3rd Quarter Results

o        Sales of insulin analogues increased by 60%

o        Sales of NovoSeven® increased by 15%

o        Sales in North America increased by 21%

 

 

 

 

o        It is intended to include trauma patients from sites in the US into the ongoing global phase 3 study. 

o        Prior to initiation of the US part of the global study, Novo Nordisk will seek to obtain an exception to the requirement for 'informed consent' in the US to achieve a faster patient enrolment.

o        The global trauma study is now expected to encompass around 1,500 patients and to take close to four years to complete.

Financial statement for the first nine months of 2005

This interim report has been prepared in accordance with International Financial Reporting Standards (IFRS). The accounting policies used in the interim report are consistent with those used in the Annual Report 2004, which includes the expense impact of share-based payment schemes. The interim report has not been audited.

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

 

Sales development by segments

Sales in the first nine months of 2005 increased by 16% measured in local currencies and by 15% in Danish kroner. Growth was realised both within diabetes care and biopharmaceuticals - primarily driven by the insulin analogue products as well as NovoSeven®. Sales of growth hormone therapy products also contributed to growth.

 

 

 

Sales growth was realised in all regions, with the primary growth driver being North America, constituting 28% of total sales.  

 

Sales of diabetes care products increased by 17% in local currencies compared to the first nine months of 2004 and by 16% in Danish kroner to DKK 17,293 million. Novo Nordisk remains the global market leader in diabetes care (insulin and oral antidiabetic products) with an overall market share of 20%. 

 

Sales of insulin analogues, human insulin and insulin-related products increased by 18% measured in Danish kroner and by a similar growth rate in local currencies to DKK 16,039 million. All regions contributed to growth measured in local currencies as well as in Danish kroner.

 

 

Novo Nordisk continues to expand its global leadership position in the insulin market with a total market share of more than 50% and an insulin analogue market share of around 33%, both measured in volume.

 

 

Sales of insulin analogues increased by 61% in local currencies and by 60% in Danish kroner to DKK 5,069 million in the first nine months of 2005. Sales of insulin analogues continue to be the primary growth contributor with 58% of the overall growth in local currencies and constitute close to 32% of Novo Nordisk's total sales of all insulin and insulin-related products, compared to 23% in the first nine months of 2004.

 

Sales in North America increased by 34% in local currencies in the first nine months of 2005 and by 31% in Danish kroner, reflecting solid penetration of the insulin analogues NovoLog® and NovoLog® Mix 70/30. In the US market, Novo Nordisk now holds more than 37% of the total insulin market and close to 22% of the analogue market, both measured by volume. Sales of human insulin products also increased due to increased volumes as well as higher average prices.

 

 

Novo Nordisk has achieved significant market share gains in the US insulin market during recent years, and the portfolio of marketed insulin analogue products will be further strengthened by the upcoming launch of Levemir®, Novo Nordisk's long-acting insulin analogue. To further solidify the company's market position for the launch, and to also support the continued market penetration of NovoLog® and NovoLog® Mix 70/30, Novo Nordisk has decided to expand the diabetes care sales force in the US by around 400 individuals to a total of more than 1,200. This sales force expansion is expected to be completed around the turn of the year.

 

Sales in Europe increased by 9% in local currencies and by 10% in Danish kroner, primarily driven by the portfolio of insulin analogues, including Levemir®. Novo Nordisk has now launched Levemir® in most of the European markets, including France, where the product was launched recently. 

 

 

Novo Nordisk continues to consolidate its leadership position in the insulin analogue market, supported by the continued roll-out of Levemir®. The company now holds close to 42% of the European insulin analogue market, measured in volume.

 

 

Sales in Japan & Oceania increased by 11% in local currencies and by 10% in Danish kroner. The growth primarily reflects increased sales of NovoRapid® and NovoRapid® 30 Mix, supported by the continued switch from durable to prefilled devices, which now account for almost two-thirds of the total Japanese insulin market. Novo Nordisk holds close to 60% of the Japanese insulin analogue market.

 

 

Sales in International Operations increased by 30% in local currencies and by 31% in Danish kroner. Sales growth in the third quarter of 2005 was positively impacted by timing differences in sales to China, Saudi Arabia and Russia. Compared to the quarterly distribution in previous years, sales in International Operations are expected to be more evenly distributed across quarters in 2005.   

