Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Q1 2007 Earnings Presentation
49 slides from Novo Nordisk A/s Class B's earnings presentation, 2007
Slide 1: A focused healthcare company
Investor presentation A focused healthcare company Investor presentation – First three months of 2007
Slide 2: Forward-looking statements
Investor presentation First three 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 three months of 2007 Slide no 3 Agenda • Highlights and strategy • Sales update • R&D update • Financials
Slide 4: Highlights from first three months of 2007
Investor presentation First three months of 2007 Slide no 4 Highlights from first three months of 2007 Market development: • Sales of modern insulins increased by 32% (39% in local currencies) • Sales of NovoSeven® increased by 12% (18% in local currencies) • Sales of Norditropin® increased by 11% (
Slide 5: Novo Nordisk's corporate strategy
Investor presentation First three months of 2007 Slide no 5 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 6: Global changing diabetes leadership initiative
Investor presentation First three months of 2007 Slide no 6 Global changing diabetes leadership initiative • 185 participants at the Global Changing Diabetes Leadership Forum in New York • Bill Clinton key note speaker • Discussion of new ideas on redefining healthcare around value for patients • No
Slide 7: Sales update
Investor presentation First three months of 2007 Slide no 7 Sales update
Slide 8: Insulin world market leader with 52% market share
Investor presentation First three months of 2007 Slide no 8 Insulin world market leader with 52% market share Europe North America Novo Nordisk #1 Novo Nordisk #1 Market share 57% Market share: 42% International Operations Japan & Oceania Novo Nordisk #1 Novo Nordisk #1 Market share: 59% Market shar
Slide 9: Growth in Novo Nordisk's insulin franchise looks set to continue
Investor presentation First three months of 2007 Slide no 9 Growth in Novo Nordisk’s insulin franchise looks set to continue IMS developed world insulin Rapid increase in number of market growth people with diabetes Volume: 5.4% 200 2007 2025 180 Value: 160 2007: 246 million 10.3% DKK 46.1bn 140 202
Slide 10: Key products continue to drive growth
Investor presentation First three months of 2007 Slide no 10 Key products continue to drive growth – first three months of 2007 Sales as reported Growth analysis Other Norditropin® +3% Local currencies Growth Share of +11% growth 5% 8% Diabetes care Modern insulins 39% 65% +10% Human insulin and 1%
Slide 11: Modern insulins
Investor presentation First three months of 2007 Slide no 11 Modern insulins Market share of total segment (IMS developed world) Modern insulin sales as reported 40% Levemir® NovoLog® DKK 0.5bn +62% NovoRapid® NovoMix® DKK 1.5bn Levemir® NovoMix® 16% +28% 30% DKK 1.1bn +27% 34% 50% 20% 10% 0% Januar
Slide 12: A continued increase in modern insulin market share
Investor presentation First three months of 2007 Slide no 12 A continued increase in modern insulin market share IMS world modern insulin Modern insulin penetration market shares, volume 80% 70% Novo Nordisk 60% Eli Lilly 49% Modern insulin 50% Sanofi-Aventis 7% 40% 30% Human insulin 20% 10% 0% Q1 Q
Slide 13: NovoSeven sales development
Investor presentation First three months of 2007 Slide no 13 NovoSeven® NovoSeven® sales development Key observations • Growth in the first quarter of 1.600 +12% 18% in local currencies, 12% as reported 1.400 1.200 • North American sales main DKK million contributor to growth 1.000 • Single high dos
Slide 14: Norditropin sales development
Investor presentation First three months of 2007 Slide no 14 Norditropin® Norditropin® Global growth hormone sales development market shares, value 60% Pfizer Novo Nordisk +11% Genentech 900 50% Eli Lilly 800 Merck Serono 700 40% DKK million 600 29% 500 30% 22% 400 20% 300 200 10% 100 0 0% Q1 Q1 Q1
Slide 15: Sales by region
Investor presentation First three months of 2007 Slide no 15 Sales by region - first three months of 2007 Sales as reported Growth analysis Japan & Oceania -5% Europe Local Growth Share of +11% currencies growth 10% International Europe 11% 27% Operations North America 27% 53% +5% 17% 40% Internatio
Slide 16: Levemir reinforces European modern insulin market leadership
