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Transcript of 0 Novo Nordisk A focused healthcare company Investor Presentation February 2002.
1
Novo NordiskNovo Nordisk
A focused healthcare company A focused healthcare company
Investor PresentationInvestor Presentation
February 2002February 2002
2
Forward-looking statements and webcastForward-looking statements and webcast
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 27 April 2001. Novo Nordisk is under no duty to update any of the forward-looking statements on 27 April 2001. 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.
The presentation is being webcasted and will be made available on the Novo Nordisk Internet site The presentation is being webcasted and will be made available on the Novo Nordisk Internet site www.novonordisk.com.www.novonordisk.com.
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
Novo Nordisk Novo Nordisk
Financial highlights Financial highlights
Diabetes careDiabetes care
Haemostasis managementHaemostasis management
Growth hormone therapyGrowth hormone therapy
Hormone replacement therapy Hormone replacement therapy
Financial updateFinancial update
Q&AsQ&As
4
Novo NordiskNovo Nordisk
Consistent, strong organic growthConsistent, strong organic growth
Focused on few therapeutic areas with large unmetFocused on few therapeutic areas with large unmetmedical needsmedical needs
Leadership in diabetes care and haemostasis Leadership in diabetes care and haemostasis managementmanagement
Strong presence in Europe and Japan, strong growth in Strong presence in Europe and Japan, strong growth in the USthe US
Proven biotech and drug delivery capabilitiesProven biotech and drug delivery capabilities
Low exposure to patent expirationsLow exposure to patent expirations
Committed to the Triple Bottom LineCommitted to the Triple Bottom Line
Track record of delivering on promisesTrack record of delivering on promises
5
Financial highlightsFinancial highlights
Sales growth +14%Sales growth +14%
Operating profit growth +17%Operating profit growth +17%
Net profit +25%Net profit +25%
Strong performance in 2001:Strong performance in 2001:
Outlook 2002:Outlook 2002:Operating profit growth is expected to meet the long-term target of Operating profit growth is expected to meet the long-term target of 15% growth 15% growth
6
00
55
1010
1515
2020
2525
19971997 19981998 19991999 20002000 20012001
Turnover by therapyTurnover by therapy
Key
ob
serv
atio
ns:
Key
ob
serv
atio
ns:
Dia
bete
s ca
re b
usi
ne
ss
Dia
bete
s ca
re b
usi
ne
ss
aga
in d
eliv
eri
ng
mo
re th
an
aga
in d
eliv
eri
ng
mo
re th
an
10%
gro
wth
10%
gro
wth
Co
ntin
ued
str
ong
ma
rket
C
on
tinue
d s
tro
ng m
ark
et
pen
etr
atio
n b
y N
ovo
Se
ven
pen
etr
atio
n b
y N
ovo
Se
ven®®
Co
nve
rsio
n fr
om
C
on
vers
ion
fro
m
No
rditr
op
inN
ord
itro
pin
®® to
No
rditr
opi
n to
No
rditr
opi
n®®
Sim
ple
Xx
Sim
ple
XxT
MT
M
DKK billionDKK billion
Haemostasis management Haemostasis management
