UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange
Act of 1934
APRIL 28, 2010
NOVO
NORDISK A/S
(Exact name of Registrant as specified in its charter)
Novo Allé
DK- 2880, Bagsvaerd
Denmark
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F
|
Form 20-F [X]
|
Form 40-F [ ]
|
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
|
Yes [ ]
|
No [X]
|
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g-32(b):82-_____________________
Company Announcement
Interim financial report for the period 1 January 2010 to 31 March 2010
27 April 2010
Operating profit
increased by 15% in the first quarter of 2010
Sales growth
driven by modern insulins and Victoza®
| • | Sales increased by 9% in Danish kroner and by 11% in local currencies. | |
| o | Sales of modern insulins increased by 17% (20% in local currencies). | |
| o | Sales of NovoSeven® increased by 6% (8% in local currencies). | |
| o | Sales of Norditropin® increased by 5% (7% in local currencies). | |
| o | Sales in North America increased by 15% (21% in local currencies). | |
| o | Sales
in International Operations increased by 10% (10% in local currencies). |
|
| • | Gross
margin improved by 1.0 percentage point in local currencies and by 0.4
percentage points in Danish kroner to 80.3% in the first quarter of 2010,
reflecting continued productivity improvements, higher average selling
prices in the US, favourable product mix development and a negative currency
impact of around 0.6 percentage points. |
| • | Reported
operating profit increased by 15% to DKK 4,382 million. Adjusted for the
impact from currencies, operating profit in local currencies increased
by around 20%. |
| • | Net
profit increased by 23% to DKK 3,324 million. Earnings per share (diluted)
increased by 27% to DKK 5.61. |
| • | Following
the approval of Victoza®
in the US on 25 January 2010, the product
was launched in February 2010. The initial performance in the US, as measured
by prescription level data, is encouraging. The European launch continues
to progress as expected, with Victoza®
now
launched in 14 countries including France. |
| • | The
largest clinical trial programme in the history of insulin therapy, the
phase 3 programmes BEGIN™ and BOOST™ for the next generation
of modern insulin analogues, Degludec and DegludecPlus, involving 10,000
patients in 43 countries, is progressing according to plan with more than
three quarters of the patients enrolled. |
| • | For 2010, sales growth measured in local currencies is now expected to be in the range of 7–10%, and operating profit measured in local currencies is now expected to increase by more than 10%. |
Lars Rebien Sørensen, president and CEO: “We are encouraged by the solid business performance in the first quarter of 2010. The increasing use of our modern insulins is the primary driver of growth. Furthermore, the roll-out of Victoza®, our new treatment for type 2 diabetes, is progressing well in both the US and Europe.”
|
Company Announcement
no 23 / 2010 |
Page
1 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Consolidated financial statement for the first quarter of 2010
The present unaudited interim financial report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and accounting policies set out in the Annual Report 2009 of Novo Nordisk. Furthermore, the interim financial report and Management’s review are prepared in accordance with additional Danish disclosure requirements for interim reports of listed companies. Novo Nordisk has adopted all new, amended or revised accounting standards and interpretations (‘IFRSs’) endorsed by the EU effective for the accounting period beginning on 1 January 2010. These IFRSs have not had a significant impact on the Group’s interim financial report.
Amounts in DKK million, except average number of shares outstanding, earnings per share and full-time employees.
|
%
change
|
||||||
|
Q1
2009
|
||||||
| Profit and loss | Q1 2010 | Q1 2009 | to Q1 2010 | |||
| Sales | 13,674 | 12,498 | 9% | |||
| Gross profit | 10,984 | 9,990 | 10% | |||
| Gross margin | 80.3% | 79.9% | ||||
| Sales and distribution costs | 3,984 | 3,844 | 4% | |||
| Percent of sales | 29.1% | 30.8% | ||||
| Research and development costs | 2,131 | 1,744 | 22% | |||
| Percent of sales | 15.6% | 14.0% | ||||
| Administrative expenses | 711 | 679 | 5% | |||
| Percent of sales | 5.2% | 5.4% | ||||
| Licence fees and other operating income | 224 | 87 | 157% | |||
| Operating profit | 4,382 | 3,810 | 15% | |||
| Operating margin | 32.0% | 30.5% | ||||
| Net financials | (65) | (305) | (79%) | |||
| Profit before income tax | 4,317 | 3,505 | 23% | |||
| Net profit | 3,324 | 2,699 | 23% | |||
| Net profit margin | 24.3% | 21.6% | ||||
| Other key numbers | ||||||
| Depreciation, amortisation and impairment losses | 581 | 607 | (4%) | |||
| Capital expenditure | 668 | 413 | 62% | |||
| Cash flow from operating activities | 4,231 | 4,148 | 2% | |||
| Free cash flow | 3,409 | 3,626 | (6%) | |||
| Total assets | 54,155 | 50,205 | 8% | |||
| Equity | 32,916 | 31,345 | 5% | |||
| Equity ratio | 60.8% | 62.4% | ||||
| Average number of shares outstanding (million) – diluted | 593.0 | 612.7 | (3%) | |||
| Diluted earnings per share / ADR (in DKK) | 5.61 | 4.41 | 27% | |||
| Full-time employees at the end of the period | 29,154 | 27,429 | 6% |
|
Company Announcement
no 23 / 2010 |
Page
2 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Sales development by segments
Sales increased by 9% in Danish kroner and by 11% measured in local currencies. While growth was realised within both diabetes care and biopharmaceuticals, the primary growth contribution originated from the modern insulins and supply chain pipeline filling for Victoza® in connection with the US launch, countered by a minor impact from the US healthcare reform.
|
Sales
|
Growth
|
Growth
|
Share
of
|
|||||
|
Q1
2010
|
as
|
in
local
|
growth
|
|||||
|
DKK
|
reported
|
currencies
|
in
local
|
|||||
|
million
|
currencies
|
|||||||
| The diabetes care segment | ||||||||
| Modern insulins | 5,862 | 17% | 20% | 69% | ||||
| – NovoRapid® | 2,616 | 15% | 18% | 28% | ||||
| – NovoMix® | 1,729 | 11% | 13% | 14% | ||||
| – Levemir® | 1,517 | 31% | 33% | 27% | ||||
| Human insulins | 2,773 | (8%) | (6%) | (14%) | ||||
| Victoza® | 370 | - | - | 27% | ||||
| Protein-related products | 503 | 4% | 4% | 2% | ||||
| Oral antidiabetic products | 645 | (7%) | (4%) | (2%) | ||||
| Diabetes care total | 10,153 | 11% | 13% | 82% | ||||
| The biopharmaceuticals segment | ||||||||
| NovoSeven® | 1,914 | 6% | 8% | 10% | ||||
| Norditropin® | 1,083 | 5% | 7% | 5% | ||||
| Other products | 524 | 7% | 8% | 3% | ||||
| Biopharmaceuticals total | 3,521 | 6% | 8% | 18% | ||||
| Total sales | 13,674 | 9% | 11% | 100% |
Sales development by regions
In the first quarter of 2010 all regions contributed to growth measured in local currencies. North America was the main contributor with 68% share of growth measured in local currencies, followed by International Operations and Europe contributing 19% and 12%, respectively. On 1 January 2010, an adjustment to Novo Nordisk’s regional set-up was implemented:
| • | Australia and New Zealand became part of region International Operations (they were previously part of region Japan & Oceania) |
| • | Korea became part of region Japan & Korea (Korea was previously part of region International Operations) |
The financial impact of the change is illustrated in appendix 1.