 

 

While sales in International Operations were dominated by human insulin, insulin analogues continue to add to the overall growth in the region. Novo Nordisk is the overall insulin market leader and also holds the leadership position within the insulin analogue segment.

 

Sales of oral antidiabetic products increased compared to the same period in 2004 by 2% in local currencies and 1% in Danish kroner to DKK 1,254 million. The development in sales compared to the same period last year was positive both in Europe and International Operations. This was partly offset by lower sales in the US market, reflecting a slightly lower market share for Prandin®.

 

Biopharmaceuticals

Sales of biopharmaceutical products increased by 14% in local currencies compared to the first nine months of 2004 and by 13% in Danish kroner to DKK 7,041 million.

 

Sales of NovoSeven® increased by 17% in local currencies compared to the same period last year and by 15% in Danish kroner to DKK 3,674 million. All regions contributed to the sales increase, and North America continued to be the primary growth driver. In Europe, growth in sales resumed during the second and third quarters of 2005.

 

 

The sales growth of NovoSeven® was influenced by several factors during the first nine months of 2005. Due to the high penetration within spontaneous bleeds in 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® 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®.  

 

Sales of growth hormone therapy products increased by 21% in local currencies and by 20% in Danish kroner to DKK 2,000 million. While all regions contributed to the sales increase compared to the same period last year, North America and Europe were the main growth drivers. Sales have been positively impacted by the penetration of the NordiFlex® prefilled delivery device, and Novo Nordisk has gained market share in all major markets.

 

Other products

Sales of other products within biopharmaceuticals, which predominantly consist of hormone replacement therapy (HRT) related products, were unchanged in local currencies compared to the same period last year and decreased by 1% in Danish kroner to DKK 1,367 million. Whereas European sales of HRT products continue to be negatively impacted by challenging market conditions, sales in the US market increased during the first nine months due to higher market share and higher average prices.

 

Costs, licence fees and other operating income

The cost of goods sold increased by 13% to DKK 6,653 million, with a gross margin of 72.7%, compared to 72.1% in the first nine months of 2004. The gains from an improved product mix and increased production efficiency were slightly offset by an adverse currency impact, leaving the underlying gross margin improvement at 0.7 percentage points.

 

 

Total non-production-related costs increased by 13% to DKK 11,840 million. The increase in non-production-related costs reflects increased sales and distribution costs. This is primarily a consequence of an increase of the US diabetes care sales force during the second quarter of 2004 as well as costs related to the launch of Levemir® in the European market.

 

 

Licence fees and other operating income in the first nine months of 2005 were DKK 324 million, compared to DKK 362 million in the same period last year.

 

Net financials

Net financials showed an income of DKK 382 million in the first nine months of 2005 compared to an income of DKK 192 million in the same period in 2004. The result from associated companies was an income of DKK 344 million compared to an expense of DKK 97 million in the first nine months of 2004. This reflects a non-recurring gain in the first quarter of 2005 of around DKK 250 million from the sale of shares in Ferrosan A/S as well as a non-recurring accounting gain of around DKK 200 million from ZymoGenetics' public offering of new shares in August 2005. 

 

 

The foreign exchange gain was DKK 103 million compared to a gain of DKK 287 million in the same period last year. The lower foreign exchange gain reflects losses from foreign exchange hedging activities, which include forward contracts and foreign exchange options. The effect of these hedging activities has been negatively impacted by the higher level of the US dollar versus the Danish krone in the first nine months of 2005 compared to the level prevailing by the end of 2004. In accordance with IFRS, an unrealised loss of DKK 373 million was deferred by the end of September 2005 for profit and loss recognition in the future periods when the hedged operational cash flows occur.   

 

Financial outlook

For 2005, Novo Nordisk now expects to increase sales, measured in Danish kroner, by 13-15%, and a similar level of growth measured in local currencies. The company continues to benefit from the ongoing penetration of Novo Nordisk's insulin analogue portfolio, and also expects increasing sales of NovoSeven® and Norditropin® SimpleXx®.  The higher level of the US dollar and related currencies versus the Danish krone also impacts the company positively.