Diabetes care Diabetes care
Growth hormone therapy Growth hormone therapy
HRTHRT
OtherOther
7
Turnover by regionTurnover by region
Key
ob
serv
atio
ns:
Key
ob
serv
atio
ns:
Eu
rop
e u
p 1
6%
mai
nly
du
e
Eu
rop
e u
p 1
6%
mai
nly
du
e
to d
iab
ete
s ca
re a
nd
to d
iab
ete
s ca
re a
nd
No
voS
eve
nN
ovo
Se
ven®®
US
gre
w b
y 3
0%
as
all
US
gre
w b
y 3
0%
as
all
bus
ine
ss a
rea
s d
eve
lope
d
bus
ine
ss a
rea
s d
eve
lope
d
very
po
sitiv
ely
very
po
sitiv
ely
Jap
an
do
wn
7%
as
the
JPY
Ja
pa
n d
ow
n 7
% a
s th
e JP
Y
and
wh
ole
sale
rs’ i
nve
nto
ry
and
wh
ole
sale
rs’ i
nve
nto
ry
adj
ust
men
ts h
it sa
les
adj
ust
men
ts h
it sa
les
Re
st o
f Wo
rld u
p 2
0%R
est
of W
orld
up
20%
DKK billionDKK billion
USUSUSUS
EuropeEuropeEuropeEurope
JapanJapanJapanJapan
RoWRoWRoWRoW
00
55
1010
1515
2020
2525
19971997 19981998 19991999 20002000 20012001
8
HRTHRT Intellectual Intellectual propertyproperty
Diabetes careDiabetes carePrimaryPrimarygrowth growth driversdrivers
Secondary value
drivers
Novo Nordisk – Future Key DriversNovo Nordisk – Future Key Drivers
Diabetes careDiabetes care HaemostasisHaemostasismanagementmanagement
Growth hormone Growth hormone therapytherapy
9
Diabetes care Diabetes care
Key
ob
serv
atio
ns:
Key
ob
serv
atio
ns:
Gro
wth
in 2
00
1 d
rive
n b
y G
row
th in
20
01
dri
ven
by
Pe
nfill
Pe
nfill
®® a
nd
No
voL
et a
nd
No
voL
et®®
Sa
les
of i
nsu
lin in
crea
sed
S
ale
s o
f in
sulin
incr
ease
d
by
13%
by
13%
No
voR
ap
idN
ovo
Ra
pid
®®/N
ovo
Log
/No
voL
og®® n
ow
n
ow
la
un
che
d in
mos
t ma
jor
lau
nch
ed
in m
ost m
ajo
r m
ark
ets
m
ark
ets
Sa
les
of N
ovo
No
rmS
ale
s o
f Nov
oN
orm
®®/P
ran
din
/Pra
nd
in®®
incr
eas
ed
by
29
%.
incr
eas
ed
by
29
%.
DKK DKK bbillionillion
55
1010
1515
2020
19971997 19981998 19991999 20002000 20012001
00
+14%+14%
10
Diabetes - an unfolding epidemicDiabetes - an unfolding epidemic
Million people Million people with diabeteswith diabetes
Source: World Health OrganisationSource: World Health OrganisationSeptember 1998September 1998
150150
300300
20002000 20252025
11
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
12
Different needs in insulin therapyDifferent needs in insulin therapy
Reluctant to accept insulin therapyReluctant to accept insulin therapy
Need simple devices and Need simple devices and treatment regimestreatment regimes
Rely on health-care professionals Rely on health-care professionals to make all treatment decisionsto make all treatment decisions
‘Passive patients’Able and willing to take control of the disease
Seek optimal control through custom-designed insulin therapy
‘Pro-active patients’
Improvedconvenience
Improved compliance
Improvedcontrol
Better outcome
Different insulin and device upgrades needed
13
Needs driving market dynamicsNeeds driving market dynamics
Note: Note: All figures are based on MAT Q3 volumes, industrialised world only. All figures are based on MAT Q3 volumes, industrialised world only.
