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A focused global healthcare company with biotech expertise June 2001

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Strong presence in Europe and Japan, strong growth in the US ... leading to fewer transfusions and thereby reducing post-operative complications ... – PowerPoint PPT presentation

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Title: A focused global healthcare company with biotech expertise June 2001


1
A focused global healthcare company with
biotech expertise June 2001
2
Novo Nordisk today
  • Focused on few therapeutic areas with large
    unmetmedical needs
  • Leadership in diabetes care and haemostasis
    management
  • Consistent, strong organic growth
  • Strong presence in Europe and Japan, strong
    growth in the US
  • Proven biotech and drug delivery capabilities
  • Low exposure to patent expirations
  • Track record of delivering on promises

3
Novo Nordisk Future Key Drivers
Coagulation disorders
Primarygrowth drivers
Diabetes care
Secondary valuedrivers
Human growth hormone
Intellectual property
HRT
4
Strongest growing major franchise
Market value growth
24
CNS
Cancer / Immune response
Sex Hormones Urologicals
16
Average 1995-1999
Respiratory
Gastro / Metabolism
Cardiovascular
Arthritis
8
Anti Infectives / Vaccines
12
20
4
2000
5
More 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
    increase Treating more assertively reduces burden
    of late stage complications!
  • Volume growth of at least 5 p.a.
    sustainable Current insulin market volume
    growth is 7-8!

6
Novo Nordisk will leverage on growth
  • 70 of Novo Nordisk turnover and 75 of RD 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

7
Product upgrades double the value of insulin
Vials
Estimated average treatment cost per day
Pens
Human insulin
USD 1.0
USD 1.5
Insulin analogue
USD 2.0
USD 1.3
8
Innovator of the device field
One new device innovation from Novo Nordisk per
year
9
Coming soon - a new advance in diabetes
management
10
Full range of new insulins expected
Insulin analogues
NVO LLY AVE
Rapid-acting Marketed Marketed
Ph2 Basal Ph3
Marketed Premix, protracted
Approved Marketed Inhaled insulin
NVO/ARDM LLY/ALKS AVE/ PFE/INHL
Rapid-acting Ph2 Ph1 Ph3
11
Broadest approach to Type 2 Diabetes
Genetic Acquired Glucotoxicity Lipotoxicity
Insulin deficiency
Insulin deficiency
Impaired beta cell function
Hepatic glucose production
Glucose-induced insulin secretion
Post receptor defect
Hyperglycemia
Tissue response to insulin
Glucose uptake
Basal hyper- insulinemia
Glucose transport
Insulin resistance
Insulin resistance
Insulin binding
Genetic Acquired Obesity Age
12
Novo Nordisk Future Key Drivers
Coagulation disorders
Primarygrowth drivers
Diabetes care
Secondary valuedrivers
Human growth hormone
Intellectual property
HRT
13
Bleeding 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

14
Key features of NovoSeven
  • The unique coagulation factor that activates
    platelets in an injury site selective manner by
    binding to tissue factor
  • Correction of coagulation within 10 minutes
  • Good safety profile
  • Indicated for treatment of haemophiliacs with
    antibodies against factor VIII or IX (inhibitor
    indication)

FVIIa / NovoSeven
Tissue factor
Rupture
15
NovoSeven makes a difference
  • Growth of 63 in Q1 2001 versus Q1 2000
  • Increased use for acquired haemophilia
  • Increased use in surgical procedures of inhibitor
    patients
  • Increased investigational use

Sales by quarter
DKK million
800
Inhibitor indication Est. market potential USD
350 million
600
400
200
0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
1998 1999 2000 2001
16
NovoSeven saves lives
  • Compassionate use program run for many years
    treating gt200 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

17
Studies aimed at expanding the indication
Expected benefits of NovoSeven
New clinical area targeted
) Patients with chronic liver disease
18
Moving towards general haemostasis
Coagulation Factor Deficiency
PlateletDisorder
GeneralHaemostasis
Spontaneous bleeding
Single Factor
Multiple Factors
Surgical bleeding
Lack of platelets
Defective platelets
Liver resection
Haemophilia with inhibitors
Intra-cerebral bleedsTraumatology
Vitamin K-antagonists
Bone marrow transplantation
Liver transplantations ) Upper
gastrointestinal bleedings ) Liver resection )
White Current indication Yellow Ongoing
studies Orange Studies to be initiated this
year ) Patients with chronic liver disease
19
Financials
20
Balancing growth and value
  • Long-term financial targets
  • EBIT growth of 15 per annum
  • EBIT margin of 25
  • ROIC of 25 (post-tax) per annum
  • Cash to earnings of 60

21
Financial results first quarter 2001
DKK million Q1 2001 Q1 2000 change
Net turnover 5,350 4,426 21 Operating profit
as reported 1,358 994 37 Operating profit
adjusted) 1,111 765 45Financial items 237
(34) n/a Profit before tax 1,595 960 66 Net
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
22
Focus on Shareholder Value
  • Top management last year all invested equal to
    one years gross salary in Novo Nordisk shares
  • Four options received on each purchase of Novo
    Nordisk shares
  • Annual option programme based on performance
    continues

