Interim financial report for the period 1 January 2009 to 30
September 2009
Novo Nordisk increased operating profit by 30% in the first nine
months of 2009
* Sales increased by 15% in Danish kroner and by 11% in local
currencies.
o Sales of modern insulins increased by 28% (24% in local
currencies).
o Sales of NovoSeven® increased by 15% (11% in local
currencies).
o Sales of Norditropin® increased by 15% (9% in local
currencies).
o Sales in North America increased by 29% (17% in local
currencies).
o Sales in International Operations increased by 18% (16% in
local currencies).
* Gross margin improved by 2.5 percentage points to 79.5% in the
first nine months of 2009, primarily reflecting continued
productivity improvements and a positive currency impact of
around 1 percentage point.
* Reported operating profit increased by 30% to DKK 11,714 million.
Adjusted for the impact from currencies and non-recurring costs
in 2008 related to the discontinuation of all pulmonary delivery
projects, underlying operating profit increased by around 15%.
* Net profit increased by 15% to DKK 8,445 million. Earnings per
share (diluted) increased by 18% to DKK 13.90.
* Novo Nordisk continues the constructive dialogue with the United
States Food and Drug Administration (FDA) regarding the
regulatory process for liraglutide. Formal feedback from the FDA
regarding liraglutide, a once-daily human GLP-1 analogue, is
still expected in the fourth quarter of 2009.
* For 2009, expectations for growth in operating profit measured in
local currencies are increased to around 15% and reported
operating profit growth is now expected to be around 3 percentage
points higher than the operating profit growth in local
currencies.
Lars Rebien Sørensen, president and CEO, said: "The robust sales
growth for our portfolio of modern insulins is the key driver of the
solid business performance in the first nine months of 2009. The
launch of Victoza® in Europe is progressing well and we are seeing
strong in-market penetration in the first-wave launch countries,
Germany, the United Kingdom and Denmark."
Financial highlights for the first nine months of 2009
The present unaudited interim financial report for the first nine
months of 2009 has been prepared in accordance with IAS 34 'Interim
Financial Reporting' as issued by IASB and endorsed by the EU.
Furthermore the interim financial report has been prepared in
accordance with the additional Danish disclosure requirements for
interim reports of listed companies. See 'Accounting policies' in
appendix 7 for further information.
Amounts in DKK million, except average number of shares outstanding,
earnings per share and full-time employees.
% change
9M 2008
Profit and loss 9M 2009 9M 2008 to 9M 2009
Sales 38,016 32,970 15%
Gross profit 30,213 25,397 19%
Gross margin 79.5% 77.0%
Sales and distribution costs 11,183 9,308 20%
Percent of sales 29.4% 28.2%
Research and development costs 5,477 5,417 1%
- hereof discontinuation costs for - 325 -
pulmonary diabetes projects
Percent of sales 14.4% 16.4%
Percent of sales adjusted for 14.4% 15.4%
pulmonary diabetes projects
Administrative expenses 2,038 1,886 8%
Percent of sales 5.4% 5.7%
Licence fees and other operating 199 213 (7%)
income (net)
Operating profit 11,714 8,999 30%
Operating margin 30.8% 27.3%
Net financials (718) 626 (215%)
Profit before tax 10,996 9,625 14%
Net profit 8,445 7,315 15%
Net profit margin 22.2% 22.2%
Other key numbers
Depreciation, amortisation and 1,797 1,690 6%
impairment losses
Capital expenditure 1,696 990 71%
Cash flow from operating activities 11,795 9,659 22%
Free cash flow 9,930 8,594 16%
Total assets 52,589 48,990 7%
Equity 34,874 32,173 8%
Equity ratio 66.3% 65.7%
Average number of shares outstanding
(million) - diluted 607.4 622.8 (2%)
Diluted earnings per share (in DKK) 13.90 11.74 18%
Full-time employees at the end of the 28,497 26,360 8%
period
Sales development by segments
Sales increased by 15% in Danish kroner and by 11% measured in local
currencies. Growth was realised within both diabetes care and
biopharmaceuticals; the primary growth contribution originated from
the modern insulins and NovoSeven®.
Sales Growth Growth Share of
9M 2009 as in local growth
DKK reported currencies in local
million currencies
The diabetes care segment
Modern insulins 15,757 28% 24% 82%
- NovoRapid® 7,178 29% 23% 36%
- NovoMix® 4,810 19% 17% 19%
- Levemir® 3,769 39% 35% 27%
Human insulins 8,630 (1%) (5%) (12%)
Protein-related products 1,495 9% 5% 2%
Oral antidiabetic products 2,016 13% 7% 4%
Diabetes care - total 27,898 15% 11% 76%
The biopharmaceuticals segment
NovoSeven® 5,330 15% 11% 14%
Norditropin® 3,230 15% 9% 7%
Other products 1,558 12% 7% 3%
Biopharmaceuticals - total 10,118 15% 10% 24%
Total sales 38,016 15% 11% 100%
Sales development by regions
In the first nine months of 2009, sales growth was realised in all
regions. North America was the main contributor with 51% share of
growth measured in local currencies. International Operations and
Europe contributed 29% and 19%, respectively, of the total sales
growth.
Diabetes care
Sales of diabetes care products increased by 15% measured in Danish
kroner to DKK 27,898 million and by 11% in local currencies compared
with the first nine months of 2008.
Modern insulins, human insulins and protein-related products
In the first nine months of 2009, sales of modern insulins, human
insulins and protein-related products increased by 16% in Danish
kroner to DKK 25,882 million and by 11% measured in local currencies
compared with the same period last year, driven by North America and
International Operations. Novo Nordisk continues to be the global
leader with 51% of the total insulin market and 45% of the modern
insulin market, both measured by volume.
The portfolio of modern insulins is the main contributor to growth
and sales increased by 28% in Danish kroner to DKK 15,757 million and
by 24% in local currencies compared with the first nine months of
2008. All regions realised solid growth rates, with North America
accounting for 52% of the growth followed by Europe and International
Operations. Sales of modern insulins now constitute 65% of Novo
Nordisk's sales of insulin.
