Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Investor Presentation (2000)
69 slides from Novo Nordisk A/s Class B's investor presentation, 2000
Slide 1: Novo Nordisk A/S: Global Niche Pharma with Biotech Expertise
Novo Nordisk A/S Global Niche Pharma with Biotech Expertise Fall 2000 1
Slide 2: Demerger process update
Demerger process update Health Care Enzymes Detailed historic Demerger Document, Demerger Document financial data and Prospectus, October 2000 October 2000 Road shows Aug./Sept. 2000 November 2000 Extraordinary November 13, 2000 Gen. Meeting Pure Play Nov./Dec. 2000 Listing 2
Slide 3: Executive Committee (post-demerger)
Novo Nordisk A/S Executive Committee (post-demerger) President & CEO Lars Rebien Sørensen Chief Chief Chief Chief of Operating Science Financial Staffs and Officer Officer Officer Quality Lars Mads Jesper Almblom Krogsgaard Kåre Brandgaard Jørgensen Thomsen Schultz 3
Slide 4: Executive Committee (post-demerger)
Novo Nordisk A/S Executive Committee (post-demerger) CEO COO CSO CFO S&Q 4
Slide 5: A global niche pharma company
A global niche pharma company Leadership position in diabetes care Strong market presence in haematology and growth disorders World class pipeline in key therapeutic areas Proven, genuine biotech expertise in R&D and access to ZymoGenetics Drug delivery technology platform Outstanding presence in Eu
Slide 6: Novo Nordisk – Key drivers
Novo Nordisk – Key drivers Primary growth Diabetes Care NovoSeven® drivers business business Secondary value ZymoGenetics Growth Disorders HRT drivers 6
Slide 7: Our ambition
Our ambition • Continue to be the world’s leading diabetes care company • Offer products and services in other areas where we can make a difference • Grow our product pipeline through internal and external sourcing • Build upon our biotechnology expertise and link with ZymoGenetics to harness the fu
Slide 8: Worldwide presence
Worldwide presence Regional sales distribution 1997 HY 2000 US Europe Japan ROW 8
Slide 9: Health Care half year 2000
Health Care half year 2000 Turnover by therapy % of DKK million 2000 1999 total % chg. Insulin and devices etc. 6,321 5,217 65% 21% NovoNorm®/Prandin™ 513 323 5% 59% Diabetes Care, Total 6,834 5,540 70% 23% NovoSeven® 1,034 561 11% 84% Growth Disorders 952 795 10% 20% HRT 603 556 6% 8% Other 246 222
Slide 10: Diabetes Care
Diabetes Care 10
Slide 11: Health Care half year 2000
Health Care half year 2000 Turnover by therapy % of DKK million 2000 1999 total % chg. Insulin and devices etc. 6,321 5,217 65% 21% NovoNorm®/Prandin™ 513 323 5% 59% Diabetes Care, Total 6,834 5,540 70% 23% NovoSeven® 1,034 561 11% 84% Growth Disorders 952 795 10% 20% HRT 603 556 6% 8% Other 246 222
Slide 12: Insulin market overview
Insulin market overview Market growth Novo Nordisk (‘00/’99) Market share (‘00) USA 2.5% 22% Europe 12.3% 59% J apan 10.1% 80% RoW 9.1% 63% World 7.7% 45% Source: IMS MAT Q1 2000 volumes. Industrialised world only. 12
Slide 13: Insulin sales growth outlook
Insulin sales growth outlook DKK milion 10% growth per year 20000 Excluding pulmonary 18000 16000 14000 What will 12000 10000 drive growth? 8000 6000 4000 2000 0 1995 1996 1997 1998 1999 13
Slide 14: Increased number of diabetics
Insulin sales growth drivers 1: Increased number of diabetics DKK million 20000 18000 16000 14000 12000 10000 8000 6000 Increase in the number of diabetics from 4000 150 million to 220 million – 10 years from 2000 now – yearly growth of 3.9%. 0 Source: Amos A.., McCarty DJ, Zimmet P: Diabet. Med. 19
Slide 15: Increased rate of diagnosis
Insulin sales growth drivers 2: Increased rate of diagnosis DKK million 20000 Only about one third of 18000 diabetics are diagnosed 16000 175 150 150 14000 125 100 12000 75 50 10000 50 25 8000 0 # of diagnosed # of diabetics 6000 Increased rate of diagnosis 4000 leads to higher insulin sales. 2000 0
Slide 16: More patients should use insulin
