Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Q1 2008 Earnings Presentation
54 slides from Novo Nordisk A/s Class B's earnings presentation, April 2008
Slide 1: A focused healthcare company
Investor presentation A focused healthcare company Investor presentation – First three months of 2008
Slide 2: Forward-looking statements
Investor presentation First three months of 2008 Slide no 2 Forward-looking statements Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company’s Annual Report 2007 and Form 20-F both expected to be filed with t
Slide 3: Agenda
Investor presentation First three months of 2008 Slide no 3 Agenda • Highlights and strategy • Sales update • R&D update • Financials
Slide 4: Highlights
Investor presentation First three months of 2008 Slide no 4 Highlights Sales development: • Sales of modern insulins increased by 33% (25% as reported) • Sales of NovoSeven® increased by 10% (2% as reported) • Sales of Norditropin® increased by 17% (12% as reported) • Sales in North America increase
Slide 5: Novo Nordisk's corporate strategy
Investor presentation First three months of 2008 Slide no 5 Novo Nordisk’s corporate strategy Indications Compounds/Capabilities Strategic focus Insulin • Diabetes Maintain leadership GLP-1 Drug delivery and protein expertise Global commercial infrastructure GLP-1 • Obesity/pre-diabetes Explore oppo
Slide 6: Insulin world market leader with 52% market share
Investor presentation First three months of 2008 Slide no 6 Insulin world market leader with 52% market share Europe North America Novo Nordisk #1 Novo Nordisk #1 Market share 56% Market share: 43% International Operations Japan & Oceania Novo Nordisk #1 Novo Nordisk #1 Market share: 59% Market shar
Slide 7: Growth in Novo Nordisk's insulin franchise looks set to continue
Investor presentation First three months of 2008 Slide no 7 Growth in Novo Nordisk’s insulin franchise looks set to continue Rapid increase in number of World insulin market growth people with diabetes 2007 2025 Volume: 6.3% 350 DKK: 10.9% 2007: 246 million USD: 19.1% 300 2025: 380 million DKK 53.9b
Slide 8: Sales update
Investor presentation First three months of 2008 Slide no 8 Sales update
Slide 9: Key products continue to drive growth
Investor presentation First three months of 2008 Slide no 9 Key products continue to drive growth – first three months of 2008 Sales as reported Growth analysis HRT Norditropin ® -5% Local currencies Growth Share of +12% growth 4% 8% Modern insulins 33% 70% Diabetes care NovoSeven® +10% Human insuli
Slide 10: Modern insulins
Investor presentation First three months of 2008 Slide no 10 Modern insulins World market share of total segment Modern insulin sales as reported 50% Levemir® NovoRapid® DKK 0.8bn NovoRapid® NovoMix® +70% DKK 1.8bn 40% Levemir® +15% 21% 30% 46% NovoMix® 20% DKK 1.2bn 33% +18% 10% 0% February Februar
Slide 11: A continued increase in modern insulin market share
Investor presentation First three months of 2008 Slide no 11 A continued increase in modern insulin market share IMS world modern insulin Modern insulin penetration market shares, volume 70% Novo Nordisk 60% Eli Lilly Sanofi-Aventis 53% 50% Modern insulin 23% 40% 30% Human insulin 20% 10% 0% Q4 Q4 Q
Slide 12: NovoSeven sales development
Investor presentation First three months of 2008 Slide no 12 NovoSeven® NovoSeven® sales development Key observations • Growth in the first quarter of 1.600 10% in local currencies and 2% 9% A GR : as reported 1.400 C 1.200 • North America and International DKK million Operations main contributor to
Slide 13: Norditropin sales development
Investor presentation First three months of 2008 Slide no 13 Norditropin® Norditropin® sales development Key observations • Growth in the first quarter of 17% in local currencies and 12% 1.000 % as reported 900 : 12 A GR 800 C • North America main contributor to growth with more than 50% DKK million
Slide 14: Sales by region