North America
Sales in North America increased by 36% in Danish kroner and by 23%
in local currencies in the first nine months of 2009, 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 34% of
the modern insulin market, both measured by volume. Currently, close
to 40% of Novo Nordisk's modern insulin volume in the US is being
sold in FlexPen®.
Europe
Sales in Europe were largely unchanged measured in Danish kroner and
increased by 4% in local currencies, reflecting continued progress
for the portfolio of modern insulins but also 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®.
Victoza®, the first once-daily human GLP-1 analogue, has been
launched in Germany, the United Kingdom and Denmark, as previously
communicated. Launch activities are progressing well in these markets
and in-market penetration is in line with best-in-class launches
within diabetes care. In Germany, Victoza® has now obtained more than
1% of the total diabetes care market and more than 40% of the GLP-1
market, both measured in weekly value market shares.
International Operations
Sales within International Operations increased by 17% in Danish
kroner and by 15% in local currencies. The main contributor to growth
in the first nine months of 2009 was sales of modern insulins,
primarily in China and Turkey. Furthermore, sales of human insulin,
driven by China and India, continue to add to overall growth in the
region. The device penetration in China is high with more than 90% of
Novo Nordisk's insulin volume sold in devices, primarily NovoPen®.
Japan & Oceania
Sales in Japan & Oceania increased by 18% 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®, countered by pressure on the overall
Novo Nordisk market share due to intense competition. Novo Nordisk
holds 68% of the total insulin market in Japan and 60% 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®.
Oral antidiabetic products (NovoNorm®/Prandin®)
In the first nine months of 2009, sales of oral antidiabetic products
increased by 13% in Danish kroner to DKK 2,016 million and by 7% in
local currencies compared with the same period in 2008.
Biopharmaceuticals
In the first nine months of 2009, sales of biopharmaceutical products
increased by 15% measured in Danish kroner to DKK 10,118 million and
by 10% measured in local currencies compared with the first nine
months of 2008.
NovoSeven®
Sales of NovoSeven® increased by 15% in Danish kroner to DKK 5,330
million and by 11% in local currencies compared with the first nine
months of 2008. Sales growth for NovoSeven® was primarily realised in
Europe and International Operations. The sales growth for NovoSeven®
primarily reflected increased sales within the congenital bleeding
disorder segments as well as within acquired haemophilia. Treatment
of spontaneous bleeds for congenital inhibitor patients remains the
largest area of use.
Norditropin®
Sales of Norditropin® (ie growth hormone in a liquid, ready-to-use
formulation) increased by 15% measured in Danish kroner to DKK 3,230
million and by 9% measured in local currencies compared with the
first nine months of 2008. North America and Europe were the main
contributors to growth measured in local currencies. Novo Nordisk is
the second-largest company in the global growth hormone market with
23% 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 12% in Danish kroner to DKK 1,558 million and
by 7% in local currencies. This development primarily reflects
continued sales progress for Vagifem®, a topical oestrogen product,
countered by generic competition in the US for Activella® (Activelle®
outside the US), Novo Nordisk's continuous-combined HRT product. The
low-dose version of Activelle® was launched in Europe in April 2009
and has been available in the US since 2007.
Development in gross margin and costs
The gross margin increased to 79.5% compared with 77.0% in the same
period of 2008. This improvement reflects improved production
efficiency, higher average selling prices in the US and a positive
product mix effect. The gross margin was positively impacted by
around 1 percentage point from a positive currency development,
primarily the higher value of the US dollar and the Japanese yen
versus the Danish krone compared with the first nine months of 2008.
In the first nine months of 2009, total non-production-related costs
increased by 13% to DKK 18,698 million compared with the same period
last year. Around one-third of the increase in non-production-related
costs, or around 4 percentage points, reflects the higher value of
key currencies versus the Danish krone in the first nine months of
2009 compared with the first nine months of 2008. The underlying
development in non-production-related costs relates to the expanded
sales force in especially the US, the UK, Germany, Japan and China
countered by limited growth in research and development costs. The
development in research and development costs primarily reflects the
timing of phase 3 clinical trial programmes as well as the
non-recurring costs of DKK 325 million in the first nine months of
2008 related to the discontinuation of pulmonary diabetes projects.
Net financials
Net financials showed a net expense of DKK 718 million in the first
nine months of 2009 compared with a net income of DKK 626 million in
the same period of 2008.
For the first nine months of 2009, the foreign exchange result was an
expense of DKK 617 million compared with an income of DKK 671 million
in the first nine months of 2008. This development reflects losses on
foreign exchange hedging of especially US dollars and Japanese yen
primarily due to the appreciation of these currencies versus Danish
kroner in the first six months of 2009 compared to the exchange rate
level prevailing in 2008.
Included in net financials is the result from associated companies
with an expense of DKK 53 million, primarily related to Novo
Nordisk's share of losses in ZymoGenetics, Inc. In the same period of
2008, the result from associated companies was an expense of DKK 128
million.