 

 

Furthermore, Novo Nordisk now expects to report operating profit growth of 12-15% for 2005, compared to the previous expectation of around 10%. This is a consequence of the improved sales expectation, which is only partly offset by additional costs related to the expansion of the US diabetes care sales force. The full-year expectation for growth in underlying operating profit, which excludes the impact from currency movements and non-recurring items, remains unchanged around 15%. This expectation includes the profit and loss impact of the following non-recurring items:

 

 

 

Novo Nordisk still expects the tax rate for 2005 to be slightly below 29%.  

 

 

Capital expenditure is still expected to be close to DKK 4 billion in 2005, and depreciations, amortisation and impairment losses are still expected to be around DKK 1.9 billion, whereas free cash flow is now expected to be close to DKK 4 billion.

 

 

All of the above expectations are provided that currency exchange rates remain at the current level for the rest of 2005.

 

 

Novo Nordisk has hedged expected net cash flows in US dollars, Japanese yen and British pounds for 10 months for each of these currencies. In accordance with IFRS, the financial impact from foreign exchange hedging contracts will be included in 'Net financials' as the underlying operational cash flows materialise.  

 

 

With regard to 2006, Novo Nordisk will provide full guidance on expectations in connection with the release of the full-year financial results for 2005, scheduled for 27 January 2006.  Given the present currency exchange rate environment, Novo Nordisk currently expects to achieve at least 10% growth in sales for 2006, and preliminary plans for 2006 indicate an operating profit growth of 10-15%. This reflects Novo Nordisk's intention to invest in the further strengthening of the company's position in the US diabetes care market, including the upcoming launch of Levemir®, and also the expected increase in research and development costs for 2006 as a result of an increased number of late-stage clinical development projects, including the NovoSeven® expansion programme, liraglutide and AERx® iDMS.   

 

 

At the annual meeting of the European Association for the Study of Diabetes (EASD) in September 2005, Novo Nordisk launched the NovoPen® 4 durable pen device for insulin treatment of patients with diabetes. This is the fourth generation of the NovoPen® range of durable devices, and NovoPen® 4 offers patients a more convenient treatment option, compared to other marketed products.

 

 

In September 2005, the US regulatory authorities (FDA) have extended the marketing authorisation for NovoLog® to include paediatric use. Similarly, in October, the FDA has extended the US marketing authorisation for Levemir® to include paediatric treatment.

 

 

In October 2005, Novo Nordisk received marketing authorisation from the European Commission for the premixed insulin analogue products NovoMix® 50 and NovoMix® 70. Novo Nordisk is now the only company with a complete range of approved insulin analogue products in Europe.

 

 

In the liraglutide phase 2b study, the last patient has recently completed treatment and the phase 3 programme, which is expected to encompass around 3,800 patients with type 2 diabetes, is planned to be initiated in February 2006.

 

 

Finally, Novo Nordisk still expects to file in late 2005 in Japan for marketing approval of Levemir® following the recent successful completion of the phase 3 programme in Japan.

 

In August 2005, the FDA approved the use of NovoSeven® in surgical procedures involving haemophilia patients with inhibitors against their existing factor VIII or factor IX treatment. Furthermore, the FDA has also approved the use of NovoSeven® in patients with factor VII deficiency, a rare hereditary haemorrhagic disease caused by the diminution or absence of this coagulation factor.

 

 

In October 2005, the first patient was dosed in a phase 1 study with rFXIII (recombinant coagulation factor XIII) in patients undergoing cardiac surgery. This phase 1 study is the first of several rFXIII studies planned by Novo Nordisk.

 

 

Novo Nordisk has filed an application with EMEA (the European Medicines Agency) for marketing approval of the use of NovoSeven® in intracerebral haemorrhage (ICH). The filing was based on results obtained from a phase 2b clinical study involving 399 patients and safety data from two smaller phase 2 studies. Furthermore, if requested by EMEA, the filing may be supported around the middle of 2006 by safety information generated from the ongoing global confirmatory phase 3 study.

 

 

Novo Nordisk has recently finalised the discussions with the FDA concerning the design of a US phase 3 clinical study for the use of NovoSeven® in trauma. The study protocol approved by the FDA includes a mortality endpoint as a primary study outcome measure.