Investor presentation First three months of 2008 Slide no 14 Sales by region - first three months of 2008 Sales as reported Growth analysis Japan & Oceania +3% Europe Local Growth Share of +3% currencies growth 9% International Europe 4% 12% Operations North America 21% 48% +24% 20% 38% Internationa
Slide 15: Levemir reinforces modern insulin market leadership in Europe
Investor presentation First three months of 2008 Slide no 15 Levemir® reinforces modern insulin market leadership in Europe… Share of total modern insulin Novo Nordisk’s share of long- sales in Europe acting modern insulin in Europe 30% 80% Novo Nordisk Eli Lilly 70% Sanofi-Aventis 25% 60% 20% 50% 4
Slide 16: … and total market leadership in the US
Investor presentation First three months of 2008 Slide no 16 … and total market leadership in the US US total insulin market Novo Nordisk’s share of long- share development acting modern insulin in the US 80% 10% 70% Novo Nordisk 9% Eli Lilly 60% Sanofi-Aventis 8% 7% 50% 6% 40% 5% 30% 4% 3% 20% 2% 1
Slide 17: Solid leadership position within emerging markets
Investor presentation First three months of 2008 Slide no 17 Solid leadership position within emerging markets International Operations International Operations insulin sales development insulin market shares Index 70% local currencies 58% 300 60% 2 5% 250 GR: 50% Novo Nordisk CA Eli Lilly 40% Sanof
Slide 18: R&D update
Investor presentation First three months of 2008 Slide no 18 R&D update
Slide 19: Development portfolio – diabetes
Investor presentation First three months of 2008 Slide no 19 Development portfolio – diabetes Compound Type Indication Phase NovoMix® 50 Modern insulin Type 1+2 Launched in Europe, filed in the US NovoMix® 70 Modern insulin Type 1+2 Launched in Europe, filed in Japan PrandiMet® OAD Type 2 Filed in t
Slide 20: GLP-1 will explore virgin territory between OADs and insulins
Investor presentation First three months of 2008 Slide no 20 GLP-1 will explore virgin territory between OADs and insulins World DKK MAT market billion growth OAD 65 -2% OAD Insulin Insulin 54 9% GLP-1 3 29% GLP-1 Note: Absolute data represent MAT February 2008 and growth data represent MAT February
Slide 21: Development portfolio – haemostasis
Investor presentation First three months of 2008 Slide no 21 Development portfolio – haemostasis Compound Indication Phase NovoSeven® Heat-stable formulation Approved in Europe, filed in the US NovoSeven® Trauma Phase 3 NN1731 Fast-acting factor VIIa analogue Phase 2 NN71281 Long-acting factor VIIa
Slide 22: Development portfolio - other biopharmaceuticals
Investor presentation First three months of 2008 Slide no 22 Development portfolio - other biopharmaceuticals Compound Indication Phase Activelle® Low Dose Hormone replacement therapy Launched in the US, filed in Europe1 Vagifem® Low Dose Hormone replacement therapy Filed in the US, phase 3 in Europ
Slide 23: Financials
Investor presentation First three months of 2008 Slide no 23 Financials
Slide 24: Financial results
Investor presentation First three months of 2008 Slide no 24 Financial results DKK million Q1 2008 Q1 2007 % change Sales 10,614 9,818 8 Gross profit 8,201 7,498 9 Gross margin 77.3% 76.4% Sales and distribution costs 2,975 3,048 (2) Percent of sales 28.0% 31.0% Research and development costs 1,858
Slide 25: Solid gross margin development
Investor presentation First three months of 2008 Slide no 25 Solid gross margin development Gross margin improvement analysis Key observations 80% Annual average • Productivity gains are prime 78% 77.3 contributor – reflecting significant improvements in insulin 76.6 76% production efficiency 75.3 7
Slide 26: Currency development
Investor presentation First three months of 2008 Slide no 26 Currency development Spot rates Quarterly average Annual average 650 Annual impact on operating USD/DKK 600 profit of a 5% movement in currency (DKK million) 550 2008 USD 470 500 USD-related 100 JPY 140 450 GBP 85 Q106 Q206 Q306 Q406 Q107
Slide 27: Outlook 2008