Outlook
The current expectations for 2009 are summarised and compared to the
previous expectations in the table below (changes highlighted in bold
and italic):
+-------------------------------------------------------------------+
| Expectations are as | Current | Previous |
| reported, if not | expectations | expectations |
| otherwise stated | 29 October 2009 | 6 August 2009 |
|-----------------------+---------------------+---------------------|
| Sales growth | At the level of 10% | |
| - in local | Around 1.5 | At the level of 10% |
| currencies | percentage | Around 2 percentage |
| - as reported | points higher | points |
| | | higher |
|-----------------------+---------------------+---------------------|
| Operating profit | | |
| growth | Around 15% | 12-14% |
| - in local | Around 3 percentage | Around 4 percentage |
| currencies | points | points |
| - as reported | higher | higher |
| | | |
|-----------------------+---------------------+---------------------|
| Net financial expense | Around DKK 750 | Around DKK 900 |
| | million | million |
|-----------------------+---------------------+---------------------|
| Effective tax rate | Approximately 23% | Approximately 23% |
|-----------------------+---------------------+---------------------|
| Capital expenditure | Around DKK 2.5 | Around DKK 3.0 |
| | billion | billion |
|-----------------------+---------------------+---------------------|
| Depreciation, | Around DKK 2.6 | Around DKK 2.6 |
| amortisation and | billion | billion |
| impairment losses | | |
|-----------------------+---------------------+---------------------|
| Free cash flow | At least DKK 11 | More than DKK 10 |
| | billion | billion |
+-------------------------------------------------------------------+
Novo Nordisk still expects sales growth in 2009 at the level of 10%
measured in local currencies. This is based on expectations of
continued market penetration for Novo Nordisk's key strategic
products within diabetes care and biopharmaceuticals as well as
expectations of continued intense competition. Given the current
level of exchange rates versus Danish kroner, the reported sales
growth is now expected to be around 1.5 percentage points higher than
the growth rate measured in local currencies.
For 2009, growth in operating profit is now expected to be around 15%
measured in local currencies. The increased expectations primarily
reflect further improvement of the gross margin and slightly lower
expected research and development costs for 2009 due to timing of
phase 3 clinical trial programmes. Given the current level of
exchange rates versus Danish kroner, the reported operating profit
growth is now expected to be around 3 percentage points higher than
the growth rate measured in local currencies.
For 2009, Novo Nordisk now expects a net financial expense of around
DKK 750 million. The current expectation reflects significant foreign
exchange hedging losses, primarily related to the US dollar and the
Japanese yen.
The effective tax rate for 2009 is still expected to be around 23%.
Capital expenditure is now expected to be around DKK 2.5 billion in
2009, primarily reflecting timing of activities in relation to the
new insulin formulation and filling plant in China. Expectations for
depreciations, amortisation and impairment losses of around DKK 2.6
billion are unchanged, whereas free cash flow is expected to be at
least DKK 11 billion, primarily reflecting the lower level of capital
expenditure.
With regard to the financial outlook for 2010 it is Novo Nordisk's
intention to provide detailed guidance on expectations in connection
with the full-year release of financial results for 2009 scheduled
for 2 February 2010. At present, the preliminary plans for 2010
indicate 5-10% sales growth and more than 5% growth in operating
profit, both measured in local currencies. Due to an expected
negative currency impact following the recent significant
depreciation of Novo Nordisk's main invoicing currencies the reported
sales growth for 2010 is expected to be around 3.5 percentage points
lower than the growth measured in local currencies, whereas the
reported operating profit growth is expected to be around 7
percentage points lower than the growth measured in local currencies.
The preliminary plans reflect expectations for continued solid
penetration of the portfolio of modern insulins, continued global
roll-out of Victoza® and progress for key products within
biopharmaceuticals. The preliminary plans also reflect expected
generic competition for oral antidiabetic products, impact from a
potential US healthcare reform, and a continued intense competition
within both diabetes care and biopharmaceuticals.
All of the above expectations are based on the assumption that the
global economic downturn will not significantly change the business
environment for Novo Nordisk during the remainder of 2009 and in
2010. In addition, the above expectations are provided that currency
exchange rates, especially the US dollar, remain at the current level
versus the Danish krone during the remaining part of 2009 and in 2010
(see appendix 6). 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 Annual impact on Novo Nordisk's Hedging period
currencies operating profit of a 5% (months)
movement in currency
USD DKK 580 million 16
JPY DKK 150 million 15
CNY DKK 100 million 16*
GBP DKK 80 million 12
CAD DKK 40 million 7
*USD used as proxy when hedging Novo Nordisk's CNY currency exposure
The financial impact from foreign exchange hedging is included in
'Net financials' and at present it is expected that the significant
negative currency impact on reported operating profit in 2010 will be
offset by a similar significant foreign exchange hedging gain of
approximately DKK 1 billion, again provided that key currency
exchange rates remain at the current level versus the Danish krone
during the remaining part of 2009 and in 2010.
Research and development update
Diabetes care
Novo Nordisk continues the constructive dialogue with the United
States Food and Drug Administration (FDA) regarding the regulatory
process for liraglutide. Formal feedback from the FDA regarding
liraglutide, a once-daily human GLP-1 analogue, is still expected in
the fourth quarter of 2009.
At the annual meeting of the European Association for the Study of
Diabetes (EASD) held in Vienna, Austria, from 30 September to 2
October this year, Novo Nordisk presented results from a new
meta-analysis on the safety of Novo Nordisk's long-acting modern
insulin Levemir®. The meta-analysis assessed the relative risk of a
cancer diagnosis during clinical treatment with Levemir®. It covered
a total of approximately 9,000 patients in 21 randomised, controlled
trials and compared the incidence of cancer in patients treated with
Levemir® to that of patients treated with either human insulin (NPH
insulin) or insulin glargine. The studies comparing Levemir® to NPH
insulin revealed that treatment with Levemir® was associated with a
statistically significant lower incidence of cancer than with NPH
insulin treatment (0.36 events per 100 patient years in the Levemir®
group versus 0.92 events in the NPH insulin group; p<0.05). The
meta-analysis has recently been published online in Diabetologia, the
journal of the EASD.
During the annual meeting of the EASD, Novo Nordisk also presented
new experimental studies on the molecular safety of Levemir® and
other insulins. These studies assessed comparative IGF-1 and insulin
receptor subtype binding, as well as the potential of the insulins to
induce cell growth (mitogenicity). Regarding the balance between
insulin receptor and IGF-1 receptor binding, Levemir® was found to
possess a profile very similar to that of human insulin, and when
mitogenicity was studied in a number of different cell lines, it was
found that Levemir® exhibited a similar or lower mitogenicity than
human insulin.
