1 Novo Nordisk Novo Nordisk A focused healthcare company A focused healthcare company Investor Presentation Investor Presentation August 2002 August 2002
Nov 11, 2014
1
Novo NordiskNovo Nordisk
A focused healthcare company A focused healthcare company
Investor PresentationInvestor Presentation
August 2002August 2002
2
Forward-looking statementsForward-looking statements
This presentation contains forward-looking statements as the term is defined in the US Private This presentation contains forward-looking statements as the term is defined in the US Private Securities Litigation Reform Act of 1995. Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to risks, uncertainties and inaccurate assumptions. Such forward-looking statements are subject to risks, uncertainties and inaccurate assumptions. This may cause actual results to differ materially from expectations. Factors that may affect future This may cause actual results to differ materially from expectations. Factors that may affect future results include interest rate and currency exchange rate fluctuations, delay or failure of results include interest rate and currency exchange rate fluctuations, delay or failure of development projects, production problems, unexpected contract breaches or terminations, development projects, production problems, unexpected contract breaches or terminations, government-mandated or market-driven price decreases for Novo Nordisk's products, introduction government-mandated or market-driven price decreases for Novo Nordisk's products, introduction of competing products, Novo Nordisk's ability to successfully market both new and existing of competing products, Novo Nordisk's ability to successfully market both new and existing products, exposure to product liability and other lawsuits, changes in reimbursement rules and products, exposure to product liability and other lawsuits, changes in reimbursement rules and governmental laws and related interpretation thereof, unexpected growth in costs and expenses. governmental laws and related interpretation thereof, unexpected growth in costs and expenses.
Risks and uncertainties are further described in reports filed by Novo Nordisk with the US Risks and uncertainties are further described in reports filed by Novo Nordisk with the US Securities and Exchange Commission (SEC) including the company's Form 20-F, which was filed Securities and Exchange Commission (SEC) including the company's Form 20-F, which was filed on 26 April 2002. Novo Nordisk is under no duty to update any of the forward-looking statements on 26 April 2002. Novo Nordisk is under no duty to update any of the forward-looking statements after the date of this report or to conform such statements to actual results, unless required by law. after the date of this report or to conform such statements to actual results, unless required by law.
Novo Nordisk has the copyright to the information contained in this presentation. Novo Nordisk has the copyright to the information contained in this presentation. © 2002 Novo Nordisk A/S.© 2002 Novo Nordisk A/S.
3
Agenda Agenda
Update on the first half year of 2002Update on the first half year of 2002
Diabetes careDiabetes care
Haemostasis managementHaemostasis management
Growth hormone therapyGrowth hormone therapy
Hormone replacement therapyHormone replacement therapy
Financial resultsFinancial results
Outlook 2002Outlook 2002
4
First half year 2002 in briefFirst half year 2002 in brief
Sales up 6% from first half 2001Sales up 6% from first half 2001
Operating profit up 4% from first half 2001Operating profit up 4% from first half 2001
Second quarter sales up 9% and operating profit up 16% Second quarter sales up 9% and operating profit up 16%
compared to Q2 2001compared to Q2 2001
Continued depreciation of USD, JPY and GBP versus Continued depreciation of USD, JPY and GBP versus
DKKDKK
Full-year outlook maintained at 5-10% operating profit Full-year outlook maintained at 5-10% operating profit
growth growth
5
Sales by therapy first half year 2002Sales by therapy first half year 2002
Insulin sales growth in Insulin sales growth in International Operations (IO), International Operations (IO), Europe and North America. Europe and North America. NovoNormNovoNorm®® growth in Europe growth in Europe and IOand IO
North America and Europe both North America and Europe both drive growthdrive growth
Growth in Europe and the US, but Growth in Europe and the US, but Japan hit by depreciation of JPY, Japan hit by depreciation of JPY, increased competition and low increased competition and low market growthmarket growth
Negatively affected by parallel Negatively affected by parallel trade within Europe and by trade within Europe and by lower market growthlower market growth
Insulin sales growth in Insulin sales growth in International Operations (IO), International Operations (IO), Europe and North America. Europe and North America. NovoNormNovoNorm®® growth in Europe growth in Europe and IOand IO
North America and Europe both North America and Europe both drive growthdrive growth
Growth in Europe and the US, but Growth in Europe and the US, but Japan hit by depreciation of JPY, Japan hit by depreciation of JPY, increased competition and low increased competition and low market growthmarket growth
Negatively affected by parallel Negatively affected by parallel trade within Europe and by trade within Europe and by lower market growthlower market growth
Diabetes careDiabetes care
+6%+6%
Haemostasis Haemostasis managementmanagement
+15%+15%
(1%)(1%)
hGHhGH
HRTHRT(1%)
Key observations:Key observations:
Total turnover of DKK 12,035 mn: +6%Total turnover of DKK 12,035 mn: +6%
6
Key observations:Key observations:
Wea
k Q
1, b
ut
bo
th i
nsu
lin
an
d
Wea
k Q
1, b
ut
bo
th i
nsu
lin
an
d
No
voS
even
No
voS
even
®® g
row
th r
etu
rned
in
Q2
gro
wth
ret
urn
ed i
n Q
2
No
voS
even
No
voS
even
®®,
insu
lin
an
d h
GH
,
insu
lin
an
d h
GH
co
nti
nu
e to
gro
w.
