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Novo Nordisk (NVO) Interim Results


10/19/2005 5:11:58 PM

BAGSVAERD, Denmark, Oct. 27 /PRNewswire-FirstCall/ --

   * Sales increased by 15% measured in local currencies in the first
     nine months of 2004. Measured in Danish kroner sales increased by
     11%. Sales in the third quarter were positively impacted by
     increases in US wholesaler inventories.

   * Sales of insulin analogues increased by 87% measured in local
     currencies.

   * NovoSeven(R) sales increased by 15% measured in local currencies.

   * Operating profit increased by 10% to DKK 5,203 million, and net
     profit increased by 4% to DKK 3,615 million. Earnings per share
    (diluted) increased by 5% to DKK 10.66.

   * Operating profit for the full year 2004 is still expected to grow
     by slightly more than 5% despite a continued challenging currency
     environment.

   * Following regulatory consultations in Europe, Novo Nordisk
     expects to file an application for marketing approval in Europe
     for the use of NovoSeven(R) in connection with intracerebral
     haemorrhages (ICH) by mid-2005.

   * Lars Rebien Sorensen, president & CEO, said: "The strong
     underlying performance continued in the third quarter, primarily
     driven by increased sales of insulin analogues and NovoSeven(R). We
     are furthermore very encouraged by the possibility of filing in
     Europe already next year for the use of NovoSeven(R) in ICH, a
     condition for which there today is no effective therapy."
     Financial statement for the first nine months of 2004

As of 1 January 2004, the accounting policies have been changed to comply with International Financial Reporting Standards (IFRS). The accounting policies used in this unaudited interim financial report are consistent with those used in the Annual Financial Report 2003 except for the changes described in the section 'Adoption of IFRS in 2004' in the Annual Financial Report 2003. This section describes the changes from the historically applied Danish GAAP to IFRS. Free cash flow is defined as cash flow from operating activities plus cash flow from investing activities less net change in marketable securities (>3 months). To facilitate the performance evaluation in the first nine months of 2004, all relevant quarterly numbers and ratios for 2003 and 2004 using IFRS have been made available in the appendices to this announcement.

(Amounts below in DKK million except average number of shares outstanding, earnings per share and full-time employees).

% change 9M 2003 to Income statement 9M 2004 9M 2003 9M 2004 Sales 21,258 19,188 11% Gross profit 15,377 13,914 11% Gross margin 72.3% 72.5% Sales and distribution costs 6,050 5,506 10% Percent of sales 28.5% 28.7% Research and development costs 3,094 2,918 6% Percent of sales 14.6% 15.2% Administration costs 1,392 1,355 3% Percent of sales 6.5% 7.1% Licence fees and other operating income 362 613 (41%) Operating profit 5,203 4,748 10% Operating margin 24.5% 24.7% Share of profit in associated companies (97) (144) (33%) Other net financial income 289 692 (58%) Profit before tax 5,395 5,296 2% Net profit 3,615 3,489 4% Net profit margin 17.0% 18.2% Other key numbers Earnings per share (in DKK) - diluted 10.66 10.19 5% Average number of shares outstanding (million) - diluted 339.3 342.4 Depreciation, amortisation and impairment losses 1,343 1,028 31% Capital expenditure 1,907 1,368 39% Cash flow from operating activities 5,550 5,928 (6%) Free cash flow 3,439 4,549 (24%) Equity 25,654 23,700 8% Equity ratio 72.1% 67.4% Total assets 35,587 35,140 1% Full-time employees at the end of the period 20,001 18,664 7% Sales development by segments

Sales increased by 15% measured in local currencies. Growth was realised both within the diabetes care and the biopharmaceuticals segments - primarily driven by strategically important products like the insulin analogues NovoRapid(R) and NovoMix(R) 30 as well as NovoSeven(R).

Sales Growth Growth Share of 9M as in local growth 2004 reported currencies in local DKK mn currencies The diabetes care segment Insulin analogues 3,200 80% 87% 55% Human insulin and insulin-related sales 10,524 (1%) 2% 6% Oral antidiabetic products 1,250 19% 26% 10% Diabetes care - total 14,974 11% 15% 71% The biopharmaceuticals segment NovoSeven(R) 3,215 10% 15% 16% Growth hormone therapy 1,680 8% 10% 5% Other products 1,389 12% 17% 8% Biopharmaceuticals - total 6,284 10% 14% 29% Total sales 21,258 11% 15% 100%

Sales growth was realised in all regions, and North America, constituting 27% of total sales, continued to experience strong growth. In October 2004, Novo Nordisk's US subsidiary, Novo Nordisk Pharmaceuticals, Inc, will for the first time surpass USD 1 billion in accumulated sales within a calendar year.

Diabetes care

Sales of diabetes care products grew by 15% measured in local currencies compared to the first nine months of 2003 and by 11% measured in Danish kroner to DKK 14,974 million.

