Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — 9M 2018 Earnings Presentation
126 slides from Novo Nordisk A/s Class B's earnings presentation, Nov 1, 2018
Slide 1: Investor presentation First nine months of 2018
Slide 1 Investor presentation First nine months of 2018 Manato Shirley Ohara, diagnosed Adelia Stewart with has type type 1 diabetes 2 diabetes Kanagawa, Japan New Orleans, Louisiana, US
Slide 2: Agenda
Investor Presentation First nine months of 2018 Slide 2 Agenda Highlights and key events Sales update R&D update Financials and outlook
Slide 3: Forward-looking statements
Investor Presentation First nine months of 2018 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 2017 and Form 20-F, which are both filed
Slide 4: Highlights – First nine months of 2018
Investor Presentation First nine months of 2018 Slide 4 Highlights – First nine months of 2018 Sales development • Sales decreased by 2% in Danish kroner and increased by 4% in local currencies to DKK 82.1 billion • International Operations sales increased by 2% in Danish kroner and grew by 8% in lo
Slide 5: Sales growth driven by 8% growth in International Operations and 1% growth in North America Operations
Investor Presentation First nine months of 2018 Slide 5 Sales growth driven by 8% growth in International Operations and 1% growth in North America Operations Sales as reported – first nine months of 2018 Growth break down – first nine months of 2018 Region Region Latin America Local currencies Grow
Slide 6: Sales growth of 4% in local currencies driven by Victoza, Ozempic and Saxenda
Investor Presentation First nine months of 2018 Slide 6 Sales growth of 4% measured in local currencies mainly driven by Victoza®, Ozempic® and Saxenda® Sales as reported – first nine months of 2018 Growth break down – first nine months of 2018 Growth Other Local currencies Growth Share of growth di
Slide 7: Sales growth driven by 18% growth in GLP-1 sales
Investor Presentation First nine months of 2018 Slide 7 7 Sales growth is primarily driven by 18% growth in GLP-1 sales, while global insulin sales is broadly unchanged 9M 2018 reported sales split and local 9M 2018 added sales and local currency currency growth for NAO and IO growth for NAO and IO
Slide 8: Ozempic is now launched in seven countries leading to market share gains
Investor Presentation First nine months of 2018 Slide 8 Ozempic® is now launched in seven countries leading to market share gains and expansion of the GLP-1 markets USA GLP-1 NBRx Canada GLP-1 NBRx Denmark GLP-1 volume market share market share market share NN GLP-1 Victoza® Ozempic® dulaglutide exe
Slide 9: In the USA Victoza CV indication and Ozempic launch contribute to market growth
Investor Presentation First nine months of 2018 Slide 9 9 In the USA Victoza® CV indication and Ozempic® launch contribute to market growth and stabilising market share USA GLP-1 TRx market development USA GLP-1 volume market share Annual market growth (RHS)1 Exenatide ER NN GLP-1 dulaglutide Quarte
Slide 10: Tresiba has gained around 5%-points market share in the USA
Investor Presentation First nine months of 2018 10 Slide 10 Tresiba® has gained around 5%-points market share over the last 12 months in the USA Weekly TRx volume market shares1 in the USA Tresiba® launch in the USA glargine U100 NN total basal Levemir® Basal volume Tresiba ® glargine U300 • Novo No
Slide 11: In PIONEER 8, oral sema showed significant reductions in HbA1c, body weight and insulin dose
Investor Presentation First nine months of 2018 Slide 11 In PIONEER 8, oral sema showed statistically significant reductions in HbA1c, body weight and total insulin dose1 Reduction in HbA1c Reduction in body weight (kg) Change in total insulin dose3 HbA1c Placebo Oral sema Weight Change in reduction
Slide 12: In PIONEER 10, oral sema showed significant reduction in HbA1c and weight vs dulaglutide
Investor Presentation First nine months of 2018 Slide 12 In PIONEER 10, oral sema 14 mg showed statistically significant reduction in HbA1c and weight vs sc dulaglutide Reduction in HbA1c Reduction in body weight (kg) Number of adverse events HbA1c Oral semaglutide Weight Oral semaglutide Sc dula re
Slide 13: Oral semaglutide consistent reduction in HbA1c and body weight in PIONEER trials
Investor Presentation First nine months of 2018 Slide 13 Oral semaglutide has demonstrated a consistent reduction in HbA1c and body weight in the completed PIONEER trials In completed PIONEER trials, oral semaglutide In completed PIONEER trials, oral semaglutide lowered HbA1c by 1.1–1.8%-points by e