The new generation of insulins, SIBA and SIAC, have now both entered
phase 3 clinical development with the trial programmes named
BEGIN(TM) and BOOST(TM), respectively. The large trial programmes
with around 10,000 patients in total are executed in a sequence of
four waves. The first wave for both programmes has been initiated and
the first trials have completed recruitment; the second wave is
expected to be initiated during the fourth quarter of 2009. In the
BEGIN(TM) programme the second wave consists of one trial comparing
the use of SIBA once daily in two different regimens to insulin
glargine once daily in insulin naïve type 2 diabetes patients. In the
BOOST(TM) programme, the trial in the second wave will investigate
intensified use of SIAC compared to treatment with NovoMix® 30 in
people with type 2 diabetes previously treated with premixed insulin.
The final two waves are expected to be initiated during the first
half of 2010.
In Japan, NovoRapid Mix® 50 and NovoRapid Mix® 70 have recently been
approved by the Ministry of Health, Labor and Welfare. Both products
have been approved for the treatment of adult type 1 and type 2
diabetes patients. Novo Nordisk expects to launch both NovoRapid Mix®
50 and NovoRapid Mix® 70 in 2010 in Japan when reimbursement
discussions are finalised.
The results of the 'Treating to Target in Type 2 Diabetes' (4-T)
study conducted by the Diabetes Trials Unit at the Oxford Centre for
Diabetes, Endocrinology and Metabolism were recently published in the
New England Journal of Medicine. The study, which was supported by
Novo Nordisk and Diabetes UK, was a three-year randomised,
controlled, multicentre trial, in which 708 patients with suboptimal
HbA1c levels on metformin and sulphonylurea therapy were assigned to
receive NovoMix® 30 (biphasic insulin aspart) twice daily, mealtime
NovoRapid® (insulin aspart) three times daily, or Levemir® (insulin
detemir) once daily. Among the outcome measures after three years
were mean HbA1c, the proportion of patients with an HbA1c level of 7%
or less, the rate of hypoglycaemia and weight gain. The design of the
4-T trial made it possible to report differences between three
different initiation and intensification regimens, all with insulin
analogues, over the longest randomised 'treat-to-target' comparison
of insulin therapies yet published.
The 4-T study showed that at three years, the mean HbA1c level did
not differ between groups. The proportion of patients achieving an
HbA1c level of 7% or less was high, and similar in the NovoRapid®
(67%) and Levemir® (63%) initiation groups, but somewhat lower in the
NovoMix® (51%) group. In the NovoMix® group, however, fewer patients
received intensification with a second insulin preparation during the
three-year treatment period. The median numbers of hypoglycaemic
events per patient per year were relatively low, but highest for the
NovoRapid® initiation group: 1.7 for the Levemir®, 3.0 for NovoMix®
and 5.5 for NovoRapid® initiation groups, and the mean weight gains
were 3.6 kg, 5.7 kg and 6.4 kg respectively. Thus, the group
initiated on once-daily Levemir® therapy statistically significantly
experienced the lowest weight gain despite being intensified to a
basal bolus therapy with NovoRapid®. More than 80% of randomised
patients completed the three-year trial during which the rates of
adverse events were similar among all groups. Overall, the 4-T study
in type 2 diabetes has shown that initiation of insulin treatment
with once-daily Levemir® or twice-daily NovoMix® 30, followed by
intensification with NovoRapid® when needed, is well-tolerated and
associated with similar, strong HbA1c lowering, in the presence of
low levels of hypoglycaemia.
Biopharmaceuticals
In the area of haemophilia, and in line with previous communication,
Novo Nordisk has initiated a phase 1 study with a long-acting rFIX
derivative, a phase 1 study with a long-acting rFVIIa derivative for
subcutaneous administration as well as a phase 2 study with a
long-acting rFVIIa derivative for intravenous administration.
Novo Nordisk now expects to complete the ongoing phase 2 trial with
NN1731 in the second quarter of 2010. NN1731 is a rFVIIa analogue
designed to provide faster and more efficient haemostasis in
haemophilia patients with inhibitors. The extended duration of the
trial is due to a lower than anticipated number of bleeding events.
Novo Nordisk officially opened the new inflammation research centre
based in Seattle, Washington, USA, in September this year. The
research centre will leverage Novo Nordisk's strong knowledge within
the field of proteins in order to further build the company's
clinical pipeline of products for the treatment of chronic
inflammatory diseases.
Equity
Total equity was DKK 34,874 million at the end of the first nine
months of 2009, equal to 66.3% of total assets, compared with 65.2%
at the end of 2008. Please refer to appendix 5 for further
elaboration of changes in equity during the first nine months of
2009.
Treasury shares and share repurchase programme
As per 28 October 2009, Novo Nordisk A/S and its wholly-owned
affiliates owned 29,264,308 of its own B shares, corresponding to
4.7% of the total share capital.
In 2009, Novo Nordisk repurchased 18,667,682 B shares equal to a cash
value of DKK 5.5 billion. Novo Nordisk still expects to finalise the
share repurchase programme of DKK 19.0 billion before the end of 2009
implying that Novo Nordisk expects to repurchase B shares equal to a
cash value of around DKK 6.5 billion in 2009 in total. In the period
from 2006 to 2008 Novo Nordisk repurchased B shares equal to a cash
value of DKK 12.5 billion in total.
Sustainability issues update
CO2 emissions below 2004 baseline
In the run-up to the UN Climate Summit in Copenhagen in December,
Novo Nordisk is well on its way to achieving the company's climate
strategy target: a 10% absolute reduction of CO2 emissions from
production in the period 2004-2014. Growth in CO2 emissions has been
gradually decoupled from business growth since 2004. In 2008, the
emissions curve broke, and by mid-year 2009, emissions reached the
level of the 2004 baseline year - 210,000 tons annually.