Insulin analogues, human insulin and insulin-related products

Sales of insulin analogues, human insulin and insulin-related products increased by 14% measured in local currencies and by 11% to DKK 13,724 million measured in Danish kroner. All regions contributed to growth both measured in local currencies and in Danish kroner.

Sales of insulin analogues increased by 87% measured in local currencies and by 80% in Danish kroner to DKK 3,200 million in the first nine months of 2004. Novo Nordisk's insulin analogue market share continues to increase and is now approaching 30% of the world market. Solid growth rates were realised in all regions with North America as the primary growth driver. Sales of insulin analogues contribute with 55% of the overall growth in local currencies and now constitute more than 20% of Novo Nordisk's total sales of all insulin products.

Levemir(R), Novo Nordisk's long-acting insulin analogue, has now been launched in 10 European countries, including the UK and Germany. The feedback from all markets about the product has been positive, as patients and

physicians appreciate the documented higher degree of predictability than for other long-acting insulins.

North America

Sales in North America increased by 34% in local currencies in the first nine months of 2004 and by 22% measured in Danish kroner. Sales growth was driven by underlying market growth and market share gains. Sales in the third quarter of 2004 were also influenced by approximately DKK 100 million due to an increase in wholesaler inventories at the end of the quarter. The increased market share is driven by a solid penetration of the insulin analogues NovoLog(R) and NovoLog(R) Mix. Novo Nordisk now holds slightly more than one third of the US insulin market and close to 20% of the analogue market.

Europe

Sales in Europe increased by 6% measured in both local currencies and in Danish kroner, with growth being driven by the insulin analogues. Growth in insulin sales continues to be negatively impacted by price-focused healthcare reforms in some countries.

Japan & Oceania

Sales in Japan & Oceania increased by 11% in local currencies and by 10% measured in Danish kroner. Growth is primarily driven by sales of NovoRapid(R) and NovoRapid(R) Mix 30, supported by a continued conversion from durable to disposable, prefilled devices.

International Operations

Sales within International Operations increased by 17% in local currencies and by 11% measured in Danish kroner. The main growth driver is sales of human insulin, driven especially by China and Brazil. Insulin analogues continue to add to growth, and Novo Nordisk is now the overall market leader in the analogue segment in the International Operations region.

Oral antidiabetic products

Sales of oral antidiabetic products increased in all regions and in total by 26% measured in local currencies and 19% measured in Danish kroner to DKK 1,250 million. Growth was mainly driven by North America, partly due to an increase in wholesaler inventory levels as well as higher prices.

Biopharmaceuticals

Sales within the biopharmaceuticals segment increased by 14% in local currencies compared to the first nine months of 2003 and by 10% measured in Danish kroner to DKK 6,284 million.

NovoSeven(R)

Sales of NovoSeven(R) increased by 15% in local currencies compared to the same period last year. Measured in Danish kroner, sales increased by 10% to DKK 3,215 million. Sales growth for NovoSeven(R) was primarily driven by Europe and North America.

NovoSeven(R) sales growth was driven by several factors in the first nine months of 2004. Due to the high penetration within spontaneous bleeds for congenital inhibitor patients, the predominant part of the growth within the inhibitor segment has been generated by treatment of acquired haemophilia patients and usage of NovoSeven(R) in connection with elective surgery. Treatment of spontaneous bleeds for congenital inhibitor patients remains the largest area of use. In addition, sales are perceived to have been positively affected by increased investigational use of NovoSeven(R).

Growth hormone therapy (Norditropin(R) and Norditropin(R) SimpleXx(R))

In local currencies sales of Norditropin(R) and Norditropin(R) SimpleXx(R) products increased by 10% compared to the first nine months of 2003. Measured in Danish kroner sales increased by 8% to DKK 1,680 million and were driven by Europe and North America. Sales in Japan were negatively impacted by the government-mandated reduction in reimbursement prices as of April 2004; however, a solid penetration of the prefilled delivery device NordiFlex(R) has been observed since the launch in July 2004.

Other products

Sales of other products within the biopharmaceuticals segment, which predominantly consists of hormone replacement therapy (HRT) related products, grew by 17% in local currencies and by 12% in Danish kroner to DKK 1,389 million.

Sales growth in the first nine months of 2004 was positively impacted by the change in July 2003 of the US distribution set-up for Novo Nordisk's HRT products and by the continued market penetration of the low-dose continuous combined product Activella(R) and the local oestrogen product Vagifem(R). For the first nine months of 2004, global sales continued to be negatively impacted by the overall contraction of the HRT market.

Costs

The cost of goods sold increased by 12% to DKK 5,881 million, leaving the gross margin at 72.3%, a decrease from 72.5% in the first nine months of 2003. Gains from an improved product mix as well as productivity increases were more than offset by a negative currency impact of 0.8%.

