Company Announcement

Interim financial report for the period 1 January 2010 to 30 September 2010

27 October 2010

Novo Nordisk’s operating profit up by 24% in the first nine months of 2010 Sales grew by 17% driven by Victoza^®, NovoRapid^® and Levemir^®

•	Sales increased by 17% in Danish kroner and by 12% in local currencies.
	o	Sales of modern insulins increased by 24% (18% in local currencies).
	o	Sales of NovoSeven® increased by 13% (9% in local currencies).
	o	Sales of Norditropin® increased by 10% (6% in local currencies).
	o	Sales in North America increased by 26% (21% in local currencies).
	o	Sales in International Operations increased by 23% (15% in local currencies).
•	Gross margin improved by 1.3 percentage points in Danish kroner to 80.8% in the first nine months of 2010, primarily reflecting a positive product mix development.
•	Reported operating profit increased by 24% to DKK 14,547 million. Adjusted for the impact from currencies, operating profit in local currencies increased by around 15%.
•	Net profit increased by 24% to DKK 10,457 million. Earnings per share (diluted) increased by 28% to DKK 17.78.
•	In the second phase 3a study for DegludecPlus, the trial results document at least similar glycaemic control compared to NovoMix® 30 and with a reduced rate of hypoglycaemia. The first phase 3a study for Degludec, the new generation ultra long-acting basal insulin, shows the potential for Degludec to provide dosing flexibility without compromising the glycaemic control or safety profile.
•	In the first phase 3 study with liraglutide in obesity, patients treated for 56 weeks with liraglutide lost 6 kg more than patients in the placebo group. Two additional phase 3 studies will be initiated in the first half of 2011.
•	The guidance for 2010 has been raised: sales growth measured in local currencies is now expected to be 11–12%, and operating profit growth measured in local currencies is now expected to be more than 15%.

Lars Rebien Sørensen, president and CEO: “We are increasing our guidance for 2010 based on the continued double-digit sales growth from Victoza^®, NovoRapid^® and Levemir^®. We are also encouraged by the latest results from the phase 3a trials with DegludecPlus and Degludec, our two new generation insulins and by the progress made within our haemophilia pipeline.”

Company Announcement no 60 / 2010	Page 1 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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Consolidated financial statement for the first nine months of 2010

The present unaudited interim financial report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and accounting policies set out in the Annual Report 2009 of Novo Nordisk. Furthermore, the interim financial report and Management’s review are prepared in accordance with additional Danish disclosure requirements for interim reports of listed companies. Novo Nordisk has adopted all new, amended or revised accounting standards and interpretations (‘IFRSs’) endorsed by the EU effective for the accounting period beginning on 1 January 2010. These IFRSs have not had a significant impact on the Group’s interim financial report.

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

					% change
					9M 2009
Profit and loss	9M 2010		9M 2009		to 9M 2010
Sales	44,652		38,016		17%
Gross profit	36,057		30,213		19%
Gross margin	80.8%		79.5%
Sales and distribution costs	12,921		11,183		16%
Percent of sales	28.9%		29.4%
Research and development costs	6,867		5,477		25%
Percent of sales	15.4%		14.4%
Administrative expenses	2,215		2,038		9%
Percent of sales	5.0%		5.4%
Licence fees and other operating income	493		199		148%
Operating profit	14,547		11,714		24%
Operating margin	32.6%		30.8%
Net financials	(966	)	(718	)	35%
Profit before income taxes	13,581		10,996		24%
Net profit	10,457		8,445		24%
Net profit margin	23.4%		22.2%
Other key numbers
Depreciation, amortisation and impairment losses	1,783		1,797		(1%	)
Capital expenditure	2,167		1,695		28%
Cash flow from operating activities	14,774		11,795		25%
Free cash flow	12,306		9,930		24%
Total assets	57,162		52,589		9%
Equity	34,264		34,874		(2%	)
Equity ratio	59.9%		66.3%
Average number of shares outstanding (million) – diluted	588.1		607.4		(3%	)
Diluted earnings per share / ADR (in DKK)	17.78		13.90		28%
Full-time employees at the end of the period	29,515		28,497		4%

 

Company Announcement no 60 / 2010	Page 2 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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Sales development
Sales increased by 17% in Danish kroner and by 12% measured in local currencies and all regions contributed to growth measured in local currencies. North America was the main contributor with 60% share of growth measured in local currencies, followed by International Operations and Europe, contributing 25% and 13%, respectively. Sales growth was realised within both diabetes care and biopharmaceuticals, with the primary growth contribution originating from the modern insulins and Victoza^®.