Slide 14: Key development milestones
Investor Presentation First nine months of 2018 Slide 14 Key development milestones • Successful completion of additional three phase 3a trials, PIONEER 5, 8 and 10, with oral semaglutide • Novo Nordisk acquires Ziylo Ltd to accelerate its development of glucose responsive insulins Diabetes • Phase
Slide 15: R&D milestones in 2018
Investor Presentation First nine months of 2018 Slide 15 R&D milestones in 2018 Results available1 Regulatory milestone Project Q1 2018 Q2 2018 Q3 2018 Q4 2018 DEVOTE and SWITCH2 Tresiba® US regulatory decision DUAL I Japan Phase 3a Xultophy® DUAL II Japan Phase 3a Japan submission Fiasp® Ja
Slide 16: Financial results – First nine months of 2018
Investor Presentation First nine months of 2018 Slide 16 Financial results – First nine months of 2018 DKK million Change Change 9M 2018 9M 2017 (reported) (local currency) Sales 82,099 83,704 (2%) 4% Gross profit 69,135 70,772 (2%) Gross margin 84.2% 84.6% Sales and distribution costs 20,669 20,045
Slide 17: Unfavourable currency impact in 9M 2018
Investor Presentation First nine months of 2018 Slide 17 Unfavourable currency impact in 9M 2018 driven by development in both hedged and unhedged currencies USD/DKK CNY/DKK JPY/DKK GBP/DKK CAD/DKK 110 Hedged 2017 2018 Spot Impact of a Hedging Index (1 Jan 2017= 100) Currencies average average2 rate
Slide 18: Financial outlook for 2018
Investor Presentation First nine months of 2018 Slide 18 Financial outlook for 2018 Expectations Previous expectations 1 Nov 2018 8 Aug 2018 Sales growth - local currencies 4% to 5% 3% to 5% Sales growth - reported Around 4 percentage point lower Around 5 percentage points lower Operating profit gro
Slide 19: Highlights – First nine months of 2018
Investor Presentation First nine months of 2018 Slide 19 Highlights – First nine months of 2018 • Continued solid sales growth of 4%, predominantly driven by International Operations • Sales growth is now expected to be 4-5% measured in local currencies, up from previously 3-5% Sales • Insulin sales
Slide 20: Investor contact information
Investor Presentation First nine months of 2018 Slide 20 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 Yor
Slide 21: Appendix
Investor Presentation First nine months of 2018 Slide 21 Appendix 1. First nine months of 2018 highlights and NN at a glance 22 2. Insulin 45 3. GLP-1 diabetes 69 4. Obesity 89 5. Biopharmaceuticals & Other serious chronic diseases 98 6. Financials 110 7. Sustainable business 122 NN: Novo Nordisk
Slide 22: Highlights – First nine months of 2018
Investor Presentation First nine months of 2018 Slide 22 Highlights – First nine months of 2018 • Continued solid sales growth of 4%, predominantly driven by International Operations • Sales growth is now expected to be 4-5% measured in local currencies, up from previously 3-5% Sales • Insulin sales
Slide 23: 9M 2018 sales decreased by 2% in DKK and increased by 4% in local currencies
Investor presentation First nine months of 2018 Slide 23 9M 2018 sales decreased by 2% in Danish kroner and increased by 4% in local currencies to DKK 82.1 billion Reported sales and local currency Reported sales and local currency growth by region growth by therapy bDKK bDKK International Operation
Slide 24: Key development milestones
Investor Presentation First nine months of 2018 Slide 24 Key development milestones • Successful completion of additional three phase 3a trials, PIONEER 5, 8 and 10, with oral semaglutide • Novo Nordisk acquires Ziylo Ltd to accelerate its development of glucose responsive insulins Diabetes • Phase
Slide 25: Financial results for the first nine months of 2018 and financial outlook for 2018
Investor presentation First nine months of 2018 Slide 25 Financial results for the first nine months of 2018 and financial outlook for 2018 First nine months of 2018 results Updated financial outlook for 2018 Change Change DKK billion 9M reported local Sales growth - local currencies 4% to 5% 2018 D
Slide 26: Novo Nordisk at a glance
Investor Presentation First nine months of 2018 Slide 26 Novo Nordisk at a glance Global leader in diabetes care Global insulin market leadership • A focused pharmaceutical company with leading positions in Global insulin market share: 46% diabetes, haemophilia and growth hormone Region Europe: Mark
Slide 27: Sales growth driven by the diabetes and obesity franchise
Investor Presentation First nine months of 2018 Slide 27 Sales growth driven by the diabetes and obesity franchise Novo Nordisk reported quarterly sales Reported sales split by product segments for by therapy first nine months of 2018 Diabetes and obesity Haemophilia2 Long-acting insulin Premix insu