Total non-production-related costs increased by 8% to DKK 10,536 million. The increase in non-production-related costs reflects especially costs related to sales and distribution, which increased in line with sales. Sales and distribution costs in the third quarter include an impairment charge related to intangible assets. The ratio for research and development costs as a proportion of sales was slightly below 15%, lower than Novo Nordisk's long- term intended range for research and development costs of 15-16% of sales. This reflects a changed timing of some of the major development projects in the project pipeline.

Net financials

Net financials showed a net income of DKK 192 million in the first nine months of 2004 compared to DKK 548 million in the same period in 2003. Included in net financials are foreign exchange hedging gains, primarily related to the hedging of the US dollar, of DKK 305 million compared to DKK 959 million in the first nine months of 2003. Furthermore, Novo Nordisk has recorded a gain of close to DKK 100 million related to the initiation of a new R&D alliance by ZymoGenetics, Inc in September 2004.

Outlook 2004 and 2005

Novo Nordisk now expects 12-14% growth in sales for 2004 measured in local currencies based on continued market penetration of Novo Nordisk's insulin analogue portfolio, combined with expectations of increasing NovoSeven(R) sales. Operating profit for 2004, measured in local currencies and excluding the impact from non-recurring items, is now expected to grow by close to 20%. The expected level of growth in operating profit for 2004 is partly reflecting a lower than normal expenditure ratio for research and development costs relative to sales.

Despite a continued challenging currency environment, the expectation for sales growth in 2004 measured in Danish kroner remains around 10%, and operating profit is still expected to grow by slightly more than 5%.

For 2004 Novo Nordisk now expects a net financial income of DKK 300 million due to higher expectations for foreign exchange hedging gains as well as non-recurring income related to ZymoGenetics, Inc.

For 2004, Novo Nordisk still expects the tax rate to be 33%, 1 percentage point lower than the tax rate realised in 2003.

Novo Nordisk still expects capital expenditure of DKK 3 billion in 2004. Depreciations, amortisation and impairment losses are now expected to be around DKK 1.9 billion and the free cash flow to be more than DKK 3 billion. These expectations do not include the expected completion around the turn of the year of the restructuring of the AERx(R) iDMS programme, which will involve an investment of USD 55 million.

Novo Nordisk has hedged expected net cash flows in relation to US dollars, Japanese yen and British pounds for 13, 10 and 7 months, respectively. The financial impact from currency hedging is included in 'Net financials'.

All of the above expectations are provided that currency exchange rates remain at the current level for the rest of 2004.

Concerning 2005, Novo Nordisk will provide full guidance on expectations in connection with the release of the full-year financial results for 2004, which are scheduled for 28 January 2005. Novo Nordisk's current ambition for 2005 is to pursue growth in the operating profit of the underlying business, which is aligned with the company's long-term objective of 15%. The reported level of operating profit growth will, however, be affected by the following two issues: First, growth in operating profit in 2005 will be impacted by an expected lower level of non-recurring income compared to 2004. Second, Novo Nordisk will experience a negative impact on operating profit measured in Danish kroner if currency exchange rates remain at the current level throughout 2005.

Research and development update The diabetes care segment

Novo Nordisk has now successfully concluded the activities related to the outstanding clinical issues with the US filing of Levemir(R). Hence, Novo Nordisk expects to file the relevant amendments to the New Drug Application before year-end, implying that an approval from the US regulatory authorities (FDA) would be expected around mid-2005.

Novo Nordisk has decided to terminate further clinical development of balaglitazone, an oral treatment for patients with type 2 diabetes, as the preclinical results did not suggest a sufficient competitive advantage for balaglitazone compared to similar, marketed products within this therapeutic category.

All clinical and non-clinical data in relation to liraglutide, the once- daily human GLP-1 analogue for the treatment of type 2 diabetes, have over the past months been analysed and discussed with regulatory authorities. Based on this, Novo Nordisk has decided to initiate an additional clinical study comprising approximately 170 patients. The study is intended to increase the understanding of the longer-term efficacy and safety profile for the selected therapeutic doses of liraglutide. Furthermore, the study is intended to confirm that certain non-clinical findings are of no relevance to humans. The phase 2b study is expected to be initiated early 2005 and to be followed by a phase 3 clinical trial programme, comprising approximately 3,500 patients, around the turn of 2005/6.

Novo Nordisk has in September obtained full development and manufacturing rights to the AERx(R) insulin Diabetes Management System (iDMS) programme from Aradigm, Inc. As a consequence, Novo Nordisk will assume all further responsibilities for development and funding of the AERx(R) iDMS programme. The ongoing pharmacokinetic and pharmacodynamic (PK/PD) study will continue according to plan and is expected to be finalised during the first half of 2005.