Novo NordiskNovo Nordiskmarket share 2001market share 2001
00
2020
4040
6060
8080
100100
120120
140140
160160
180180
19961996 19971997 19981998 19991999 20002000 20012001
Meg
a Un
its in 1,000
Meg
a Un
its in 1,000
Insulin market volumeInsulin market volume
26% 39%
35%26%
39% 35%
20%20%
35% 46%
35% 46%
39%39%
52%52%
41%41%
Long-actingLong-acting
PremixedPremixed
Short-acting Short-acting
Total market growth: Total market growth: 66% CAGR since 1996% CAGR since 1996
14
0%
25%
50%
75%
100%
1987 1989 1991 1993 1995 1997 1999 2001
0%
25%
50%
75%
100%
1987 1989 1991 1993 1995 1997 1999 2001
Insulin analoguesInsulin analogues
Analogues will replace human insulin Analogues will replace human insulin
1%1%
85%85%
14%14%
Note: All figures are MAT Q3 Note: All figures are MAT Q3
Human insulinHuman insulin
Animal insulinAnimal insulin
% insulin volume by type% insulin volume by type
15
Analogues add convenience and controlAnalogues add convenience and control
Short-acting analoguesShort-acting analogues
Can be administered in connection with Can be administered in connection with the mealthe meal
NovoRapid®/NovoLog® launched NovoRapid®/NovoLog® launched
LLong-acting analoguesong-acting analogues
More predictable insulin levels More predictable insulin levels
NN304 (detemir) to be filed at the turn of NN304 (detemir) to be filed at the turn of the yearthe year
Mix analoguesMix analogues
Convenience and improved post-prandial Convenience and improved post-prandial glycaemic controlglycaemic control
NovoMixNovoMix®® to be rolled out during 2002 to be rolled out during 2002
Novo Nordisk only Novo Nordisk only company with full company with full
analogue analogue programmeprogramme
16
Largest potential in premix upgradeLargest potential in premix upgrade
The mix segment:The mix segment:
Consists mainly of people Consists mainly of people with Type 2 diabeteswith Type 2 diabetes
39% of all insulin sold are 39% of all insulin sold are mixesmixes
Novo Nordisk holds 52% Novo Nordisk holds 52% market sharemarket share
5Y CAGR of 9% in volumes.5Y CAGR of 9% in volumes.
NovoMixNovoMix®®30:30:
Improved post-prandial glycaemic Improved post-prandial glycaemic control control
Improved hypoglycaemic profile Improved hypoglycaemic profile
Improves control in oral failuresImproves control in oral failures
Simple and convenient to useSimple and convenient to use
To be launched in FlexPenTo be launched in FlexPen®® – – preferred by people with diabetes.preferred by people with diabetes.
Roll-out in 2002
17
Delivery systems will drive value growthDelivery systems will drive value growth
% device users in volume split by region% device users in volume split by region
0%0% 25%25% 50%50% 75%75%
19971997
19981998
19991999
20002000
20012001JapanJapan
EuropeEurope
USUS
18
Different people with different needsDifferent people with different needs
InD
uo
InD
uo
®®
Fir
st c
om
bin
ed
do
ser
and
glu
cose
mon
itor
Fir
st c
om
bin
ed
do
ser
and
glu
cose
mon
itor
Re
sult
of p
art
ners
hip
with
Life
Sca
nR
esu
lt o
f pa
rtne
rshi
p w
ith L
ifeS
can
We
ll re
ceiv
ed
intr
od
uctio
n a
t AD
A 2
001
We
ll re
ceiv
ed
intr
od
uctio
n a
t AD
A 2
001
Ro
ll-o
ut i
n E
uro
pe a
nd
the
US
20
02R
oll-
ou
t in
Eu
rope
an
d th
e U
S 2
002
Fle
xPen
Fle
xPen
®®
Th
e p
refe
rre
d d
isp
osa
ble
pe
n
Th
e p
refe
rre
d d
isp
osa
ble
pe
n
Intr
od
uce
d a
t EA
SD
200
1In
tro
duc
ed
at E
AS
D 2
001
Ro
ll-o
ut i
n E
uro
pe a
nd
the
US
20
02R
oll-
ou
t in
Eu
rope
an
d th
e U
S 2
002
Inn
oL
etIn
no
Let
®® Th
e m
ost
sim
ple
to u
se d
ose
rT
he
mo
st s
imp
le to
use
do
ser
Fir
st la
unc
h 2
001
Fir
st la
unc
h 2
001
Co
ntin
ued
rol
l-ou
t in
Eu
rop
e a
nd J
apa
nC
on
tinue
d r
oll-
out i
n E
uro
pe
and
Jap
an
US
lau
nch
in 2
00
2U
S la
un
ch in
20
02
19
Upgrading the insulin market Upgrading the insulin market
Insu
lin a
nalo
gue
Insu
lin a
nalo
gue
Hum
an in
sulin
Hum
an in
sulin
US
D 1
.5U
SD
1.5
> U
SD
2.0
> U
SD
2.0
US
D 1
.0U
SD
1.0
