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A focused global healthcare company A focused global healthcare company with biotech expertisewith biotech expertise
June 2001June 2001
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Novo Nordisk todayNovo Nordisk today
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
Consistent, strong organic growthConsistent, strong organic growth
Strong presence in Europe and Japan, strong Strong presence in Europe and Japan, strong growth in the USgrowth in the US
Proven biotech and drug delivery capabilitiesProven biotech and drug delivery capabilities
Low exposure to patent expirationsLow exposure to patent expirations
Track record of delivering on promisesTrack record of delivering on promises
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HRTHRTHuman growth Human growth hormonehormone
Intellectual Intellectual propertyproperty
Diabetes careDiabetes care Coagulation Coagulation disordersdisorders
PrimaryPrimarygrowth growth driversdrivers
Secondary value
drivers
Novo Nordisk – Future Key DriversNovo Nordisk – Future Key Drivers
Diabetes careDiabetes care
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Strongest growing major franchiseStrongest growing major franchise
8%
16%
24%
12% 20%
2000
Av
era
ge
199
5-19
99
DiabetesDiabetes
Cancer / Immune responseCancer / Immune response
Sex Hormones & UrologicalsSex Hormones & Urologicals
CNSCNS
Arthritis
RespiratoryRespiratoryCardiovascularCardiovascularGastro / MetabolismGastro / Metabolism
Anti Infectives / VaccinesAnti Infectives / Vaccines
Market value growth Market value growth
4%
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More volume growth to comeMore volume growth to come
Number of diabetics estimated to grow 4% p.a.
Diagnosis rate will increase 100 million people are diabetics today without knowing it!
Medicine use per diagnosed patient will increaseTreating more assertively reduces burden of late stage complications!
Volume growth of at least 5% p.a. sustainableCurrent insulin market volume growth is 7-8%!
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Novo Nordisk will leverage on growthNovo Nordisk will leverage on growth
70% of Novo Nordisk turnover and 75% of R&D spend relates to diabetes
Dominant position in insulin markets of Japan and Europe – growing strongly in the US
500 researchers dedicated to diabetes
Building on 78 years of experience in the field
Broadest and deepest diabetes pipeline
Expanding into non-insulin treatment
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Hu
man
insu
linH
um
an in
sulin
Insu
lin a
nal
og
ue
Insu
lin a
nal
og
ue
US
D 1
.0U
SD
1.0
US
D 2
.0U
SD
2.0
US
D 1
.3U
SD
1.3
US
D 1
.5
Estimated averageEstimated averagetreatment cost per daytreatment cost per day
VialsVials
Pen
sP
ens
Product upgrades double the value of insulin
8
Innovator of the device field
One new device innovation from Novo Nordisk
per year
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Coming soon - a new advance in diabetes managementComing soon - a new advance in diabetes management
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Insulin analoguesInsulin analogues
NVO NVO LLY LLY AVE AVE
Rapid-acting Rapid-acting MarketedMarketed Marketed Marketed Ph2Ph2
Basal Basal Ph3Ph3 MarketedMarketed
Premix, protracted Premix, protracted ApprovedApproved MarketedMarketed
Inhaled insulinInhaled insulin
NVO/ARDMNVO/ARDM LLY/ALKSLLY/ALKS AVE/ PFE/INHL AVE/ PFE/INHL
Rapid-actingRapid-acting Ph2Ph2 Ph1Ph1 Ph3Ph3
Full range of new insulins expectedFull range of new insulins expected
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NovoNormNovoNormTMTM/Prandin/Prandin®®
NovoNormNovoNormTMTM/Prandin/Prandin®®
NN304NN304
NN1998NN1998
NN2344NN2344
Glucose-induced Glucose-induced insulin secretioninsulin secretion
Tissue response Tissue response to insulinto insulin
Hepatic Hepatic glucose glucose productionproduction