The biopharmaceuticals segment

Following regulatory consultations in Europe, Novo Nordisk now expects to file an application for marketing approval in Europe for the use of NovoSeven(R) in connection with intracerebral haemorrhages (ICH) by mid-2005, followed by an expected six months' review time by the regulatory authorities. The consultations with the FDA about the US regulatory pathway related to ICH are ongoing, and Novo Nordisk still expects to conclude these before the end of 2004.

A new US research site, focusing on haemostasis and critical care, will be established with the aim of further expanding the R&D effort within this field. The site will be located in New Jersey; an area known for its medical and scientific excellence within the haemostasis field. The site will serve as a centre for early-stage haemostasis R&D and will be staffed by approximately 75 scientists when fully operational by 2007/8.

NordiFlex(R) has been approved by the FDA. NordiFlex(R) is a fully integrated disposable delivery system for liquid growth hormone based on FlexPen(R), Novo Nordisk's innovative delivery device, originally developed for insulin injection.

As previously communicated, Novo Nordisk held its first Capital Markets Day on 5 October 2004. At the Capital Markets Day and in a separate stock exchange announcement, Novo Nordisk elaborated on its biopharmaceuticals businesses and provided insights into the company's research and development activities within the biopharmaceuticals segment.

Equity

Total equity was DKK 25,654 million at the end of the first nine months of 2004, equal to 72.1% of total assets, compared to 72.0% at the end of 2003. Please refer to appendix 5 for further elaboration of changes in equity during 2004.

Holding of treasury shares

As per 27 October 2004, Novo Nordisk A/S and its wholly-owned affiliates owned 19,646,047 of its own B shares, corresponding to 5.54% of the total share capital.

Sustainability issues update

At the Oxford Vision 2020 Summit in September, Novo Nordisk CEO Lars Rebien Sorensen pledged GBP 3 million to the ongoing global fight against chronic diseases, including diabetes. The Oxford Vision 2020 is a global advocacy movement, coorganised by the University of Oxford and Novo Nordisk with the shared goal to prevent and control the global chronic disease epidemics. The event was attended by some 90 world-leading public health experts, academics, industry leaders, non-governmental organisations and governments.

In the 2004 update of the Dow Jones Sustainability World Indexes

(DJSI World) and Dow Jones STOXX Sustainability Indexes (DJSI STOXX), Novo Nordisk maintains its position, held since 2002, as the leader in the Pharmaceuticals Industry Group. Novo Nordisk's score of 78% reflects the company's performance across economic, environmental and social criteria compared to the industry average of 51%.

In August, Novo Nordisk had two accidental releases of materials containing GMOs - genetically modified organisms - at the production site in Bagsvaerd. The authorities were immediately informed and were satisfied with the prompt response and suggested corrective actions. Subsequently, the Danish Occupational Health authorities inspected the facilities and found no reason to call for actions. The GMOs in question (Class 1) cannot survive outside of their usual protected environment in the laboratory. The incidents were unrelated.

Legal issues update

As of 25 October 2004, Novo Nordisk's US subsidiary, Novo Nordisk Pharmaceuticals Inc, together with the majority of the hormone therapy product manufacturers, is a defendant in 17 product liability lawsuits. Novo Nordisk's HRT products (Activella(R) and Vagifem(R)) have been sold and marketed in the US since 2000. Until July 2003, the products were sold and marketed in the US exclusively by Pharmacia & Upjohn Corporation (now Pfizer). The proceedings are currently in their preliminary stages; however, Novo Nordisk is not expecting the claims to impact Novo Nordisk's financial outlook.

Novo Nordisk's US subsidiary, Novo Nordisk Pharmaceuticals Inc, together with 43 other pharmaceutical companies, is a defendant in a lawsuit brought by the City of New York. The City claims that it was overcharged for drugs used in its Medicaid programme over the last 12 years and is requesting the court to award monetary damages. The lawsuit was filed in August 2004 in the US District Court for the Southern District of New York. The City has not identified any specific basis for its claim that Novo Nordisk overcharged for its products, but it does state that in 2002 it spent approximately USD 1.8 million on Novo Nordisk drugs. The proceedings are currently in their preliminary stages; however, Novo Nordisk is not expecting the claims to impact Novo Nordisk's financial outlook.

Flamel Technologies SA ('Flamel'), a French company, has on 8 October 2004 submitted a notice of voluntary dismissal to the court of Delaware, USA, and has thereby withdrawn a lawsuit against Novo Nordisk A/S related to Flamel's so-called 'Medusa' technology within the area of long-acting insulin. Flamel had brought the suit against Novo Nordisk A/S in Delaware on 15 June 2004,

alleging that Novo Nordisk improperly had used information from Flamel to file patent applications in the US.

Conference call details

At 14:00 CET today, corresponding to 8:00 am New York time, a conference call will be held. Investors will be able to listen in via a link on http://novonordisk.com/, which can be found under 'Investors - Conference call'. Presentation material for the conference call will be made available approximately one hour before on the same page.