Slide 28: Novo Nordisk has leading positions in diabetes, obesity and haemophilia
Investor Presentation First nine months of 2018 Slide 28 Novo Nordisk has leading positions in diabetes, obesity and haemophilia Diabetes Obesity Haemophilia Market value Market value Market value Novo Nordisk value market share Novo Nordisk value market share Novo Nordisk value market share bDKK Gl
Slide 29: Global diabetes prevalence is increasing
Investor Presentation First nine months of 2018 Slide 29 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 Regio
Slide 30: Focus on driving global insulin growth
Investor Presentation First nine months of 2018 Slide 30 Focus on driving global insulin growth by increasing the number of people benefitting from Novo Nordisk products Around 26 million people are currently treated Only 6% of all people with diabetes are treated with Novo Nordisk insulin and GLP-1
Slide 31: Opportunity in large unmet needs across all therapy areas
Investor Presentation First nine months of 2018 Slide 31 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 diab
Slide 32: Six strategic priorities
Investor Presentation First nine months of 2018 Slide 32 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 33: Strong leadership position within the growing diabetes care market
Investor Presentation First nine months of 2018 Slide 33 Novo Nordisk has a strong leadership position within the growing diabetes care market Global diabetes care market Global diabetes care by treatment class value market share DKK OAD GLP-1 Insulin Novo Nordisk Sanofi Eli Lilly Merck Takeda billi
Slide 34: North America Operations at a glance
Investor Presentation First nine months of 2018 Slide 34 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 First nine months of Sales YTD Diabetes gro
Slide 35: Region Europe at a glance
Investor Presentation First nine months of 2018 Slide 35 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 First nine months of Sales YTD Diabetes growth rate NN
Slide 36: Region AAMEO at a glance
Investor Presentation First nine months of 2018 Slide 36 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 First nine months of Sales YTD Million Diabet
Slide 37: Region China at a glance
Investor Presentation First nine months of 2018 Slide 37 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 First nine months of Sales YTD Diabetes growth rate NN
Slide 38: Region Latin America at a glance
Investor Presentation First nine months of 2018 Slide 38 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 First nine months of Sales YTD Diabetes growth
Slide 39: Region Japan & Korea at a glance
Investor Presentation First nine months of 2018 Slide 39 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 First nine months of Sales YTD Diabetes growth
Slide 40: Biopharm strategy to return to growth
Investor Presentation First nine months of 2018 Slide 40 Biopharm constitutes 16% of Novo Nordisk sales and a strategy has been defined to return to growth NovoSeven® and Norditropin® ‘Return to Growth’ strategy builds on organic, account for 82% of Biopharm sales1 non-organic and organisational ini
Slide 41: Novo Nordisk Corporate Strategy and R&D strategy
Investor Presentation First nine months of 2018 Slide 41 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 CARE • De
Slide 42: Growth opportunities fuelled by strong pipeline
Investor Presentation First nine months of 2018 Slide 42 Significant growth opportunities fuelled by strong pipeline across all four strategic focus areas PHASE 1 PHASE 2 PHASE 3 SUBMITTED APPROVED NN1436 – LAI287 Anti-IL-21 and liraglutide Oral semaglutide N8-GP – Long-acting rFVIII Levemir® NN9023
Slide 43: Strong global presence in sales and manufacturing
Investor Presentation First nine months of 2018 Slide 43 Growth opportunities supported by strong global presence in both sales and manufacturing Employees in sales regions1 Global manufacturing setup Kaluga, Russia Denmark (~9,000 employees) North America Operations: ~4,700 (~266 employees) • Diabe
Slide 44: Solid patent protection of innovative drugs
Investor Presentation First nine months of 2018 Slide 44 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 20312 203232 • Need t
Slide 45: Insulin
Investor Presentation First nine months of 2018 Slide 45 Insulin 1. Diabetes at a glance 46 2. Diabetes treatment classes 49 3. Branded diabetes market 50 4. Diabetes market segments 51 5. Novo Nordisk Diabetes product portfolio 53 6. Insulin market growth and market share 54 7. Tresiba® 68