Investor presentation First three months of 2008 Slide no 27 Outlook 2008 • Sales growth expectations: Key currency rates • Between 10-13% in local currencies DKK 2007 2008 Current per 100 average average rate* • Around 6 %-points negative currency impact USD 545 492 479 • Operating profit growth ex
Slide 28: Novo Nordisk - concluding remarks
Investor presentation First three months of 2008 Slide no 28 Novo Nordisk - concluding remarks Strategic position Key growth drivers #1 in the global insulin market • Leadership in diabetes care with full portfolio of modern insulins #1 in the global modern insulin segment • Promising GLP-1 compound
Slide 29: Investor information
Investor presentation First three months of 2008 Slide no 29 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 30: Appendices
Investor presentation First three months of 2008 Slide no 30 Appendices
Slide 31: Cash return to shareholders
Investor presentation First three months of 2008 Slide no 31 Cash return to shareholders Dividend and payout ratio Share repurchase programme 35% 35 5 5 4.8 4.5 Dividend per share, DKK 4.2 4.5 33 4 4 Payout ratio, % DKK billion 3.0 31 3 3 29 2 2 Payout ratio 27 Dividend per share 1 1 25 0 0 2003 200
Slide 32: Solid insulin market growth - Novo Nordisk market leadership
Investor presentation First three months of 2008 Slide no 32 Solid insulin market growth - Novo Nordisk market leadership Market size Growth rates Novo Nordisk market share Market Novo Nordisk US 3,9% 42% 34% 3,3% Europe 3,3% 46% 56% 5,2% Japan 4,2% 73% 4% 5,0% World 4,8% 52% 100% 6,0% Note: Volume
Slide 33: Solid insulin leadership position in China
Investor presentation First three months of 2008 Slide no 33 Solid insulin leadership position in China China sales China insulin market shares Index 70% local currencies 62% 600 60% Novo Nordisk 500 50% Eli Lilly % Sanofi-Aventis : 46 40% 400 GR Sh. Biochem & Phar CA JS. Xuzhou Biochemical 300 30%
Slide 34: Long-term financial targets
Investor presentation First three months of 2008 Slide no 34 Long-term financial targets Performance against long-term financial targets Financial In % 2003 2004 2005 2006 2007 targets Operating profit growth 8.4 8.7 15.9 12.7 (1.9) 15 Operating profit growth excl AERx®1) - - - - 12.6 Operating marg
Slide 35: European modern insulin conversion - NovoRapid
Investor presentation First three months of 2008 Slide no 35 European modern insulin conversion - NovoRapid® Modern insulin penetration short-acting segment Share of short-acting segment 35% NovoRapid® 30% Human insulin 25% Humalog 20% 59% 15% 10% Modern insulin 5% Apidra 0% Q4 Q4 Q4 Q4 2002 2007 20
Slide 36: European modern insulin conversion - NovoMix
Investor presentation First three months of 2008 Slide no 36 European modern insulin conversion - NovoMix® 30 Modern insulin penetration premixed segment Share of premixed segment 35% NovoMix® 30 30% 25% Human insulin 20% 15% 43% Humalog Mix 25 10% Modern insulin 5% 0% Q4 Q4 Q4 Q4 2002 2007 2002 200
Slide 37: European modern insulin conversion - Levemir
Investor presentation First three months of 2008 Slide no 37 European modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in Europe 28% 26% 26% 24% 22% 20% Human insulin 18% 16% 14% 56% 12% 10% 8% Modern insulin 6% 4
Slide 38: US modern insulin conversion - NovoLog
Investor presentation First three months of 2008 Slide no 38 US modern insulin conversion - NovoLog® Modern insulin penetration short-acting segment Share of short-acting segment 50% Humalog Human insulin 40% 72% 30% NovoLog® 55% 20% Modern insulin 10% Apidra 0% Q4 Q4 Q4 Q4 2002 2007 2002 2007 Note:
Slide 39: US modern insulin conversion - NovoLog Mix 70/30
Investor presentation First three months of 2008 Slide no 39 US modern insulin conversion - NovoLog® Mix 70/30 Modern insulin penetration premixed segment Share of premixed segment 30% 25% NovoLog® Mix 70/30 Human insulin 20% 15% Humalog Mix 25 10% 35% 5% Modern insulin 0% Q4 Q4 Q4 Q4 2002 2007 2002
Slide 40: US modern insulin conversion - Levemir