The energy-saving programme in production has resulted in a 25,000
tons reduction in CO2 emissions corresponding to a more than 10%
reduction of the annual energy consumption since 2005. Half of the
energy-saving projects implemented globally since 2007 are paid back
within less than one year.
Since May 2007, energy savings in Denmark have been earmarked to
purchase of electricity from the new offshore wind farm at Horns Rev,
Denmark. More than 100 energy-saving projects have been implemented
under this programme. A total saving of more than 30 million KWh has
been achieved, which will secure a 100% green electricity supply once
the offshore wind farm is in full operation in 2010. Switching to
electricity from the wind farm will result in an annual CO2 reduction
of 100,000 tons.
Legal issues update
US hormone therapy litigation
As of 28 October 2009, Novo Nordisk Inc., as well as the majority of
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 52 individuals who allege use
of a Novo Nordisk hormone therapy product. 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 Company (now Pfizer Inc.). Further 62
individuals currently allege, in relation to similar lawsuits against
Pfizer Inc., that they have also used a Novo Nordisk hormone therapy
product. Currently, the first court trial is expected in the first
quarter of 2010. Novo Nordisk does not expect the pending claims to
impact Novo Nordisk's financial outlook.
Financial calendar for 2010
2 February Financial statement for 2009
4 February PDF version of the Annual Report 2009
available on novonordisk.com
10 February Deadline for the company's receipt of
shareholder proposals for the Annual General Meeting 2010
18 February Printed version of the Annual Report
2009
24 March Annual General Meeting 2010
27 April Financial statement for the first
three months of 2010
5 August Financial statement for the first six
months of 2010
27 October Financial statement for the first nine
months of 2010
Conference call details
At 1.00 pm CET today, corresponding to 8.00 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 on the same page approximately one hour before.
Forward-looking statements
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 2008 and Form 20-F, both filed with the SEC
in February 2009, 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 cooperations 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, and
- 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 2009', 'Research and development update',
'Equity' and 'Legal issues 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 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 'Managing Risks'
on pp 24-25 of the Annual Report 2008 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.
Management statement
Today, the Board of Directors and Executive Management approved the
interim financial report of Novo Nordisk A/S for the first nine
months of 2009.
The interim financial report has been prepared in accordance with IAS
34 'Interim Financial Reporting' as issued by the International
Accounting Standard Board (IASB) and endorsed by the EU. Furthermore,
the interim financial report has been prepared in accordance with the
additional Danish disclosure requirements for interim reports of
listed companies. The interim financial report has not been audited
or reviewed by the company's auditors.
In our opinion the accounting policies used are appropriate and the
overall presentation of the
interim financial report gives a true and fair view of the Group's
assets and liabilities as of 30 September 2009 and the results and
cash flows for the first nine month of 2009. Furthermore, in our
opinion, the interim financial report includes a fair view of the
development and performance of the business and the financial
position of the Group, as well as an overview of the material risks
and uncertainties the Group faces.
Bagsværd 29 October 2009
Executive Management:
Lars Rebien Sørensen Jesper Brandgaard
President and CEO CFO
Lise Kingo Kåre Schultz Mads Krogsgaard Thomsen
Board of Directors:
Sten Scheibye Göran A Ando
Chairman Vice chairman
Henrik Gürtler Johnny Henriksen Pamela J Kirby
Anne Marie Kverneland Kurt Anker Nielsen Søren Thuesen Pedersen
Hannu Ryöppönen Stig Strøbæk Jørgen Wedel
Contacts for further information
Media: Investors:
Mike Rulis Mads Veggerby Lausten
Tel: (+45) 4442 3573 Tel: (+45) 4443 7919
E-mail: mike@novonordisk.com E-mail: mlau@novonordisk.com
Kasper Roseeuw Poulsen
Tel: (+45) 4442 4471
E-mail: krop@novonordisk.com
In North America:
Sean Clements Hans Rommer
Tel: (+1) 609 514 8316 Tel: (+1) 609 919 7937
E-mail: secl@novonordisk.com E-mail: hrmm@novonordisk.com
Further information on Novo Nordisk is available on the company's
internet homepage at the address: novonordisk.com
Appendix 1: Quarterly numbers in DKK
(Amounts in DKK million, except number of employees,
earnings per share and number of shares outstanding.)