Estimated averageEstimated averagetreatment cost per daytreatment cost per day
VialsVials
Pen
sP
ens
US
D 1
.5U
SD
1.5
20
The insulin business caseThe insulin business case
Volume
Number of people with diabetes expected to double by 2025
Less than half of those affected are diagnosed
Ageing population and a move towards affluent lifestyle leading to increased prevalence
A drive towards intensified therapy
5% annual growth 5% annual growth+
Product upgrades
Conversion from human insulin to insulin analogues
Conversion from vials and syringes to delivery systems
21
Improved US insulin growth platformImproved US insulin growth platform
NovoLogNovoLog®® launched September 2001 launched September 2001
Pump indication added in December Pump indication added in December 20012001
Dedicated Managed Care and Trade Dedicated Managed Care and Trade team team
More than doubling of the number of More than doubling of the number of US patients in Novo Nordisk clinical US patients in Novo Nordisk clinical trialstrials
InDuoInDuo®®, InnoLet, InnoLet®®, NovoLog, NovoLog®®Mix and Mix and FlexPenFlexPen®® launches 2002 launches 2002
Novo Nordisk's US insulin Novo Nordisk's US insulin sales and volume market share sales and volume market share
00
5050
100100
150150
200200
19961996 19971997 19981998 19991999 20002000 20012001
MA
TQ
3.19
96=
100
MA
TQ
3.19
96=
100
10%10%
15%15%
20%20%
25%25%
30%30%
US sales US sales
US market share (right-hand scale)US market share (right-hand scale)
22
Expansion opportunity for Novo NordiskExpansion opportunity for Novo Nordisk
Oral Oral antidiabeticsantidiabetics
Oral drug Oral drug failuresfailures
NovoNormNovoNorm®® / / PrandinPrandin®®
NN622 – the 2NN622 – the 2ndnd generation generation sensitisersensitiser
NN2211 and NN2211 and
NN1998 (AERxNN1998 (AERx®® iDMS)iDMS)
Very strong Very strong market positionmarket position
Significant Significant potential in potential in continued value continued value upgradesupgrades
Penetrate highly Penetrate highly competitive marketcompetitive market
Expand Expand presencepresence
Product Product upgradesupgrades
Value of OAD marketValue of OAD market: : USD 6.2 bnUSD 6.2 bn
Value of insulin marketValue of insulin market: : USD 3.1 bnUSD 3.1 bn
Injectable Injectable insulininsulin
23
Pulmonary delivery increases acceptabilityPulmonary delivery increases acceptability
Same efficacy as injections (Phase 2 study)Same efficacy as injections (Phase 2 study)
Low variability - via electronic breath controlLow variability - via electronic breath control
Easy dosing - due to one strength insulin stripEasy dosing - due to one strength insulin strip
Flexible dosing – due to one unit incrementsFlexible dosing – due to one unit increments
Earlier Earlier initiation of initiation of
insulin treatmentinsulin treatment
24
NN622 – Adding lipid control to glucose regulationNN622 – Adding lipid control to glucose regulation
Key observations:Key observations:
Improves glucose toleranceImproves glucose toleranceHbA1C reduced by 1-1.5%HbA1C reduced by 1-1.5%
Improves insulin sensitivityImproves insulin sensitivityPlasma insulin reduced by 50%Plasma insulin reduced by 50%
Corrects dyslipidaemiaCorrects dyslipidaemia
Dose-dependent side effects as Dose-dependent side effects as observed with other PPAR observed with other PPAR compoundscompounds
Phase 3 ongoingPhase 3 ongoing
Lipid controlLipid control
HDLHDL
00
1010
2020
3030
4040
% d
iffe
ren
ce f
rom
%
dif
fere
nce
fro
m
bas
elin
eb
asel
ine
NN622 - 1 mgNN622 - 1 mg
NN622 - 2 mgNN622 - 2 mg
Actos - 45 mgActos - 45 mg
Avandia - 8 mgAvandia - 8 mg
TriglyceridesTriglycerides
-80-80
-60-60
-40-40
-20-20
00
2020
% d
iffe
ren
ce f
rom
%
dif
fere
nce
fro
m
bas
elin
eb
asel
ine
Source:Source: Two NN622 phase studies including a total of 400 patients. Two NN622 phase studies including a total of 400 patients. US Patient Package Inserts for Actos and Avandia. US Patient Package Inserts for Actos and Avandia.