con
tin
ue
to g
row
.
Gro
wth
aff
ecte
d b
y d
epre
ciat
ion
G
row
th a
ffec
ted
by
dep
reci
atio
n
of
JPY
, in
crea
sin
g c
om
pet
itio
n,
of
JPY
, in
crea
sin
g c
om
pet
itio
n,
pri
ce d
ecre
ases
an
d w
eak
pri
ce d
ecre
ases
an
d w
eak
mar
ket
dev
elo
pm
ent
mar
ket
dev
elo
pm
ent
Wea
k Q
1, b
ut
stro
ng
Q2
Wea
k Q
1, b
ut
stro
ng
Q2
gro
wth
dri
ven
by
insu
lin
an
d
gro
wth
dri
ven
by
insu
lin
an
d
ora
l an
ti-d
iab
etes
pro
du
cts
ora
l an
ti-d
iab
etes
pro
du
cts
EuropeEurope
+4%+4%
InternationalInternationalOperationsOperations
+20%+20%
North North AmericaAmerica
+10%+10%
Japan Japan & Oceania& Oceania
(4%)(4%)
Sales by region first half year 2002Sales by region first half year 2002
Total turnover of DKK 12,035 mn: +6%Total turnover of DKK 12,035 mn: +6%
7
HRTHRTGrowth hormone Growth hormone therapytherapy
Intellectual Intellectual propertyproperty
Diabetes careDiabetes care Haemostasis Haemostasis managementmanagement
PrimaryPrimarygrowth growth driversdrivers
Novo Nordisk – future key driversNovo Nordisk – future key drivers
Diabetes careDiabetes care
Secondary Secondary value value
driversdrivers
8
Diabetes care Diabetes care
SSales by quarterales by quarter
Key
ob
serv
atio
ns:
Key
ob
serv
atio
ns:
Insu
lin
gro
wth
pri
mar
ily
real
ised
in
In
suli
n g
row
th p
rim
aril
y re
alis
ed i
n
Inte
rnat
ion
al O
per
atio
ns
and
No
rth
In
tern
atio
nal
Op
erat
ion
s an
d N
ort
h
Am
eric
a, f
oll
ow
ed b
y E
uro
pe
Am
eric
a, f
oll
ow
ed b
y E
uro
pe
Jap
an &
Oce
ania
was
im
pac
ted
Ja
pan
& O
cean
ia w
as i
mp
acte
d
neg
ativ
ely
by
the
dep
reci
atio
n o
f n
egat
ivel
y b
y th
e d
epre
ciat
ion
of
JPY
an
d d
ecre
ased
sli
gh
tly
JPY
an
d d
ecre
ased
sli
gh
tly
Th
e ro
ll-o
ut
of
No
voR
apid
® a
nd
T
he
roll
-ou
t o
f N
ovo
Rap
id®
an
d
No
voM
ix®
co
nti
nu
es -
an
alo
gu
e N
ovo
Mix
® c
on
tin
ues
- a
nal
og
ue
sale
s u
p b
y 17
1% i
n 1
H 2
002
sale
s u
p b
y 17
1% i
n 1
H 2
002
No
voN
orm
®/P
ran
din
® g
row
th
No
voN
orm
®/P
ran
din
® g
row
th
dri
ven
by
Eu
rop
e an
d I
nte
rnat
ion
al
dri
ven
by
Eu
rop
e an
d I
nte
rnat
ion
al
Op
erat
ion
sO
per
atio
ns
DKK millionDKK million
1999 2000 2001 20021999 2000 2001 2002
00
500500
1,0001,000
1,5001,500
2,0002,000
2,5002,500
3,0003,000
3,5003,500
4,0004,000
4,5004,500
5,0005,000
Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2
+ 9%+ 9%
9
Insulin market overview Insulin market overview (MATQ1 2002 Volumes)(MATQ1 2002 Volumes)
Notes: Notes: Industrialised world only. Based on IMS data. Monthly data used for Canada. Industrialised world only. Based on IMS data. Monthly data used for Canada. Wal*Mart figures not included. Growth in Europe effected by conversion of Wal*Mart figures not included. Growth in Europe effected by conversion of formulation. formulation.