Investor presentation First three months of 2008 Slide no 40 US modern insulin conversion - Levemir® Modern insulin penetration Novo Nordisk’s share of long- long-acting segment acting modern insulin in the US 10% 9% 8% Human insulin 7% 6% 69% 5% 4% 3% 2% Modern insulin 1% 0% Q4 Q4 Q2 Q4 2002 2007 2
Slide 41: Insulin segmentation - Europe and the US
Investor presentation First three months of 2008 Slide no 41 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% Q4 Q4 Q4 Q4 2002 2007 2002 2007 Note: Quarterly volume data Source: IM
Slide 42: Insulin segmentation - Japan
Investor presentation First three months of 2008 Slide no 42 Insulin segmentation - Japan Japan 60% 50% 40% 30% 20% Long-acting 10% Premix Short-acting 0% Q3 Q3 2002 2007 Note: Quarterly volume data Source: IMS
Slide 43: Invention across multiple dimensions will build future R&D portfolio
Investor presentation First three months of 2008 Slide no 43 Invention across multiple dimensions will build future R&D portfolio… Future assets Next generation insulins Next generation devices Action Short-acting rFVIIa analogue Next generation Long-acting hGH Commercial assets Ultra low-dose HRT N
Slide 44: Strong clinical profile of liraglutide
Investor presentation First three months of 2008 Slide no 44 Strong clinical profile of liraglutide Key observations* • Five phase 3 studies completed • Ready for regulatory filing in the US and EU in in Q2 2008 • Significant HbA1c reduction: • 1.5 - 2.0% in monotherapy • 1.0 – 1.5% in combination w
Slide 45: Biosimilars compete in a declining segment
Investor presentation First three months of 2008 Slide no 45 Biosimilars compete in a declining segment Modern insulin 52% Patent protected Human insulin Q2 2002 Q3 2007 Q2 2010 Notes: Quarterly volume data. From Q2 2007 onwards it is estimated that 6% of the market will be converted each year and t
Slide 46: Insulin is the ultimate treatment
Investor presentation First three months of 2008 Slide no 46 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 47: Insulin secretion
Investor presentation First three months of 2008 Slide no 47 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 48: Significantly reduced risk of hypoglycaemia when switching from Lantus to Levemir
Investor presentation First three months of 2008 Slide no 48 Significantly reduced risk of hypoglycaemia when switching from Lantus to Levemir® Baseline 70.0 67.5 –20.2* Six-month follow-up 60.0 n = 680 T1 patients Number of events *p<0.0001 per patient-year 50.0 47.3 40.0 30.0 –9.0* 20.0 –2.1* 16.4
Slide 49: Weight benefit across BMI when switching from Lantus to Levemir
Investor presentation First three months of 2008 Slide no 49 Weight benefit across BMI when switching from Lantus to Levemir® 0.5 Change in weight (kg) –0.03 –0.5 –0.52 –0.85 –1.5 –1.74 –2.03 –2.5 BMI <25 25–<27 27–<29 29–<31 ≥31 T1 patients = 251 99 80 51 51 Source: Landstedt-Hallin et al, 2244-PO,
Slide 50: Dosing accuracy of FlexPen versus SoloStar
Investor presentation First three months of 2008 Slide no 50 Dosing accuracy of FlexPen® versus SoloStar Key observations • Dosing accuracy was tested at 5, 10 and 30 unit doses • At all doses, FlexPen® delivered mean doses closer to the intended dose than SoloStar® • The difference between pens was
Slide 51: Hormone replacement therapy area supported by low-dose versions
Investor presentation First three months of 2008 Slide no 51 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 60% flushes a
Slide 52: Attractive profile of rFVIIa analogue
Investor presentation First three months of 2008 Slide no 52 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 53: NovoSeven - a unique mechanism of action
Investor presentation First three months of 2008 Slide no 53 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 54: IL-21 clinical programme
Investor presentation First three months of 2008 Slide no 54 IL-21 clinical programme IL-21 mode of action Four indications CD4+ T • Malignant melanoma as TH cells monotherapy, phase 2 trial with up to 40 patients • Renal cell carcinoma in IL-21 combination with Sutent® (sunitinib), phase 1/2 with u