Diabetes
care
Sales of diabetes care
products increased by 11% measured in Danish kroner to DKK 10,153 million
and by 13% in local currencies compared to the first quarter of 2009.
Modern insulins,
human insulins and protein-related products
In the first quarter
of 2010, sales of modern insulins, human insulins and protein-related products
increased by 8% in Danish kroner to DKK 9,138 million and by 10% measured
in local currencies compared to the same period last year, with North America
and International Operations having the highest growth rates. Novo Nordisk
continues to be the global leader
|
Company Announcement
no 23 / 2010 |
Page
3 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
with 51% of the total insulin market and 45% of the modern insulin market, both measured by volume.
The sales growth is driven by the portfolio of modern insulins exhibiting steady sales growth globally. Sales of modern insulins increased by 17% in Danish kroner to DKK 5,862 million and by 20% in local currencies compared to the first quarter of 2009. All regions realised solid growth rates, with North America accounting for more than half of the growth, followed by Europe and International Operations. Sales of modern insulins now constitute 68% of Novo Nordisk’s sales of insulin.
North America
Sales in North America
increased by 10% in Danish kroner and by 16% in local currencies in the first
quarter of 2010, reflecting a solid penetration of the modern insulins Levemir®,
NovoLog®
and NovoLog®
Mix 70/30. Novo Nordisk maintains its leadership position in the US insulin
market with 42% of the total insulin market and 35% of the modern insulin
market, both measured by volume. Currently, around 41% of Novo Nordisk’s
modern insulin volume in the US is being sold in the prefilled device FlexPen®.
Europe
Sales in Europe increased
by 5% measured in Danish kroner and increased by 4% in local currencies, reflecting
continued progress for the portfolio of modern insulins and declining human
insulin sales. Novo Nordisk holds 54% of the total insulin market and 51%
of the modern insulin market, both measured by volume, and is capturing the
main share of growth in the modern insulin market. The device penetration
in Europe remains high with more than 95% of Novo Nordisk’s insulin volume
being sold in devices, primarily NovoPen®
and FlexPen®.
International
Operations
Sales within International
Operations increased by 12% in Danish kroner and by 13% in local currencies.
The main contributor to growth in the first quarter of 2010 was sales of modern
insulins, primarily in China, where Levemir®
was launched in February 2010. Furthermore, sales of human insulins continue
to add to overall growth in the region, also driven by China.
Japan &
Korea
Sales in Japan &
Korea decreased by 3% measured in Danish kroner and decreased by 1% in local
currencies. The sales development reflects sales growth for all three modern
insulins, NovoRapid®,
NovoRapid Mix®
30 and Levemir®, in a very competitive market, countered
by decline in human insulin sales. Novo Nordisk holds 66% of the total insulin
market in Japan and 58% of the modern insulin market, both measured by volume.
The device penetration in Japan remains high with more than 95% of Novo Nordisk’s
insulin volume being sold in devices, primarily NovoPen® and FlexPen®.
Victoza®
(GLP-1 therapy for type 2 diabetes)
Victoza®
sales reached DKK 370 million during the first quarter of 2010, impacted by
the supply chain pipeline filling in the US of approximately DKK 250 million
in connection with the launch mid-February 2010. The initial market feedback
is positive for Victoza®,
which has now been made commercially available in Germany, the UK, Denmark,
Austria, Ireland, Norway, Sweden, the Netherlands, Switzerland, the US, Greece,
Hungary, Poland, Finland and France.
|
Company Announcement
no 23 / 2010 |
Page
4 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +454444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Oral antidiabetic
products (NovoNorm®/Prandin®)
In the first quarter
of 2010, sales of oral antidiabetic products decreased by 7% in Danish kroner
to DKK 645 million and by 4% in local currencies compared to the same period
in 2009. The sales development primarily reflects lower sales in Europe due
to generic competition in Germany compared to the same period last year.
Biopharmaceuticals
In the first quarter
of 2010, sales of biopharmaceutical products increased by 6% measured in Danish
kroner to DKK 3,521 million and by 8% measured in local currencies compared
to the first quarter of 2009.
NovoSeven®
(bleeding disorders)
Sales of NovoSeven®
increased by 6% in Danish kroner to DKK 1,914 million and by 8% in local currencies
compared to the first quarter of 2009. Sales growth for NovoSeven® was primarily realised in North America.
The sales growth for NovoSeven® mainly reflected increased sales from
treatment of spontaneous bleeding episodes for congenital inhibitor patients,
which remains the largest therapeutic area of use for NovoSeven®.
The room temperature-stable version of rFVIIa, NovoSeven®
RT, was launched in Japan in April 2010. The full-year sales growth for NovoSeven®
is expected to be negatively impacted by the loss of the federal tender in
Russia.
Norditropin®
(growth hormone therapy)
Sales of Norditropin®
increased by 5% measured in Danish kroner to DKK 1,083 million and by 7% measured
in local currencies compared to the first quarter of 2009. Growth in local
currencies was realised in all regions with North America being the main contributor.
Novo Nordisk remains the second-largest company in the global growth hormone
market with a 25% market share measured by volume.
Other products
Sales of other products
within biopharmaceuticals, which predominantly consist of hormone replacement
therapy (HRT)-related products, increased by 7% in Danish kroner to DKK 524
million and by 8% in local currencies. This development primarily reflects
continued sales progress for Vagifem®,
a topical oestrogen product, countered by generic competition in the US with
Activella®,
Novo Nordisk’s continuous-combined HRT product. In February 2010, a low-dose
version of Vagifem®
was launched in the US.
Development in costs and operating profit
The cost of goods sold was DKK 2,690 million in the first quarter of 2010 representing a gross margin of 80.3% compared to 79.9% in the same period of 2009. This reflects improved production efficiency, higher average selling prices in the US and a favourable product mix development. The gross margin was negatively impacted by around 0.6 percentage points due to the currency developments, primarily the lower value of the US dollar and the Japanese yen versus the Danish krone compared to the first quarter of 2009.
