Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Oppenheim Research GMBH 2nd European Healthcare Investors Conference 2007
50 slides from Novo Nordisk A/s Class B's conference presentation, Sep 4, 2007
Slide 1: A focused healthcare company
Investor presentation A focused healthcare company Oppenheim Research GMBH 2nd European Healthcare investors Conference 4 September, 2007
Slide 2: Forward-looking statements
Investor presentation Oppenheim Research GMBH 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 Oppenheim Research GMBH Slide no 3 Agenda • Highlights and strategy • Sales update • R&D update • Financials
Slide 4: Highlights
Investor presentation Oppenheim Research GMBH Slide no 4 Highlights Sales development: • Sales of modern insulins increased by 37% (31% as reported) • Sales of NovoSeven® increased by 11% (5% as reported) • Sales of Norditropin® increased by 13% (7% as reported) • Sales in North America increased by
Slide 5: Novo Nordisk's corporate strategy
Investor presentation Oppenheim Research GMBH 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 rFXIII E
Slide 6: Sales update
Investor presentation Oppenheim Research GMBH Slide no 6 Sales update
Slide 7: Insulin world market leader with 52% market share
Investor presentation Oppenheim Research GMBH Slide no 7 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 share:
Slide 8: Solid insulin market growth
Investor presentation Oppenheim Research GMBH Slide no 8 Solid insulin market growth - Novo Nordisk market leadership Market size Growth rates Novo Nordisk market share Market Novo Nordisk US 10,1% 42% 39% 4,3% Europe 3,8% 51% 57% 4,9% Japan 6,2% 74% 5% 6,2% World 6,1% 52% 100% 4,9% Note: Volume dat
Slide 9: Growth in Novo Nordisk's insulin franchise looks set to continue
Investor presentation Oppenheim Research GMBH 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 47.7bn 140 2025:
Slide 10: Key products continue to drive growth
Investor presentation Oppenheim Research GMBH Slide no 10 Key products continue to drive growth – first six months of 2007 Sales as reported Growth analysis Other Norditropin® +2% Local currencies Growth Share of +7% growth 5% 8% Diabetes care Modern insulins 37% 68% NovoSeven® +11% Human insulins 0
Slide 11: Modern insulins
Investor presentation Oppenheim Research GMBH Slide no 11 Modern insulins Market share of total segment (IMS developed world) Modern insulin sales as reported 50% Levemir® NovoLog® DKK 1.1bn NovoRapid® NovoMix® +79% DKK 3.2bn 40% Levemir® 16% +23% 30% NovoMix® DKK 2.3bn 35% 49% +25% 20% 10% 0% Janua
Slide 12: A continued increase in modern insulin market share
Investor presentation Oppenheim Research GMBH Slide no 12 A continued increase in modern insulin market share IMS world modern insulin Modern insulin penetration market shares, volume 80% Novo Nordisk 70% Eli Lilly 60% Sanofi-Aventis 52% 20% Modern insulin 50% 40% 30% Human insulin 20% 10% 0% Q1 Q1
Slide 13: NovoSeven sales development
Investor presentation Oppenheim Research GMBH Slide no 13 NovoSeven® NovoSeven® sales development Key observations • Growth in the second quarter of 1,600 5% in local currencies and : 13 % unchanged as reported 1,400 GR CA 1,200 • North American sales main DKK million contributor to growth 1,000 • H
Slide 14: Solid Norditropin growth and market share gains
Investor presentation Oppenheim Research GMBH Slide no 14 Solid Norditropin® growth and market share gains Norditropin® Global growth hormone sales development market shares, value 60% Pfizer Novo Nordisk 1,000 Genentech 50% Eli Lilly 900 Merck Serono 1 5% 800 GR: CA 40% DKK million 700 29% 600 30%
Slide 15: Sales by region
Investor presentation Oppenheim Research GMBH Slide no 15 Sales by region - first six months of 2007 Sales as reported Growth analysis Japan & Oceania -5% Europe Local Growth Share of +7% currencies growth 10% International Europe 7% 19% Operations North America 25% 54% +12% 18% 39% International 19
Slide 16: Levemir reinforces European modern insulin market leadership
Investor presentation Oppenheim Research GMBH 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 25% 23% 80% Novo Nordisk Eli Lilly 70% Sanofi-Aventis 20% 60% 50% 15% 40
Slide 17: US diabetes performance
Investor presentation Oppenheim Research GMBH 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 600 Eli Lilly 500 60% Sanofi-Aventis % : 39 50% 400 A GR C 40% 300 30% 200 20% 100 10% 0 0% Q1
Slide 18: Levemir launch in the US
Investor presentation Oppenheim Research GMBH 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 8% 7.2% to 1,900 completed in June 7% • High level of formulary coverage: 6% 80% of total lives at co-pr
Slide 19: R&D update
Investor presentation Oppenheim Research GMBH Slide no 19 R&D update
Slide 20: Development portfolio – diabetes
Investor presentation Oppenheim Research GMBH 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 Launched in Europe, filed in US Liraglutide GLP-1 analogue
Slide 21: Strong clinical profile of liraglutide
Investor presentation Oppenheim Research GMBH Slide no 21 Strong clinical profile of liraglutide First three of five phase 3 studies successfully completed • Significant HbA1c reduction: • 1.5 - 2.0% in monotherapy • 1.0 – 1.5% in combination with OADs • Significant relative weight reduction of 2 –
Slide 22: Development portfolio – haemostasis
Investor presentation Oppenheim Research GMBH Slide no 22 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 com
Slide 23: Development portfolio - other biopharmaceuticals
Investor presentation Oppenheim Research GMBH Slide no 23 Development portfolio - other biopharmaceuticals Compound Indication Phase Activelle® low dose Hormone replacement therapy Launched in US, filed in Europe Vagifem® low dose Hormone replacement therapy Phase 3 completed in US, phase 3 in Europ
Slide 24: Financials
Investor presentation Oppenheim Research GMBH Slide no 24 Financials
Slide 25: Financial results
Investor presentation Oppenheim Research GMBH Slide no 25 Financial results DKK million 6M 2007 6M 2006 % change Sales 20,381 18,673 9 Gross profit 15,703 14,006 12 Gross margin 77.0% 75.0% Sales and distribution costs 6,158 5,578 10 Percent of sales 30.2% 29.9% Research and development costs 3,401
Slide 26: Solid gross margin development
Investor presentation Oppenheim Research GMBH Slide no 26 Solid gross margin development Gross margin improvement analysis Key observations 80% 79% Annual average • Expected gross margin 78% improvement in 2007 of close to 77% 77.0 150 basis points 76% 75% 75.3 • Productivity gains are prime 74% con
Slide 27: Long-term financial targets
Investor presentation Oppenheim Research GMBH Slide no 27 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 7
Slide 28: Outlook 2007
Investor presentation Oppenheim Research GMBH Slide no 28 Outlook 2007 • Sales growth expectations: Key currency rates • 11-14% in local currencies DKK 2006 2007 Current per 100 average average rate* • 7-10% as reported USD 595 558 543 • Operating profit growth expectations increased to: JPY 5.11 4.