Novo NordiskNovo Nordiskmarket sharemarket share
2266%%
5588%%
7878%%
60%60%
4466%%World World
Rest of IMS world Rest of IMS world
Japan Japan
Europe Europe
USA USA
Market growth Market growth
4343%%
4848%%
4%4%
66%%
% market size % market size
100%100%
3.6%3.6%
7.9%7.9%
7.0%7.0%
7.8%7.8%
6.1%6.1%
10
’’In-market’ salesIn-market’ sales
Growth compared to previous yearsGrowth compared to previous years
Q2 Q2 20012001
Q3 Q3 20012001
Q4Q420012001
Jan/Feb Jan/Feb 20022002
Q1 Q1 20022002
YTD YTD May May 20022002
Total market growth:Total market growth:
VolumeVolume
ValueValue
9%9%
13%13%
9%9%
11%11%
9%9%
13%13%
8%8%
12%12%
5%5%
9%9%
6%6%
10%10%
Novo Nordisk growth:Novo Nordisk growth:
VolumeVolume
ValueValue
9%9%
11%11%
8%8%
9%9%
9%9%
12%12%
8%8%
13%13%
5%5%
10%10%
6%6%
10%10%
Insulin sales in Europe – ‘in-market’ salesInsulin sales in Europe – ‘in-market’ sales
Source: Source: Based on IMS ‘brand market data’. Preliminary information for YTD May 2002Based on IMS ‘brand market data’. Preliminary information for YTD May 2002
Note: Note: ‘In market data’ reflects sale of insulin products from the wholesalers to the ‘In market data’ reflects sale of insulin products from the wholesalers to the pharmacists. pharmacists.
11
European analogue conversion - NovoRapidEuropean analogue conversion - NovoRapid®®
Short-acting segment in EuropeShort-acting segment in Europe
Q2 1996Q2 1996 Q1 2002Q1 2002
Short-acting human insulinShort-acting human insulin
37%37%Short-actingShort-acting
insulin analoguesinsulin analogues
Short-acting human insulinShort-acting human insulin
June 2000June 2000
NovoRapidNovoRapid®® market market share 12.3%*share 12.3%*
Humalog market Humalog market share 26.5%*share 26.5%*
* IMS ‘brand’ volume market share of short-acting insulin. * IMS ‘brand’ volume market share of short-acting insulin. Preliminary information for Apr/May 2002Preliminary information for Apr/May 2002
Share of short-acting segmentShare of short-acting segment
May 2002May 2002
37%37%
* IMS ‘brand’ volume market share of short-acting insulin. * IMS ‘brand’ volume market share of short-acting insulin.