Investor presentation First three months of 2007 Slide no 16 Levemir® reinforces European modern insulin market leadership Share of total modern insulin Novo Nordisk’s share of long- sales in Europe acting modern insulin in Europe 22% 60% Novo Nordisk 22% Eli Lilly 20% Sanofi-Aventis 50% 18% 16% 40%
Slide 17: US diabetes performance
Investor presentation First three months of 2007 Slide no 17 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 450 60% Sanofi-Aventis 400 % : 38 50% 350 A GR C 300 40% 250 200 30% 150 20%
Slide 18: Levemir launch in the US
Investor presentation First three months of 2007 Slide no 18 Levemir® launch in the US Levemir® share of total basal modern insulin prescriptions Key observations • Increase in US sales force by 700 6% to 1,900 to support further 5% penetration • High level of formulary coverage: 4% close to 80% of
Slide 19: R&D update
Investor presentation First three months of 2007 Slide no 19 R&D update
Slide 20: Development portfolio – diabetes
Investor presentation First three months of 2007 Slide no 20 Development portfolio – diabetes Compound Type Indication Phase Levemir® Modern insulin Types 1+2 Launched in US, Europe, etc. Filed in JP NovoMix® 50 and 70 Modern insulin Types 1+2 Approved in Europe Filed in US Liraglutide GLP-1 analogu
Slide 21: Development portfolio – haemostasis
Investor presentation First three months of 2007 Slide no 21 Development portfolio – haemostasis Compound Indication Phase NovoSeven® Heat-stable formulation Preparing for filing NovoSeven® Trauma Phase 3 NovoSeven® Prophylaxis Phase 2 completed NovoSeven® Spinal surgery (dose escalation) Phase 2 co
Slide 22: Development portfolio - other biopharmaceuticals
Investor presentation First three months of 2007 Slide no 22 Development portfolio - other biopharmaceuticals Compound Indication Phase Activelle® low dose Hormone replacement therapy Launched in the US; Filed in Europe Vagifem® low dose Hormone replacement therapy Phase 3 Norditropin® APCD1 Phase 2
Slide 23: Financials
Investor presentation First three months of 2007 Slide no 23 Financials
Slide 24: Financial results
Investor presentation First three months of 2007 Slide no 24 Financial results DKK million Q1 2007 Q1 2006 % change Sales 9,818 8,946 10 Gross profit 7,498 6,531 15 Gross margin 76.4% 73.0% Sales and distribution costs 3,048 2,728 12 Percent of sales 31.0% 30.5% Research and development costs 1,647
Slide 25: Solid gross margin development
Investor presentation First three months of 2007 Slide no 25 Solid gross margin development Gross margin improvement analysis Key observations 80% 79% Annual average • Expected gross margin 78% improvement in 2007 of at least 77% 76.4 100 basis points 76% 75% 75.3 • Productivity gains prime 74% cont
Slide 26: Long-term financial targets
Investor presentation First three months of 2007 Slide no 26 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.
Slide 27: Currency development
Investor presentation First three months of 2007 Slide no 27 Currency development Spot rates Quarterly average Annual average 660 Annual impact on operating profit of a 5% 640 movement in currency 620 USD DKK 400m USD/DKK 600 USD-related DKK 110m JPY DKK 150m 580 GBP DKK 90m 560 USD-related currenci
Slide 28: Outlook 2007
Investor presentation First three months of 2007 Slide no 28 Outlook 2007 • Sales growth expectations: • More than 10% in local currencies Key currency rates • Less than 10% as reported DKK 2006 2007 Current • Operating profit growth expectations: per 100 average average rate* • Now more than 15% in
Slide 29: Novo Nordisk - concluding remarks
Investor presentation First three months of 2007 Slide no 29 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 • NovoSeven® expanding int
Slide 30: Investor information
Investor presentation First three months of 2007 Slide no 30 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 t
Slide 31: Appendices
Investor presentation First three months of 2007 Slide no 31 Appendices
Slide 32: Solid insulin market growth
Investor presentation First three months of 2007 Slide no 32 Solid insulin market growth - Novo Nordisk market leadership Market size Growth rates Novo Nordisk market share Market Novo Nordisk US 12.3% 41% 39% 4.7% Europe 4.3% 50% 57% 5.6% Japan 6.8% 74% 5% 6.7% World 7.0% 52% 100% 5.3% Note: Volume
Slide 33: Insulin growth driven by NovoRapid and NovoMix