 

 

However, before initiation of the US phase 3 study, and in order to accelerate the subsequent completion of the study, Novo Nordisk has decided to pursue an exception to the US 'Informed Consent Requirements', which generally require patients, or alternatively the next of kin, to formally accept inclusion (give consent) in a US clinical study. This may be very challenging to obtain in a trauma setting where patients generally can be physically unable to give such informed consent. Novo Nordisk expects to pursue this exception (a so-called 'Waiver of Informed Consent') via an approval process involving the FDA, US trauma centres and the communities in which these centres are located. This process is currently expected to last up to 18 months, but will - if granted - allow a more rapid enrolment of patients.

 

 

Moreover, Novo Nordisk has decided to merge the US clinical study sites into the global phase 3 study currently in progress outside the US, with initiation of the US sites contingent upon obtaining permission to conduct the study in the US with a waiver of informed consent. The global phase 3 trauma study is expected to include around 1,500 patients. This is expected to provide an improved statistical basis as compared to the previously estimated total enrolment of around 1,000 patients in the ongoing phase 3 study outside the US. Furthermore, the global trauma study is expected to take close to four years to complete, and it will include mortality as a primary study outcome measure.

 

Total equity was DKK 26,589 million at the end of the first nine months of 2005, equal to 66.2% of total assets, compared to 70.8% at the end of 2004. Please refer to appendix 5 for further specification of changes in equity during 2005.

 

Treasury shares and share repurchase programme

As per 26 October 2005, Novo Nordisk A/S and its wholly-owned affiliates owned 30,970,354 of its own B shares, corresponding to 8.73% of the total share capital.

 

 

In 2005, Novo Nordisk has so far repurchased 8.7 million B shares at a cash value of DKK 2.7 billion. The company still expects to repurchase additional B shares during the remaining part of 2005 equivalent to a cash value of DKK 0.3 billion, thereby completing the current share repurchase programme.

 

Employee share programme

As previously communicated, Novo Nordisk has decided to offer shares to the employees, at a price of DKK 150 per share from the company's holding of treasury shares. The Danish part of this global offering was completed in October, with approximately 0.7 million shares being subscribed, and the international programme is expected to be completed before the end of 2005. The estimated pre-tax cost of the entire offering is slightly more than DKK 150 million, which will be expensed in the fourth quarter of 2005.

 

 

As of 26 October 2005, Novo Nordisk Inc, together with the majority of hormone therapy product manufacturers in the US, is a defendant in product liability lawsuits related to Novo Nordisk's hormone therapy products. These lawsuits currently involve a total of 34 individuals (as compared to 31 individuals by the end of April 2005) who allege to have used Novo Nordisk's hormone therapy products. These 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 Corporation (now Pfizer Inc). According to information received from Pfizer Inc, an additional 16 individuals (as compared to 11 individuals by the end of April 2005) allege, in relation to a similar lawsuit against Pfizer Inc, that they have used Novo Nordisk's hormone therapy products. Currently, it is expected that the first trial will take place in the third quarter of 2006; however, Novo Nordisk is not expecting the claims to impact Novo Nordisk's financial outlook.

 

On 22 September 2005, Novo Nordisk announced that it filed a patent infringement lawsuit in early September against Sanofi-Aventis alleging that the OptiClik® pen system, marketed by Sanofi-Aventis, infringes one of Novo Nordisk's US patents. The lawsuit was filed against Sanofi-Aventis and certain of its US, German, and Swiss affiliates in the Delaware District Court.

 

 

Novo Nordisk's corporate volunteer programme, TakeAction!, encourages employees to engage in social causes within the company's areas of expertise. A recent example is the relief assistance provided by US employees to people affected by Hurricane Katrina. Employee donations were matched by Novo Nordisk's US affiliate Novo Nordisk Inc (NNI). Shipping medical supplies free of charge, NNI has so far donated nearly USD 4 million worth of devices, insulin vials and needles to clinics in the affected area, benefiting thousands of people with diabetes.

 

Super Sector Leader

In its 2005 analysis of sustainability leadership, announced in September 2005, the Swiss-based SAM group rates Novo Nordisk a Super Sector Leader. The rating places Novo Nordisk as a healthcare leader on the global Dow Jones Sustainability World Index as well as the pan-European Dow Jones STOXX Sustainability Index.