Insulin sales growth drivers 3: More patients should use insulin DKK million 20000 Number of diabetics using medication: 18000 25-30 million 16000 14000 12000 10000 Oral products Oral/insulin Insulin 8000 66% 7% 27% 6000 4000 More patients should 2000 move to the use of insulin. 0 1995 1996 1997 199
Slide 17: More intensive therapy
Insulin sales growth drivers 4: More intensive therapy DKK million 20000 The major land mark study, UKPDS*), 18000 prescribed: 16000 14000 Early intervention 12000 Intensified therapy 10000 Use products in combination 8000 6000 More patients on insulin. 4000 *) UKPDS = UK Prospective Diabetes Study
Slide 18: Increased product sophistication: pen penetration
Insulin sales growth drivers 5: Increased product sophistication DKK million Pen penetration for insulin 20000 18000 100,0% administration 16000 89.2% 14000 79.1% 80,0% 71.4% Potential 12000 60,0% 10000 46.2% 8000 40,0% 6000 20,0% 4000 5.7% 0,0% 2000 Scandinavia Japan Europe RoW USA 0 1995 1996 1997
Slide 19: Increased product sophistication: devices
Insulin sales growth drivers 5: Increased product sophistication DKK million 20000 The industry’s most comprehensive 18000 insulin device portfolio 16000 14000 Electronic insulin dosers 12000 10000 Insulin pens 8000 Conventional 6000 syringes 4000 2000 0 One new device to be introduced per year. 199
Slide 20: Increased product sophistication: insulin analogues
Insulin sales growth drivers 5: Increased product sophistication DKK million 20000 18000 The industry’s most comprehensive 16000 portfolio of insulin analogues 14000 12000 Rapid acting insulin analogue launched in EU, approved in US 10000 8000 Basal insulin analogue in phase 3 6000 Premixed insulin
Slide 21: The competitive scene
The competitive scene Insulin sophistication Insulin analogues NVO LLY AVE Rapid-acting Marketed Marketed Ph1/Ph2 Basal Ph3 Marketed Premix, protracted Approved Marketed Pulmonary insulin NVO LLY AVE Human short-acting Ph2 Ph2 Ph3 21
Slide 22: More aggressive US strategy
Insulin sales growth drivers 6: More aggressive US strategy DKK million 20000 400 new sales reps. hired / rented during 2000 18000 Total number of reps. by end 2004 16000 = up to 1,000 14000 US insulin market size = USD 1 billion 12000 10000 Novo Nordisk market share = 22% (vol.) 8000 Pen penetratio
Slide 23: Health Care half year 2000
Health Care half year 2000 Turnover by therapy % of DKK million 2000 1999 total % chg. Insulin and devices etc. 6,321 5,217 65% 21% NovoNorm®/Prandin™ 513 323 5% 59% Diabetes Care, Total 6,834 5,540 70% 23% NovoSeven® 1,034 561 11% 84% Growth Disorders 952 795 10% 20% HRT 603 556 6% 8% Other 246 222
Slide 24: NovoNorm/Prandin as gateway to oral diabetes market
NovoNorm/Prandin as gateway to oral diabetes market DKK million 1000 900 Oral diabetes market worldwide 800 = $3 billion and growing ~ 20% yearly 700 Type 2 programmes: 600 500 NN2344: 1st generation sensitiser 400 NN622: Dual acting sensitiser 300 working on glucose and lipids 200 NN4201: Reducin
Slide 25: Diabetes Care growth drivers
Diabetes Care growth drivers • Increased number of diabetics • Higher diagnosis rate • More patients should use insulin • More intensive therapy • Increased device penetration • Conversion to analogues • More aggressive US strategy • New Type 2 products in pipeline. 25
Slide 26: Diabetes Care R&D
Diabetes Care R&D Brain Liver - GLP-1. - Hepatic enzyme inh. - PPAR - Glukokinase - Glucagon ß-cell antagonists - PGR - Insulin - PCO - Insulin mimetics. - GLP-1. Muscle/Fat - Insulin sensitisers - Insulin - Insulin mimetics - PPAR - GLUT4 Gut - TNF - GLP-1. - PTPase. 26
Slide 27: Development pipeline
Development pipeline Phase 1 Phase 2 Phase 3 Registration NN2211 NN1998 NN304 NovoMix ® (GLP-1) (AERx) (Basal analogue) (Premix analogue) NN1215 NN2344 NN007 NovoRapid ® (LABI) (Insulin sensitiser) (Liver) (Rapid analogue) NN4201 NN622 (Hepatic (Dual acting insulin sensitiser) gl
Slide 28: NovoSeven