Slide 46: Diabetes – the inability to manage blood sugar levels
Investor Presentation First nine months of 2018 Slide 46 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
Slide 47: Diabetes pandemic is fuelled by growing rates of obesity
Investor Presentation First nine months of 2018 Slide 47 Diabetes pandemic is fuelled by growing rates of obesity USA CDC data on obesity and diabetes prevalence among adults 1994 2000 2014 Obesity prevalence (BMI ≥30 kg/m2) <14.0% 14.0-17.9% 18.0-21.9% 22.0-25.9% 26.0-29.9% ≥30% Diabetes prevalence
Slide 48: Poor diagnosis rates and glycaemic control remain global problems
Investor Presentation First nine months of 2018 Slide 48 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 ty
Slide 49: Insulin is the ultimate care for people with diabetes
Investor Presentation First nine months of 2018 Slide 49 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 OAD 100% Diet and exercise 80% 37% -cell function OAD
Slide 50: Branded diabetes market has a global value of DKK ~250 billion
Investor Presentation First nine months of 2018 Slide 51 The branded diabetes market has a global value of DKK ~250 billion annually 2016/17 2017/18 Growth Global diabetes market -9% The USA -3% bDKK bDKK 256 150 143 131 247 -16% 250 100 77 65 18% -14% -12% 200 50 29 34 25 21 12 11 -9% 0 144 Total I
Slide 51: The insulin market is comprised of three segments
Investor Presentation First nine months of 2018 Slide 51 The insulin market is comprised of three segments Insulin action profiles Global insulin volume market by segment tMU CAGR volume1: 4.6% 600 CAGR value1: 14.3% Fast-acting 500 35% 400 Fast-acting 34% Premix 300 Premix 25% 200 29% Long-acting 1
Slide 52: Medications used for the treatment of type 2 diabetes
Investor Presentation First nine months of 2018 Slide 52 Medications used for the 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
Slide 53: Product portfolio covers the type 2 diabetes treatment cascade
Investor Presentation First nine months of 2018 Slide 53 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 fo
Slide 54: Stable global insulin volume growth
Investor Presentation First nine months of 2018 Slide 54 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
Slide 55: Continued single digit volume growth within insulin segments
Investor Presentation First nine months of 2018 Slide 55 Continued single digit volume growth within the insulin segments globally Fast-acting insulin Premix insulin Long-acting insulin Segment volume Segment volume Segment volume Levemir® share NovoRapid® market share NovoMix® market share Tresiba®
Slide 56: Increased market share in long-acting insulin
Investor Presentation First nine months of 2018 Slide 56 Novo Nordisk increased market share in long-acting insulin and sustained leadership in fast-acting and premix insulin Long-acting insulin1 volume Fast-acting insulin2 volume Premix insulin3 volume market market share across regions market shar
Slide 57: Novo Nordisk sustains global volume market share leadership
Investor Presentation First nine months of 2018 Slide 57 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
Slide 58: Market leader in the USA in modern and new-generation insulin
Investor Presentation First nine months of 2018 Slide 58 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 penetra
Slide 59: Modern and new generation insulins stable in the USA
Investor Presentation First nine months of 2018 Slide 59 Novo Nordisk’s modern and new generation insulins have a stable market position in the USA USA fast-acting insulin USA premix insulin USA long-acting insulin Segment volume FIASP® share Segment volume Segment volume Levemir® share NovoLog® sha
Slide 60: US health insurance dominated by few large commercial payers
Investor Presentation First nine months of 2018 Slide 60 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
Slide 61: Key diabetes care products broadly available in the USA
Investor Presentation First nine months of 2018 Slide 61 Novo Nordisk’s key diabetes care 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
Slide 62: Sustained leadership in European insulin market
Investor Presentation First nine months of 2018 Slide 62 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 No
Slide 63: Stable insulin leadership in Region AAMEO
Investor Presentation First nine months of 2018 Slide 63 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 Pen