Forward-looking statement

The above sections contain forward-looking statements as the term is defined in the US Private Securities Litigation Reform Act of 1995. Forward- looking statements provide current expectations or forecasts of events such as new product introductions, product approvals and financial performance.

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 results include interest rate and currency exchange rate fluctuations, delay or failure of development projects, production problems, unexpected contract breaches or terminations, 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 products, exposure to product liability and other lawsuits, changes in reimbursement rules and governmental laws and related interpretation thereof, and unexpected growth in costs and expenses.

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 on 27 February 2004. Please also refer to the section 'Management of risk in Novo Nordisk' in the Annual Financial Report 2003. Novo Nordisk is under no duty to update any of the forward- looking statements or to conform such statements to actual results, unless required by law.

Bagsvaerd 27 October 2004 The Board of Directors Contacts for further information Media: Investors: Outside North America: Outside North America: Mike Rulis Mogens Thorsager Jensen Tel (direct): (+45) 4442 3573 Tel (direct): (+45) 4442 7945 E-mail: mike@novonordisk.com E-mail: mtj@novonordisk.com Palle Holm Olesen Tel (direct): (+45) 4442 6175 E-mail: phoo@novonordisk.com In North America: In North America: Susan T Jackson Christian Kanstrup Tel (direct): (+1) 609 919 7776 Tel (direct): (+1) 609 919 7937 E-mail: stja@novonordisk.com E-mail: cka@novonordisk.com

Further information on Novo Nordisk is available on the company's internet homepage at the address: http://novonordisk.com/ .

Appendix 1: The Novo Nordisk Group Quarterly numbers in DKK

(Amounts in DKK million, except number of employees, earnings per share and number of shares outstanding.)

% change 2004 2003 Q3 2003- Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q3 2004 Sales 7,469 7,222 6,567 7,158 6,655 6,477 6,056 12% Gross profit 5,381 5,280 4,716 5,031 4,847 4,677 4,390 11% Gross margin 72.0% 73.1% 71.8% 70.3% 72.8% 72.2% 72.5% Sales and distri- bution costs 2,087 2,037 1,926 2,097 1,880 1,854 1,772 11% Percent of sales 27.9% 28.2% 29.3% 29.3% 28.2% 28.6% 29.3% Research and develop- ment costs 1,081 978 1,035 1,125 1,012 969 937 7% Percent of sales 14.5% 13.5% 15.8% 15.7% 15.2% 15.0% 15.5% Admini- strative expenses 496 425 471 482 485 415 455 2% Percent of sales 6.6% 5.9% 7.2% 6.7% 7.3% 6.4% 7.5% Licence fees and other operating income (net) 59 71 232 423 216 226 171 -73% Operating profit 1,776 1,911 1,516 1,750 1,686 1,665 1,397 5% Operating margin 23.8% 26.5% 23.1% 24.4% 25.3% 25.7% 23.1% Share of profit in associated R&D companies 7 (44) (38) 78 (45) (41) (63) -116% Share of profit in other associated companies 5 4 (31) 7 (2) (2) 9 -350% Financial income 125 104 178 438 177 446 421 -29% Financial expenses 52 44 22 117 103 116 133 -50% Profit before taxation 1,861 1,931 1,603 2,156 1,713 1,952 1,631 9% Net profit 1,248 1,293 1,074 1,413 1,128 1,288 1,073 11% Depreciation, amorti- sation and impair- ment losses 576 387 380 553 363 356 309 59% Capital expen- diture 873 642 392 934 383 519 466 128% Cash flow from operating activ- ities 2,490 1,710 1,350 221 2,317 1,437 2,174 7% Free cash flow 1,597 956 886 (703) 1,932 910 1,707 -17% Equity 25,654 24,928 24,048 24,887 23,700 22,807 21,829 8% Total assets 35,587 34,248 33,838 34,564 35,140 33,103 31,382 1% Equity ratio 72.1% 72.8% 71.1% 72.0% 67.4% 68.9% 69.6% Full-time employees at the end of the period 20,001 19,631 19,179 18,756 18,664 18,465 18,221 7% Diluted earnings per share (in DKK)* 3.69 3.81 3.16 4.17 3.31 3.76 3.11 11% Average number of shares outstanding (million)* - used for diluted earnings per share 338.2 339.8 339.8 339.1 340.7 342.0 344.6 -1% Sales by business segments: Insulin ana- logues 1,262 1,045 893 796 711 576 488 77% Human insulin and insulin -related sales 3,623 3,669 3,232 3,963 3,554 3,666 3,414 2% Oral anti- diabetic products (OAD) 449 382 419 390 387 300 363 16% Diabetes care total 5,334 5,096 4,544 5,149 4,652 4,542 4,265 15% NovoSeven 1,095 1,093 1,027 940 1,010 996 925 8% (R) Growth hormone therapy 564 562 554 588 520 537 503 8% Hormone replacement therapy 399 392 342 399 361 292 279 11% Other products 77 79 100 82 112 110 84 -31% Biopharma- ceuticals total 2,135 2,126 2,023 2,009 2,003 1,935 1,791 7% Sales by geographic segments: Europe 3,069 3,118 2,894 3,165 2,920 2,935 2,723 5% North America 2,147 1,882 1,769 1,618 1,674 1,501 1,566 28% Inter- national Oper- ations 1,171 1,135 980 1,234 1,027 1,058 910 14% Japan & Oceania 1,082 1,087 924 1,141 1,034 983 857 5% Segment operating profit: Diabetes care 765 954 693 966 755 784 691 1% Biopharma- ceuticals 1,011 957 823 784 931 881 706 9% *) For Q3 2004 diluted earnings per share/ADR of a nominal value of DKK 2, which include options on Novo Nordisk's treasury shares with an exercise price below current market value, have been based on an average number of shares of 338,164,982. Appendix 2: The Novo Nordisk Group Quarterly numbers in EUR