In the first quarter of 2010, total non-production-related costs increased by 9% to DKK 6,826 million compared to the same period last year. This development primarily reflects the costs associated with the global launch of Victoza®, impacting sales and distribution costs, and the ongoing phase 3 programme for the next generation of insulins, impacting R&D costs.
|
Company Announcement
no 23 / 2010 |
Page
5 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Licence fees and other operating income were DKK 224 million in the first quarter of 2010 compared to DKK 87 million in the same period of 2009. The development is primarily driven by income from Novo Nordisk’s portfolio of intellectual property including a non-recurring income of approximately DKK 100 million related to a settlement.
Net financials
Net financials showed
a net expense of DKK 65 million in the first quarter of 2010 compared to a
net expense of DKK 305 million in the same period of 2009.
Included in net financials is the result from associated companies with an income of DKK 65 million, primarily related to an accounting gain in relation to the successful public offering by ZymoGenetics, Inc. in January 2010. In the same period of 2009, the result from associated companies was an expense of DKK 35 million.
For the first quarter of 2010, the foreign exchange result was an expense of DKK 137 million compared to an expense of DKK 327 million in the first quarter of 2009. This development reflects losses on foreign exchange hedging of especially US dollars due to the recent appreciation versus the Danish krone. Foreign exchange hedging losses of around DKK 700 million have been deferred for future income recognition in 2010 and 2011.
Outlook for
2010
The current expectations
for 2010 are summarised and compared to the previous expectations in the table
below (changes highlighted in bold and italics):
| Expectations are as reported, if not otherwise stated |
Current
expectations
27 April 2010 |
Previous
expectations
2 February 2010 |
|
|
|
|
|
|
| Sales growth | |||
| - in local currencies |
7-10%
|
6–10%
|
|
| - as reported |
Around
3 percentage points
|
At
a similar level as local
|
|
|
higher
|
currencies
|
||
|
|
|
|
|
| Operating profit growth | |||
| - underlying |
More
than 10%
|
Around
10%
|
|
| - as reported |
Around
6 percentage points
|
At
a similar level as local
|
|
|
higher
|
currencies
|
||
|
|
|
|
|
| Net financial expense |
Around
DKK 700 million
|
Around
DKK 100 million
|
|
|
|
|
|
|
| Effective tax rate |
Approximately
23%
|
Approximately
23%
|
|
|
|
|
|
|
| Capital expenditure |
Around
DKK 3.5 billion
|
Around
DKK 3.5 billion
|
|
|
|
|
|
|
| Depreciation, amortisation and impairment losses |
Around
DKK 2.7 billion
|
Around
DKK 2.7 billion
|
|
|
|
|
|
|
| Free cash flow |
More
than DKK 12 billion
|
Around
DKK 12 billion
|
|
|
|
|
|
|
Novo Nordisk now expects sales growth in 2010 of 7–10% measured in local currencies. This is based on expectations of continued market penetration for Novo Nordisk’s key strategic products within diabetes care, including continued global roll-out of Victoza®, and biopharmaceuticals as well as expectations of continued intense competition, potential generic competition to NovoNorm®/Prandin® and an impact from the implementation of the healthcare reform in the US. Given the current level of exchange rates versus the Danish krone, the
|
Company Announcement
no 23 / 2010 |
Page
6 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
reported sales growth is now expected to be 3 percentage points higher than measured in local currencies.
For 2010, growth in operating profit is now expected to be more than 10% measured in local currencies, primarily driven by the slight change in sales growth expectations. Given the current level of exchange rates versus the Danish krone, the reported operating profit growth is now expected to be 6 percentage points higher than measured in local currencies.
For 2010, Novo Nordisk expects a net financial expense of around DKK 700 million. The current expectation primarily reflects losses on foreign exchange hedging contracts.
The effective tax rate for 2010 is expected to be maintained at around 23%.
Capital expenditure is expected to be around DKK 3.5 billion in 2010, primarily related to investments in the new insulin formulation and filling plant in China and new device capacity in Denmark. Expectations for depreciations, amortisation and impairment losses are around DKK 2.7 billion whereas free cash flow is now expected to be more than DKK 12 billion.
All of the above expectations are based on the assumption that the global economic environment will not significantly change business conditions for Novo Nordisk during 2010 and that currency exchange rates, especially the US dollar, remain at the current level versus the Danish krone during 2010 (see appendix 7). Novo Nordisk has hedged expected net cash flows in a number of invoicing currencies and, all other things being equal, movements in key invoicing currencies will impact Novo Nordisk’s operating profit as outlined in the table below.
|
Key
invoicing
currencies
|
Annual
impact on Novo Nordisk’s
operating
profit of a 5%
movement
in currency
|
Hedging
period
(months)
|
|
|
USD
|
DKK
580 million
|
16
|
|
|
JPY
|
DKK
150 million
|
15
|
|
|
CNY
|
DKK
100 million
|
16*
|
|
|
GBP
|
DKK
80 million
|
13
|
|
|
CAD
|
DKK
40 million
|
8
|
*USD used as proxy when hedging Novo Nordisk’s CNY currency exposure
The financial impact from foreign exchange hedging is included in ‘Net financials’.
Research and development update
Diabetes
care
The phase 3 programmes
for Degludec and DegludecPlus, named BEGIN™ and BOOST™, respectively,
continue to progress well. During the first quarter of 2010, Novo Nordisk
initiated seven trials in the fourth wave of clinical trials in the phase
3a programme to support regulatory filing. These trials evaluate the use of
insulin degludec once daily or three times weekly in people with type 1 or
type 2 diabetes compared to insulin glargine.
The last
phase 3a trial in the US, EU and Japanese markets is expected to be initiated
during the second quarter of 2010. Three trials, two with Degludec and one
with DegludecPlus, have been initiated to support the regulatory filing in
Japan. Results from several Degludec and DegludecPlus phase 2 studies have
been accepted for presentation at the annual meeting of
|
Company Announcement
no 23 / 2010 |
Page
7 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
the American Diabetes Association in Orlando, Florida, which will take place from 25 to 29 June this year.
Novo Nordisk has completed a phase 1 study with a fixed ratio combination of Degludec and Victoza®. The results of the study were encouraging and support continued development. Novo Nordisk will now engage in dialogue with the regulatory authorities regarding the design of the further clinical development programme, which is expected to be initiated in 2011.
In March 2010, Novo Nordisk initiated a phase 1 trial for an orally administered GLP-1 analogue formulated using Merrion Pharmaceutical’s GIPET® technology.
In China, Novo Nordisk filed PrandiMet® in March 2010, the fixed combination of repaglinide and metformin, for regulatory approval with the State Food and Drug Administration (SFDA).
Biopharmaceuticals
In March, the US Food
and Drug Administration (FDA) approved Norditropin® FlexPro®,
a new prefilled injection pen for growth hormone to be used by children and
adults. Norditropin®
FlexPro®
has a unique new dosing mechanism, a user-friendly design and an audible click
confirming dose delivery. Novo Nordisk launched Norditropin®
FlexPro® in the US in April 2010.