%
change
2009 Q3
2009
2008 vs
Q3
Q3 Q2 Q1 Q4 Q3 Q2 Q1 2008
Sales 12,517 13,001 12,498 12,583 11,246 11,110 10,614 11%
Gross profit 9,832 10,391 9,990 10,047 8,640 8,556 8,201 14%
Gross margin 78.5% 79.9% 79.9% 79.8% 76.8% 77.0% 77.3%
Sales and
distribution
costs 3,502 3,837 3,844 3,558 3,155 3,178 2,975 11%
Percent of 28.0% 29.5% 30.8% 28.3% 28.1% 28.6% 28.0%
sales
Research
and
development
costs 1,884 1,849 1,744 2,439 1,579 1,980 1,858 19%
- Hereof cost
related to
AERx®* - - - - 50 (155) (220)
Percent of 15.1% 14.2% 14.0% 19.4% 14.0% 17.8% 17.5%
sales
Percent of
sales
(excl. AERx®*) 15.1% 14.2% 14.0% 19.4% 14.5% 16.4% 15.4%
Administrative
expenses 666 693 679 749 633 626 627 5%
Percent of 5.3% 5.3% 5.4% 6.0% 5.6% 5.6% 5.9%
sales
Licence fees
and other
operating
income (net) 34 78 87 73 51 74 88 (33%)
Operating
profit 3,814 4,090 3,810 3,374 3,324 2,846 2,829 15%
Operating 30.5% 31.5% 30.5% 26.8% 29.6% 25.6% 26.7%
margin
Operating
profit
(excl.AERx®*) 3,814 4,090 3,810 3,374 3,274 3,001 3,049 16%
Operating
margin
(excl. AERx®*) 30.5% 31.5% 30.5% 26.8% 29.1% 27.0% 28.7%
Share of
profit/
(loss) in
associated
companies (7) (11) (35) 4 (58) (3) (67) (88%)
Financial
income 9 166 142 (82) 306 429 474 (97%)
Financial
expenses 209 361 412 226 66 21 368 217%
Profit before
income taxes 3,607 3,884 3,505 3,070 3,506 3,251 2,868 3%
Net profit 2,755 2,991 2,699 2,330 2,664 2,471 2,180 3%
Depreciation,
amortisation
and
impairment
losses 657 533 607 752 560 567 563 17%
Capital
expenditure 726 557 413 764 448 328 214 62%
Cash flow
from operating
activities 5,039 2,608 4,148 3,204 3,673 2,916 3,070 37%
Free cash
flow 4,242 2,062 3,626 2,421 3,210 2,589 2,795 32%
Equity 34,874 34,086 31,345 32,979 32,173 33,046 31,251 8%
Total assets 52,589 51,246 50,205 50,603 48,990 48,478 47,534 7%
Equity ratio 66.3% 66.5% 62.4% 65.2% 65.7% 68.2% 65.7%
Full-time
employees at
the end of the
period 28,497 27,998 27,429 26,575 26,360 26,060 25,765 8%
Basic
earnings
per share
(in DKK) 4.62 4.96 4.44 3.82 4.34 3.99 3.51 6%
Diluted
earnings
per share
(in DKK) 4.58 4.91 4.41 3.80 4.30 3.96 3.48 7%
Average
number of
shares
outstanding
(million) 596.4 603.1 607.4 609.3 614.2 618.6 620.9 (3%)
Average
number of
shares
outstanding
incl
dilutive
effect
of options
'in the money'
(million) 601.4 607.9 612.7 614.4 618.6 623.5 626.3 (3%)
Sales by
business
segments:
Modern
insulins
(insulin
analogues) 5,353 5,414 4,990 5,028 4,365 4,103 3,821 23%
Human
insulins 2,747 2,879 3,004 3,093 2,806 2,966 2,939 (2%)
Protein-
related
sales 519 492 484 477 464 460 443 12%
Oral
antidiabetic
products
(OAD) 650 675 691 602 671 478 640 (3%)
Diabetes
care total 9,269 9,460 9,169 9,200 8,306 8,007 7,843 12%
NovoSeven® 1,651 1,874 1,805 1,774 1,534 1,648 1,440 8%
Norditropin® 1,074 1,122 1,034 1,060 941 986 878 14%
Hormone
replacement
therapy 440 435 409 442 394 391 385 12%
Other
products 83 110 81 107 71 78 68 17%
Biopharma-
ceuticals
total 3,248 3,541 3,329 3,383 2,940 3,103 2,771 10%
Sales by
geographic
segments:
North
America 4,527 4,710 4,532 4,478 3,759 3,467 3,450 20%
Europe 4,376 4,375 4,195 4,453 4,305 4,400 4,061 2%
International
Operations 2,288 2,532 2,513 2,186 2,074 2,069 2,096 10%
Japan &
Oceania 1,326 1,384 1,258 1,466 1,108 1,174 1,007 20%
Segment
operating
profit:
Diabetes
care 2,286 2,333 2,171 2,424 1,963 1,510 1,672 16%
Diabetes
care
(excl. AERx®*) 2,286 2,333 2,171 2,424 1,913 1,665 1,892 19%
Biopharma-
ceuticals 1,528 1,757 1,639 950 1,361 1,336 1,157 12%
*) Costs related to the discontinuation of all
pulmonary diabetes projects.
Appendix 2: Income statement
9M 9M Q3 Q3
DKK million 2009 2008 2009 2008
Sales 38,016 32,970 12,517 11,246
Cost of goods sold 7,803 7,573 2,685 2,606
Gross profit 30,213 25,397 9,832 8,640
Sales and distribution costs 11,183 9,308 3,502 3,155
Research and development costs 5,477 5,417 1,884 1,579
- hereof costs related to AERx® * - (325) - 50
Administrative expenses 2,038 1,886 666 633
Licence fees
and other operating
income (net) 199 213 34 51
Operating profit 11,714 8,999 3,814 3,324
Operating profit
(excl AERx® *) 11,714 9,324 3,814 3,274
Share of profit/(loss)
in associated companies (53) (128) (7) (58)
Financial income 317 1,209 9 306
Financial expenses 982 455 209 66
Profit before income taxes 10,996 9,625 3,607 3,506
Income taxes 2,551 2,310 852 842
NET PROFIT 8,445 7,315 2,755 2,664
Basic earnings
per share (DKK) 14.02 11.84 4.62 4.34
Diluted earnings
per share (DKK) 13.90 11.74 4.58 4.30
Segment
Information
Segment sales:
Diabetes care 27,898 24,156 9,269 8,306
Biopharmaceuticals 10,118 8,814 3,248 2,940
Segment operating profit**):
Diabetes care 6,790 5,145 2,286 1,963
Operating margin 24.3% 21.3% 24.7% 23.6%
Biopharmaceuticals 4,924 3,854 1,528 1,361
Operating margin 48.7% 43.7% 47.0% 46.3%
Total segment operating profit 11,714 8,999 3,814 3,324
Statement of comprehensive
income
Net profit for the period 8,445 7,315 2,755 2,664
Other comprehensive income:
Exchange rate adjustment
of investments in
subsidiaries 430 (120) 102 (244)
Novo Nordisk share of equity
recognised by associated companies 8 23 (1) 9
Deferred (gain)/loss on cash flow
hedges at the beginning of the year
recognised in the Income statement
for the period 596 (533) 263 (52)
Fair value adjustments on
financial instruments 775 (638) 221 (1,346)
Tax on fair value adjustments
on financial instruments 3 2 2 2
Other adjustments 14 (50) 29 (123)
Tax on other adjustments (47) 37 (16) 98
Other comprehensive income
for the period, net of tax 1,779 (1,279) 600 (1,656)
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD 10,224 6,036 3,355 1,008
*) Excluding costs related to the
discontinuation of AERx® and
all other pulmonary diabetes projects.