12
US analogue conversion - NovoLogUS analogue conversion - NovoLog®®
Key observations:Key observations:
Market share increase Market share increase backed by continued backed by continued penetration of NovoLog®penetration of NovoLog®
NovoLog® launched NovoLog® launched September 2001 - pump September 2001 - pump indication added in indication added in December 2001December 2001
Launch of NovoLogLaunch of NovoLog®®Mix to Mix to follow this yearfollow this year0%0%
5%5%
10%10%
15%15%
20%20%
25%25%
30%30%
Q1
199
9Q
1 19
99
Q2
199
9Q
2 19
99
Q3
199
9Q
3 19
99
Q4
199
9Q
4 19
99
Q1
200
0Q
1 20
00
Q2
200
0Q
2 20
00
Q3
200
0Q
3 20
00
Q4
200
0Q
4 20
00
Q1
200
1Q
1 20
01
Q2
200
1Q
2 20
01
Q3
200
1Q
3 20
01
Q4
200
1Q
4 20
01
Q1
200
2Q
1 20
02
Novo Nordisk total market share (vol) in the USNovo Nordisk total market share (vol) in the US
NovoLogNovoLog® share® share
Novo Nordisk share of the Novo Nordisk share of the US short-acting marketUS short-acting market
13
NovoMixNovoMix® ® 30 – simple control30 – simple control
Blood glucose controlBlood glucose control
Co
nve
nie
nce
Co
nve
nie
nce
Basal-Basal-BolusBolus
OADsOADs
Human MixHuman MixNPHNPH
NovoMix® 30NovoMix® 30
Key observations:Key observations:
NovoMixNovoMix®®30 covers the 30 covers the basal insulin need while basal insulin need while adding the benefit of adding the benefit of targeting post-prandial targeting post-prandial glucose controlglucose control
NovoMixNovoMix®®30 comes in 30 comes in FlexPenFlexPen®® - the preferred - the preferred disposable device disposable device
Full premix analogue Full premix analogue programme scheduledprogramme scheduled
14
Analogue case still intactAnalogue case still intact
Strong analogue penetration Strong analogue penetration continuescontinues
NovoRapid®/NovoLogNovoRapid®/NovoLog®® continues to increase share in the continues to increase share in the short-acting segmentshort-acting segment
NovoMixNovoMix®® 30 being rolled out in 30 being rolled out in EuropeEurope
NovoMixNovoMix® ® 30 to be launched in 30 to be launched in the US later this yearthe US later this year
Analogues backed by new Analogues backed by new devices: InDuodevices: InDuo®®, FlexPen, FlexPen®, ®, InnoLet®InnoLet® and NovoPen and NovoPen®® Jr Jr
Analogues Analogues share of insulin share of insulin sales worldwidesales worldwide
Novo Nordisk's Novo Nordisk's share of short-share of short-
acting analogue acting analogue market worldwidemarket worldwide
Notes:Notes: Volumes in industrialised world IMSVolumes in industrialised world IMS
1996 1997 1998 1999 2000 2001 2002 1996 1997 1998 1999 2000 2001 2002
17%17%
20%20%
15
The insulin business caseThe insulin business case
VolumeVolume
Number of people with diabetes Number of people with diabetes expected to double by 2025expected to double by 2025
Less than half of those affected Less than half of those affected are diagnosed are diagnosed
Ageing population and a move Ageing population and a move towards affluent lifestyle leading towards affluent lifestyle leading to increased prevalenceto increased prevalence
A drive towards intensified A drive towards intensified therapytherapy
5% annual growth5% annual growth 5% annual growth5% annual growth++
Product upgradesProduct upgrades
Conversion from human insulin Conversion from human insulin to insulin analoguesto insulin analogues
Conversion from vials and Conversion from vials and syringes to delivery systems syringes to delivery systems
16
Diabetes pipelineDiabetes pipeline
NN2211NN2211 (GLP-1 analogue)(GLP-1 analogue)
NN344NN344 (Basal analogue)(Basal analogue)
NN1998NN1998(AERx(AERx®iDMS®iDMS))
NN304NN304 (Insulin detemir) (Insulin detemir)
NN414NN414 (Beta cell rest)(Beta cell rest)
Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3
NN2344NN2344 (Insulin sensitiser)(Insulin sensitiser)
Note: Clinical development of ragaglitazar (NN622) was suspended in July 2002. Note: Clinical development of ragaglitazar (NN622) was suspended in July 2002.
NovoMixNovoMix®® 50 50(Premixed analogue)(Premixed analogue)
17
Insulin detemir to be filed at the turn of the yearInsulin detemir to be filed at the turn of the year
Detemir compared with NPH :Detemir compared with NPH :
Has significantly less within-Has significantly less within-subject variabilitysubject variability
Results in a slight decrease in Results in a slight decrease in body weight body weight
Has significantly less nocturnal Has significantly less nocturnal hypoglycaemic eventshypoglycaemic events
Produces a smoother nocturnal Produces a smoother nocturnal glucose profileglucose profile
The duration of action of detemir The duration of action of detemir is 20 hours at a therapeutically is 20 hours at a therapeutically relevant dose of 0.4 U/kg. relevant dose of 0.4 U/kg.
CCmaxmax
CV (%)CV (%)
AUCAUC0-24h,0-24h,
CV insulin CV insulin concconc.. (%)(%)
Insulin detemirInsulin detemir 1313 2020
NPH insulinNPH insulin 2626 3737
ReductionReduction 51%51% 45%45%
p-p-valuevalue <0.001<0.001 0.0010.001
Significantly lower within-subject variabilitySignificantly lower within-subject variability
Within-subject variability of Within-subject variability of pharmacokineticspharmacokinetics
18
AERxAERx®® s.c.s.c.