Slide 64: Solid insulin leadership in Region Japan & Korea
Investor Presentation First nine months of 2018 Slide 64 Solid 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
Slide 65: Solid Tresiba performance strengthens basal insulin share in Japan
Investor Presentation First nine months of 2018 Slide 65 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
Slide 66: Continued value growth in Chinese long-acting insulin segment
Investor Presentation First nine months of 2018 Slide 66 Continued value growth in the Chinese long-acting insulin segment Chinese insulin market by segment Chinese total insulin value market shares DKK Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Tonghua Dongbao billion Pene
Slide 67: Strengthened insulin volume market share in Region Latin America
Investor Presentation First nine months of 2018 Slide 67 Novo Nordisk has strengthened its 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 penetr
Slide 68: Tresiba sets a new standard for basal insulin initiation
Investor Presentation First nine months of 2018 Slide 68 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
Slide 69: GLP-1
Investor Presentation First nine months of 2018 Slide 69 GLP-1 1. GLP-1 treatment 70 2. GLP-1 growth and market share 71 3. GLP-1 pipeline 75 4. Ozempic® 76 5. GLP-1 market value in Regions 77-82 6. Clinical trials (SUSTAIN & PIONEER) 83
Slide 70: GLP-1 effect dependent on level of blood glucose
Investor Presentation First nine months of 2018 Slide 70 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 patie
Slide 71: GLP-1 segment accounts for 14% of global diabetes care market value
Investor Presentation First nine months of 2018 Slide 71 The GLP-1 segment accounts for 14% of the global diabetes care market value GLP-1 value and patient share of the total Global GLP-1 market diabetes care market GLP-1 value Victoza® Ozempic® Share of total Share of total GLP-1 value share of to
Slide 72: Strong GLP-1 volume growth in all regions
Investor Presentation First nine months of 2018 Slide 72 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 Regio
Slide 73: GLP-1 patients primarily switch from OADs
Investor Presentation First nine months of 2018 Slide 73 GLP-1 patients primarily switch from OADs and untapped potential is large with many OAD patients not in control GLP-1 source of business Share of patients on OADs achieving (new-to-brand prescription market share) HbA1c below 7% in major Europ
Slide 74: Significant growth in GLP-1 market with leading share for Victoza
Investor Presentation First nine months of 2018 Slide 74 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 care market value leading in all regions except Japan & Korea Victoza® Ozempi
Slide 75: Ambition for Ozempic to become leading weekly GLP-1
Investor Presentation First nine months of 2018 Slide 75 Ambition for Ozempic® to become leading weekly GLP-1, with daily GLP-1 use shifting to oral semaglutide Promotional focus to shift from Victoza® Aim for Ozempic® and oral semaglutide towards Ozempic® as market access emerges to replace Victoza
Slide 76: Ozempic approved in the USA and in the EU
Investor Presentation First nine months of 2018 Slide 76 Ozempic® approved in the USA and in the EU CV data from SUSTAIN 6 trial Ozempic® label in the USA in Ozempic® EU label • Adjunct to diet and exercise to improve Profile glycaemic control Safety Ozempic® label Victoza® label • Two therapeutic d
Slide 77: GLP-1 segment accounts for 16% of diabetes care value in North America
Investor Presentation First nine months of 2018 Slide 77 The GLP-1 segment accounts for 16% of total diabetes care market value in North America North America GLP-1 market Key observations for Victoza® and Ozempic® in the USA GLP-1 value Victoza® Ozempic® Share of total in bDKK Dulaglutide Other dia
Slide 78: GLP-1 segment around 12% of diabetes care value in Region Europe
Investor Presentation First nine months of 2018 Slide 78 The GLP-1 segment accounts for around 12% of total diabetes care market value in Region Europe European GLP-1 market Victoza® value market share in Region Europe GLP-1 value Victoza® Dulaglutide Share of total GLP-1 value Victoza® Dulaglutide
Slide 79: GLP-1 segment 3% of diabetes care value in Region AAMEO
Investor Presentation First nine months of 2018 Slide 79 The GLP-1 segment accounts for 3% of total diabetes care market value in Region AAMEO Region AAMEO GLP-1 market Victoza® value market share in Region AAMEO GLP-1 value Victoza® Dulaglutide Share of total GLP-1 value Victoza® Dulaglutide in bDK
Slide 80: GLP-1 segment around 1% of diabetes care value in Region China