	Sales		Growth		Growth		Share of
	9M 2010		as		in local		growth
	DKK		reported		currencies		in local
	million						currencies
The diabetes care segment
Modern insulins	19,474		24%		18%		61%
– NovoRapid®	8,691		21%		16%		24%
– NovoMix®	5,716		19%		13%		14%
– Levemir®	5,067		34%		29%		23%
Human insulins	8,835		2%		(2%	)	(4%	)
Protein-related products	1,653		13%		7%		2%
Victoza®	1,366		-		-		27%
Oral antidiabetic products	2,085		3%		(1%	)	0%
Diabetes care total	33,413		20%		15%		86%
The biopharmaceuticals segment
NovoSeven®	6,034		13%		9%		10%
Norditropin®	3,561		10%		6%		4%
Other products	1,644		6%		(1%	)	0%
Biopharmaceuticals total	11,239		11%		6%		14%
Total sales	44,652		17%		12%		100%

Diabetes care sales development
Sales of diabetes care products increased by 20% measured in Danish kroner to DKK 33,413 million and by 15% in local currencies compared to the first nine months of 2009.

Modern insulins, human insulins and protein-related products
In the first nine months of 2010, sales of modern insulins, human insulins and protein-related products increased by 16% in Danish kroner to DKK 29,962 million and by 11% measured in local currencies compared to the same period last year, with North America and International Operations having the highest growth rates. Novo Nordisk is the global leader with 51% of the total insulin market and 46% of the modern insulin market, both measured in volume.

Sales of modern insulins increased by 24% in Danish kroner to DKK 19,474 million and by 18% in local currencies compared to the first nine months of 2009, reflecting steady sales growth globally. All regions realised solid growth rates, with North America accounting for more than half of the growth, followed by International Operations and Europe. Sales of modern insulins now constitute close to 70% of Novo Nordisk’s sales of insulin.

North America
Sales in North America increased by 23% in Danish kroner and by 18% in local currencies in the first nine months of 2010, reflecting a continued solid market penetration of the modern insulins, Levemir^®, NovoLog^® and NovoLog^® Mix 70/30. Novo Nordisk maintains its leadership

Company Announcement no 60 / 2010	Page 3 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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position in the US insulin market with 42% of the total insulin market and 36% of the modern insulin market, both measured in volume. Currently, around 42% of Novo Nordisk’s modern insulin volume in the US is being sold in the prefilled device FlexPen^®.

Europe
Sales in Europe increased by 5% measured in Danish kroner and by 3% in local currencies in the first nine months of 2010, reflecting continued progress for the portfolio of modern insulins and declining human insulin sales. Novo Nordisk holds 53% of the total insulin market and 51% of the modern insulin market, both measured in volume. The device penetration in Europe remains high with more than 96% of Novo Nordisk’s insulin volume being used in devices, primarily NovoPen^® and FlexPen^®.

International Operations
Sales in International Operations increased by 25% in Danish kroner and by 17% in local currencies in the first nine months of 2010. The main contributor to growth was sales of modern insulins, primarily in China. Sales of human insulins continue to add to overall growth in the region, also driven by China.

Japan & Korea
Sales in Japan & Korea increased by 8% measured in Danish kroner and decreased by 2% in local currencies in the first nine months of 2010. The sales development reflects sales growth for all three modern insulins, Levemir^®, NovoRapid^® and NovoRapid Mix^® 30, offset by a decline in human insulin sales. In a continuously challenging competitive environment, Novo Nordisk now holds 64% of the total insulin market in Japan and 57% of the modern insulin market, both measured in volume. The device penetration in Japan remains high with more than 98% of Novo Nordisk’s insulin volume being used in devices, primarily NovoPen^® and FlexPen^®.

