Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Non-Deal Roadshow (November 2007)
58 slides from Novo Nordisk A/s Class B's roadshow presentation, Nov 5, 2007
Slide 1: A focused healthcare company
Investor presentation A focused healthcare company First nine months of 2007 roadshow presentation Merrill Lynch, London, 5 November 2007
Slide 2: Forward-looking statements
Investor presentation First nine months of 2007 Slide no 2 Forward-looking statements The above contains forward-looking statements as the term is defined in the US Private Securities Litigation Reform Act of 1995. This in particular relates to information included under the headings ‘Outlook 2007’,
Slide 3: Agenda
Investor presentation First nine months of 2007 Slide no 3 Agenda • Highlights • Sales update • International Operations • R&D update • Financials
Slide 4: Highlights
Investor presentation First nine months of 2007 Slide no 4 Highlights Sales development: • Sales of modern insulins increased by 37% (31% as reported) • Sales of NovoSeven® increased by 10% (4% as reported) • Sales of Norditropin® increased by 12% (7% as reported) • Sales in North America increased
Slide 5: Sales update
Investor presentation First nine months of 2007 Slide no 5 Sales update
Slide 6: Insulin world market leader with 53% market share
Investor presentation First nine months of 2007 Slide no 6 Insulin world market leader with 53% market share Europe North America Novo Nordisk #1 Novo Nordisk #1 Market share 57% Market share: 43% International Operations Japan & Oceania Novo Nordisk #1 Novo Nordisk #1 Market share: 59% Market share
Slide 7: Growth in Novo Nordisk's insulin franchise looks set to continue
Investor presentation First nine months of 2007 Slide no 7 Growth in Novo Nordisk’s insulin franchise looks set to continue Rapid increase in number of World insulin market growth people with diabetes 2007 2025 Volume: 6.2% 350 DKK: 10.6% 300 2007: 246 million USD: 19.0% 2025: 380 million DKK 51.6bn
Slide 8: Key products continue to drive growth
Investor presentation First nine months of 2007 Slide no 8 Key products continue to drive growth – first nine months of 2007 Sales as reported Growth analysis HRT & other Norditropin® +5% Local currencies Growth Share of +7% growth 5% 8% Diabetes care Modern insulins 37% 71% NovoSeven® +11% Human in
Slide 9: Modern insulins
Investor presentation First nine months of 2007 Slide no 9 Modern insulins World market share of total segment Modern insulin sales as reported 50% Levemir® NovoRapid® DKK 1.8bn NovoRapid® NovoMix® +90% DKK 4.8bn 40% Levemir® 18% +21% 30% NovoMix® DKK 3.5bn 34% 48% +25% 20% 10% 0% August August Sale
Slide 10: A continued increase in modern insulin market share
Investor presentation First nine months of 2007 Slide no 10 A continued increase in modern insulin market share IMS world modern insulin Modern insulin penetration market shares, volume 70% Novo Nordisk 60% Eli Lilly Sanofi-Aventis 50% 50% 20% Modern insulin 40% 30% Human insulin 20% 10% 0% Q2 Q2 Q2
Slide 11: NovoSeven sales development
Investor presentation First nine months of 2007 Slide no 11 NovoSeven® NovoSeven® sales development Key observations • Growth in the first nine months 1,600 of 2007 of 10% in local : 11 % currencies and 4% as reported 1,400 GR CA 1,200 • North American sales main DKK million contributor to growth 1,
Slide 12: Norditropin sales development
Investor presentation First nine months of 2007 Slide no 12 Norditropin® Norditropin® sales development Key observations • Growth in the first nine months of 2007 of 12% in local 1,000 currencies and 7% as reported 900 1 3% 800 GR: • North American sales main CA contributor to growth DKK million 700
Slide 13: Sales by region