Hb
AH
bA
1c1c
(%)
(%
)
HbAHbA1c1c mean profiles, ITT population, mean profiles, ITT population, mean mean ±± 2 SEM2 SEM
Our inhaled insulin – ready to enter Phase 3Our inhaled insulin – ready to enter Phase 3
77
7.57.5
88
8.58.5
99
ADA2002ADA2002
-0.74%-0.74% -0.74%-0.74%
HbAHbA1c1c(%) reduction(%) reductionKey observations:Key observations:
Deep lung deposition of aerosolsDeep lung deposition of aerosols
““Breath Check”, one unit Breath Check”, one unit increments, highly reproducible increments, highly reproducible deliverydelivery
Rapid-acting profile, one unit Rapid-acting profile, one unit increments and patient-friendly increments and patient-friendly featuresfeatures
1 oral presentation and 4 posters 1 oral presentation and 4 posters at ADAat ADA
3 posters accepted for EASD3 posters accepted for EASD
Phase 3 to start later this yearPhase 3 to start later this year
19
Novo Nordisk – future key driversNovo Nordisk – future key drivers
Diabetes careDiabetes careHaemostasisHaemostasismanagementmanagement
PrimaryPrimarygrowth growth driversdrivers
Secondary Secondary valuevalue
driversdrivers HRTHRT Intellectual Intellectual
propertypropertyGrowth hormone Growth hormone
therapytherapy
20
Haemostasis management (NovoSevenHaemostasis management (NovoSeven®®) )
Ke
y o
bse
rva
tion
s:K
ey
obs
erv
atio
ns:
Gro
wth
in N
ort
h A
me
rica
G
row
th in
No
rth
Am
eric
a
con
tinu
es
con
tinu
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So
lid Q
2 g
row
th in
Eu
rop
e,
So
lid Q
2 g
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Eu
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par
tly d
ue
to la
rge
sin
gle
p
artly
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ingl
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eve
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uro
pea
n
ord
ers
in s
eve
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uro
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n
cou
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ies
cou
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ies
Pa
n E
uro
pe
an
Ha
em
ato
log
y P
an
Eu
rop
ea
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ae
ma
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Bu
sin
ess
Un
it n
ow
B
usi
nes
s U
nit
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w
est
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ish
ed
est
abl
ish
ed
1999 2000 2001 20021999 2000 2001 2002
00
100100
200200
300300
400400
500500
600600
700700
800800
900900
Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2
DKK millionDKK million
SSales by quarterales by quarter
+ 20%+ 20%
21
NovoSeven® – current indicationNovoSeven® – current indication
CreateCreateconfidenceconfidence
First-lineFirst-lineposition inposition in
haemophiliahaemophilia
AcquiredAcquiredhaemophiliahaemophilia
Estimated close to Estimated close to 1,000 patients in 1,000 patients in industrialised worldindustrialised world
75-100% efficacy in 75-100% efficacy in acquired haemophiliaacquired haemophilia
Awareness creation Awareness creation and outcome dataand outcome data
~~300,000 doses with 300,000 doses with excellent safety dataexcellent safety data
Effective haemostasis Effective haemostasis established in established in orthopaedic surgeryorthopaedic surgery
Early treatment Early treatment provides faster provides faster recoveryrecovery
3,500 pts in 3,500 pts in industrialised worldindustrialised world
93% efficacy in bleeding 93% efficacy in bleeding episodes treated at homeepisodes treated at home
22
Unmet needs in haemostasis managementUnmet needs in haemostasis management
Bleeding a is serious Bleeding a is serious clinical challengeclinical challenge
Common cause of deathCommon cause of death
Morbidity associated with Morbidity associated with blood transfusions is of great blood transfusions is of great concernconcern
Alternatives are scarceAlternatives are scarce
Blood products are Blood products are becoming more scarce becoming more scarce and expensiveand expensive
Surveys indicate large Surveys indicate large unmet clinical needunmet clinical need
10 million severe bleeding 10 million severe bleeding conditions annuallyconditions annually
Severe bleeding conditions Severe bleeding conditions growing in relation to growing in relation to medical proceduresmedical procedures
Growing industry attentionGrowing industry attention
EPO manufacturersEPO manufacturers
Oxygen carriersOxygen carriers