Victoza^® (GLP-1 therapy for type 2 diabetes)
Victoza^® sales reached DKK 1,366 million during the first nine months of 2010 reflecting solid market performance in both Europe and the US, but also encouraging initial uptake in Japan since the mid-2010 launch. The global launch is progressing according to plan and most recently the product has been made commercially available in Italy as of 1 September 2010. Based on communication from the Center for Drug Evaluation in China, formal regulatory feedback on the new drug application for Victoza^® is now expected in the second half of 2011.

NovoNorm^®/Prandin^®/PrandiMet^® (oral antidiabetic products)
In the first nine months of 2010, sales of oral antidiabetic products increased by 3% in Danish kroner to DKK 2,085 million and decreased by 1% in local currencies compared to the same period in 2009. The sales development reflects lower sales in Europe due to generic competition primarily in Germany.

Biopharmaceuticals sales development
In the first nine months of 2010, sales of biopharmaceutical products increased by 11% measured in Danish kroner to DKK 11,239 million and by 6% measured in local currencies compared to the first nine months of 2009.

NovoSeven^® (bleeding disorders therapy)
Sales of NovoSeven^® increased by 13% in Danish kroner to DKK 6,034 million and by 9% in local currencies compared to the first nine months of 2009. Sales growth for NovoSeven^® was

Company Announcement no 60 / 2010	Page 4 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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primarily realised in North America, but also International Operations and Japan & Korea contributed to the growth.

Norditropin^® (growth hormone therapy)
Sales of Norditropin^® increased by 10% measured in Danish kroner to DKK 3,561 million and by 6% measured in local currencies compared to the first nine months of 2009. Growth in local currencies was realised in all regions, with International Operations having the highest growth rate. Novo Nordisk is the second-largest company in the global growth hormone market with a 25% market share measured in volume.

Other products
Sales of other products within biopharmaceuticals, which predominantly consist of hormone replacement therapy (HRT)-related products, increased by 6% in Danish kroner to DKK 1,644 million and decreased by 1% in local currencies. This development primarily reflects continued sales progress for Vagifem^® being partly offset by generic competition to Activella^® in the US. In Europe the launch of 10 mcg Vagifem^® is progressing, and in the US 10 mcg Vagifem^® has now replaced the previous version, 25 mcg Vagifem^®.

Development in costs
The cost of goods sold was DKK 8,595 million in the first nine months of 2010, reflecting a gross margin of 80.8% compared to 79.5% in the same period of 2009. This improvement primarily reflects a favourable product mix impact due to increased sales of modern insulins and Victoza^®, and a positive 0.4 percentage points currency impact.

In the first nine months of 2010, total non-production-related costs increased by 18% to DKK 22,003 million and by 14% in local currencies compared to the same period last year.

Sales and distribution costs increased by 16% to DKK 12,921 million, primarily reflecting the launch costs of Victoza^® in Europe and the US, as well as a continued expansion of the global field sales force.

Research and development costs increased by 25% to DKK 6,867 million, primarily reflecting the ongoing phase 3 programme for the new generation of insulins, Degludec and DegludecPlus.

Licence fees and other operating income constituted DKK 493 million in the first nine months of 2010 compared to DKK 199 million in the same period of 2009. This development reflects a sustainable higher level of licence fees as well as a non-recurring income of approximately DKK 100 million related to a patent settlement during the first quarter of 2010.

Net financials
Net financials showed a net expense of DKK 966 million in the first nine months of 2010 compared to a net expense of DKK 718 million in the same period of 2009.

For the first nine months of 2010, the foreign exchange result was an expense of DKK 805 million compared to an expense of DKK 617 million in the first nine months of 2009. This development reflects losses on foreign exchange hedging of especially US dollars due to the appreciation versus the Danish krone in 2010 compared to the exchange rate level prevailing in 2009.

Company Announcement no 60 / 2010	Page 5 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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Also included in net financials is the result from associated companies with an income of DKK 39 million. In the same period of 2009, the result from associated companies was an expense of DKK 53 million. In the fourth quarter of 2010, Novo Nordisk will record a non-recurring income of approximately DKK 1.1 billion in relation to the sale of shares in ZymoGenetics, Inc. as announced on 8 October 2010.

Key developments in the third quarter of 2010
Please refer to appendix 1 for an overview of the quarterly numbers in DKK.