25
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 (Insulin secretion)(Insulin secretion)
NN622NN622 (Dual-acting sensitiser)(Dual-acting sensitiser)
Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3
NN2344NN2344 (Insulin sensitiser)(Insulin sensitiser)
26
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
27
Haemostasis management (NovoSevenHaemostasis management (NovoSeven®®))
Gro
wth
dri
ven
by:
Gro
wth
dri
ven
by:
US
pen
etr
atio
nU
S p
ene
tra
tion
Incr
ea
sed
pro
duct
In
cre
ase
d p
rodu
ct
aw
are
ne
ssa
wa
ren
ess
Incr
ea
sed
use
for
surg
ical
In
cre
ase
d u
se fo
r su
rgic
al
pro
cedu
res
for
inh
ibito
r p
roce
dure
s fo
r in
hib
itor
pat
ien
ts
pat
ien
ts
Pa
tient
s w
ith a
cqu
ire
d P
atie
nts
with
acq
uir
ed
hae
mop
hili
ah
aem
oph
ilia
DKK billion
00
0.0.55
11..00
11..55
22..00
22..55
33..00
33..55
19971997 19981998 19991999 20002000 20012001
+36%+36%
28
Advantages of NovoSevenAdvantages of NovoSeven®®
A bleeding episode
FVIIa/NovoSeven®®
Tissue factor
Fas
ter
hae
mo
stas
is l
ead
s to
Fas
ter
hae
mo
stas
is l
ead
s to
Fe
wer
tra
nsfu
sion
s/ tr
ans
fusi
on-
Fe
wer
tra
nsfu
sion
s/ tr
ans
fusi
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
29
Haemophilia Haemophilia & congenital & congenital
bleeding disordersbleeding disorders
NovoSevenNovoSeven®® - driven by medical needs - driven by medical needs
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
Estimated market potential of Estimated market potential of approx USD 450 millionapprox USD 450 million
*) = 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
Liver resectionLiver resection
Intra-cerebral Intra-cerebral bleedingsbleedings
TraumaTrauma
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
Liver resectionLiver resection
Intra-cerebral Intra-cerebral bleedingsbleedings
TraumaTrauma
30
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
31
Growth hormone therapy Growth hormone therapy
DKK DKK bbillionillion
0 0
0.0.55
11..00
11..55
22..00
22..55
19971997 19981998 19991999 20002000 20012001
+3%+3%
Key
ob
serv
atio
ns:
Key
ob
serv
atio
ns:
Gro
wth
ou
tsid
e Ja
pa
n w
as
22
%G
row
th o
uts
ide
Jap
an
wa
s 2
2%
Sa
les
in J
apa
n d
ep
ress
ed b
y:S
ale
s in
Ja
pan
de
pre
ssed
by:
De
pre
ciat
ion
of
JPY
De
pre
ciat
ion
of
JPY
Pri
ce r
edu
ctio
n A
pril
20
00
Pri
ce r
edu
ctio
n A
pril
20
00
Wh
ole
sale
rs’ i
nve
nto
ry
Wh
ole
sale
rs’ i
nve
nto
ry
adj
ust
men
t Q4
20
00a
dju
stm
ent Q
4 2
000
32
19981998 200120012000200019991999
0%0%
4%4%
8%8%
12%12%
16%16%
Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3
Europe and US delivering growthEurope and US delivering growth
Key
ob
serv
atio
ns:
Key
ob
serv
atio
ns:
Gro
win
g fa
ste
r th
an
the
G
row
ing
fast
er
tha
n th
e
ma
rke
t in
mo
st c
oun
trie
sm
ark
et i
n m
ost
co
untr
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File
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pre
gn
anc
y (S
GA
/IUG
R)
pre
gn
anc
y (S
GA
/IUG
R)
Novo Nordisk hGH Novo Nordisk hGH market share in Europemarket share in Europe
NorditropinNorditropin®® NorditropinNorditropin®® SimpleXxSimpleXx®®
20%20%
33
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
34
Hormone replacement therapy (HRT)Hormone replacement therapy (HRT)
DKK DKK bbillionillion
Key
ob
serv
atio
ns:
Key
ob
serv
atio
ns:
Gro
wth
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by