Investor presentation First nine months of 2007 Slide no 13 Sales by region - first nine months of 2007 Sales as reported Growth analysis Japan & Oceania -4% Europe Local Growth Share of +6% currencies growth 10% International Europe 6% 17% Operations North America 25% 54% +15% 18% 39% International
Slide 14: Levemir reinforces modern insulin market leadership in Europe…
Investor presentation First nine months of 2007 Slide no 14 Levemir® reinforces modern insulin market leadership in Europe… Share of total modern insulin Novo Nordisk’s share of long- sales in Europe acting modern insulin in Europe 25% 24% 80% Novo Nordisk Eli Lilly 70% Sanofi-Aventis 20% 60% 50% 15
Slide 15: … and total market leadership in the US
Investor presentation First nine months of 2007 Slide no 15 … and total market leadership in the US US total insulin market Novo Nordisk’s share of long- share development acting modern insulin in the US 80% 8% 7.7% 70% Novo Nordisk Eli Lilly 7% 60% Sanofi-Aventis 6% 50% 5% 40% 4% 30% 3% 20% 2% 10%
Slide 16: International Operations at a glance
Investor presentation First nine months of 2007 Slide no 16 International Operations at a glance Strategic Operations China RO Zurich, Switzerland Beijing, China RO Moscow R&D Moscow, Russia Beijing, China RO Near East Pen production Istanbul, Turkey Tianjin, China RO Africa and Gulf Athens, Greece
Slide 17: Novo Nordisk clear leader within emerging markets insulin …
Investor presentation First nine months of 2007 Slide no 17 Novo Nordisk clear leader within emerging markets insulin … International Operations International Operations insulin sales development insulin market shares Index 70% local currencies 58% 250 60% 7% :1 50% Novo Nordisk A GR 200 C Eli Lilly
Slide 18: … driven by China
Investor presentation First nine months of 2007 Slide no 18 … driven by China China sales Key observations Index local currencies • Approaching total annual sales of DKK 2 billion 700 • Currently the fifth largest market 600 for Novo Nordisk 500 46 % • R&D centre R: 400 AG C • NovoPen® 3 production
Slide 19: Urbanization in China drives rapid increase in people with diabetes
Investor presentation First nine months of 2007 Slide no 19 Urbanization in China drives rapid increase in people with diabetes Number of people with diabetes China insulin market shares 80% 71% Rural Urban 70% Novo Nordisk or % f on 2025 60% Eli Lilly . 8 R: 3 lati Sanofi-Aventis CAG popu urb an 50
Slide 20: Modern insulins have become an important growth driver within IO
Investor presentation First nine months of 2007 Slide no 20 Modern insulins have become an important growth driver within IO Modern insulins’ share of Modern insulin sales within IO sales growth IO during 9M 2007 • Sales of more than DKK 1.1 billion 60% • More than 70% growth measured 50% in local c
Slide 21: R&D update
Investor presentation First nine months of 2007 Slide no 21 R&D update
Slide 22: Development portfolio – diabetes
Investor presentation First nine months of 2007 Slide no 22 Development portfolio – diabetes Compound Type Indication Phase Levemir® Modern insulin Type 1+2 Launched in US, Europe, etc., approved in JP NovoMix® 50 Modern insulin Type 1+2 Launched in Europe, filed in the US NovoMix® 70 Modern insulin
Slide 23: GLP-1 will explore virgin territory between OADs and insulins
Investor presentation First nine months of 2007 Slide no 23 GLP-1 will explore virgin territory between OADs and insulins World DKK MAT market billion growth OAD 67 2% OAD Insulin Insulin 52 9% GLP-1 3 79% GLP-1 Note: Absolute data represent MAT August 2007 and growth data represent MAT August 2007
Slide 24: Strong clinical profile of liraglutide