Novo Nordisk now expects to complete the ongoing phase 2a study with NN8630, a once-weekly growth hormone, in children with growth hormone deficiency (GHD), in the third quarter of 2010 due to slower than anticipated patient recruitment.
Equity
Total equity was DKK
32,916 million at the end of the first quarter of 2010, equal to 60.8% of
total assets, compared to 65.3% at the end of 2009. Please refer to appendix
5 for further elaboration of changes in equity during the first quarter of
2010.
Reduction
of share capital
The Annual General
Meeting of Novo Nordisk A/S, which was held on 24 March 2010, approved a 3.2%
reduction in the total share capital by cancellation of 20,000,000 treasury
B shares of DKK 1 at a nominal value of DKK 20,000,000. After the legal implementation
of the share capital reduction, which is expected to take place after expiry
of the legal notice period in June 2010, Novo Nordisk’s share capital
will amount to DKK 600,000,000 divided into an A share capital of DKK 107,487,200
and a B share capital of DKK 492,512,800.
Treasury
shares and share repurchase programme
On 2 February 2010,
Novo Nordisk initiated a share repurchase programme in accordance with the
provisions of the European Commission’s regulation no 2273/2003 of 22
December 2003 (The Safe Harbour Regulation), with J.P. Morgan Securities Ltd.
as lead manager. The purpose of the programme was a reduction of the company’s
share capital. Under the programme Novo Nordisk has repurchased B shares for
an amount of DKK 2.0 billion in the period from 2 February 2010 to 26 April
2010. The programme was concluded on 26 April 2010.
As per 26 April 2010, Novo Nordisk A/S and its wholly-owned affiliates owned 35,136,798 of its own B shares, corresponding to 5.7% of the total share capital.
As part of the execution of Novo Nordisk A/S’ overall DKK 7.5 billion share repurchase programme for 2010, a new share repurchase programme has been initiated. According to
|
Company Announcement
no 23 / 2010 |
Page
8 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
this, J.P. Morgan Securities Ltd. will repurchase shares on behalf of Novo Nordisk for an amount of up to DKK 2.5 billion during the trading period from 27 April 2010 to 3 August 2010. A maximum of 205,678 shares can be bought during one single trading day, equal to 20% of the average daily trading volume of Novo Nordisk B shares on NASDAQ OMX Copenhagen during the month of March 2010, and a maximum of 13,986,090 shares in total can be bought during the trading period. At least once every seven trading days, Novo Nordisk will issue an announcement in respect of the transactions made under the repurchase programme.
Sustainability
update
People
During the first quarter,
Novo Nordisk hired 976 new employees compared to 1,509 in the same period
last year. The total number of full-time employees was 29,154 at the end of
March 2010 compared to 28,809 at the end of 2009. New hiring continues to
be led by expansion in International Operations.
Access
to treatment
Novo Nordisk doubled
the number of children enrolled in its Changing Diabetes® in Children programme to more than
900 during the first quarter of 2010. The programme offers free insulin, treatment
and diabetes education for children and their families in the world’s
poorest countries. The company’s ambition is to reach 10,000 children
towards 2015.
Responsible
sourcing
Seven supplier audits
were conducted during the first quarter of 2010 as part of Novo Nordisk’s
ongoing efforts to ensure that business partners are meeting ethical, social
and environmental performance standards.
Legal update
As of 26 April 2010,
Novo Nordisk Inc., along with a majority of the hormone therapy product manufacturers
in the US, is a defendant in product liability lawsuits related to hormone
therapy products. These lawsuits currently involve a total of 51 individuals
who allege use of a Novo Nordisk hormone therapy product. The products (Activella® and Vagifem®)
have been sold and marketed in the US since 2000. Until July 2003, the products
were sold and marketed exclusively in the US by Pharmacia & Upjohn Company
(now Pfizer Inc.). Furthermore, 63 individuals currently allege, in relation
to similar lawsuits against Pfizer Inc., that they have also used a Novo Nordisk
hormone therapy product. Currently, Novo Nordisk does not have any trials
scheduled in 2010. Novo Nordisk does not expect the pending claims to have
a material impact on Novo Nordisk's financial position.
Novo Nordisk is involved in an ongoing patent infringement dispute with Caraco Pharmaceutical Laboratories, Ltd. (Caraco) regarding Caraco’s application to market a generic version of Prandin® (repaglinide) in the US. On 14 April 2010, the Court of Appeals for the Federal Circuit in Washington D.C., USA, decided in favour of Novo Nordisk, allowing Novo Nordisk to retain its current Use Code (which describes the therapeutic use for Prandin®). Caraco will, as a consequence of the Use Code, be required by the FDA to amend its label to include the repaglinide–metformin combination. Pursuant to an earlier stipulation between the parties, Caraco has conceded infringement if the combined use is included in its label. The validity trial regarding Novo Nordisk’s U.S. Patent No. 6,677,358 (‘358 patent), which covers the Prandin®/metformin combination, is currently planned to proceed on 1 June 2010 in the District Court.
|
Company Announcement
no 23 / 2010 |
Page
9 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Financial calendar
| 5 August 2010 | Financial results for the first six months of 2010 |
| 27 October 2010 | Financial results for the first nine months of 2010 |
| 2 February 2011 | Financial results for 2010 |
Conference
call details
At 13.00 CET today,
corresponding to 7.00 am EDT, a conference call will be held. Investors will
be able to listen in via a link on novonordisk.com,
which can be found under ‘Investors – Download centre’. Presentation
material for the conference call will be made available approximately one
hour before on the same page.
Forward-looking
statement
Novo Nordisk’s
reports filed with or furnished to the US Securities and Exchange Commission
(SEC), including this document as well as the company’s Annual Report 2009
and Form 20-F, both filed with the SEC in February 2010, and written information
released, or oral statements made, to the public in the future by or on behalf
of Novo Nordisk, may contain forward-looking statements. Words such as ‘believe’,
‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’,
‘prospect’, ‘foresee’, ‘estimate’, ‘project’,
‘anticipate’, ‘can’, ‘intend’, ‘target’
and other words and terms of similar meaning in connection with any discussion
of future operating or financial performance identify forward-looking statements.
Examples of such forward-looking statements include, but are not limited to:
| - | statements of plans, objectives or goals for future operations, including those related to Novo Nordisk’s products, product research, product development, product introductions and product approvals as well as cooperation in relation thereto |
| - | statements containing projections of or targets for revenues, income (or loss), earnings per share, capital expenditures, dividends, capital structure or other net financials |
| - | statements of future economic performance, future actions and outcome of contingencies such as legal proceedings |
| - | statements of the assumptions underlying or relating to such statements. |
In this document, examples of forward-looking statements can be found under the headings ‘Outlook for 2010’, ‘Research and development update’, ‘Equity’ and ‘Legal update’.