Glucose Glucose uptakeuptake
ImpairedImpairedbeta cellbeta cellfunctionfunction
Basal hyper- Basal hyper- insulinemiainsulinemia
Post Post receptor receptor defectdefect
GlucoseGlucosetransporttransport
Insulin Insulin bindingbinding
NN414NN414
NN4201NN4201
Genetic
Acquired
Obesity
Age
Genetic
Acquired
Obesity
Age
Insulin deficiencyInsulin deficiency
Insulin resistanceInsulin resistance
NovoRapidNovoRapid
Broadest approach to Type 2 DiabetesBroadest approach to Type 2 Diabetes
Insulin deficiencyInsulin deficiency
Insulin resistanceInsulin resistance
HyperglycemiaHyperglycemia
NN2211NN2211
NN2211NN2211
NN622NN622
NN622NN622Genetic
Acquired Glucotoxicity Lipotoxicity
Genetic
Acquired Glucotoxicity Lipotoxicity
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Novo Nordisk – Future Key DriversNovo Nordisk – Future Key Drivers
Diabetes careDiabetes careCoagulation Coagulation
disordersdisorders
PrimaryPrimarygrowth growth driversdrivers
Secondary Secondary valuevalue
driversdrivers HRTHRTHuman growth Human growth
hormonehormoneIntellectual Intellectual
propertyproperty
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Bleeding is a major clinical challengeBleeding is a major clinical challenge
Huge unmet medical need for treatment of severe bleeding conditions
More than 10 million bleeding episodes per year
This market has not been supplied with major pharmaceutical advances over the past 40 years
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Key features of NovoSeven® Key features of NovoSeven®
The unique coagulation factor The unique coagulation factor that activates platelets in an that activates platelets in an injury site selective manner by injury site selective manner by binding to tissue factor binding to tissue factor
Correction of coagulation within Correction of coagulation within 10 minutes10 minutes
Good safety profileGood safety profile
Indicated for treatment of Indicated for treatment of haemophiliacs with antibodies haemophiliacs with antibodies against factor VIII or IX (inhibitor against factor VIII or IX (inhibitor indication)indication)
RuptureRupture
Tissue factorTissue factor
FVIIa / FVIIa / NovoSeven®NovoSeven®
15
00
200200
400400
600600
800800
Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1
DKK millionDKK million
19981998 1999 1999 2000 2001 2000 2001
SaSales by quarterles by quarter
NovoSeven® makes a differenceNovoSeven® makes a difference
Gro
wth
of
63%
in Q
1
Gro
wth
of
63%
in Q
1
200
1 v
ers
us
Q1
200
02
001
ve
rsu
s Q
1 2
000
Incr
ea
sed
use
fo
r In
cre
as
ed u
se f
or
acq
uir
ed
ha
emo
ph
ilia
acq
uir
ed
ha
emo
ph
ilia
Incr
ea
sed
use
in
Incr
ea
sed
use
in
su
rgic
al p
roc
edu
res
of
su
rgic
al p
roc
edu
res
of
inh
ibit
or
pa
tien
tsin
hib
ito
r p
ati
ents
Incr
ea
sed
In
cre
as
ed
inve
sti
ga
tio
na
l us
ein
ves
tig
ati
on
al u
seInhibitor indication:Inhibitor indication:
Est. market potential Est. market potential
USD 350 millionUSD 350 million
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NovoSevenNovoSeven®® saves lives saves lives
Compassionate use program run for many years treating >200 inhibitor patients close to dying
Recent 5 years have provided a continuous surge in case reports outside haemophilia
Israeli soldier case one of many now
Controlled clinical trials needed to document safety, efficacy and optimal dose outside the current inhibitor indication
The Lancet Vol 354 July 10, 1999
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Studies aimed at expanding the indicationStudies aimed at expanding the indication
Orthotopic liver transplantions*) Reduce bleeding, leading to fewer transfusions and thereby reducing post-operative complications
Liver resections*) Fast induction of haemostasis and hopefully allow for transfusion-free surgery
Upper gastrointestinal bleedings*) Faster haemostasis and reduce re-bleeding episodes
Liver resections in patients with no coagulation disorders