 

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 novonordisk.com, which can be found under 'Investors - Conference calls'. Presentation material for the conference call will be made available approximately one hour before on the same page.

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 21 February 2005. Please also refer to the section 'Risk Management' in the Annual Report 2004. 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.

 

Management statement

Today, the Board of Directors and Executive Management reviewed and approved the interim report and accounts of Novo Nordisk for the first nine months of 2005.

The interim report and accounts have been prepared in accordance with International Financial Reporting Standards and the additional Danish disclosure requirements applying to listed companies' interim reports and accounts. The interim report has not been audited.

In our opinion the accounting policies used are appropriate and the overall presentation of the interim report and accounts is adequate. Furthermore, in our opinion the interim report and accounts give a true and fair view of the Group's assets, liabilities, financial position and of the results of the operations and consolidated cash flows for the period under review.

 

Bagsværd 27 October 2005

 

 

Contacts for further information

 

 

 

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

 

Stock Exchange Announcement No 25 / 2005

 

Appendix 1: Quarterly numbers in DKK

 

(Amounts in DKK million, except number of employees, earnings per share and number of shares outstanding.)
										% change
	2005				2004					Q3 2004 -
	Q3	Q2	Q1		Q4	Q3	Q2	Q1		Q3 2005
Sales	8,793	8,283	7,258		7,944	7,408	7,164	6,515		19%
Gross profit	6,435	6,073	5,173		5,783	5,318	5,219	4,661		21%
Gross margin	73.2%	73.3%	71.3%		72.8%	71.8%	72.9%	71.5%
Sales and distribution costs	2,402	2,267	2,139		2,364	2,039	1,991	1,886		18%
Percent of sales	27.3%	27.4%	29.5%		29.8%	27.5%	27.8%	28.9%
Research and development costs	1,231	1,197	1,106		1,243	1,086	983	1,040		13%
Percent of sales	14.0%	14.5%	15.2%		15.6%	14.7%	13.7%	16.0%
Administrative expenses	545	470	483		534	502	431	477		9%
Percent of sales	6.2%	5.7%	6.7%		6.7%	6.8%	6.0%	7.3%
Licence fees and other operating income (net)	55	202	67		213	59	71	232		-7%
Operating profit	2,312	2,341	1,512		1,855	1,750	1,885	1,490		32%
Operating margin	26.3%	28.3%	20.8%		23.4%	23.6%	26.3%	22.9%
Share of profit/(loss) in associated companies	149	(43)	238		(20)	12	(40)	(69)		1142%
Financial income	58	238	114		491	125	104	178		-54%
Financial expenses	103	193	76		186	52	44	22		98%
Profit before taxation	2,416	2,343	1,788		2,140	1,835	1,905	1,577		32%
Net profit	1,752	1,684	1,232		1,462	1,226	1,272	1,053		43%
Depreciation, amortisation and impairment losses	559	422	412		549	576	387	380		-3%
Capital expenditure	1,087	735	723		1,092	873	642	392		25%
Cash flow from operating activities	2,905	2,105	1,343		2,039	2,490	1,710	1,350		17%
Free cash flow	1,740	1,332	614		839	1,597	956	886		9%
Equity	26,589	25,620	25,729		26,504	25,557	24,827	23,942		4%
Total assets	40,181	37,731	36,497		37,433	35,587	34,248	33,838		13%
Equity ratio	66.2%	67.9%	70.5%		70.8%	71.8%	72.5%	70.8%
Full-time employees at the end of the period	21,631	21,246	20,942		20,285	20,001	19,631	19,179		8%
Diluted earnings per share (in DKK)*	5.36	5.09	3.70		4.37	3.63	3.74	3.10		48%
Average number of shares outstanding (million)*
- used for diluted earnings per share	326.9	330.8	333.2		334.7	338.2	339.8	339.8		-3%
Sales by business segments:
Insulin analogues	1,929	1,692	1,448		1,332	1,252	1,037	886		54%
Human insulin and insulin-related sales	3,871	3,753	3,346		3,944	3,593	3,640	3,206		8%
Oral antidiabetic products (OAD)	487	391	376		403	445	379	416		9%
Diabetes care total	6,287	5,836	5,170		5,679	5,290	5,056	4,508		19%
NovoSeven®	1,336	1,248	1,090		1,170	1,086	1,084	1,019		23%
Growth hormone therapy	700	704	596		651	559	557	550		25%
Hormone replacement therapy	406	410	328		364	396	389	339		3%
Other products	64	85	74		80	77	78	99		-17%
Biopharmaceuticals total	2,506	2,447	2,088		2,265	2,118	2,108	2,007		18%
Sales by geographic segments:
Europe	3,434	3,405	3,006		3,364	3,057	3,106	2,884		12%
North America	2,462	2,282	2,092		1,816	2,098	1,837	1,727		17%
International Operations	1,750	1,395	1,128		1,559	1,171	1,134	980		49%
Japan & Oceania	1,147	1,201	1,032		1,205	1,082	1,087	924		6%
Segment operating profit:
Diabetes care	1,161	1,235	750		1,047	746	936	675		56%
Biopharmaceuticals	1,151	1,106	762		808	1,004	949	815		15%