23
Haemophilia Haemophilia & congenital & congenital
bleeding disordersbleeding disorders
NovoSeven® expansion projectNovoSeven® expansion project
Haemophilia with Haemophilia with inhibitorsinhibitors
Acquired haemophiliaAcquired haemophilia
FVII and FXI deficiencyFVII and FXI deficiency
GlanzmannGlanzmann
Bernard-SoulierBernard-Soulier
Other coagulation Other coagulation factor defectsfactor defects
Surgery & Intensive careSurgery & Intensive care
*) = Patients with chronic liver disease*) = Patients with chronic liver disease
Upper gastro-Upper gastro-intestinal bleeding *)intestinal bleeding *)
Orthotopic liver Orthotopic liver transplantation *)transplantation *)
Liver resection *)Liver resection *)
Reversal of anti-Reversal of anti-coagulation therapycoagulation therapy
Stem cell Stem cell transplantationtransplantation
Intra-cerebral Intra-cerebral bleedingsbleedings
Liver resectionLiver resection
TraumaTrauma
24
Novo Nordisk – future key driversNovo Nordisk – future key drivers
Diabetes careDiabetes carePrimaryPrimarygrowth growth driversdrivers
Secondary Secondary valuevalue
driversdrivers
Intellectual Intellectual propertyproperty HRTHRT
HaemostasisHaemostasismanagementmanagement
Growth hormone Growth hormone therapytherapy
25
Growth hormone therapyGrowth hormone therapy
DKK millionDKK million
SSales by quarterales by quarter
1999 2000 2001 20021999 2000 2001 2002
Ke
y o
bse
rva
tion
s:K
ey
obs
erv
atio
ns:
No
rditr
op
in®
Sim
ple
Xx®
stil
l N
ord
itro
pin
® S
imp
leX
x® s
till
gro
win
g in
Eu
rop
e a
nd th
e U
Sg
row
ing
in E
uro
pe
and
the
US
Gro
wth
in J
ap
an a
ffect
ed
by
Gro
wth
in J
ap
an a
ffect
ed
by
dep
reci
atio
n o
f JP
Y,
dep
reci
atio
n o
f JP
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a
ma
nd
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rice
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ion
as
ma
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we
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cre
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elo
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Sa
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S
ale
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am
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er
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Ja
pan
und
er
rest
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Ja
pan
00
100100
200200
300300
400400
500500
600600
700700
Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2
- 1%- 1%
26
Novo Nordisk – future key driversNovo Nordisk – future key drivers
Diabetes careDiabetes carePrimaryPrimarygrowth growth driversdrivers
Secondary Secondary valuevalue
driversdrivers
Intellectual Intellectual propertyproperty
HRTHRT
HaemostasisHaemostasismanagementmanagement
Growth hormone Growth hormone therapytherapy
27
Hormone replacement therapyHormone replacement therapy
DKK millionDKK million
SSales by quarterales by quarter
1999 2000 2001 20021999 2000 2001 2002
00
5050
100100
150150
200200
250250
300300
350350
400400
450450
Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2
- 4%- 4%
Ke
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-do
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cts
low
-do
se p
rodu
cts
28
FFinancial resultsinancial results
Net turnoverNet turnover 12,03412,034 11,351 11,351 6 6 6,5536,553 6,0016,001 99
Operating profit Operating profit 2,8562,856 2,740 2,740 4 4 1,6061,606 1,3821,382 1616
Net financialsNet financials 99 99 241241 (59) (59) 8282 44 --
Profit before taxProfit before tax 2,9552,955 2,9812,981 (1) (1) 1,6881,688 1,3861,386 2222
Net profitNet profit 1,925 1,925 1,908 1,908 1 1 1,1011,101 887887 2424
EPS (DKK)* EPS (DKK)* 5.51 5.51 5.48 5.48 1 1 3.153.15 2.552.55 2424
* * Earnings per share on a diluted basis, ie 349.6 million shares in H1 2002 and 349.4 Earnings per share on a diluted basis, ie 349.6 million shares in H1 2002 and 349.4 million Q2 2002.million Q2 2002.
DKK millionDKK million First half year First half year Second quarter Second quarter
20022002 20012001 % change % change 20022002 20012001 % change% change
29
Currency exposureCurrency exposure
6
7
8
9
2001 avg = 8.32
2001 avg = 6.85
2000 2001 2002
Effect of 5% Effect of 5% appreciation on appreciation on
operating profit* operating profit* (DKK million)(DKK million)
JPYJPY +140+140
USDUSD +110+110
GBPGBP +50+50
* * ie before hedging activities.ie before hedging activities.