Sales in the third quarter of 2010 increased by 25% to DKK 15,584 million and by 14% in local currencies compared to the same period in 2009. The growth was driven by the modern insulins, Victoza^® and NovoSeven^®, and with North America and International Operations representing the majority of the growth from a geographic perspective. International Operations’ sales growth was primarily driven by modern insulins, especially in China. Victoza^® sales of DKK 700 million in the third quarter of 2010 were primarily driven by sales in the US and Europe.

The gross margin increased to 81.2% in the third quarter of 2010 compared to 78.5% in the same period last year. The increase was primarily driven by a favourable development in product mix and with a positive 1.2 percentage points’ currency impact.

In the third quarter of 2010, total non-production-related costs increased by 26% to DKK 7,634 million and by 18% in local currencies compared to the same period last year.

Sales and distribution costs increased by 31% in the third quarter of 2010 compared to the same period last year, primarily driven by Victoza^® launch costs and field sales force expansions in Japan, Europe and International Operations.

Research and development costs increased by 22% in the third quarter of 2010 compared to the same period last year, primarily driven by the phase 3 development programme for Degludec and DegludecPlus as well as the initiation of the cardiovascular outcomes trial for Victoza^® named LEADER™.

Licence fees and other operating income increased from DKK 34 million to DKK 110 million compared to the same period last year, primarily driven by recurring licence fee income related to intellectual property rights.

Reported operating profit increased by 34% in the third quarter of 2010 compared to the same period last year, and by around 15% in local currencies. This primarily reflects the sales growth, the improvement in gross margin and the increased license fees offset by the increase in sales and distribution costs.

Company Announcement no 60 / 2010	Page 6 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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Outlook

The current expectations for 2010 are summarised and compared to the previous expectations in the table below (changes highlighted in bold and italics):

Expectations are as reported, if not	Current expectations	Previous expectations
otherwise stated	27 October 2010	5 August 2010
Sales growth
- in local currencies	11-12%	9–10%
- as reported	Around 5 percentage points	Around 6 percentage points
	higher	higher
Operating profit growth
- underlying	More than 15%	12–15%
- as reported	Around 10 percentage	Around 11 percentage points
	points higher	higher
Net financial expense	Around DKK 300 million	Around DKK 1,750 million
Effective tax rate	Approximately 21.5%*	Approximately 23%
Capital expenditure	More than DKK 3 billion	Around DKK 3.5 billion
Depreciation, amortisation and
impairment losses	Around DKK 2.6 billion	Around DKK 2.7 billion
Free cash flow	More than DKK 14 billion	Close to DKK 13 billion
* Including a non-recurring reduction of 1.5 percentage points related to the divestment of shares in ZymoGenetics, Inc.

Novo Nordisk now expects sales growth in 2010 of 11–12% measured in local currencies. This is based on expectations of continued market penetration for Novo Nordisk’s key products within diabetes care - including continued global roll-out of Victoza^® - and biopharmaceuticals, as well as expectations of continued intense competition, generic competition to NovoNorm^® in Europe and an impact from the implementation of healthcare reforms primarily in the US and Europe. Given the current level of exchange rates versus the Danish krone, the reported sales growth is now expected to be around 5 percentage points higher than measured in local currencies.

For 2010, growth in operating profit is now expected to be more than 15% measured in local currencies, primarily driven by the increase in sales growth expectations. Given the current level of exchange rates versus the Danish krone, the reported operating profit growth is now expected to be around 10 percentage points higher than measured in local currencies.

For 2010, Novo Nordisk now expects a net financial expense of around DKK 300 million. The current expectation primarily reflects losses on foreign exchange hedging contracts and a non-recurring income of DKK 1.1 billion to be realised in the fourth quarter of 2010 stemming from the divestment of Novo Nordisk’s ownership share of ZymoGenetics, Inc. as announced on 8 October 2010.

The effective tax rate for 2010 is now expected to be approximately 21.5%. The lowered expectation for the effective tax rate is driven by the divestment of Novo Nordisk’s ownership share of ZymoGenetics, Inc., where the income is exempt from tax charges under applicable Danish tax laws. This non-recurring effect will reduce the effective tax rate in the fourth quarter of 2010.