Slide 29: Novo Nordisk - concluding remarks
Investor presentation Oppenheim Research GMBH 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 • Promising GLP-1 compound #1
Slide 30: Investor information
Investor presentation Oppenheim Research GMBH 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 the
Slide 31: Appendices
Investor presentation Oppenheim Research GMBH Slide no 31 Appendices
Slide 32: Currency development
Investor presentation Oppenheim Research GMBH Slide no 32 Currency development Spot rates Quarterly average Annual average 640 Annual impact on operating profit of a 5% 620 movement in currency USD/DKK USD DKK 400m 600 USD-related DKK 110m 580 JPY DKK 150m GBP DKK 90m 560 USD-related currencies: CNY
Slide 33: Insulin growth driven by NovoRapid and NovoMix
Investor presentation Oppenheim Research GMBH 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 Q1 Q1 Q1 2002 2007 2002 2007
Slide 34: European modern insulin conversion - NovoRapid
Investor presentation Oppenheim Research GMBH 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% 55% 15% 10% Modern insulin 5% Apidra 0% Q1 Q1 Q1 Q1 2000 200
Slide 35: European modern insulin conversion - NovoMix
Investor presentation Oppenheim Research GMBH 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 39% 5% Modern insulin 0% Q1 Q1 Q1 Q1 2000 2007 2000 2007 Note:
Slide 36: European modern insulin conversion - Levemir
Investor presentation Oppenheim Research GMBH 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% 23% 22% 20% 18% Human insulin 16% 14% 12% 10% 50% 8% 6% 4% 2% Modern insulin 0% Q1
Slide 37: US modern insulin conversion - NovoLog
Investor presentation Oppenheim Research GMBH Slide no 37 US modern insulin conversion - NovoLog® Modern insulin penetration short-acting segment Share of short-acting segment 50% 40% Humalog Human insulin 70% 30% NovoLog® 20% 32% Modern insulin 10% 0% Q1 Q1 Q1 Q1 2000 2007 2000 2007 Note: Quarterly
Slide 38: US modern insulin conversion - NovoLog Mix 70/30
Investor presentation Oppenheim Research GMBH 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 33% 5% Modern insulin 0% Q1 Q1 Q1 Q1 2000 2007 2000 20
Slide 39: US modern insulin conversion - Levemir
Investor presentation Oppenheim Research GMBH Slide no 39 US modern insulin conversion - Levemir® Modern insulin penetration Levemir® share of total long-acting long-acting segment modern insulin prescriptions 7% 6% 5% Human insulin 4% 64% 3% 2% Modern insulin 1% 0% Q1 Q1 April May 2000 2007 2006 20
Slide 40: Insulin segmentation - Europe and the US
Investor presentation Oppenheim Research GMBH 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 Q1 Q1 Q1 2000 2007 2000 2007 Note: Quarterly data, volume figures. Sou
Slide 41: Switch from Lantus to Levemir improved HbA1c, while reducing hypoglycaemia and weight
Investor presentation Oppenheim Research GMBH 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 0 O
Slide 42: Human versus all-analogue basal-bolus in type 1 diabetes
Investor presentation Oppenheim Research GMBH 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 No
Slide 43: Biosimilars compete in a declining segment
Investor presentation Oppenheim Research GMBH Slide no 43 Biosimilars compete in a declining segment Modern insulin conversion in IMS world markets Modern insulin 52% Patent protected Human insulin 2000 Q1 2007 2011 Notes: Quarterly data based on volume figures. From Q1 2007 onwards it is estimated
Slide 44: Insulin is the ultimate treatment
Investor presentation Oppenheim Research GMBH 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 usin
Slide 45: Insulin secretion
Investor presentation Oppenheim Research GMBH 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: Hormone replacement therapy area supported by low-dose versions
Investor presentation Oppenheim Research GMBH Slide no 46 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 othe
Slide 47: Attractive profile of rFVIIa analogue
Investor presentation Oppenheim Research GMBH Slide no 47 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® • P
Slide 48: NovoSeven - a unique mechanism of action
Investor presentation Oppenheim Research GMBH Slide no 48 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 quality
Slide 49: IL-21 clinical programme
Investor presentation Oppenheim Research GMBH Slide no 49 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 Sutent
Slide 50: Anti-KIR being developed in collaboration with Innate Pharma
Investor presentation Oppenheim Research GMBH Slide no 50 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 •
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