(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.

% change 2004 2003 Q3 2003- Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q3 2004 Sales 1,005 97 882 957 896 872 815 12% Gross profit 723 710 633 673 652 630 591 11% Gross margin 72.0% 73.1% 71.8% 70.3% 72.8% 72.2% 72.5% Sales and distrib- ution costs 281 273 259 281 253 250 238 11% Percent of sales 27.9% 28.2% 29.3% 29.3% 28.2% 28.6% 29.3% Research and develop- ment costs 146 131 139 150 136 131 126 7% Percent of sales 14.5% 13.5% 15.8% 15.7% 15.2% 15.0% 15.5% Admini- strative expenses 65 60 62 64 66 55 62 2% Percent of sales 6.6% 5.9% 7.2% 6.7% 7.3% 6.4% 7.5% Licence fees and other operating income (net) 8 10 31 56 30 30 23 -73% Operating profit 239 256 204 234 227 224 188 5% Operating margin 23.8% 26.5% 23.1% 24.4% 25.3% 25.7% 23.1% Share of profit in associated R&D companies - (4) (6) 10 (6) (6) (8) -116% Share of profit in other associated companies 1 - (4) 1 - - 1 -350% Financial income 17 14 24 59 23 60 57 -29% Financial expenses 7 6 3 16 13 16 18 -50% Profit before taxation 250 260 215 288 231 262 220 9% Net profit 168 174 144 189 152 174 144 11% Depreciation, amortisation and impairment losses 77 52 51 74 48 48 42 59% Capital expen- diture 117 86 53 125 51 70 63 128% Cash flow from operating activ- ities 335 230 181 28 312 193 293 7% Free cash flow 215 128 119 (96) 260 123 230 -17% Equity 3,447 3,348 3,230 3,343 3,192 3,070 2,939 8% Total assets 4,782 4,600 4,545 4,643 4,732 4,455 4,226 1% Equity ratio 72.1% 72.8% 71.1% 72.0% 67.4% 68.9% 69.6% Full-time employees at the end of the period 20,001 19,631 19,179 18,756 18,664 18,465 18,221 7% Diluted earnings per share (in EUR)* 0.49 0.52 0.42 0.56 0.45 0.50 0.42 11% Average number of shares out- standing (million)* - used for diluted earnings per share 338.2 339.8 339.8 339.1 340.7 342.0 344.6 -1% Sales by business segments: Insulin ana- logues 170 140 120 106 96 77 66 77% Human insulin and insulin- related sales 489 491 435 529 479 494 459 2% Oral anti- diabetic products (OAD) 60 52 56 53 52 40 49 16% Diabetes care total 719 683 611 688 627 611 574 15% NovoSeven(R) 147 147 138 125 136 135 124 8% Growth hormone therapy 76 76 74 79 70 72 68 8% Hormone replacement therapy 53 53 46 54 48 39 38 11% Other products 10 11 13 11 15 15 11 -31% Biopharma- ceuticals total 286 287 271 269 269 261 241 7% Sales by geographic segments: Europe 412 419 389 422 394 394 367 5% North America 289 253 237 217 225 202 211 28% Inter- national Oper- ations 158 152 132 165 138 143 122 14% Japan & Oceania 146 146 124 153 139 133 115 5% Segment operating profit: Diabetes care 103 128 93 129 101 106 93 1% Biopharma- ceuticals 136 128 111 105 126 118 95 9%

*) For Q3 2004 diluted earnings per share/ADR of a nominal value of DKK 2, which include options on Novo Nordisk's treasury shares with an exercise price below current market value, have been based on an average number of shares of 338,164,982.

Appendix 3:

As of 1 January 2004, the accounting policies have been changed to comply with International Financial Reporting Standards (IFRS). The accounting policies used in appendix 1 as well as all other appendices in this interim report are consistent with those used in the Annual Financial Report 2003 except for the changes described in the section 'Adoption of IFRS in 2004' in the Annual Financial Report 2003, which describes the changes from the historically applied Danish GAAP to IFRS.