Investor Presentation First nine months of 2018 Slide 80 The GLP-1 segment accounts for around 1% of the total diabetes care market value in Region China Chinese GLP-1 market Victoza® value market share in Region China GLP-1 value Victoza® Exenatide Share of total GLP-1 value Victoza® Exenatide in b
Slide 81: GLP-1 segment around 6% in Region Japan & Korea
Investor Presentation First nine months of 2018 Slide 81 The GLP-1 segment accounts for around 6% of the total diabetes care market in Region Japan & Korea Victoza® value market share in Region Region Japan & Korea GLP-1 market Japan & Korea GLP-1 value Victoza® Dulaglutide Share of total GLP-1 valu
Slide 82: GLP-1 segment around 6% in Region Latin America
Investor Presentation First nine months of 2018 Slide 82 The GLP-1 segment accounts for around 6% of the total diabetes care market in Region Latin America Victoza® value market share Region Latin America GLP-1 market in Region Latin America GLP-1 value Victoza® Dulaglutide Share of total GLP-1 valu
Slide 83: SUSTAIN trials with semaglutide
Investor Presentation First nine months of 2018 Slide 83 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 Base
Slide 84: 8 out of 10 PIONEER trials completed
Investor Presentation First nine months of 2018 Slide 84 8 out of 10 PIONEER trials for oral semaglutide are completed, rest are expected to read out during Q4 2018 2016 2017 Q1 20181 Q2 20181 Q3 20181 Q4 20181 PIONEER 1: monotherapy2 26 weeks, n=704 PIONEER 2: vs empagliflozin2 52 weeks, n=816
Slide 85: In PIONEER 1, oral semaglutide superior reduction in HbA1c and body weight
Investor Presentation First nine months of 2018 Slide 85 In PIONEER 1, oral semaglutide demonstrated a superior reduction in HbA1c and body weight at week 26 vs placebo Mean change in HbA1c Mean change in body weight (kg) Mean change in Oral sema 3 mg Oral sema 7 mg Mean change in Oral sema 3 mg Ora
Slide 86: In PIONEER 2, oral sema significant reduction vs empagliflozin
Investor Presentation First nine months of 2018 Slide 86 In PIONEER 2, oral sema proved a statistically significant reduction in HbA1c and weight at week 52 vs empagliflozin Mean change in HbA1c Mean change in body weight (kg) Mean change in Oral sema 14 mg Empa 25 mg Mean change in Oral sema 14 mg
Slide 87: In PIONEER 4, oral sema significant reduction vs Victoza
Investor Presentation First nine months of 2018 Slide 87 In PIONEER 4, oral sema proved a statistically significant reduction in HbA1c and body weight at week 52 vs Victoza® Mean change in HbA1c Mean change in body weight (kg) Mean change in Oral sema 14 mg Victoza® 1.8 mg Mean change in Oral sema 1
Slide 88: 52–80% of patients on oral semaglutide achieved HbA1c <7%
Investor Presentation First nine months of 2018 Slide 90 In the completed PIONEER trials between 52–80% of patients on oral semaglutide achieved an HbA1c level <7% In completed PIONEER trials 52–80% of patients In completed PIONEER trials 28–49% of patients achieved an HbA1c level <7.0% (ADA guidanc
Slide 89: Obesity
Investor Presentation First nine months of 2018 Slide 89 Obesity 1. Obesity as a chronic disease 90 2. Obesity treatment 91 3. Saxenda® 93 4. Obesity pipeline 95 5. STEP and SELECT 96
Slide 90: Obesity is a chronic disease that requires treatment
Investor Presentation First nine months of 2018 Slide 90 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 d
Slide 91: Treatment rate is low and requires change of mindset
Investor Presentation First nine months of 2018 Slide 91 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 • Beli
Slide 92: Healthcare cost associated with obesity expected to increase
Investor Presentation First nine months of 2018 Slide 92 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 peop
Slide 93: Saxenda now launched in 37 countries
Investor Presentation First nine months of 2018 Slide 93 Saxenda® now launched in 37 countries Saxenda® value share of anti-obesity medications in selected countries Saxenda® sales in first nine months of 20181 Mexico Australia USA Canada DKK Saxenda® local currency growth Germany Italy Brazil Denma
Slide 94: Saxenda has rapidly grown value market share
Investor Presentation First nine months of 2018 Slide 94 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 800
Slide 95: Obesity pipeline addressing appetite reduction and energy expenditure
Investor Presentation First nine months of 2018 Slide 95 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: Status: 2018 expected: Saxenda® Launched