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US
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uct
, L
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.
00
0.0.22
0.0.44
0.0.66
0.0.88
11..00
11..22
11..44
11..66
19971997 19981998 19991999 20002000 20012001
+10%+10%
35
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
36
Key observations 2001:Key observations 2001:320 patents issued to Novo 320 patents issued to Novo Nordisk during 2001Nordisk during 2001
First filing for 104 new First filing for 104 new inventions during 2001inventions during 2001
Recent IP activities:Recent IP activities:Insulin analogue settlement Insulin analogue settlement with Aventiswith Aventis
ZymoGenetics IPOZymoGenetics IPO
Value creating Intellectual PropertyValue creating Intellectual Property
00
500500
1,0001,000
1,5001,500
2,0002,000
2,5002,500
19961996 19971997 19981998 19991999 20002000 20012001
Issued PatentsIssued Patents
37
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%
Ast
raZ
.A
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Z.
S-P
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S-P
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Mer
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zer
Pfi
zer
Ave
nti
sA
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tis
BM
SB
MS
GS
KG
SK
Ro
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Ro
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NNoo
vart
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Ph
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J&J
J&J
AH
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Ab
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gen
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gen
No
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No
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No
sig
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t ex
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atio
ns
No
sig
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ican
t p
aten
t ex
pir
atio
ns
on
th
is s
ide
of
2010
o
n t
his
sid
e o
f 20
10
38
FinancialsFinancials
39
FFinancial results full yearinancial results full year
Net turnoverNet turnover 23,77623,776 20,811 20,811 1414
Operating profit Operating profit 5,6145,614 4,816 4,816 1717
Net financialsNet financials 416416 24 N/A 24 N/A
Profit before taxProfit before tax 6,0306,030 4,840 4,840 2525
Net profitNet profit 3,8653,865 3,087 3,087 2525
Earnings per share (DKK) - dilutedEarnings per share (DKK) - diluted 11.10 11.10 8.82 8.82 26 26
DKK millionDKK million 20012001 20002000 % change % change
40
Development in operational costsDevelopment in operational costs
Share of Share of turnoverturnover
0%0%
10%10%
20%20%
30%30%
19971997 19981998 19991999 20002000 20012001
15%15%
17%17%
19%19%
21%21%
23%23%
25%25%
Production costsProduction costs S&D costsS&D costs R&D costsR&D costs Adm. costsAdm. costs
Operating margin (right-hand scale)Operating margin (right-hand scale)
29
%2
9%
28
%2
8%
17
%1
7%
12
%1
2%
25
%2
5% 3
0%
30
%
17
%1
7%
8%
8%
41
Currency exposureCurrency exposure
5
6
7
8
9
10
2001 average = 8.3
2001 average = 6.9
DKK per USD
DKK per 100 JPY
1999 2000 2001
6 Feb: 8.6
6 Feb: 6.4
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.