Fast induction of haemostasis and hopefully allow for transfusion-free surgery
Intra-cerebral bleedings Fast haemostasis, reduced mortality and morbidity, thus increased quality of life
Reversal of anticoagulation therapy (vitamin K-antagonists)
Faster haemostasis and reduced number of transfusions, leading to faster recovery
Stem cell/bone marrow transplantations
Faster haemostasis, reduced mortality and number of transfusions. Fewer patients with platelet antibodies
Traumatology Faster haemostasis, reduced mortality and number of transfusions. Fewer multi-organ failures and thereby less surgery and faster recovery
Expected benefits of NovoSeven®New clinical area targeted
*) Patients with chronic liver disease
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SpontaneousSpontaneousbleedingbleeding
Single Single FactorFactor
MultipleMultipleFactorsFactors
SurgicalSurgicalbleedingbleeding
Lack ofLack ofplateletsplatelets
DefectiveDefectiveplateletsplatelets
Coagulation FactorCoagulation FactorDeficiencyDeficiency
PlateletPlateletDisorderDisorder
GeneralGeneralHaemostasisHaemostasis
Moving towards general haemostasisMoving towards general haemostasis
Haemophilia with inhibitors
Liver transplantations *)
Upper gastrointestinal
bleedings *)
Liver resection *)
Intra-cerebral bleeds
Traumatology
Vitamin K-antagonists
Bone marrow transplantation
Liver resection
White = Current indicationYellow = Ongoing studies
Orange = Studies to be initiated this year*) = Patients with chronic liver disease
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FinancialsFinancials
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Balancing growth and valueBalancing growth and value
Long-term financial targetsLong-term 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 of 60%Cash to earnings of 60%
21
FFinancial results inancial results first quarter 2001first quarter 2001
Net turnover 5,350 4,426 21
Operating profit as reported 1,358 994 37Operating profit adjusted*) 1,111 765 45
Financial items 237 (34) n/aProfit before tax 1,595 960 66Net profit 1,021 600 70
Earnings per share (DKK) 2.95 1.70 74 Earnings per ADS**) (USD) 0.35 0.20 74
*) Excluding Seroxat® licence income and one-off settlements of patent disputes
**) Translated for convenience at the end of March 2001 at exchange rate of USD 100 = DKK 847.19
DKK million Q1 2001 Q1 2000 % change
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Focus on Shareholder Value Focus on Shareholder Value
Top management last year all invested equal Top management last year all invested equal to one year’s gross salary in Novo Nordisk to one year’s gross salary in Novo Nordisk sharesshares
Four options received on each purchase of Four options received on each purchase of Novo Nordisk shares Novo Nordisk shares
Annual option programme based on Annual option programme based on performance continuesperformance continues
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Estimated market potential for Estimated market potential for current NovoSeven® indication current NovoSeven® indication of USD 350 million of USD 350 million
Entering 6 new clinical areas with Entering 6 new clinical areas with 8 new studies in 20018 new studies in 2001
Strategy for making NovoSeven® Strategy for making NovoSeven® the first general haemostatic the first general haemostatic agentagent
Moving towards haemostasis Moving towards haemostasis managementmanagement
Patent protection in Europe and Patent protection in Europe and the US until 2011the US until 2011
Patent protection in Japan until Patent protection in Japan until 20072007
PrimaryPrimarygrowthgrowthdriversdrivers
Secondary Secondary valuevalue
driversdrivers
Novo Nordisk – Key DriversNovo Nordisk – Key Drivers
World leader with steady growthWorld leader with steady growth for 77 years for 77 years
2/3 of business (insulin) growing2/3 of business (insulin) growing >10% p.a. >10% p.a.