NovoSeven ® 28
Slide 29: NovoSeven strategy
NovoSeven® strategy • Develop NovoSeven® to become the first general haemostatic agent • Develop a range of new clinical indications, new products and new formulations • Expansion of production and sales force capacity • Price per mg to be kept unchanged • Clinical Phase 2 trials on up to four new i
Slide 30: Health Care half year 2000
Health Care half year 2000 Turnover by therapy % of DKK million 2000 1999 total % chg. Insulin and devices etc. 6,321 5,217 65% 21% NovoNorm®/Prandin™ 513 323 5% 59% Diabetes Care, Total 6,834 5,540 70% 23% NovoSeven® 1,034 561 11% 84% Growth Disorders 952 795 10% 20% HRT 603 556 6% 8% Other 246 222
Slide 31: NovoSeven sales growth outlook
NovoSeven® sales growth outlook DKK million 4000 3500 3000 2500 What will 2000 drive growth? 1500 1000 500 0 1995 1996 1997 1998 1999 31
Slide 32: Existing haemophilia indication
NovoSeven® sales growth drivers 1: Existing haemophilia indication DKK million 4000 1999 sales = DKK 1.3 billion ~ USD 165 million 3500 3000 Peak sales potential = USD 300 million 2500 Launch in Japan 11 May 2000 NovoSeven® 2000 Market segmentation for bleedings 1500 Coagulation Factor Deficiency 10
Slide 33: Liver indication in Phase 3
NovoSeven® sales growth drivers 2: Liver indication in Phase 3 DKK million 4000 Peak sales potential = USD 150-250 million 3500 # of patients = 1.7 million liver patients with coagulopathy # of spontaneous upper GI bleeds = 170,000 3000 # of orthotopic liver transplantations = 8,000 2500 # of other
Slide 34: New expansion strategy
NovoSeven® sales growth drivers 3: New expansion strategy DKK million 4000 A range of potential indications have been 3500 identified and analysed Our strategy for expansion into the Platelet 3000 disorder and general general haemostasis 2500 area is now in place 2000 NovoSeven® Market segmentation
Slide 35: Development pipeline
Development pipeline Phase 1 Phase 2 Phase 3 Registration NN2211 NN1998 NN304 NovoMix ® (GLP-1) (AERx) (Basal analogue) (Premix analogue) NN1215 NN2344 NN007 NovoRapid ® (LABI) (Insulin sensitiser) (Liver) (Rapid analogue) NN4201 NN622 (Hepatic (Dual acting insulin sensitiser) gl
Slide 36: NovoSeven market segmentation for bleedings
NovoSeven Market segmentation for bleedings Coagulation Factor Platelet Disorder General Deficiency Haemostasis Single Multiple Lack of Defective Surgical Spontaneous Factor Factors Platelets Platelets bleeding bleeding Haemophilia with Liver Disease Liver disease inhibitors Vitamin K- antagonists
Slide 37: NovoSeven market segmentation for bleedings
NovoSeven Market segmentation for bleedings Coagulation Factor Platelet Disorder General Deficiency Haemostasis Single Multiple Lack of Defective Surgical Spontaneous Factor Factors Platelets Platelets bleeding bleeding Haemophilia with Liver Disease Liver disease inhibitors Vitamin K- Bone marrow
Slide 38: NovoSeven market segmentation for bleedings
NovoSeven Market segmentation for bleedings Coagulation Factor Platelet Disorder General Deficiency Haemostasis Single Multiple Lack of Defective Surgical Spontaneous Factor Factors Platelets Platelets bleeding bleeding Haemophilia with Liver Disease Liver disease Intra-cerebral inhibitors bleeds V
Slide 39: NovoSeven market segmentation for bleedings
NovoSeven Market segmentation for bleedings Coagulation Factor Platelet Disorder General Deficiency Haemostasis Single Multiple Lack of Defective Surgical Spontaneous Factor Factors Platelets Platelets bleeding bleeding Haemophilia with Liver Disease Liver disease Intra-cerebral inhibitors bleeds V
Slide 40: NovoSeven market segmentation for bleedings
NovoSeven Market segmentation for bleedings Coagulation Factor Platelet Disorder General Deficiency Haemostasis Single Multiple Lack of Defective Surgical Spontaneous Factor Factors Platelets Platelets bleeding bleeding Haemophilia with Liver Disease Liver disease Glanzmann Hip replacements Intra-c