These statements are based on current plans, estimates and projections. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific. Novo Nordisk cautions that a number of important factors, including those described in this document, could cause actual results to differ materially from those contemplated in any forward-looking statements.
Factors that may affect future results include, but are not limited to, global as well as local political and economic conditions, including interest rate and currency exchange rate fluctuations, delay or failure of projects related to research and/or development, unplanned loss of patents, interruptions of supplies and production, product recall, unexpected contract breaches or terminations, government-mandated or market-driven price decreases for Novo Nordisk’s products, introduction of competing products, reliance on information technology, Novo Nordisk’s ability to successfully market current and new products, exposure to product liability and legal proceedings and investigations, changes in governmental laws and related interpretation thereof, including on reimbursement, intellectual property protection and
|
Company Announcement
no 23 / 2010 |
Page
10 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
regulatory controls on testing, approval, manufacturing and marketing, perceived or actual failure to adhere to ethical marketing practices, investments in and divestitures of domestic and foreign companies, unexpected growth in costs and expenses, failure to recruit and retain the right employees and failure to maintain a culture of compliance.
Please also refer to the overview of risk factors in ‘Risk Management’ on pp 40–42 of the Annual Report 2009 available on the company’s website (novonordisk.com).
Unless required by law, Novo Nordisk is under no duty and undertakes no obligation to update or revise any forward-looking statement after the distribution of this document, whether as a result of new information, future events or otherwise.
|
Company Announcement
no 23 / 2010 |
Page
11 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Management statement
Today, the Board of Directors and Executive Management reviewed and approved the interim financial report of Novo Nordisk A/S for the first quarter of 2010. The interim financial report has not been audited or reviewed by the company’s independent auditors.
The interim financial report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and accounting policies set out in the Annual Report 2009 of Novo Nordisk. Furthermore, the interim financial report and Management’s Review are prepared in accordance with additional Danish disclosure requirements for interim reports of listed companies.
In our opinion, the accounting policies used are appropriate and the overall presentation of the interim financial report is adequate. Furthermore, in our opinion, Management's Review includes a true and fair account of the development in the operations and financial circumstances, of the results for the period and of the financial position of the Group as well as a description of the most significant risks and elements of uncertainty facing the Group in accordance with Danish disclosure requirements for listed companies.
Bagsværd 27 April 2010
Executive Management:
|
Lars
Rebien Sørensen
|
Jesper
Brandgaard
|
|
| President and CEO | CFO | |
| Lise Kingo | Kåre Schultz | Mads Krogsgaard Thomsen |
| CoS | COO | CSO |
| Board of Directors: | ||
| Sten Scheibye | Göran A Ando | |
| Chairman | Vice chairman | |
| Henrik Gürtler | Ulrik Hjulmand-Lassen | Pamela J Kirby |
| Anne Marie Kverneland | Kurt Anker Nielsen | Søren Thuesen Pedersen |
| Hannu Ryöppönen | Stig Strøbæk | Jørgen Wedel |
|
Company Announcement
no 23 / 2010 |
Page
12 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Contacts for further information
| Media: |
Investors:
|
| Elin K Hansen |
Klaus
Bülow Davidsen
|
| Tel: (+45) 4442 3450 |
Tel:
(+45) 4442 3176
|
| ekh@novonordisk.com |
klda@novonordisk.com
|
|
Kasper
Roseeuw Poulsen
|
|
|
Tel:
(+45) 4442 4471
|
|
|
krop@novonordisk.com
|
|
| In North America: |
In
North America
|
| Sean Clements |
Hans
Rommer
|
| Tel: (+1) 609 514 8316 |
Tel:
(+1) 609 919 7937
|
| secl@novonordisk.com |
hrmm@novonordisk.com
|
Further information about Novo Nordisk is available on the company’s website novonordisk.com
|
Company Announcement
no 23 / 2010 |
Page
13 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Appendix 1: Quarterly numbers in DKK
(Amounts in DKK million, except number of employees, earnings per share and number of shares outstanding).
|
%
change
|
||||||||||||
|
2010
|
2009
|
Q1
2010 vs
|
||||||||||
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q1
2009
|
|||||||
|
|
|
|
|
|
|
|||||||
| Sales | 13,674 | 13,062 | 12,517 | 13,001 | 12,498 | 9% | ||||||
| Gross profit | 10,984 | 10,427 | 9,832 | 10,391 | 9,990 | 10% | ||||||
| Gross margin | 80.3% | 79.8% | 78.5% | 79.9% | 79.9% | |||||||
| Sales and distribution costs | 3,984 | 4,237 | 3,502 | 3,837 | 3,844 | 4% | ||||||
| Percent of sales | 29.1% | 32.4% | 28.0% | 29.5% | 30.8% | |||||||
| Research and development costs | 2,131 | 2,387 | 1,884 | 1,849 | 1,744 | 22% | ||||||
| Percent of sales | 15.6% | 18.3% | 15.1% | 14.2% | 14.0% | |||||||
| Administrative expenses | 711 | 726 | 666 | 693 | 679 | 5% | ||||||
| Percent of sales | 5.2% | 5.6% | 5.3% | 5.3% | 5.4% | |||||||
| Licence fees and other operating income (net) | 224 | 142 | 34 | 78 | 87 | 157% | ||||||
| Operating profit | 4,382 | 3,219 | 3,814 | 4,090 | 3,810 | 15% | ||||||
| Operating margin | 32.0% | 24.6% | 30.5% | 31.5% | 30.5% | |||||||
| Share of profit/(loss) in associated companies | 65 | (2) | (7) | (11) | (35) | (286%) | ||||||
| Financial income | 65 | 58 | 9 | 166 | 142 | (54%) | ||||||
| Financial expenses | 195 | 283 | 209 | 361 | 412 | (53%) | ||||||
| Profit before income taxes | 4,317 | 2,992 | 3,607 | 3,884 | 3,505 | 23% | ||||||