Investor presentation First nine months of 2007 Slide no 24 Strong clinical profile of liraglutide Key observations • Four out of five phase 3 studies completed • Significant HbA1c reduction: • 1.5 - 2.0% in monotherapy • 1.0 – 1.5% in combination with OADs • Significant relative weight reduction of
Slide 25: Competitive Levemir label in Japan
Investor presentation First nine months of 2007 Slide no 25 Competitive Levemir® label in Japan Levemir® Key observations Unit 100U/ml Once daily dosing √ • Expected launch in 2007 Mono-therapy √ • Levemir® will be launched in OAD combination therapy √ the prefilled FlexPen® and Pediatric use √ Penf
Slide 26: Development portfolio – haemostasis
Investor presentation First nine months of 2007 Slide no 26 Development portfolio – haemostasis Compound Indication Phase NovoSeven® Heat-stable formulation Filed in Europe and US NovoSeven® Trauma Phase 3 NovoSeven® Prophylaxis Phase 2 completed NovoSeven® Spinal surgery (dose escalation) Phase 2 c
Slide 27: Development portfolio - other biopharmaceuticals
Investor presentation First nine months of 2007 Slide no 27 Development portfolio - other biopharmaceuticals Compound Indication Phase Activelle® Low Dose Hormone replacement therapy Launched in the US, filed in Europe1 Vagifem® Low Dose Hormone replacement therapy Phase 3 completed in the US, phase
Slide 28: Financials
Investor presentation First nine months of 2007 Slide no 28 Financials
Slide 29: Financial results
Investor presentation First nine months of 2007 Slide no 29 Financial results DKK million 9M 2007 9M 2006 % change Sales 30,885 28,256 9 Gross profit 23,693 21,252 11 Gross margin 76.7% 75.2% Sales and distribution costs 9,151 8,277 11 Percent of sales 29.6% 29.3% Research and development costs 5,12
Slide 30: Solid gross margin development
Investor presentation First nine months of 2007 Slide no 30 Solid gross margin development Gross margin improvement analysis Key observations 80% Annual average • Expected gross margin 78% improvement in 2007 of around 76.7 130 basis points 76% 75.3 • Productivity gains are prime 74% contributor – r
Slide 31: Currency development
Investor presentation First nine months of 2007 Slide no 31 Currency development Spot rates Quarterly average Annual average 640 Annual impact on operating 620 profit of a 5% movement in currency (DKK million) USD/DKK 600 2007 2008 580 USD 400 470 USD-related 110 130 560 JPY 150 140 540 GBP 90 85 US
Slide 32: Outlook 2007
Investor presentation First nine months of 2007 Slide no 32 Outlook 2007 • Sales growth expectations: Key currency rates • 11-14% in local currencies DKK 2006 2007 Current per 100 average average rate* • 6-9% as reported USD 595 551 518 • Operating profit growth expectations: JPY 5.11 4.64 4.53 • ar
Slide 33: Novo Nordisk - concluding remarks
Investor presentation First nine months of 2007 Slide no 33 Novo Nordisk - concluding remarks Strategic position Key growth drivers #1 in the global insulin market • Leadership in diabetes care with full portfolio of modern insulins #1 in the global modern insulin segment • Promising GLP-1 compound
Slide 34: Investor information
Investor presentation First nine months of 2007 Slide no 34 Investor information Share information Investor Relations Novo Nordisk’s B shares are listed contacts on the stock exchanges in Novo Nordisk A/S Investor Relations Copenhagen and London. Its ADRs Novo Allé, DK-2880 Bagsværd are listed on th
Slide 35: Appendices
Investor presentation First nine months of 2007 Slide no 35 Appendices
Slide 36: Novo Nordisk's corporate strategy
Investor presentation First nine months of 2007 Slide no 36 Novo Nordisk’s corporate strategy Focus areas Compounds/Capabilities Strategic focus Insulin Drug delivery and protein expertise 1. Diabetes Maintain Leadership GLP-1 Global specialist reach Other proteins rFVIIa 2. Biopharmaceuticals rFXII