Slide 41: Profitable organic growth
Profitable organic growth Billion DKK Margin 20 40% 15 30% 10 20% 5 Turnover 10% Operating margin *) 0 0% '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 *) 1999 excluding restructuring costs of DKK 350 million 41
Slide 42: Financial results
Financial results Health Care % chg. DKK million 1999 1998 1997 1998-99 Net turnover 16,423 13,647 12,585 +20% Operating profit 3,527 2,933 2,440 +20% % of sales 21.5% 21.5% 19.4% Operating profit adjusted *) 3,877 2,933 2,440 +32% % of sales 23.6% 21.5% 19.4% EBITDA adjusted *) 4,820 3,919 3,315 +2
Slide 43: Financial results first half year
Financial results first half year Health Care DKK million 2000 1999 % chg. Net turnover 9,669 7,674 +26% Operating profit 2,271 1,671 +36% % of sales 23.5% 21.8% EBITDA 2,784 2,137 +30% % of sales 28.8% 27.8% 43
Slide 44: Balance sheet
Balance sheet Health Care DKK million 1999 1998 1997 Capital expenditures 1,362 1,767 1,950 % of sales 8.3% 12.9% 15.5% Fixed assets 10,284 9,870 9,244 % of sales 62.6% 72.3% 73.4% Stocks and trade debtors 6,496 6,044 5,982 % of sales 39.6% 44.3% 47.5% 44
Slide 45: ZymoGenetics
ZymoGenetics • Approximately 275 people, hereof 200 scientists • Using bio-informatics to discover novel gene sequences • First to file on approx. 15% of US patents filed on “plausible protein therapeutics” from Dec. 1993 to Aug. 1998. • Pipeline includes preclinical projects in the areas of immunol
Slide 46: Triple Bottom Line
Triple Bottom Line Economically viable Socially Environmentally responsible sound 46
Slide 47: Human Resources
Human Resources • Performance culture – Transparent recognition and incentive scheme – Performance linked stock option programme for >300 managers – Development plans and bonus linked appraisal systems for most employees – Preferred employer • Customer focus – All employees to meet a person with dia
Slide 48: Global Niche Pharma company with Biotech Expertise
Global Niche Pharma company with Biotech Expertise 48
Slide 49: Novo Nordisk – Key drivers
Novo Nordisk – Key drivers Diabetes business NovoSeven® business World leader Peak sales potential for Primary current indication 2/3 of business (insulin) growth = USD 300 million drivers growing >10% Peak sales potential for liver Steady growth for 76 years indication (Phase 3) The most comprehens
Slide 50: No major patent expirations
No major patent expirations % of 1999 sales with patents expiring in 2000-2004 60% 40% 20% 0% Source: Aros Securities Research and Novo Nordisk 50
Slide 51: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements as the term is defined in the US Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risk and uncertainties that may cause actual results to differ materially from expectatio
Slide 52: Global Niche Pharma company with Biotech Expertise
Global Niche Pharma company with Biotech Expertise 52
Slide 53: Appendix
Appendix 53
Slide 54: Key e-business activities
Key e-business activities Expanding our leadership position to the web • New diabetes professional portal connecting: – NOVOALERT – International Diabetes Monitor – Web-based retinopathy service and much more.... • HaemophiliaForum • Product specific sites for all key products • B2C sales of devices
Slide 55: Networking in Novo Nordisk
Networking in Novo Nordisk Information Interaction Transaction Intranet +++ ++ + Extranet ++ + + Internet +++ ++ 55
Slide 56: Long acting / Basal Insulin
Long acting / Basal Insulin NPH/NPL HOE901 NN304 Number of injections 1 or 2 1 1 or 2 Soluble no yes yes Mixable yes no yes Neutral Ph yes no yes Effect on HbA1c 1 1 1 (* Intra patient variability 1 >1 <1 Injection site reactions low higher low Nocturnal Hypoglycaemia 1 1x NPH less less 2x NPH same
Slide 57: NovoSeven market segmentation for bleedings