1H 2002 avg = 6.39
1H 2002 avg = 8.29
Aug 5 Apr 30DKK per USD 7.55 8.25 (8.5%)DKK per 100 JPY 6.34 6.43 (1.4%)
30
Outlook for 2002Outlook for 2002
Expected sales growth between 6-8%Expected sales growth between 6-8%
Growth in operating profit of 5-10% is reaffirmed Growth in operating profit of 5-10% is reaffirmed
Net financial income now expected to be approximately DKK Net financial income now expected to be approximately DKK 250 million250 million
Tax rate still expected at the level of 35%Tax rate still expected at the level of 35%
Investments still expected at DKK 4.5Investments still expected at DKK 4.5 billionbillion
Share repurchasing programme of DKK 2 billion initiatedShare repurchasing programme of DKK 2 billion initiated
Above outlook is based on the assumption that Above outlook is based on the assumption that exchange and interest rates remain at the current level exchange and interest rates remain at the current level (6 August 2002).(6 August 2002).
31
Investor InformationInvestor Information
Investor Relations contacts:Investor Relations contacts:
Novo Nordisk A/S Novo Nordisk A/S Investor Relations Investor Relations Novo Allé Novo Allé DK 2880 BagsværdDK 2880 BagsværdDenmark Denmark Fax (+45) 4444 2314 Fax (+45) 4444 2314
Peter HaahrPeter HaahrPhone (+45) 4442 1207Phone (+45) 4442 1207 E-mail: [email protected]: [email protected]
Palle Holm Olesen Palle Holm Olesen Phone (+45) 4442 6175Phone (+45) 4442 6175 E-mail: [email protected]: [email protected]
Rasmus JorgensenRasmus JorgensenPhonePhone (+1) 212 878 9607 (+1) 212 878 9607 E-mail: [email protected]: [email protected]
Share informationShare information
Novo Nordisk’sNovo Nordisk’s B shares are listed B shares are listed on the stock exchanges in on the stock exchanges in Copenhagen and London. Its Copenhagen and London. Its ADRs are listed on the New York ADRs are listed on the New York Stock Exchange under the symbol Stock Exchange under the symbol "NVO". For further company "NVO". For further company information, visit Novo Nordisk on information, visit Novo Nordisk on the Internet at the Internet at
http://www.novonordisk.comhttp://www.novonordisk.com
32
AppendixAppendix
33
SalesSales by therapy in first half year 2002 by therapy in first half year 2002
DKK millionDKK million 20022002 20012001 % of total% of total % change% change ((20022002))
Insulin etcInsulin etc 7,6117,611 7,1697,169 6363 66
OADOAD** 801801 769769 77 44
Diabetes care, totalDiabetes care, total 8,4128,412 7,9387,938 70 70 66
Haemostasis managementHaemostasis management 1,7261,726 1,4991,499 14 14 1515
Growth hormone therapyGrowth hormone therapy 998998 1,011 1,011 8 8 (1) (1)
HRTHRT 684684 692692 6 6 (1) (1)
OtherOther 214214 211211 22 11
TotalTotal 12,03412,034 11,35111,351 100100 66
* Oral antidiabetes products (OAD) include NovoNorm®/Prandin® as well as GlucoFormin* Oral antidiabetes products (OAD) include NovoNorm®/Prandin® as well as GlucoFormin® ® (generic metformin) sales by Biobrás in 1H 2002.(generic metformin) sales by Biobrás in 1H 2002.
34
Sales by region in first half year 2002Sales by region in first half year 2002
DKK millionDKK million 20022002 20012001 % of total% of total % change% change ((20022002))
Europe Europe 5,214 5,214 5,0305,030 43 43 4 4
North AmericaNorth America 2,8522,852 2,6012,601 2424 1010
Japan & OceaniaJapan & Oceania 1,9981,998 2,0792,079 17 17 (4) (4)
International OperationsInternational Operations 1,9701,970 1,6411,641 1616 2020
Total Total 12,03412,034 11,35111,351 100100 66
35
Insulin – the ultimate diabetes therapyInsulin – the ultimate diabetes therapy -
Ce
ll fu
nc
tio
n-C
ell
fun
cti
on
Diet and Diet and exercise aloneexercise alone
Oral therapyOral therapy(66%)(66%)
Insulin Insulin therapytherapy(27%)(27%)
Oral/insulinOral/insulin(approx 7%)(approx 7%)
Time from diagnosisTime from diagnosis
Type 2 - slope
Type 1 - Immediate need for Insulin
36
Improved postprandial control vs lispromix 25Improved postprandial control vs lispromix 25
0
5
10
15
20
25
Mix 25 BIAsp 30 BHI 30
-10%-10% -17%-17%
pp < 0.05 < 0.05 pp < 0.0001 < 0.0001
S-g
luco
se e
xcu
rsio
nS
-glu
cose
exc
urs
ion
0-5h
0-5h
(m
mo
l/l h
) (
mm
ol/l
h)
Hermansen K Hermansen K et al. Diabetes Careet al. Diabetes Care 2002;25:883-888. 2002;25:883-888.