| Net profit | 3,324 | 2,323 | 2,755 | 2,991 | 2,699 | 23% | ||||||
| Depreciation, amortisation and impairment losses | 581 | 754 | 657 | 533 | 607 | (4%) | ||||||
| Capital expenditure | 668 | 935 | 726 | 557 | 413 | 62% | ||||||
| Cash flow from operating activities | 4,231 | 3,583 | 5,039 | 2,608 | 4,148 | 2% | ||||||
| Free cash flow | 3,409 | 2,402 | 4,242 | 2,062 | 3,626 | (6%) | ||||||
| Total assets | 54,155 | 54,742 | 52,589 | 51,246 | 50,205 | 8% | ||||||
| Total equity | 32,916 | 35,734 | 34,874 | 34,086 | 31,345 | 5% | ||||||
| Equity ratio | 60.8% | 65.3% | 66.3% | 66.5% | 62.4% | |||||||
| Full-time employees at the end of the period | 29,154 | 28,809 | 28,497 | 27,998 | 27,429 | 6% | ||||||
| Basic earnings per share (in DKK) | 5.66 | 3.95 | 4.62 | 4.96 | 4.44 | 27% | ||||||
| Diluted earnings per share (in DKK) | 5.61 | 3.92 | 4.58 | 4.91 | 4.41 | 27% | ||||||
| Average number of shares outstanding (million) | 587.6 | 589.9 | 596.4 | 603.1 | 607.4 | (3%) | ||||||
| Average number of shares outstanding incl | ||||||||||||
| dilutive effect of options 'in the money' (million) | 593.0 | 595.2 | 601.4 | 607.9 | 612.7 | (3%) | ||||||
| Sales by business segments: | ||||||||||||
| Modern insulins (insulin analogues) | 5,862 | 5,714 | 5,353 | 5,414 | 4,990 | 17% | ||||||
| Human insulins | 2,773 | 2,685 | 2,747 | 2,879 | 3,004 | (8%) | ||||||
| Victoza® | 370 | - | - | - | - | - | ||||||
| Protein-related products | 503 | 569 | 519 | 492 | 484 | 4% | ||||||
| Oral antidiabetic products (OAD) | 645 | 636 | 650 | 675 | 691 | (7%) | ||||||
| Diabetes care total | 10,153 | 9,604 | 9,269 | 9,460 | 9,169 | 11% | ||||||
| NovoSeven® | 1,914 | 1,742 | 1,651 | 1,874 | 1,805 | 6% | ||||||
| Norditropin® | 1,083 | 1,171 | 1,074 | 1,122 | 1,034 | 5% | ||||||
| Hormone replacement therapy | 443 | 460 | 440 | 435 | 409 | 8% | ||||||
| Other products | 81 | 85 | 83 | 110 | 81 | 0% | ||||||
| Biopharmaceuticals total | 3,521 | 3,458 | 3,248 | 3,541 | 3,329 | 6% | ||||||
| Sales by geographic regions: | ||||||||||||
| North America | 5,221 | 4,510 | 4,527 | 4,710 | 4,532 | 15% | ||||||
| Europe | 4,432 | 4,594 | 4,376 | 4,375 | 4,195 | 6% | ||||||
| International Operations | 2,865 | 2,656 | 2,447 | 2,661 | 2,607 | 10% | ||||||
| Japan & Korea | 1,156 | 1,302 | 1,167 | 1,255 | 1,164 | (1%) | ||||||
| Segment operating profit: | ||||||||||||
| Diabetes care | 2,554 | 1,720 | 2,286 | 2,333 | 2,171 | 18% | ||||||
| Biopharmaceuticals | 1,828 | 1,499 | 1,528 | 1,757 | 1,639 | 12% | ||||||
| Regional split prior to the organisational change: | ||||||||||||
| International Operations |
N/A
|
2,493
|
2,288
|
2,532
|
2,513
|
N/A
|
||||||
| Japan & Oceania |
N/A
|
1,465
|
1,326
|
1,384
|
1,258
|
N/A
|
|
Company Announcement
no 23 / 2010 |
Page
14 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Appendix 2: Statement of comprehensive income
|
Q1
|
Q1
|
|||
| DKK million |
2010
|
2009
|
||
|
|
|
|
||
| Income statement | ||||
| Sales |
13,674
|
12,498
|
||
| Cost of goods sold |
2,690
|
2,508
|
||
|
|
|
|
||
| Gross profit |
10,984
|
9,990
|
||
| Sales and distribution costs |
3,984
|
3,844
|
||
| Research and development costs |
2,131
|
1,744
|
||
| Administrative expenses |
711
|
679
|
||
| Licence fees and other operating income (net) |
224
|
87
|
||
|
|
|
|
||
| Operating profit |
4,382
|
3,810
|
||
| Share of profit or loss of associated companies, net of tax |
65
|
(35
|
) | |
| Financial income |
65
|
142
|
||
| Financial expenses |
195
|
412
|
||
|
|
|
|
||
| Profit before income taxes |
4,317
|
3,505
|
||
| Income taxes |
993
|
806
|
||
|
|
|
|
||
| NET PROFIT |
3,324
|
2,699
|
||
| Basic earnings per share (DKK) |
5.66
|
4.44
|
||
| Diluted earnings per share (DKK) |
5.61
|
4.41
|
||
| Segment Information | ||||
| Segment sales: | ||||
| Diabetes care |
10,153
|
9,169
|
||
| Biopharmaceuticals |
3,521
|
3,329
|
||
| Segment operating profit: | ||||
| Diabetes care |
2,554
|
2,171
|
||
| Operating margin |
25.2%
|
|
23.7%
|
|
| Biopharmaceuticals |
1,828
|
1,639
|
||
| Operating margin |
51.9%
|
|
49.2%
|
|
| Total segment operating profit |
4,382
|
3,810
|
||
|
|
|
|
||
| Statement of comprehensive income | ||||
| Net profit for the period |
3,324
|
2,699
|
||
| Other comprehensive income: | ||||
| Gains and losses arising from translating the financial statement of | ||||
| foreign operations and re-measuring available-for-sale financial assets |
136
|
163
|
||
| Adjustment of cash flow hedges for the year |
(1,094)
|
(68
|
) | |
| Share of other comprehensive income of associated companies |
2
|
8
|
||
| Other |
28
|
(14)
|
||
| Income taxes relating to other comprehensive income |
269
|
21
|
||
|
|
|
|
||
| Other comprehensive income for the period, net of tax |
(659)
|
|
110
|
|
|
|
|
|
||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
2,665
|
2,809
|
|
Company Announcement
no 23 / 2010 |
Page
15 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Appendix 3: Balance sheet
|
DKK
million
|
31
Mar 2010
|
31
Dec 2009
|
||
|
|
|
|
|
|
| ASSETS | ||||
| Intangible assets | 1,131 | 1,037 | ||
| Property, plant and equipment | 19,512 | 19,226 | ||
| Investments in associated companies | 282 | 176 | ||
| Deferred income tax assets | 1,711 | 1,455 | ||
| Other non-current financial assets | 136 | 182 | ||
|
|
|
|
|
|
| TOTAL NON-CURRENT ASSETS | 22,772 | 22,076 | ||
| Inventories | 10,273 | 10,016 | ||
| Trade receivables | 8,144 | 7,063 | ||
| Tax receivables | 723 | 799 | ||
| Other current assets | 2,068 | 1,962 | ||
| Marketable securities and financial derivatives | 648 | 1,530 | ||
| Cash at bank and in hand | 9,527 | 11,296 | ||
|
|
|
|
|
|
| TOTAL CURRENT ASSETS | 31,383 | 32,666 | ||
|
|
|
|
|
|
| TOTAL ASSETS | 54,155 | 54,742 | ||
|
|
|
|
|
|
| EQUITY AND LIABILITIES | ||||
| Share capital | 620 | 620 | ||
| Treasury shares | (34) | (32) | ||
| Retained earnings | 32,278 | 34,435 | ||