Growth platform in the USGrowth platform in the US
The most comprehensive insulin and The most comprehensive insulin and insulin device portfolio in the industry insulin device portfolio in the industry – one new device per year– one new device per year
Sensitisers (NN2344 and NN622)Sensitisers (NN2344 and NN622)
Reduction of glucose output from Reduction of glucose output from the liver (NN4201)the liver (NN4201)
GLP-1 analogue (NN2211)GLP-1 analogue (NN2211)
Insulin secretion (NN414)Insulin secretion (NN414)
Diabetes careDiabetes care Coagulation disordersCoagulation disorders
HRTHRTHuman growth Human growth
hormonehormoneIntellectual Intellectual
propertyproperty
24
0%
20%
40%
60%
Astra
Zenec
a
Scher
ing-P
l.
Eli Lill
y
Merck
BMS
Aventis
GSK
Pharm
acia
Pfizer
Novo N
ordis
k
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
25
Forward-looking statementsForward-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 expectations, including unexpected developments in the international currency exchange and securities markets, government-mandated or market-driven price decreases for Novo Nordisk's products in the company's major markets and the introduction of competing products within Novo Nordisk's core businesses.
These and other risks and uncertainties are further described in reports filed with the US Securities and Exchange Commission (SEC) by Novo Nordisk and readily available to the public, including the company's Form 20-F, which was filed on 27 April 2001.
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AppendixAppendix
27
00
2020
4040
6060
8080
100100
120120
140140
160160
180180
1995
1995
1996
1996
1997
1997
1998
1998
1999
1999
2000
2000
Long actingLong acting PremixesPremixes Short actingShort acting
More intensive treatment More intensive treatment
The share of sales of The share of sales of short-acting and pre-short-acting and pre-mixable insulin has mixable insulin has
increased increased substantiallysubstantially
Note: Numbers are all MAT Q4 Note: Numbers are all MAT Q4
+3%+3% +6%+6%+4%+4%
+7%+7%+9%+9%
25%25%
39%39%
36%36%
48%48%
33%33%
1919%%
This indicates This indicates intensive/flexible intensive/flexible
treatment is being treatment is being adaptedadapted
Mega U
nits in
Mega U
nits in
1,0001,000
28
0%0% 25%25% 50%50% 75%75% 100%100%
19961996
19971997
11998998
19991999
20002000
JapanJapan EuropeEurope USUS
Towards more sophisticated devicesTowards more sophisticated devices% pen users in volume split by region% pen users in volume split by region
82%82%74%74%
7.3%7.3%
Note: Numbers are all MAT Q4Note: Numbers are all MAT Q4
61%61%53%53%
1.6%1.6%
29
Analogues to replace human insulinAnalogues to replace human insulin
0%
25%
50%
75%
100%
1986 1988 1990 1992 1994 1996 1998 2000
0%
25%
50%
75%
100%
1986 1988 1990 1992 1994 1996 1998 2000
Insulin analogueInsulin analogue
1%1%
90%90%
9%9%
Human insulinHuman insulin
Animal insulinAnimal insulin
% insulin volume split by type of insulin% insulin volume split by type of insulin
Note: Numbers are all MAT Q4 Note: Numbers are all MAT Q4
30
7.6%7.6%
6.8%6.8%
8.7%8.7%
15.8%15.8%
(0.1%)(0.1%)
World World
RoW RoW
Japan Japan
Europe Europe
USA USA
Insulin market overview Insulin market overview (’99/ ’00 MAT Q4 Volumes)(’99/ ’00 MAT Q4 Volumes)
Novo NordiskNovo NordiskMarket shareMarket share
Market growth Market growth (‘(‘0000/’/’9999))
4343%%
4747%%
4%4%
66%%
% market size % market size MAT Q4.00MAT Q4.00
100%100%
Notes: Industrialised world only. Mail-order panel now included in the US figures; sales via Wal-Mart are not. Notes: Industrialised world only. Mail-order panel now included in the US figures; sales via Wal-Mart are not. Market growth in Europe is affected by about +4 %-point from conversion of formulation in Italy and France. Market growth in Europe is affected by about +4 %-point from conversion of formulation in Italy and France. The effect on the world market is estimated to be just above +2 percentage point.The effect on the world market is estimated to be just above +2 percentage point. Adjusting for year 2K hoarding the US growth is estimated to be +1.5-2.0%. Adjusting for year 2K hoarding the US growth is estimated to be +1.5-2.0%.