Slide 37: Long-term financial targets
Investor presentation First nine months of 2007 Slide no 37 Long-term financial targets Long-term financial targets In % Financial 2002 2003 2004 2005 2006 targets Operating profit growth 9.6 8.4 8.7 15.9 12.7 15 Operating margin 23.8 24.6 24.0 24.0 23.5 25 Cash to earnings* 12.1 79.6 85.3 82.4 73.0
Slide 38: Solid insulin market growth - Novo Nordisk market leadership
Investor presentation First nine months of 2007 Slide no 38 Solid insulin market growth - Novo Nordisk market leadership Market size Growth rates Novo Nordisk market share Market Novo Nordisk US 8.4% 42% 35% 4.2% Europe 3.5% 46% 57% 5.0% Japan 5.4% 74% 4% 5.6% World 5.7% 53% 100% 5.8% Note: Volume d
Slide 39: US diabetes performance
Investor presentation First nine months of 2007 Slide no 39 US diabetes performance Novo Nordisk’s US insulin US insulin market share sales development development Index 80% local currencies 70% Novo Nordisk 500 Eli Lilly 60% Sanofi-Aventis 400 % 35 G R: 50% CA 300 40% 200 30% 20% 100 10% 0 0% Q3 Q3
Slide 40: Insulin growth driven by NovoRapid and NovoMix
Investor presentation First nine months of 2007 Slide no 40 Insulin growth driven by NovoRapid® and NovoMix® NovoRapid® share of short- NovoMix® share of acting modern insulin premixed modern insulin 70% 70% 69% 60% 55% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Q2 Q2 Q2 Q2 2002 2007 2002 200
Slide 41: European modern insulin conversion - NovoRapid
Investor presentation First nine months of 2007 Slide no 41 European modern insulin conversion - NovoRapid® Modern insulin penetration short-acting modern insulin Share of short-acting segment 35% NovoRapid® 30% 25% Humalog Human insulin 20% 57% 15% 10% Modern insulin 5% Apidra 0% Q2 Q2 Q2 Q2 2002 2
Slide 42: European modern insulin conversion - NovoMix
Investor presentation First nine months of 2007 Slide no 42 European modern insulin conversion - NovoMix® 30 Modern insulin penetration premixed segment Share of premixed segment 30% NovoMix® 30 25% 20% Human insulin 15% 10% Humalog Mix 25 40% 5% Modern insulin 0% Q2 Q2 Q2 Q2 2002 2007 2002 2007 Not
Slide 43: European modern insulin conversion - Levemir
Investor presentation First nine months of 2007 Slide no 43 European modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in Europe 24% 24% 22% 20% 18% Human insulin 16% 14% 12% 52% 10% 8% 6% Modern insulin 4% 2% 0% Q
Slide 44: US modern insulin conversion - NovoLog
Investor presentation First nine months of 2007 Slide no 44 US modern insulin conversion - NovoLog® Modern insulin penetration short-acting segment Share of short-acting segment 50% 40% Humalog Human insulin 70% 30% NovoLog® 52% 20% Modern insulin 10% Apidra 0% Q2 Q2 Q2 Q2 2002 2007 2002 2007 Note:
Slide 45: US modern insulin conversion - NovoLog Mix 70/30
Investor presentation First nine months of 2007 Slide no 45 US modern insulin conversion - NovoLog® Mix 70/30 Modern insulin penetration premixed segment Share of premixed segment 30% 25% Human insulin 20% Humalog Mix 25 15% 10% NovoLog® Mix 70/30 33% 5% Modern insulin 0% Q2 Q2 Q2 Q2 2002 2007 2002
Slide 46: US modern insulin conversion - Levemir
Investor presentation First nine months of 2007 Slide no 46 US modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in the US 8% 7.7% 7% Human insulin 6% 65% 5% 4% 3% 2% Modern insulin 1% 0% Q2 Q2 April August 2002 20
Slide 47: Insulin segmentation - Europe and the US
Investor presentation First nine months of 2007 Slide no 47 Insulin segmentation - Europe and the US Europe US 60% 60% 50% 50% 40% 40% 30% 30% 20% Long-acting 20% Long-acting Premix Premix 10% 10% Short-acting Short-acting 0% 0% Q2 Q2 Q2 Q2 2002 2007 2002 2007 Note: Quarterly volume data Source: IMS
Slide 48: Insulin segmentation - Japan