Slide 96: Semaglutide demonstrated unprecedented weight loss in phase 2 obesity trial
Investor Presentation First nine months of 2018 Slide 96 Semaglutide demonstrated unprecedented weight loss in 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 h
Slide 97: Phase 3a programme STEP and CV outcomes study SELECT
Investor Presentation First nine months of 2018 Slide 97 Phase 3a programme STEP and CV outcomes study SELECT have been initated during 2018 Semaglutide in obesity phase 3a programme, Cardiovascular outcomes study, SELECT, STEP, expected to include ~4,500 patients1 initated for semaglutide in obesit
Slide 98: Biopharm and other chronic areas
Investor Presentation First nine months of 2018 Slide 98 Biopharm and other chronic areas 1. Biopharm at a glance 99 2. Haemophilia – a rare disease 100 3. Haemophilia market 101 4. NovoSeven® 102 5. NovoEight® 103 6. Refixia®/Rebinyn® 104 7. N8-GP 105 8. Growth Hormone market 106 9. Clinical trial
Slide 99: Biopharm R&D efforts reflect commitment to unmet patient needs
Investor Presentation First nine months of 2018 Slide 99 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 subcutaneou
Slide 100: Haemophilia is a rare disease with severe unmet medical needs
Investor Presentation First nine months of 2018 Slide 100 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) w
Slide 101: Global haemophilia market is growing by high-single digit
Investor Presentation First nine months of 2018 Slide 101 Global haemophilia market is growing by high-single digit Strategic positioning of Novo Nordisk’s Sales of recombinant coagulation factors haemophilia portfolio NovoSeven® Recombinate®/Advate® Idelvion® Novo Nordisk Coagil VII® Kogenate®/Heli
Slide 102: ~50% of historic NovoSeven sales exposed to competition
Investor Presentation First nine months of 2018 Slide 102 ~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) Challe
Slide 103: NovoEight volumes continue to grow
Investor Presentation First nine months of 2018 Slide 103 NovoEight® volumes continue to grow despite increasing penetration of long-acting FVIII products NovoEight® roll-out continues and the number NovoEight® has potential to increase volume of patients has steadily increased share in selected seg
Slide 104: Strong growth in long-acting haemophilia B market and Refixia/Rebinyn
Investor Presentation First nine months of 2018 Slide 104 Strong growth in the long-acting haemophilia B market and Refixia®/Rebinyn® has been launched in seven countries Reported recombinant FIX sales Refixia®/Rebinyn® launched in seven countries Sales Benefix® Alprolix® Idelvion® • Launched in the
Slide 105: N8-GP reduces median bleeding rate in phase 3 trial
Investor Presentation First nine months of 2018 Slide 105 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
Slide 106: Novo Nordisk maintains leadership within growth disorder
Investor Presentation First nine months of 2018 Slide 106 Novo Nordisk maintains leadership within growth disorder Development in global growth disorder market Growth disorder volume market share DKK MAT volume kg MAT value DKK Novo Nordisk Pfizer Sandoz billion kg Eli Lilly Merck Kgaa Other CAGR vo
Slide 107: Phase 3 extension trial in adults and phase 2 in children for somapacitan
Investor Presentation First nine months of 2018 Slide 107 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 complet
Slide 108: Other serious chronic diseases
Investor Presentation First nine months of 2018 Slide 108 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 o
Slide 109: Trials in obesity and other serious chronic diseases with semaglutide
Investor Presentation First nine months of 2018 Slide 109 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 pat
Slide 110: Financials
Investor Presentation First nine months of 2018 Slide 110 Financials 1. Sales growth 111 2. Operating Profit growth 113 3. Cost distribution 114 4. COGS & CAPEX as percent of sales 115 5. Cash return to shareholders 117 6. Currency impact 118 7. Ownership structure 121
Slide 111: Solid sales growth driven by diabetes care
Investor Presentation First nine months of 2018 Slide 111 Solid sales growth driven by diabetes care Reported annual sales 2013-2017 Reported annual sales split by region North America Region Europe Region AAMEO DKK Diabetes Biopharmaceuticals Region China Region J&K Region LATAM billion 120 CAGR1 7
Slide 112: Sales per key product for Q3 2018 and first nine months of 2018
Investor Presentation First nine months of 2018 Slide 112 Sales per key product for Q3 2018 and the first nine months of 2018 Reported currencies Sales Q3 2018 (mDKK) Sales split Sales 9M 2018 (mDKK) Sales split Tresiba® 2,156 8% 5,863 7% Levemir® 2,560 9% 8,363 13% NovoRapid® 4,445 16% 13,939 18% N