25%25%
58%58%
80%80%
61%61%
45%45%
31
Diabetes pipelineDiabetes pipeline
NN2211NN2211 (GLP-1 analogue)(GLP-1 analogue)
NN1215NN1215 (LABI)(LABI)
NN1998NN1998 (AERx)(AERx)
NN4201NN4201 (Hepatic glucose (Hepatic glucose regulator)regulator)
NN304NN304 (Basal analogue) (Basal analogue)
NN2344 NN2344 (Insulin (Insulin sensitiser)sensitiser)
NN414NN414 (Insulin secretion)(Insulin secretion)
NN622NN622 (Dual acting sensitiser)(Dual acting sensitiser)
NovoMixNovoMix® (® (other mixes)other mixes)
Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3
(Premix analogue)(Premix analogue)
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Therapy:Therapy: Diet/ExerciseDiet/Exercise Oral products Oral products Oral/InsulinOral/Insulin InsulinInsulin Approx 66% Approx 66% Approx 7% Approx 27% Approx 7% Approx 27%
From diet and exercise to insulinFrom diet and exercise to insulinType 1:Type 1:(4 million patients*)(4 million patients*)
Type 2:Type 2:(147 million patients*)(147 million patients*)
* Estimated year 2000 incl. undiagnosed.* Estimated year 2000 incl. undiagnosed.
An estimated 25-30 million using medicationAn estimated 25-30 million using medication
33
06000600
NormalNormal
Type 2 diabetesType 2 diabetes
10001000 14001400 18001800 22002200 02000200 06000600
800800
700700
600600
500500
400400
300300
200200
100100
Insu
lin
Sec
reti
on
(p
mo
l/m
in)
Insu
lin
Sec
reti
on
(p
mo
l/m
in)
Kilde: O'MEARA et al. Am. J. Medicine, 1990; 89.Kilde: O'MEARA et al. Am. J. Medicine, 1990; 89.
Insulin Secretion in Normal People and People with Type 2 DiabetesInsulin Secretion in Normal People and People with Type 2 Diabetes
34
Outlook for 2001 as of 8 May 2001Outlook for 2001 as of 8 May 2001
Growth in operating profit of 15% is expected
Net financial income is expected to be approx DKK 300 million
Tax rate expected at 36%
Investments now expected to be over DKK 3 billion
Above outlook is based on the assumption that exchange rates remain at the current level (8 May 2001).
35
Turnover by region first quarterTurnover by region first quarter
DKK million Q1 2001 Q1 2000 % of total % change (Q1 2001)
Europe 2,669 2,225 50 20
USA 1,120 795 21 41
Japan 818 829 15 (1)
Rest of world 743 577 14 29
Total 5,350 4,426 100 21
36
TTurnover by therapy first quaurnover by therapy first quarrterter
DKK million 2001 2000 % of total % change (2001)
Insulin etc 3,399 2,917 63 17
NovoNorm®/Prandin® 355 236 7 50
Diabetes care, total 3,754 3,153 70 19
Coagulation disorders* 730 449 14 63
Human growth hormone 457 440 9 4
HRT 327 280 6 17
Other 82 104 1 (21)
Total 5,350 4,426 100 21
* NovoSeven®
37
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) 212 867 0123 (+1) 212 867 0123 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 ADSs are listed on the New York ADSs 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