*) For Q3 2005 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 326,935,249.     Appendix 2: 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 2005 2004 Q3 2004 - Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q3 2005 Sales     1,179    1,113       975    1,068       997       962       875 19% Gross profit        863       816       695       778       715       701       626 21% Gross margin 73.2% 73.3% 71.3% 72.8% 71.8% 72.9% 71.5% Sales and distribution costs        322       305       287       318       274       268       253 18% Percent of sales 27.3% 27.4% 29.5% 29.8% 27.5% 27.8% 28.9% Research and development costs        165       160       149       167       146       132       140 13% Percent of sales 14.0% 14.5% 15.2% 15.6% 14.7% 13.7% 16.0% Administrative expenses          73        63        65        72        67        58        64 9% Percent of sales 6.2% 5.7% 6.7% 6.7% 6.8% 6.0% 7.3% Licence fees and other operating income (net)           7        27          9        28          8        10        31 -7% Operating profit         310       315       203       249       236       253       200 32% Operating margin 26.3% 28.3% 20.8% 23.4% 23.6% 26.3% 22.9% Share of profit in associated R&D companies          20        (6)        32        (1)          -        (5)        (9) 1142% Financial income           8        32        15        65        17        14        24 -54% Financial expenses          14        26        10        25          7          6          3 98% Profit before taxation        324       315       240       288       246       256       212 32% Net profit         235       226       166       197       165       171       141 43% Depreciation, amortisation and impairment losses          75        57        55        74        77        52        51 -3% Capital expenditure        146        99        97       147       117        86        53 25% Cash flow from operating activities        390       283       180       274       335       230       181 17% Free cash flow        234       179        82       113       215       128       119 9% Equity     3,563    3,438    3,454    3,563    3,434    3,340    3,216 4% Total assets     5,384    5,064    4,899    5,033    4,782    4,608    4,545 13% Equity ratio 66.2% 67.9% 70.5% 70.8% 71.8% 72.5% 70.8% Full-time employees at the end of the period    21,631  21,246  20,942  20,285  20,001  19,631  19,179 8% Diluted earnings per share (in EUR)*       0.72      0.68      0.50      0.58      0.49      0.50      0.42 48% Average number of shares outstanding (million)* - used for diluted earnings per share     326.9    330.8    333.2    334.7    338.2    339.8    339.8 -3% Sales by business segments:    Insulin analogues        258       227       195       179       169       139       119 54%    Human insulin and insulin-related sales        520       504       450       531       483       489       430 8%    Oral antidiabetic products (OAD)          65        52        51        54        60        51        56 9%    Diabetes care total         843       783       696       764       712       679       605 19%    NovoSeven®        179       168       146       157       147       145       137 23%    Growth hormone therapy          93        95        80        87        75        75        74 25%    Hormone replacement therapy          55        55        44        49        53        52        46 3%    Other products           9        12          9        11        10        11        13 -17%    Biopharmaceuticals total         336       330       279       304       285       283       270 18% Sales by geographic segments:    Europe        460       457       404       452       411       418       387 12%    North America        330       307       281       244       282       247       232 17%    International Operations        235       187       152       210       157       152       132 49%    Japan & Oceania        154       162       138       162       147       145       124 6% Segment operating profit:    Diabetes care        156       166       101       141       101       125        91 56%    Biopharmaceuticals        154       149       102       108       135       128       109 15% *) For Q3 2005 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 326,935,249.     