Slide 113: Solid operating profit growth driven by diabetes
Investor Presentation First nine months of 2018 Slide 113 Solid operating profit growth driven by diabetes Operating profit Operating profit therapy split DKK Operating profit Operating profit as % of sales Diabetes Biopharm billion Reported operating profit growth 60 Operating profit growth in loca
Slide 114: Higher profitability in the biopharmaceuticals segment
Investor Presentation First nine months of 2018 Slide 114 Higher profitability in the biopharmaceuticals segment driven by lower COGS and S&D costs Diabetes & Obesity P&L – full year 2017 Biopharmaceuticals P&L – full year 2017 DKK DKK billion Sales ratios billion Sales ratios 100 -16% 30 -27% 80 24
Slide 115: Stable COGS level as % of sales and increasing CAPEX level
Investor Presentation First nine months of 2018 Slide 115 Stable COGS level as % of sales and increasing CAPEX level 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% 12 10% Thousands 20% 10 8% 15 8 15%
Slide 116: Long-term financial targets support profitable growth and cash conversion
Investor Presentation First nine months of 2018 Slide 116 Long-term financial targets support focus on profitable growth, capital allocation and cash conversion Operating profit growth in Operating profit after tax to Cash to earnings local currencies net operating assets (three-year average) Curren
Slide 117: Cash return to shareholders in 2018
Investor Presentation First nine months of 2018 Slide 117 Cash return to shareholders in 2018 Annual cash return to shareholders Cash return priorities DKK Share repurchase Interim dividend Dividend • Based on the increased expectations for cash flow billion Free cash flow Free cash flow guidance ge
Slide 118: Currency impact on Novo Nordisk's P/L
Investor Presentation First nine months of 2018 Slide 118 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
Slide 119: Currency impact on operating profit
Investor Presentation First nine months of 2018 Slide 119 EXAMPLE Currency impact on operating profit Operational currency impact Avg FX Yearly impact of Estimated impact Key Avg FX rate %-change 5% change from key currencies rate 2016 Operational currency impact in 2017 2017 (mDKK) currencies • The
Slide 120: Quarterly currency development for key currencies
Investor Presentation First nine months of 2018 Slide 120 Quarterly currency development for key currencies Average FX Q1 Q1 Q1 Q2 Q2 Q2 Q3 Q3 Q3 Q4 Q42 Q4 FY FY FY rates1 2017 2018 Change 2017 2018 Change 2017 2018 Change 2017 2018 Change 2017 20183 Change USD/DKK 698 606 -13% 676 625 -8% 633 641 1
Slide 121: Stable ownership structure
Investor Presentation First nine months of 2018 Slide 121 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
Slide 122: Sustainability
Investor Presentation First nine months of 2018 Slide 122 Sustainability 1. Novo Nordisk Way and Triple Bottom line 123 2. Employee Health and Safety 124 3. Business Environment 125 4. Novo Nordisk on Natural Resources 126
Slide 123: Sustainable business
Investor Presentation First nine months of 2018 Slide 123 Sustainable business The Novo Nordisk Way The Triple Bottom Line Business Principle Financially responsible Socially Environmentally responsible responsible We build on the purpose set by our founders and live by their The Triple Bottom Line
Slide 124: Healthy, engaging and inclusive workplace
Investor Presentation First nine months of 2018 Slide 124 Novo Nordisk offers a healthy, engaging and inclusive workplace with development opportunities for employees Employee health and safety and engagement Novo Nordisk is committed to building a are key focus areas for management diverse and incl
Slide 125: Shaping and adapting to conditions in the business environment
Investor Presentation First nine months of 2018 Slide 125 Shaping and adapting to conditions in the business environment Enhancing access to affordable, high quality Cities Changing Diabetes works to insulin is a key priority bend the curve on urban diabetes 5 million people 6 product recalls with d
Slide 126: Minimisation in use of scarce natural resources
Investor Presentation First nine months of 2018 Slide 126 Novo Nordisk prioritises minimisation in use of non-depletable or scarce natural resources Least possible use of resources, lower On track to have all production sites emissions and less waste are priorities run 100% on renewable power by 202