The Novo Nordisk Group Consolidated income statement 9M 9M Q3 Q3 DKK million 2004 2003 2004 2003 Sales 21,258 19,188 7,469 6,655 Cost of goods sold 5,881 5,274 2,088 1,808 Gross profit 15,377 13,914 5,381 4,847 Sales and distribution costs 6,050 5,506 2,087 1,880 Research and development costs 3,094 2,918 1,081 1,012 Administrative expenses 1,392 1,355 496 485 Licence fees and other operating income (net) 362 613 59 216 Operating profit 5,203 4,748 1,776 1,686 Share of profit in associated R&D companies (75) (149) 7 (45) Share of profit in other associated companies (22) 5 5 (2) Financial income 407 1,044 125 177 Financial expenses 118 352 52 103 Profit before taxation 5,395 5,296 1,861 1,713 Income taxes 1,780 1,807 613 585 NET PROFIT 3,615 3,489 1,248 1,128 Earnings per share (DKK) 10.71 10.20 3.71 3.31 Earnings per share diluted (DKK) 10.66 10.19 3.69 3.31 Segment sales: Diabetes care 14,974 13,459 5,334 4,652 Biopharmaceuticals 6,284 5,729 2,135 2,003 Segment operating profit: Diabetes care 2,412 2,230 765 755 Biopharmaceuticals 2,791 2,518 1,011 931 Appendix 4: The Novo Nordisk Group Consolidated balance sheet DKK million 30 Sep 2004 31 Dec 2003 30 Sep 2003 ASSETS Long-term assets Intangible assets 235 331 380 Property, plant and equipment 17,142 16,342 16,030 Investments in associated companies 962 1,040 1,014 Deferred tax assets 565 579 599 Long-term financial assets 140 80 55 TOTAL LONG-TERM ASSETS 19,044 18,372 18,078 Current assets Inventories 7,100 6,531 6,543 Trade receivables 3,770 3,785 3,697 Tax receivables 173 134 757 Other receivables 2,028 2,652 1,623 Marketable securities 525 1,828 1,629 Cash at bank and in hand 2,947 1,262 2,813 TOTAL CURRENT ASSETS 16,543 16,192 17,062 TOTAL ASSETS 35,587 34,564 35,140 EQUITY AND LIABILITIES Share capital 709 709 709 Treasury shares (39) (33) (29) Share premium account 2,565 2,565 2,565 Retained earnings 22,160 21,037 20,120 Other comprehensive income 259 609 335 TOTAL EQUITY 25,654 24,887 23,700 Long-term liabilities Long-term debt 746 753 1,006 Deferred tax liabilities 1,539 1,610 1,687 Provision for pensions 284 222 318 Other long-term provisions 90 60 39 Total long-term liabilities 2,659 2,645 3,050 Current liabilities Short-term debt 436 975 876 Trade payables 738 1,008 894 Tax payables 727 643 1,664 Other current liabilities 4,011 3,366 3,927 Other short-term provisions 1,362 1,040 1,029 Total current liabilities 7,274 7,032 8,390 TOTAL LIABILITIES 9,933 9,677 11,440 TOTAL EQUITY AND LIABILITIES 35,587 34,564 35,140 Appendix 5: The Novo Nordisk Group Consolidated statement of changes in equity Other comprehensive income Deferred Exchange gain/loss Share rate on cash Other Share Treasury premium Retained adjust- flow adjust capital shares account earnings ments hedges -ments Total 9M 2004 Balance at the beginning of the year 709 (33) 2,565 21,037 33 513 63 24,887 Net profit for the period 3,615 3,615 Purchase of treasury shares (7) (1,078) (1,085) Sale of treasury shares 1 74 75 Dividends declared (1,488) (1,488) Exchange rate adjustment of investments in subsidiaries 8 8 Reversal of deferred (gain)/loss on cash flow hedges at the beginning of the year (513) (513) Deferred gain/(loss) on cash flow hedges at the end of the period 153 153 Other adjustments 2 2 Balance at the end of the period 709 (39) 2,565 22,160 41 153 65 25,654 9M 2003 Balance at the beginning of the year 709 (19) 2,565 18,968 27 391 (45) 22,596 Net profit for the period 3,489 3,489 Purchase of treasury shares (10) (1,106) (1,116) Sale of treasury shares 12 12 Dividends declared (1,243) (1,243) Exchange rate adjustment of investments in subsidiaries 16 16 Reversal of deferred (gain)/loss on cash flow hedges at the beginning of the year (391) (391) Deferred gain/(loss) on cash flow hedges at the end of the period 330 330 Other adjustments 7 7 Balance at the end of the period 709 (29) 2,565 20,120 43 330 (38) 23,700 Appendix 6: The Novo Nordisk Group Condensed consolidated statements of cash flow and financial resources DKK million 9M 2004 9M 2003 Net profit 3,615 3,489 Net reversals with no effect on cash flow 3,705 3,234 Income taxes paid and net interest received (1,662) (783) Cash flow before change in working capital 5,658 5,940 Net change in working capital (108) (12) Cash flow from operating activities 5,550 5,928 Net investments in intangible assets and long-term financial assets (204) (11) Capital expenditure for property, plant and equipment (1,907) (1,368) Net change in marketable securities (>3 months) 1,303 (1,318) Total cash flow from investing activities (808) (2,697) Cash flow from financing activities (2,838) (1,897) NET CASH FLOW 1,904 1,334 Unrealised gain/(loss) on exchange rates in cash and cash equivalents (22) (8) Net change in cash and cash equivalents 1,882 1,326 Cash and cash equivalents at the beginning of the year 841 919 Cash and cash equivalents at the end of the period 2,723 2,245 Undrawn committed credit facilities 6,697 8,899 FINANCIAL RESOURCES AT THE END OF THE PERIOD 9,420 11,144 FREE CASH FLOW* 3,439 4,549