**) Group financing (including financial expense and financial
income)
and income taxes are managed on a group basis
and are not allocated to operating
segments.
Appendix 3: Statement of financial position
DKK million 30 Sep 2009 31 Dec 2008
ASSETS
Intangible assets 999 788
Property, plant
and equipment 18,845 18,639
Investments in
associated companies 163 222
Deferred income
tax assets 1,388 1,696
Other financial assets 186 194
TOTAL NON-CURRENT ASSETS 21,581 21,539
Inventories 9,748 9,611
Trade receivables 6,893 6,581
Tax receivables 513 1,010
Other receivables 1,991 1,704
Marketable securities and financial
derivatives 1,635 1,377
Cash at bank and in hand 10,228 8,781
TOTAL CURRENT ASSETS 31,008 29,064
TOTAL ASSETS 52,589 50,603
EQUITY AND LIABILITIES
Share capital 620 634
Treasury shares (28) (26)
Retained earnings 33,565 33,433
Other comprehensive (loss) / income 717 (1,062)
TOTAL EQUITY 34,874 32,979
Long-term debt 963 980
Deferred income
tax liabilities 2,388 2,404
Provision for pensions 457 419
Other provisions 972 863
Total non-current liabilities 4,780 4,666
Short-term debt
and financial derivatives 229 1,334
Trade payables 1,537 2,281
Tax payables 1,133 567
Other liabilities 7,078 5,853
Other provisions 2,958 2,923
Total current liabilities 12,935 12,958
TOTAL LIABILITIES 17,715 17,624
TOTAL EQUITY AND LIABILITIES 52,589 50,603
Appendix 4: Statement of cash flows
DKK million 9M 2009 9M 2008
Net profit 8,445 7,315
Adjustment for
non-cash items 4,811 4,783
Income taxes paid and
net interest received (985) (1,169)
Cash flow before change
in working capital 12,271 10,929
Net change in working capital (476) (1,270)
Cash flow from
operating activities 11,795 9,659
Net investments in intangible
assets and long-term
financial assets (187) (245)
Capital expenditure for
property, plant
and equipment (1,696) (990)
Net change in marketable
securities (maturity exceeding
three months) - -
Received dividend 18 170
Net cash used in
investing activities (1,865) (1,065)
Cash flow from
financing activities (8,515) (6,172)
NET CASH FLOW 1,415 2,422
Unrealised gain/(loss)
on exchange rates
and marketable securities
included in cash and
cash equivalents 21 (4)
Net change in cash
and cash equivalents 1,436 2,418
Cash and cash equivalents
at the beginning of the year 8,726 4,617
Cash and cash equivalents
at the end of the period 10,162 7,035
Bonds with original term
to maturity exceeding
three months 1,017 1,483
Undrawn committed
credit facilities 7,444 7,461
FINANCIAL RESOURCES
AT THE END OF THE PERIOD 18,623 15,979
Cash flow from operating activities 11,795 9,659
+ Net cash used in investing activities (1,865) (1,065)
- Net change in marketable securities (maturity
exceeding three months) - -
FREE CASH FLOW 9,930 8,594
Appendix 5: Statement of changes in cash flows
Other
reserves
Share Trea- Re- Ex- De- Other Total
capital sury tained change ferred adjust-
shares ear- rate gain/ ments
nings adjust- loss
ments on cash
flow
hedges
DKK million
9M 2009
Balance at
the
beginning
period 634 (26) 33,433 (256) (859) 53 32,979
Total
comprehen-
sive
income
for the
period 8,445 430 1,374 (25) 10,224
Dividends (3,650) (3,650)
Share-
based
payment 186 186
Reduction
of the
B share
capital (14) 14
Purchase
of treasury
shares (17) (4,948) (4,965)
Sale of
treasury
shares 1 99 100
Balance
at the
end of the
period 620 (28) 33,565 174 515 28 34,874
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.
Other
reserves
Share Trea- Re- Ex- De- Other Total
capital sury tained change ferred adjust-
shares ear- rate gain/ ments
nings adjust- loss
ments on cash
flow
hedges
DKK million
9M 2008
Balance at
the
beginning
period 647 (26) 30,661 209 678 13 32,182
Total
comprehen-
sive
income
for the
period 7,315 (120) (1,169) 10 6,036
Dividends (2,795) (2,795)
Share-
based
payment 119 119
Reduction
of the
B share
capital (13) 13
Purchase
of treasury
shares (11) (3,464) (3,475)
Sale of
treasury
shares 1 105 106
Balance
at the
end of the
period 634 (23) 31,941 89 (491) 23 32,173
At the end of the year proposed
dividends (declared in 2008) of DKK
2,795 million (4.50 DKK per share)
are
included in Retained earnings.
No dividend is declared on treasury
shares.
Appendix 6: Assumptions for key currencies
+-------------------------------------------------------------------+
| DKK per | 2008 average | YTD 2009 average | Current exchange |
| 100 | exchange rates | exchange rates as | rate |
| | | of | as of 26 October |
| | | 26 October 2009 | 2009 |
|---------+----------------+-------------------+--------------------|
| USD | 509 | 543 | 496 |
|---------+----------------+-------------------+--------------------|
| JPY | 4.96 | 5.75 | 5.39 |
|---------+----------------+-------------------+--------------------|
| GBP | 938 | 838 | 810 |
|---------+----------------+-------------------+--------------------|
| CNY | 73 | 79 | 73 |
|---------+----------------+-------------------+--------------------|
| CAD | 479 | 468 | 469 |
+-------------------------------------------------------------------+
Appendix 7: Accounting policies
The unaudited interim financial report for the first nine months of
2009 has been prepared in accordance with IAS 34 'Interim Financial
Reporting' as issued by IASB and endorsed by the EU. Furthermore the
interim financial report has been prepared in accordance with the
additional Danish disclosure requirements for interim reports of
listed companies.