Appendix 3: Income statement    9M   9M   Q3   Q3  DKK million 2005 2004 2005 2004 Sales    24,334    21,087     8,793     7,408 Cost of goods sold     6,653     5,889     2,358     2,090 Gross profit   17,681   15,198     6,435     5,318   Sales and distribution costs     6,808     5,916     2,402     2,039 Research and development costs     3,534     3,109     1,231     1,086 Administrative expenses     1,498     1,410        545        502 Licence fees and other operating income (net)        324        362          55          59 Operating profit     6,165     5,125     2,312     1,750 Share of profit/(loss) in associated companies        344        (97)        149          12 Financial income        410        407          58        125 Financial expenses        372        118        103          52 Profit before taxation     6,547     5,317     2,416     1,835 Income taxes     1,879     1,766        664        609 NET PROFIT     4,668     3,551     1,752     1,226 Basic earnings per share (DKK)     14.18     10.51       5.38       3.64 Diluted earnings per share (DKK)     14.13     10.47       5.36       3.63 Segment sales:    Diabetes care    17,293    14,854     6,287     5,290    Biopharmaceuticals     7,041     6,233     2,506     2,118 Segment operating profit:    Diabetes care     3,146     2,357     1,161        746     Operating margin 18.2% 15.9% 18.5% 14.1%    Biopharmaceuticals     3,019     2,768     1,151     1,004     Operating margin 42.9% 44.4% 45.9% 47.4%     Appendix 4: Balance sheet   DKK million 30 Sep 2005 31 Dec 2004 ASSETS Intangible assets              471              314 Property, plant and equipment          19,475          17,559 Investments in associated companies              936              883 Deferred tax assets              948              769 Other financial assets              185              159 TOTAL LONG-TERM ASSETS           22,015           19,684 Inventories           7,670           7,163 Trade receivables           4,779           4,062 Tax receivables              353              710 Other receivables           1,343           1,855 Marketable securities              522              526 Cash at bank and in hand           3,499           3,433 TOTAL CURRENT ASSETS           18,166           17,749 TOTAL ASSETS           40,181           37,433 EQUITY AND LIABILITIES Share capital              709              709 Treasury shares              (61)              (45) Share premium account                 -           2,565 Retained earnings          25,935          22,671 Other comprehensive income                 6              604 TOTAL EQUITY           26,589           26,504 Long-term debt           1,272           1,188 Deferred tax liabilities           2,408           1,853 Provision for pensions              309              250 Other provisions              282              358 Total long-term liabilities             4,271             3,649 Short-term debt              860              507 Trade payables              991           1,061 Tax payables              369              631 Other liabilities           4,991           3,721 Other provisions           2,110           1,360 Total current liabilities             9,321             7,280 TOTAL LIABILITIES           13,592           10,929 TOTAL EQUITY AND LIABILITIES           40,181            37,433       Appendix 6: Condensed cash flow statement   DKK million 9M 2005 9M 2004 Net profit               4,668              3,551 Net reversals with no effect on cash flow             3,653             4,056 Income taxes paid and net interest received            (1,300)           (1,662) Cash flow before change in working capital              7,021              5,945   Net change in working capital              (668)              (395) Cash flow from operating activities              6,353              5,550   Net investments in intangible assets and long-term financial assets              (122)              (204) Capital expenditure for property, plant and equipment           (2,545)           (1,907) Net change in marketable securities (>3 months)                   -             1,303 Total cash flow from investing activities            (2,667)               (808)   Cash flow from financing activities            (4,164)            (2,838) NET CASH FLOW               (478)              1,904 Unrealised gain/(loss) on exchange rates in cash and cash equivalents               154               (22) Net change in cash and cash equivalents               (324)              1,882 Cash and cash equivalents at the beginning of the year             2,963               841 Cash and cash equivalents at the end of the period              2,639              2,723 Bonds with original term to maturity exceeding three months               503               504 Undrawn committed credit facilities             7,462             6,697 FINANCIAL RESOURCES AT THE END OF THE PERIOD            10,604              9,924 FREE CASH FLOW*              3,686              3,439 *) Cash flow from operating activities + Cash flow from investing activities - Net change in marketable securities  (>3 months)