Investor presentation First three months of 2007 Slide no 33 Insulin growth driven by NovoRapid® and NovoMix® NovoRapid® share of short- NovoMix® share of acting modern insulin premixed modern insulin 70% 70% 67% 60% 60% 54% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Q1 Q4 Q1 Q4 2002 2006 2002 20
Slide 34: European modern insulin conversion - NovoRapid
Investor presentation First three months of 2007 Slide no 34 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% 53% 15% 10% Modern insulin 5% Apidra 0% Q1 Q4 Q1 Q4 2000
Slide 35: European modern insulin conversion - NovoMix
Investor presentation First three months of 2007 Slide no 35 European modern insulin conversion - NovoMix® 30 Modern insulin penetration premixed segment Share of premixed segment 30% 25% NovoMix® 30 20% Human insulin 15% 10% Humalog Mix 25 36% 5% Modern insulin 0% Q1 Q4 Q1 Q4 2000 2006 2000 2006 No
Slide 36: European modern insulin conversion - Levemir
Investor presentation First three months of 2007 Slide no 36 European modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in Europe 24% 22% 22% 20% 18% Human insulin 16% 14% 12% 10% 48% 8% 6% 4% 2% Modern insulin 0%
Slide 37: US modern insulin conversion - NovoLog
Investor presentation First three months of 2007 Slide no 37 US modern insulin conversion - NovoLog® Modern insulin penetration short-acting segment Share of short-acting segment 50% Human insulin 40% Humalog 68% 30% NovoLog® 20% 32% Modern insulin 10% 0% Q1 Q4 Q1 Q4 2000 2006 2000 2006 Note: Quarte
Slide 38: US modern insulin conversion - NovoLog Mix 70/30
Investor presentation First three months of 2007 Slide no 38 US modern insulin conversion - NovoLog® Mix 70/30 Modern insulin penetration premixed segment Share of premixed segment 30% 25% Humalog Mix 25 Human insulin 20% 15% NovoLog® Mix 10% 70/30 32% 5% Modern insulin 0% Q1 Q4 Q1 Q4 2000 2006 2000
Slide 39: US modern insulin conversion - Levemir
Investor presentation First three months of 2007 Slide no 39 US modern insulin conversion - Levemir® Modern insulin penetration Levemir® share of total long-acting long-acting segment modern insulin prescriptions 6% 5% Human insulin 4% 3% 61% 2% 1% Modern insulin 0% Q1 Q4 April February 2000 2006 20
Slide 40: Insulin segmentation - Europe and the US
Investor presentation First three months of 2007 Slide no 40 Insulin segmentation - Europe and the US Europe US 60% 60% 50% 50% 40% 40% 30% 30% 20% Long-acting 20% Long-acting Premix Premix 10% 10% Short-acting Short-acting 0% 0% Q1 Q4 Q1 Q4 2000 2006 2000 2006 Note: Quarterly data, volume figures S
Slide 41: Switch from Lantus to Levemir improved HbA1c, while reducing hypoglycaemia and weight
Investor presentation First three months of 2007 Slide no 41 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
Slide 42: Human versus all-analogue basal-bolus in type 1 diabetes
Investor presentation First three months of 2007 Slide no 42 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 43: Biosimilars compete in a declining segment
Investor presentation First three months of 2007 Slide no 43 Biosimilars compete in a declining segment Modern insulin conversion in IMS world markets Modern insulin 49% Patent protected Human insulin 2000 Q4 2006 2011 Notes: Quarterly data based on volume figures. From Q4 2006 onwards it is estimat
Slide 44: Insulin is the ultimate treatment
Investor presentation First three months of 2007 Slide no 44 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 u
Slide 45: Insulin secretion
Investor presentation First three months of 2007 Slide no 45 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 46: Attractive profile of rFVIIa analogue
Investor presentation First three months of 2007 Slide no 46 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 47: NovoSeven - a unique mechanism of action
Investor presentation First three months of 2007 Slide no 47 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 qual
Slide 48: IL-21 clinical programme
Investor presentation First three months of 2007 Slide no 48 IL-21 clinical programme Clinical programme pursuing IL-21 mode of action three indications CD4+ T TH • Malignant Melanoma as cells monotherapy, phase 2 trial with up to 40 pts. IL-21 • Renal Cell Carcinoma as combination therapy with Sute
Slide 49: Anti-KIR being developed in collaboration with Innate Pharma
Investor presentation First three months of 2007 Slide no 49 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