*) Cash flow from operating activities + Cash flow from investing activities - Net change in marketable securities (>3 months)

Appendix 7: The Novo Nordisk Group Reconciliations of Danish GAAP to IFRS Accounting policies

This unaudited interim financial report has been prepared in accordance with International Accounting Standard 34 on Interim Financial Reporting.

As of 1 January 2004, the accounting policies have been changed to comply with International Financial Reporting Standards (IFRS). The date of transition is 1 January 2002. The accounting policies used in this interim financial report are consistent with those used in the Annual Financial Report 2003 except for the changes described in the section 'Adoption of IFRS in 2004' in the Annual Financial report 2003, which describes the changes from the historically applied Danish GAAP to IFRS. In this interim financial report the presentation and accounting terminology comply with IFRS.

The reconciliation items in the tables below refer to descriptions of the changes in accounting policies due to IFRS adoption mentioned in the section 'Adoption of IFRS in 2004' in the Annual Financial Report 2003.

Effect of IFRS adoption for the quarterly financial reporting in 2003

DKK Million Q1 Q2 Q3 Q4 Operating profit - Danish GAAP 1,320 1,619 1,636 1,809 Accounting for associated R&D companies - reclass. of share of profit or loss 40 36 40 31 Accounting for associated R&D companies - reclass. of capital (gain)/loss 18 - - (103) Provisions for pensions 9 - 1 - Borrowing costs - depreciation 10 9 9 10 Other - 1 - 3 Operating profit - IFRS 1,397 1,665 1,686 1,750 Net profit - Danish GAAP 1,091 1,286 1,130 1,351 Accounting for associated R&D companies (5) (5) (5) 6 Market value of currency options (15) 17 (13) 41 Provisions for pensions 5 - 1 - Borrowing costs - depreciation 10 9 9 10 Borrowing costs - interest expenses as incurred (3) (3) (2) (2) Other (10) (16) 8 7 Net profit - IFRS 1,073 1,288 1,128 1,413 Equity - Danish GAAP 22,158 23,159 24,037 25,224 Accounting for associated R&D companies 40 34 28 31 Market value of currency options (16) (23) (18) (35) Provisions for pensions (32) (30) (29) (36) Borrowing costs (282) (278) (273) (268) Other (39) (55) (45) (29) Equity - IFRS 21,829 22,807 23,700 24,887 Effect of IFRS adoption on net profit DKK Million 2003 2002 Net profit - Danish GAAP 4,858 4,095 Accounting for associated R&D companies (9) (9) Market value of currency options 30 50 Provisions for pensions 6 (7) Borrowing costs - depreciation 38 39 Borrowing costs - interest expenses as incurred (10) (14) Other (11) (10) Net profit - IFRS 4,902 4,144 Effect of IFRS adoption on equity 31 Dec 31 Dec 1 Jan DKK Million 2003 2002 2002 Equity - Danish GAAP 25,224 22,928 20,137 Accounting for associated R&D companies 31 47 57 Market value of currency options (35) (22) (22) Provisions for pensions (36) (42) (15) Borrowing costs (268) (287) (297) Other (29) (28) (31) Equity - IFRS 24,887 22,596 19,829

Novo Nordisk

CONTACT: Outside North America: Mike Rulis, +45-4442-3573 ormike@novonordisk.com, or Mogens Thorsager Jensen, +45-4442-7945 ormtj@novonordisk.com, or Palle Holm Olesen, +45-4442-6175 orphoo@novonordisk.com, or In North America: Susan T Jackson, +1-609-919-7776 orstja@novonordisk.com, or Christian Kanstrup, +1-609-919-7937 orcka@novonordisk.com, all for Novo Nordisk


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