Investor presentation First nine months of 2007 Slide no 48 Insulin segmentation - Japan Japan 60% 50% 40% 30% 20% Long-acting 10% Premix Short-acting 0% Q2 Q2 2002 2007 Note: Quarterly volume data Source: IMS
Slide 49: Switch from Lantus to Levemir improved HbA1c, while reducing hypoglycaemia and weight
Investor presentation First nine months of 2007 Slide no 49 Switch from Lantus to Levemir® improved HbA1c, while reducing hypoglycaemia and weight No. hypoglycaemic episodes /patient year 10 7.8 HbA1c change: -0.59 %-points vs. Lantus Change in body weight: -0.8 kilograms 2.2 * 0.5 * * 0.1 0.3 0.0 0
Slide 50: Human versus all-analogue basal-bolus in type diabetes
Investor presentation First nine months of 2007 Slide no 50 Human versus all-analogue basal-bolus in type 1 diabetes: Switch to Levemir® + NovoRapid® 60 55 No. hypoglycaemic episodes/patient year 50 HbA1c change (%-points): -0.65 vs. human basal-bolus 40 30 20 18.3 * 11 10 * * 1.7 1.2 0.0 0 Overall
Slide 51: Biosimilars compete in a declining segment
Investor presentation First nine months of 2007 Slide no 51 Biosimilars compete in a declining segment Modern insulin 50% Patent protected Human insulin Q2 2002 Q2 2007 Q2 2010 Notes: Quarterly volume data. From Q2 2007 onwards it is estimated that 6% of the market will be converted each year and th
Slide 52: Insulin is the ultimate treatment
Investor presentation First nine months of 2007 Slide no 52 Insulin is the ultimate treatment Insulin is the ultimate treatment Key observations • A clear focus on the need for intensifying treatment of diabetes, both via the use of OADs and insulin β-Cell function • The number of type 2 patients us
Slide 53: Insulin secretion
Investor presentation First nine months of 2007 Slide no 53 Insulin secretion 800 People without diabetes Insulin Secretion (pmol/min) 700 Type 2 diabetes 600 500 400 300 200 100 0600 1000 1400 1800 2200 0200 0600 Source: O'MEARA et al. Am. J. Medicine, 1990; 89.
Slide 54: Hormone replacement therapy area supported by low-dose versions
Investor presentation First nine months of 2007 Slide no 54 Hormone replacement therapy area supported by low-dose versions Novo Nordisk HRT Strategic HRT products market share worldwide Activelle®/Activella® • Combined oestrogen and 70% Wyeth progestogen treatment of hot Novo Nordisk flushes and ot
Slide 55: Attractive profile of rFVIIa analogue
Investor presentation First nine months of 2007 Slide no 55 Attractive profile of rFVIIa analogue Velocity (mm*100/sec) 20 Severe haemophilia A + rFVIIa 2 µg/mL + NN1731 2 µg/mL Healthy male • NN1731 has been found to 15 induce a faster rate of thrombin formation than 10 obtainable with NovoSeven® •
Slide 56: NovoSeven - a unique mechanism of action
Investor presentation First nine months of 2007 Slide no 56 NovoSeven® - a unique mechanism of action FVIIa/NovoSeven® Faster haemostasis leads to Tissue factor • Fewer transfusions / transfusion- free surgery • Reduced re-bleeding • Faster recovery • Reduced morbidity and mortality • Improved quali
Slide 57: IL-21 clinical programme
Investor presentation First nine months of 2007 Slide no 57 IL-21 clinical programme IL-21 mode of action Four indications CD4+ T • Malignant melanoma as TH cells monotherapy, phase 2 trial with up to 40 patients • Renal cell carcinoma in IL-21 combination with Sutent® (sunitinib), phase 1/2 with up
Slide 58: Anti-KIR being developed in collaboration with Innate Pharma
Investor presentation First nine months of 2007 Slide no 58 Anti-KIR being developed in collaboration with Innate Pharma Mode of action Key observations Anti-KIR MoA • Unmet need in AML Tumour • Most common leukaemia in NK Cell adults: around 12,000 new cases per year in the US of which 75% die 100