The following standards relevant to Novo Nordisk have been adopted by
the EU and were implemented with effective date 1 January 2009 as
described in the Annual Report 2008:
* IAS 1 (Revised) 'Presentation of financial statements'.
* IAS 23 (Amendment) 'Borrowing costs'.
* IFRS 2 (Amendment) 'Share-based payment'.
* IAS 28 (Amendment) 'Investment in associates' (and consequential
amendments to IAS 32, 'Financial Instruments: Disclosure and
Presentation'.
* IAS 36 (Amendment) 'Impairment of assets'.
* IAS 38 (Amendment) 'Intangible assets'.
* IAS 19 (Amendment) 'Employee benefits'.
* Minor amendments to IFRS 7, IAS 1, IAS 8, IAS 10, IAS 18, IAS 34
and IAS 39.
* IFRIC 16 'Hedges of net investment in a foreign operation'.
The adoption of these standards has not affected recognition and
measurement in Novo Nordisk's interim financial report for the first
nine months of 2009. Except for the above-mentioned implemented
standards, the interim financial report has been prepared using the
same accounting policies as in the Annual Report 2008.
Appendix 8: 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
2009 Q3
2009
2008 vs
Q3
Q3 Q2 Q1 Q4 Q3 Q2 Q1 2008
Sales 1,681 1,746 1,677 1,688 1,508 1,489 1,424 11%
Gross profit 1,321 1,395 1,341 1,348 1,159 1,147 1,100 14%
Gross margin 78.5% 79.9% 79.9% 79.8% 76.8% 77.0% 77.3%
Sales and
distribution
costs 471 515 516 478 423 426 399 11%
Percent of
sales 28.0% 29.5% 30.8% 28.3% 28.1% 28.6% 28.0%
Research
and
development
costs 253 248 234 327 211 266 249 19%
- Hereof cost
related to
AERx®* - - - - 7 (20) (30)
Percent of
sales 15.1% 14.2% 14.0% 19.4% 14.0% 17.8% 17.5%
Percent of
sales
(excl. AERx®*) 15.1% 14.2% 14.0% 19.4% 14.4% 16.4% 15.4%
Administrative
expenses 90 93 91 100 85 84 84 5%
Percent of
sales 5.3% 5.3% 5.4% 6.0% 5.6% 5.6% 5.9%
Licence fees
and other
operating
income (net) 5 10 12 10 7 10 12 (33%)
Operating
profit 512 549 512 453 446 381 380 15%
Operating
margin 30.5% 31.5% 30.5% 26.8% 29.6% 25.6% 26.7%
Operating
profit
(excl.AERx®*) 512 549 512 453 439 401 410 16%
Operating
margin
(excl. AERx®*) 30.5% 31.5% 30.5% 26.8% 29.1% 27.0% 28.7%
Share of
profit/
(loss) in
associated
companies (1) (1) (5) 2 (8) 0 (9) (88%)
Financial
income 2 22 19 8 41 57 64 (97%)
Financial
expenses 28 49 55 50 9 3 49 217%
Profit before
income taxes 485 521 471 413 470 436 385 3%
Net profit 370 402 362 313 357 332 292 3%
Depreciation,
amortisation
and
impairment
losses 88 72 81 101 75 76 76 17%
Capital
expenditure 98 75 55 102 60 44 29 62%
Cash flow
from operating
activities 677 350 557 429 492 391 412 37%
Free cash
flow 569 277 487 325 430 347 375 32%
Equity 4,685 4,577 4,208 4,426 4,312 4,431 4,191 8%
Total assets 7,064 6,881 6,741 6,792 6,566 6,500 6,375 7%
Equity ratio 66.3% 66.5% 62.4% 65.2% 65.7% 68.2% 65.7%
Full-time
employees at
the end of the
period 28,497 27,998 27,429 26,575 26,360 26,060 25,765 8%
Basic
earnings
per share
(in DKK) 0.62 0.66 0.60 0.51 0.58 0.54 0.47 6%
Diluted
earnings
per share
(in DKK) 0.62 0.66 0.59 0.51 0.57 0.53 0.47 7%
Average
number of
shares
outstanding
(million) 596.4 603.1 607.4 609.3 614.2 618.6 620.9 (3%)
Average
number of
shares
outstanding
incl
dilutive
effect
of options
'in the money'
(million) 601.4 607.9 612.7 614.4 618.6 623.5 626.3 (3%)
Sales by
business
segments:
Modern
insulins
(insulin
analogues) 719 727 670 675 585 550 513 23%
Human
insulins 369 387 403 415 376 398 394 (2%)
Protein-
related
sales 70 66 65 64 62 62 59 12%
Oral
antidiabetic
products
(OAD) 87 90 93 81 90 64 86 (3%)
Diabetes
care total 1,245 1,270 1,231 1,235 1,113 1,074 1,052 12%
NovoSeven® 222 252 242 238 206 221 193 8%
Norditropin® 144 150 139 142 126 132 118 14%
Hormone
replacement
therapy 59 58 55 59 53 52 52 12%
Other
products 11 16 10 14 9 11 9 17%
Biopharma-
ceuticals
total 436 476 446 453 394 416 372 10%
Sales by
geographic
segments:
North
America 607 633 608 601 504 465 463 20%
Europe 588 587 563 597 577 590 545 2%
International
Operations 308 340 337 293 278 278 281 10%
Japan &
Oceania 178 186 169 197 149 157 135 20%
Segment
operating
profit:
Diabetes
care 307 314 291 325 263 203 224 16%
Diabetes
care
(excl. AERx®*) 307 314 291 325 256 223 254 19%
Biopharma-
ceuticals 205 235 221 127 183 179 155 12%
*) Costs related to the discontinuation of all
pulmonary diabetes projects.
Company Announcement no 63 / 2009