| Other reserves | 52 | 711 | ||
|
|
|
|
|
|
| TOTAL EQUITY | 32,916 | 35,734 | ||
| Non-current debt | 968 | 970 | ||
| Deferred income tax liabilities | 3,095 | 3,010 | ||
| Retirement benefit obligations | 496 | 456 | ||
| Provisions for other liabilities | 1,160 | 1,157 | ||
|
|
|
|
|
|
| Total non-current liabilities | 5,719 | 5,593 | ||
| Current debt and financial instruments | 1,036 | 418 | ||
| Trade payables | 1,959 | 2,242 | ||
| Tax payables | 661 | 701 | ||
| Other current liabilities | 7,894 | 6,813 | ||
| Provisions for other liabilities | 3,970 | 3,241 | ||
|
|
|
|
|
|
| Total current liabilities | 15,520 | 13,415 | ||
| TOTAL LIABILITIES | 21,239 | 19,008 | ||
|
|
|
|
|
|
| TOTAL EQUITY AND LIABILITIES | 54,155 | 54,742 | ||
|
|
|
|
|
|
|
Company Announcement
no 23 / 2010 |
Page
16 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Appendix 4: Statement of cash flow
|
DKK
million
|
Q1
2010
|
Q1
2009
|
||
|
|
|
|
|
|
| Net profit | 3,324 | 2,699 | ||
| Adjustment for non-cash items: | ||||
| Income taxes | 993 | 806 | ||
| Depreciation, amortisation and impairment losses | 581 | 607 | ||
| Interest income and interest expenses | (7) | (52) | ||
| Other adjustment | 680 | 121 | ||
| Income taxes paid | (806) | (850) | ||
| Interest received | 108 | 123 | ||
| Interest paid | (5) | (29) | ||
|
|
|
|
|
|
| Cash flow before change in working capital | 4,868 | 3,425 | ||
| (Increase)/decrease in trade receivables and other current assets | (1,187) | (187) | ||
| (Increase)/decrease in inventories | (257) | (319) | ||
| Increase/(decrease) in trade payables and other current liabilities | 798 | 1,166 | ||
| Exchange rate adjustment | 9 | 63 | ||
|
|
|
|
|
|
| Cash flow from operating activities | 4,231 | 4,148 | ||
| Purchase of intangible assets and non-current financial assets | (154) | (127) | ||
| Proceeds from sale of property, plant and equipment | 2 | 2 | ||
| Purchase of property, plant and equipment | (670) | (415) | ||
| Net change in marketable securities (maturity exceeding three months) | 500 | - | ||
| Dividend received | - | 18 | ||
|
|
|
|
|
|
| Cash flow from investing activities | (322 | ) | (522 | ) |
| Repayment of non-current debt | - | - | ||
| Purchase of treasury shares | (1,392) | (911) | ||
| Proceeds from sale of treasury shares | 252 | 64 | ||
| Dividends paid to the Company´s owners | (4,400) | (3,641) | ||
|
|
|
|
|
|
| Cash flow from financing activities | (5,540 | ) | (4,488 | ) |
| NET CASH FLOW | (1,631 | ) | (862 | ) |
| Unrealised gain/(loss) on exchange rates and marketable securities | ||||
| included in cash and cash equivalents | (80) | 10 | ||
|
|
|
|
|
|
| Net change in cash and cash equivalents | (1,711 | ) | (852 | ) |
| Cash and cash equivalents at the beginning of the period | 11,034 | 8,726 | ||
|
|
|
|
|
|
| Cash and cash equivalents at the end of the period | 9,323 | 7,874 | ||
| Additional information: | ||||
| Cash and cash equivalents at the end of the period | 9,323 | 7,874 | ||
| Bonds with original term to maturity exceeding three months | 530 | 1,015 | ||
| Undrawn committed credit facilities | 4,467 | 7,448 | ||
|
|
|
|
|
|
| FINANCIAL RESOURCES AT THE END OF THE PERIOD | 14,320 | 16,337 | ||
| Cash flow from operating activities | 4,231 | 4,148 | ||
| + Cash flow from investing activities | (322) | (522) | ||
| - Net change in marketable securities (maturity exceeding three months) | 500 | - | ||
|
|
|
|
|
|
| FREE CASH FLOW | 3,409 | 3,626 | ||
|
|
|
|
|
|
|
Company Announcement
no 23 / 2010 |
Page
17 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Appendix 5: Statement of changes in equity
| Other reserves | ||||||||||||||
|
|
||||||||||||||
| DKK million |
Share
capital |
Treasury
shares |
Retained
earnings |
Exchange
rate adjustments |
Deferred
gain/
loss on cash flow hedges |
Other
adjust- ments |
Total
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2010 | ||||||||||||||
| Balance at the beginning of the period | 620 | (32) | 34,435 | 271 | 393 | 47 | 35,734 | |||||||
| Total comprehensive income for the period | 3,324 | 136 | (1,094) | 299 | 2,665 | |||||||||
| Dividends | (4,400) | (4,400) | ||||||||||||
| Share-based payment | 57 | 57 | ||||||||||||
| Purchase of treasury shares | (4) | (1,388) | (1,392) | |||||||||||
| Sale of treasury shares | 2 | 250 | 252 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at the end of the period | 620 | (34 | ) | 32,278 | 407 | (701 | ) | 346 | 32,916 | |||||
At the end of the year proposed dividends (declared in 2010) of DKK 4,400 million (7.50 DKK per share) are included in Retained earnings. No dividend is declared on treasury shares.
| Other reserves | ||||||||||||||
|
|
||||||||||||||
| DKK million |
Share
capital |
Treasury
shares |
Retained
earnings |
Exchange
rate adjustments |
Deferred
gain/
loss on cash flow hedges |
Other
adjust- ments |
Total
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2009 | ||||||||||||||
| Balance at the beginning of the period | 634 | (26) | 33,433 | (256) | (859) | 53 | 32,979 | |||||||
| Total comprehensive income for the period | 2,699 | 163 | (64) | 11 | 2,809 | |||||||||
| Dividends | (3,650) | (3,650) | ||||||||||||
| Share-based payment | 53 | 53 | ||||||||||||
| Purchase of treasury shares | (3) | (907) | (910) | |||||||||||
| Sale of treasury shares | 1 | 63 | 64 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at the end of the period | 634 | (28 | ) | 31,691 | (93 | ) | (923 | ) | 64 | 31,345 | ||||
At the end of the
year proposed dividends (declared in 2009) of DKK 3,650 million (6.00 DKK
per share) are included in Retained earnings.
No dividend is declared on treasury shares.
|
Company Announcement
no 23 / 2010 |
Page
18 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Appendix 6: Quarterly numbers in EUR / Supplementary information
(Amounts in EUR million,
except number of employees, earnings per share and number of shares outstanding).