42
Long-term Financial Targets Long-term Financial Targets
Financial targets Financial targets
EBIT growth of 15% per annumEBIT growth of 15% per annum
EBIT margin of 25%EBIT margin of 25%
ROIC of 25% (post-tax) per annumROIC of 25% (post-tax) per annum
Cash to earnings ratio of 60%Cash to earnings ratio of 60%
2001 results 2001 results
EBIT growth of 16.6%EBIT growth of 16.6%
EBIT margin of 23.6%EBIT margin of 23.6%
ROIC of 23.1% ROIC of 23.1% (post-tax)(post-tax)
Cash to earnings ratio of 56.4%Cash to earnings ratio of 56.4%
43
Outlook for 2002Outlook for 2002
Growth in operating profit expected to meet long-term Growth in operating profit expected to meet long-term target of 1target of 155%%
Net financial income is expected to be approx DKK 150 Net financial income is expected to be approx DKK 150 millionmillion
Tax rate expected at the level of 35%Tax rate expected at the level of 35%
Investments expected at DKK 4.5Investments expected at DKK 4.5 billionbillion
Above outlook is based on the assumption that exchange Above outlook is based on the assumption that exchange and interest rates remain at the current level and interest rates remain at the current level (7 February 2002).(7 February 2002).
44
Commitment to the Triple Bottom LineCommitment to the Triple Bottom Line
WHO model for improving access WHO model for improving access to health in developing countries:to health in developing countries: LEADLEAD
LLeadership in eadership in EEducation and ducation and AAccess to ccess to DDiabetes Careiabetes Care
Projects on national diabetes strategies, Projects on national diabetes strategies, behavioural aspects and local fact-findingbehavioural aspects and local fact-finding
Insulin prices in least developedInsulin prices in least developed countries countries less than 20% of prices in the US, Europe less than 20% of prices in the US, Europe and Japanand Japan
The World Diabetes FoundationThe World Diabetes Foundation
Development of national health Development of national health strategies strategies
Building of national healthcare Building of national healthcare capacity capacity
Best possible pricingBest possible pricing
Additional fundingAdditional funding
45
Estimated market potential Estimated market potential for NovoSevenfor NovoSeven®® within within haemophilia and congenital haemophilia and congenital bleeding disorders of USD bleeding disorders of USD 450 million 450 million
Entering 7 new clinical areas Entering 7 new clinical areas with 8 new studies with 8 new studies
Patent protection in Europe Patent protection in Europe and the US until 2011, in and the US until 2011, in Japan until 2008Japan until 2008
PrimaryPrimarygrowthgrowthdriversdrivers
Secondary Secondary valuevalue
driversdrivers
Novo Nordisk – Key DriversNovo Nordisk – Key Drivers
World leader with steady growthWorld leader with steady growth for more than 75 years for more than 75 years
2/3 of business (insulin) growing2/3 of business (insulin) growing >10% pa >10% pa
Growth platform in the USGrowth platform in the US
The most comprehensive insulin The most comprehensive insulin and insulin device portfolio and insulin device portfolio – one new device per year– one new device per year
Sensitisers (NN622 and NN2344)Sensitisers (NN622 and NN2344)
GLP-1 analogue (NN2211)GLP-1 analogue (NN2211)
Diabetes careDiabetes care Haemostasis managementHaemostasis management
HRTHRTGrowth Hormone Growth Hormone
TherapyTherapyIntellectual Intellectual
propertyproperty