23
Novo Nordisk Key Drivers
Diabetes care
Coagulation disorders
  • World leader with steady growth for 77 years
  • 2/3 of business (insulin) growing gt10 p.a.
  • Growth platform in the US
  • The most comprehensive insulin and insulin
    device portfolio in the industry one new
    device per year
  • Sensitisers (NN2344 and NN622)
  • Reduction of glucose output from the liver
    (NN4201)
  • GLP-1 analogue (NN2211)
  • Insulin secretion (NN414)
  • Estimated market potential for current NovoSeven
    indication of USD 350 million
  • Entering 6 new clinical areas with 8 new studies
    in 2001
  • Strategy for making NovoSeven the first general
    haemostatic agent
  • Moving towards haemostasis management
  • Patent protection in Europe and the US until 2011
  • Patent protection in Japan until 2007

Primarygrowthdrivers
Secondary valuedrivers
Human growth hormone
Intellectual property
HRT
24
No major patent expirations
of 2000 sales with patents expiring in 2001-2005
60
40
20
0
BMS
GSK
Pfizer
Merck
Aventis
Eli Lilly
Pharmacia
Schering-Pl.
AstraZeneca
Novo Nordisk
Source Nordea Securities
25
Forward-looking statements
This presentation contains forward-looking
statements as the term is defined in the US
Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to
risk and uncertainties that may cause actual
results to differ materially from 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.
26
Appendix
27
More intensive treatment
180
Long acting
Premixes
Short acting
The share of sales of short-acting and
pre-mixable insulin has increased substantially
9
160
7
140
4
25
6
3
Mega Units in 1,000
120
19
100
39
80
33
60
  • This indicates intensive/flexible treatment is
    being adapted

40
36
48
20
0
1995
1996
1997
1998
1999
2000
Note Numbers are all MAT Q4
28
Towards more sophisticated devices
pen users in volume split by region
82
74
2000
7.3
1999
1998
1997
61
1996
53
1.6
0
25
50
75
100
Japan
US
Europe
Note Numbers are all MAT Q4
29
Analogues to replace human insulin
insulin volume split by type of insulin
Insulin analogue
9
Human insulin
90
Animal insulin
1
Note Numbers are all MAT Q4
30
Insulin market overview (99/ 00 MAT Q4 Volumes)
Novo Nordisk Market share
Market growth (00/99)
market size MAT Q4.00
USA
(0.1)
43
25
Europe
15.8
58
47
Japan
8.7
80
4
RoW
6.8
6
61
World
7.6
100
45
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.
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.
31
Diabetes pipeline
Phase 1
Phase 2
Phase 3
  • NN1998 (AERx)
  • NN304 (Basal analogue)
  • NN414 (Insulin secretion)
  • NN4201 (Hepatic glucose
  • regulator)
  • NN2344 (Insulin sensitiser)
  • NovoMix (other mixes)

(Premix analogue)
  • NN1215 (LABI)
  • NN622 (Dual acting sensitiser)
  • NN2211 (GLP-1 analogue)

32
From diet and exercise to insulin
Type 1 (4 million patients) Type 2 (147
million patients)
Therapy Diet/Exercise Oral
products Oral/Insulin Insulin Approx
66 Approx 7 Approx 27
An estimated 25-30 million using medication

Estimated year 2000 incl. undiagnosed.
33
Insulin Secretion in Normal People and People
with Type 2 Diabetes
800
Normal
700
Type 2 diabetes
600
500
400
Insulin Secretion (pmol/min)
300
200
100
0600
1000
1400
1800
2200
0200
0600
Kilde O'MEARA et al. Am. J. Medicine, 1990 89.
34
Outlook 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 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 J
apan 818 829 15 (1) Rest of world 743 577 14
29 Total 5,350 4,426 100 21
36
Turnover by therapy first quarter
DKK million 2001 2000 of total
change (2001) Insulin
etc 3,399 2,917 63 17 NovoNorm/Prandin 355 2
36 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 Information
  • Investor Relations contactsNovo Nordisk A/S
    Investor Relations Novo Allé DK2880
    BagsværdDenmark
  • Fax (45) 4444 2314. Peter HaahrPhone (45)
    4442 1207 E-mail pehr_at_novonordisk.com
  • Palle Holm Olesen
    Phone (45) 4442 6175 E-mail
    phoo_at_novonordisk.com
  • Rasmus JorgensenPhone (1) 212 867 0123
    E-mail rrhj_at_novonordisk.com

Share informationNovo Nordisks B shares are
listed on the stock exchanges in Copenhagen and
London. Its ADSs are listed on the New York Stock
Exchange under the symbol "NVO". For further
company information, visit Novo Nordisk on the
internet at http//www.novonordisk.com
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