Key figures are translated into EUR as supplementary information - the translation
is based on average exchange rate for income statement and exchange rate at
the balance sheet date for balance sheet items.
The specified
percent changes are based on the changes in the 'Quarterly numbers in DKK',
see appendix 1.
|
%
change
|
||||||||||||
|
2010
|
2009
|
Q1
2010 vs
|
||||||||||
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q1
200 9
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||
| Sales | 1,837 | 1,756 | 1,681 | 1,746 | 1,677 | 9% | ||||||
| Gross profit | 1,476 | 1,401 | 1,321 | 1,395 | 1,341 | 10% | ||||||
| Gross margin | 80.3% | 79.8% | 78.5% | 79.9% | 7 9.9% | |||||||
| Sales and distribution costs | 535 | 570 | 471 | 515 | 516 | 4% | ||||||
| Percent of sales | 29.1% | 32.4% | 28.0% | 29.5% | 3 0.8% | |||||||
| Research and development costs | 286 | 321 | 253 | 248 | 234 | 22% | ||||||
| Percent of sales | 15.6% | 18.3% | 15.1% | 14.2% | 1 4.0% | |||||||
| Administrative expenses | 96 | 97 | 90 | 93 | 91 | 5% | ||||||
| Percent of sales | 5.2% | 5.6% | 5.3% | 5.3% | 5.4% | |||||||
| Licence fees and other operating income (net) | 30 | 19 | 5 | 10 | 12 | 157% | ||||||
| Operating profit | 589 | 432 | 512 | 549 | 512 | 15% | ||||||
| Operating margin | 32.0% | 24.6% | 30.5% | 31.5% | 3 0.5% | |||||||
| Share of profit/(loss) in associated companies | 9 | - | (1) | (1) | (5) | (286%) | ||||||
| Financial income | 9 | 8 | 2 | 22 | 19 | (54%) | ||||||
| Financial expenses | 27 | 38 | 28 | 49 | 55 | (53%) | ||||||
| Profit before income taxes | 580 | 402 | 485 | 521 | 471 | 23% | ||||||
| Net profit | 447 | 312 | 370 | 402 | 362 | 23% | ||||||
| Depreciation, amortisation and impairment losses | 78 | 102 | 88 | 72 | 81 | (4%) | ||||||
| Capital expenditure | 90 | 125 | 98 | 75 | 55 | 62% | ||||||
| Cash flow from operating activities | 568 | 481 | 677 | 350 | 557 | 2% | ||||||
| Free cash flow | 458 | 323 | 569 | 277 | 487 | (6%) | ||||||
| Total assets | 7,274 | 7,356 | 7,064 | 6,881 | 6,741 | 8% | ||||||
| Total equity | 4,421 | 4,802 | 4,685 | 4,577 | 4,208 | 5% | ||||||
| Equity ratio | 60.8% | 65.3% | 66.3% | 66.5% | 6 2.4% | |||||||
| Full-time employees at the end of the period | 29,154 | 28,809 | 28,497 | 27,998 | 27,429 | 6% | ||||||
| Basic earnings per share (in EUR) | 0.76 | 0.53 | 0.62 | 0.66 | 0.60 | 27% | ||||||
| Diluted earnings per share (in EUR) | 0.75 | 0.52 | 0.62 | 0.66 | 0.59 | 27% | ||||||
| Average number of shares outstanding (million) | 587.6 | 589.9 | 596.4 | 603.1 | 607.4 | (3%) | ||||||
| Average number of shares outstanding incl | ||||||||||||
| dilutive effect of options 'in the money' (million) | 593.0 | 595.2 | 601.4 | 607.9 | 612.7 | (3%) | ||||||
| Sales by business segments: | ||||||||||||
| Modern insulins (insulin analogues) | 787 | 767 | 719 | 727 | 670 | 17% | ||||||
| Human insulins | 372 | 361 | 369 | 387 | 403 | (8%) | ||||||
| Victoza® | 50 | - | - | - | - | - | ||||||
| Protein-related products | 68 | 76 | 70 | 66 | 65 | 4% | ||||||
| Oral antidiabetic products (OAD) | 87 | 86 | 87 | 90 | 93 | (7%) | ||||||
| Diabetes care total | 1,364 | 1,290 | 1,245 | 1,270 | 1,231 | 11% | ||||||
| NovoSeven® | 257 | 234 | 222 | 252 | 242 | 6% | ||||||
| Norditropin® | 145 | 158 | 144 | 150 | 139 | 5% | ||||||
| Hormone replacement therapy | 60 | 62 | 59 | 58 | 55 | 8% | ||||||
| Other products | 11 | 12 | 11 | 16 | 10 | 0% | ||||||
| Biopharmaceuticals total | 473 | 466 | 436 | 476 | 446 | 6% | ||||||
| Sales by geographic regions: | ||||||||||||
| North America | 702 | 606 | 607 | 633 | 608 | 15% | ||||||
| Europe | 595 | 618 | 588 | 587 | 563 | 6% | ||||||
| International Operations | 385 | 357 | 329 | 357 | 350 | 10% | ||||||
| Japan & Korea | 155 | 175 | 157 | 169 | 156 | (1%) | ||||||
| Segment operating profit: | ||||||||||||
| Diabetes care | 343 | 230 | 307 | 314 | 291 | 18% | ||||||
| Biopharmaceuticals | 246 | 202 | 205 | 235 | 221 | 12% | ||||||
| Regional split prior to the organisational change: | ||||||||||||
| International Operations |
N/A
|
335
|
308
|
340
|
337
|
N/A
|
||||||
| Japan & Oceania |
N/A
|
197
|
178
|
186
|
169
|
N/A
|
|
Company Announcement
no 23 / 2010 |
Page
19 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
Appendix 7: Key currencies assumptions / Supplementary information
|
DKK
per 100
|
2009
average exchange
|
YTD
2010 average
|
Current
exchange rate as
|
|||
|
rates
|
exchange
rates as of 20
|
of
20 April 2010
|
||||
|
April
2010
|
||||||
|
|
|
|
|
|
|
|
| USD | 536 | 541 | 552 | |||
| JPY | 5.73 | 5.93 | 5.94 | |||
| GBP | 836 | 840 | 849 | |||
| CNY | 78 | 79 | 81 | |||
| CAD | 470 | 524 | 545 |
|
Company Announcement
no 23 / 2010 |
Page
20 of 20
|
|
Novo
Nordisk A/S
Investor Relations |
Novo
Allé
2880 Bagsværd Denmark |
Telephone:
+45 4444 8888 Telefax: +45 4444 6626 |
Internet:
novonordisk.com |
CVR
number:
24256790 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf of the undersigned, thereunto duly authorized.
| Date: APRIL 28, 2010 |
NOVO NORDISK A/S Lars Rebien Sørensen, President and Chief Executive Officer |