37
-0.5-0.5
00
0.50.5
11
1.51.5
Insulin detemirInsulin detemir
NPHNPH
Change in Weight (Change in Weight (Kg)Kg)-1.7 Kg-1.7 Kg
E. Standl et al. Abstract number 467 ADA 2002E. Standl et al. Abstract number 467 ADA 2002
Weight change over 12 monthsWeight change over 12 months
Body weight control with insulin detemirBody weight control with insulin detemir
p = 0.002p = 0.002
Type 1 diabetesType 1 diabetes
38
Advantages of NovoSevenAdvantages of NovoSeven®®
A bleeding episode
FVIIa/NovoSeven®®
Tissue factor
Fa
ste
r h
aem
ost
asi
s le
ads
toF
ast
er
ha
emo
sta
sis
lead
s to
Fe
wer
tra
nsfu
sion
s/ tr
ans
fusi
on-
Fe
wer
tra
nsfu
sion
s/ tr
ans
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on-
fre
e su
rge
ryfr
ee
surg
ery
Re
duc
ed
reb
lee
din
gR
ed
uce
d re
ble
edi
ng
Fa
ste
r re
cove
ryF
ast
er
reco
very
Re
duc
ed
mor
bid
ity a
nd m
ort
ality
Re
duc
ed
mor
bid
ity a
nd m
ort
ality
Imp
rove
d q
ual
ity o
f life
Imp
rove
d q
ual
ity o
f life
39
Corrective measures Corrective measures
Enhanced focus on analogue conversionEnhanced focus on analogue conversion
NovoRapidNovoRapid®® to be backed by NovoMix to be backed by NovoMix® 30® 30
Consolidation of European managementConsolidation of European management
Strategic changes implemented in JapanStrategic changes implemented in Japan
Dedicated cross-functional NorditropinDedicated cross-functional Norditropin®® SimpleXx SimpleXx®® sales sales
teamteam
Several upcoming clinical trialsSeveral upcoming clinical trials
Cost-containment programme targeting areas not affecting Cost-containment programme targeting areas not affecting
key production, sales or R&D activitieskey production, sales or R&D activities
Improved control measures Improved control measures
Slide from Q1 / 02 Slide from Q1 / 02 conference callconference call
40
Status on NN622 Status on NN622
Current clinical trials stopped and new planned studies Current clinical trials stopped and new planned studies postponedpostponed
Tumour mechanism studies initiatedTumour mechanism studies initiated
Several possible outcomes of mechanism studiesSeveral possible outcomes of mechanism studiesMechanism not of human relevanceMechanism not of human relevance
Mechanism of human relevanceMechanism of human relevance
Mechanism unresolvedMechanism unresolved
Renewed ragaglitazar assessment Q1 2003Renewed ragaglitazar assessment Q1 2003
The decision to suspend the clinical development of The decision to suspend the clinical development of ragaglitazar will not impact Novo Nordisk’s expectations ragaglitazar will not impact Novo Nordisk’s expectations for the financial results for 2002for the financial results for 2002
Slide from 22 July Slide from 22 July conference callconference call
41
Source: Nordea SecuritiesSource: Nordea Securities
% of 2000 sales with patents expiring in 2001-2005% of 2000 sales with patents expiring in 2001-2005
No major patent expirationsNo major patent expirations
0%0%
10%10%
20%20%
30%30%
40%40%
50%50%
60%60%
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gen
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sig
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aten
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atio
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No
sig
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on
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ide
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o
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his
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f 20
10
42
Selected volume market share developmentSelected volume market share development
Month of Lantus Month of Lantus launchlaunch
February February 20022002
May May 20022002
USAUSA 26%26% 26%26% 27%27%
EuropeEurope 57%57% 57%57% 57%57%
GermanyGermany 44%44% 42%42% 43%43%Basal segmentBasal segment 51%51% 37%37% 36%36%
Short-actingShort-acting 42%42% 43%43% 45%45%
Mix-segmentMix-segment 43%43% 44%44% 45%45%
Source: Based on IMS data.Source: Based on IMS data.