0 23.1 20.1 19.1 25
Slide 30: Outlook for 2004
Outlook for 2004 • Sales growth expectations: • Double digit in local currencies • Close to 10% as reported Key currency rates • Operating profit growth expectations: DKK 2003 2004 Current per 100 average ytd avg rate* • 15% underlying • Around 5% as reported USD 659 601 626 JPY 5.68 5.61 5.70 • Net
Slide 31: Novo Nordisk snapshot
tent, strong organic growth d on few areas with large unmet needs dership in diabetes care blishing platform in haemostasis to leverage on global operations ng presence in Europe and Japan Novo Nordisk snapshot ng growth in the US and International Operations biotech and drug delivery capabilities p
Slide 32: Investor information
Investor information Share information Investor Relations contacts Novo Nordisk’s B shares are Novo Nordisk A/S listed on the stock Investor Relations exchanges in Copenhagen Novo Allé, DK2880 Bagsværd Fax (+45) 4443 6633 and London. Its ADRs are Peter Haahr listed on the New York Stock Tel (direct
Slide 33: Appendix
Appendix 33
Slide 34: Sales by region - first quarter 2004
+8% Operations International +13% Oceania +8% North America Japan & Sales by region Sales of DKK 6.6 billion Europe +6% (+8% reported and +14% in local currencies) - first quarter 2004 Key observations • Europe • +7% in local currencies • North America • +30% in local currencies • International Oper
Slide 35: Sales by region - currency impact
Sales by region - currency impact 7 Europe 6 North America 30 13 14 International Operations 8 11 Japan & Oceania 8 14 Total 8 0 5 10 15 20 25 30 Growth in local currencies Growth in Danish kroner 35
Slide 36: European analogue conversion - NovoRapid
European analogue conversion - NovoRapid® Short-acting segment in Europe Share of short-acting segment 30 % 25 % Humalog market share 25% Short-acting 20 % human insulin 15 % 45% NovoRapid® 10 % market share 19% 22% Short-acting 5% insulin analogues 0% Q1 2000 Q4 2003 Q1 2000 Q4 2003 Note: Quarterly
Slide 37: US analogue conversion - NovoLog
US analogue conversion - NovoLog® Short-acting segment in the US Share of short-acting segment 50 % Humalog Short-acting 40 % market share 46% human insulin 30 % 61% 20 % NovoLog® market share 15% 33% Short-acting insulin analogues 10 % 0% Q1 2000 Q4 2003 Q1 2000 Q4 2003 Note: Quarterly data, volume
Slide 38: Device penetration continues - adding to growth
Device penetration continues - Adding to growth Device penetration Share of segment 80 % 23% 75 % Disposable devices 70 % 35% Durable devices Disposable devices 65 % Vials 42% 60 % Durable devices 55 % 50 % Q1 2000 Q4 2003 Q1 2000 Q4 2003 Note: Quarterly data, volume figures Source: IMS/BW 38
Slide 39: Insulin segmentation - Europe and the US
Insulin segmentation - Europe and the US Europe US 50% 50% 40% 40% 30% 30% 20% 20% Long-acting Long-acting Premix Premix 10% Short-acting 10% Short-acting 0% 0% Q1 1998 Q4 2003 Q1 1998 Q4 2003 Note: Quarterly data, volume figures Source: IMS/BW 39
Slide 40: Novo Nordisk's market share since Lantus launch
Novo Nordisk’s market share since Lantus launch Total Month of insulin Lantus February (MU) launch 2004 Europe (Novo Nordisk’s share of segment) 70% US 26% 34% 65% Europe 57% 58% 60% 55% Germany 44% 46% 50% Long-acting 45% Premix UK 67% 64% Short-acting 40% Mar 2002 Feb 2004 Note: Quarterly data, vo
Slide 41: Novo Nordisk gaining market share
Novo Nordisk gaining market share Novo Nordisk’s insulin market share IMS world 60% 50% Volume 40% Value 30% 20% Q1 2000 Q4 2003 Source: IMS/BW, quarterly data 41
Slide 42: Novo Nordisk in the US
US headquarters Novo Nordisk in the US US sales, marketing, etc US manufacturing Princeton Clayton Number of employees 365 employees, filling and packaging of insulin 1,457 1,143 993 1,014 636 2000 2001 2002 2003 2004 42
Slide 43: A focused sales organisation
A focused sales organisation Contracted hormone therapy sales force Diabetes care: Diabetes Care Specialists Institutional Diabetes Care Specialists Biopharmaceuticals: Strategic Account Executives Sales Managers Field Trainers 900 Diabetes care sales force 40 Biopharmaceuticals sales force 800 35 7
Slide 44: Diabetes care - expansion strategy paying off
Diabetes care - expansion strategy paying off Novo Nordisk’s US insulin market shares 35% 45% 30% 40% 25% 20% 35% 15% 30% 10% 25% 5% 0% 20% Q1 2000 Q4 2003 Q1 2000 Q4 2003 Overall market share Premix market share Analogue market share Short-acting market share Long-acting market share Note: Quarterl
Slide 45: Diabetes care - expansion strategy paying off
Diabetes care - expansion strategy paying off US pen penetration Novo Nordisk’s pen market shares Total Total Long- Long- acting acting Short- Short- acting acting Premix Premix 0% 5% 10% 15% 20% 0% 20% 40% 60% Q4 2001 Q4 2002 Q4 2003 Note: Quarterly data, volume figures Source: IMS/BW 45
Slide 46: Insulin secretion in people without diabetes and with type 2 diabetes
Insulin secretion in people without diabetes and people with type 2 diabetes 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. 46
Slide 47: NovoSeven - a unique mechanism of action
NovoSeven® - a unique mechanism of action NovoSeven® directly activates factor X on the surface of the locally activated platelets 47
Slide 48: Hormone replacement therapy key observations
0 100 200 300 400 500 HRT DKK Million Q1 02 Q3 02 Q1 03 Q3 03 Q1 04 +23% Key observations • +31% in local currencies • Positive underlying market share development • Sales growth positively impacted by the change in distribution setup in the US. Adjusted here fore sales declined by 14% in local curr
Slide 49: Partnering for growth
Partnering for growth Partner Product/Project Type Year estab Medarex Human antibodies Research and licence 2000 BioVision Peptide targets Research and licence 2001 TransTech Pharma Diabetes targets Research and licence 2001 RE&D VUFB Chemistry & project collaboration Research and licence 2001 Atuge
Slide 50: Going on patent
Going on patent Patent expirations* Novo Nordisk is going on patent 40% 100% 36% 34% 35% 32% 29% 75% 30% 26% 25% 20% 18% 17% 50% 15% 15% 13% 10% 25% 5% 3% 0% 0% Nordisk BMS Eli Lilly Takeda Merck GSK Bayer Novartis Aventis Pfizer 2003 2004 2005 2006 2007 2008 2009 2010 Novo On patent Off patent Sour