NovoSeven Market segmentation for bleedings Coagulation Factor Platelet Disorder General Deficiency Haemostasis Single Multiple Lack of Defective Surgical Spontaneous Factor Factors Platelets Platelets bleeding bleeding Haemophilia with Liver Disease Liver disease Glanzmann Hip replacements Intra-c
Slide 58: NovoSeven injury site selective platelet activation
The key impact of NovoSeven is through injury site selective Platelet activation to ensure high local thrombin formation which secures a tight fibrin clot rFVIIa Tissue factor (NovoSeven®) - only at site of injury FXa In patients with haemophilia and inhibitors, NovoSeven Platelet activation establi
Slide 59: Sources of innovation
Sources of innovation Novo Nordisk Diabetes Care R&D Clinical research • Steno Diabetes Centre • Oxford Diabetes Centre Basic research • Clinical research centres worldwide • Hagedorn Research Institute • Oxford and Steno Diabetes Centres Evidence-based medicine • Academic collaborations • NN diseas
Slide 60: First Patent Filing Dates on Plausible Therapeutic Proteins
First Patent Filing Dates on Plausible Therapeutic Proteins: 12/93 to 8/98 45 40 35 30 25 20 15 10 5 0 ZGI GI SKB Immunex Amgen HGS Genentech Schering Millennium Incyte ZYMOGENETICS 60
Slide 61: ZymoGenetics-FibroGen Collaboration
ZymoGenetics-FibroGen Collaboration • Research collaboration signed in July 2000 • Focused on advancing the safety and efficacy of tissue sealant products for wound management • ZGI to pair its recombinant human thrombin with FibroGen’s recombinant human Type III collagen • FibroGen is a private bio
Slide 62: ZymoGenetics – Soluble TACI
ZymoGenetics – Soluble TACI • Research reported in April 27, 2000 issue of Nature • Novel immunosuppressive agent with therapeutic potential for systemic lupus erythematosus (SLE) and other autoimmune disorders • Modified form of a receptor found on surface of B cells, and member of the TNF receptor
Slide 63: Vision for Novo Nordisk
Vision for Novo Nordisk • The world’s leading diabetes care company – Our aspiration is to defeat diabetes by finding better methods of diabetes prevention, detection and treatment – We will work actively to promote collaboration between all parties in the health care system in order to achieve our
Slide 64: Our marketing strategy
Our marketing strategy Working together with patient organisations and health authorities Examples: • The Diabetes Foundation in Spain • Accredited education courses for GPs in Scandinavia and the UK • Web Cafe and Type 2 education programme in France • Children education project in Poland • www.dia
Slide 65: Children Education Project
Children Education Project Poland 17 Workshops for Centrally developed 239 paediatricians education package and nurses & 30 participants at the train-the-trainer workshop Managing 9000 children with diabetes 65
Slide 66: Triple Bottom Line
Triple Bottom Line Why combine business, environment, and stakeholders? • To obtain trust and license to operate and innovate • To attract and retain the most talented people • To minimise risks and create possibilities • To understand signs from stakeholders • To be part of defining new legislation
Slide 67: Health Care Half Year 2000 Turnover by geography
Health Care Half Year 2000 Turnover by geography DKK million HY/00 HY/99 % of total % change (HY/00) EU 3,865 3,392 40 14 Japan 1,926 1,513 20 27 USA 1,681 1,081 17 56 Rest of World 2,197 1,688 23 30 Total 9,669 7,674 100 26 67
Slide 68: Group financial results Half Year 2000
Group financial results Half Year 2000 DKK million HY/00 HY/99 % change Net turnover 12,016 9,856 22 Operating profit as reported 2,589 1,926 34 Operating profit adjusted*) 2,259 1,592 42 Financial items (25) (150) - Profit before tax 2,564 1,776 44 Net profit 1,615 1,146 41 Earnings per share (DKK)
Slide 69: Enzymes Business Half Year 2000 Financial results
Enzymes Business Half Year 2000 Financial results DKK million HY/00 HY/99 % Change Net turnover 2,367 2,182 8 Operating profit 318 255 25 Operating margin 13.4% 11.7% 69