Capital expenditure is now expected to be more than DKK 3 billion in 2010, primarily related to investments in the new insulin formulation and filling plant in China and a new prefilled device production facility in Denmark. Expectations for depreciation, amortisation and

Company Announcement no 60 / 2010	Page 7 of 22
Interim financial report for the period 1 January to 30 September 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

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impairment losses are now around DKK 2.6 billion whereas free cash flow is expected to be more than DKK 14 billion.

With regard to the financial outlook for 2011, Novo Nordisk will provide detailed guidance on expectations in connection with the release of full-year financial results for 2010 on 2 February 2011. At present, the preliminary plans for 2011 indicate close to 10% sales growth and 10–15% growth in operating profit, both 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 to oral antidiabetic products, further impact from healthcare reforms and continued intense competition within both diabetes care and biopharmaceuticals. Due to an expected negative currency impact following the recent significant depreciation of Novo Nordisk’s main invoicing currencies, the reported sales growth for 2011 is expected to be around 2 percentage points lower than the growth measured in local currencies, whereas the reported operating profit growth is expected to be around 4 percentage points lower than the growth measured in local currencies. The accounting effect of foreign exchange hedging contracts, deferred for income recognition in 2011 when the hedged operating cash flows will be realised, is currently expected to be approximately neutral.

All of the above expectations are based on the assumption that the global economic environment will not significantly change business conditions for Novo Nordisk during the remainder of 2010 and in 2011 and that currency exchange rates, especially the US dollar, remain at the current level versus the Danish krone during the remaining part of 2010 and in 2011. Please refer to appendix 7 for key currency assumptions.

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 620 million	16
JPY	DKK 155 million	14
CNY	DKK 120 million	12*
GBP	DKK 85 million	10
CAD	DKK 45 million	6

* USD used as proxy when hedging Novo Nordisk’s CNY currency exposure

The financial impact from foreign exchange hedging is included in ‘Net financials’.

Research and development update

Diabetes care and obesity
DegludecPlus versus NovoMix^® in type 2 diabetes results (NN5401-3592)
A phase 3a treat-to-target study with DegludecPlus, a fixed ratio combination of the ultra- long-acting basal insulin degludec and insulin aspart, in people with late-stage type 2 diabetes has been completed. The study was a randomised, controlled trial conducted in three continents. Participants were randomised to treatment with either DegludecPlus or NovoMix^® 30 twice daily, as add-on to standard oral antidiabetic therapy. DegludecPlus effectively improved long-term glycaemic control, achieving the primary objective of showing HbA_1c non-inferiority, with HbA1c decreasing by around 1.5%-points to 7.1% in both treatment arms.

Company Announcement no 60 / 2010	Page 8 of 22
Interim financial report for the period 1 January to 30 September 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

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Titration targets were achieved faster, and fasting as well as mean plasma glucose levels were lower for the DegludecPlus group compared to the NovoMix^® 30 group. The total daily insulin dose at study completion was lower in the DegludecPlus group than in the NovoMix^® 30 group.

The rate of confirmed hypoglycaemia, defined as the need for third-party assistance or plasma glucose level below 3.1 mmol/l, was statistically significantly reduced overall, and by more than two-thirds during the night using DegludecPlus compared to the NovoMix^® 30 treatment. Participants treated with DegludecPlus gained on average slightly less weight than those in the comparator group. DegludecPlus demonstrated a good safety and tolerability profile and there were no apparent differences between the treatment groups with respect to adverse events and standard safety parameters.

Degludec versus insulin glargine in type 2 diabetes results (NN1250-3668)
The first 26-week randomised controlled phase 3a treat-to-target study has been completed in people with type 2 diabetes. Patients, previously treated with oral anti-diabetic therapy and/or basal insulin, were randomised to either Degludec given in a flexible dosing regimen with 8 to 40 hour intervals between doses, Degludec given in the evening or insulin glargine given according to label. For all three treatment groups the insulin therapy was added to the existing oral anti-diabetic therapy, if any. The primary objective of HbA_1c non-inferiority for Degludec in the flexible dosing regimen compared to insulin glargine was confirmed, with HbA<_1c decreasing by 1.3%-points to around 7.2% in both treatment arms. There was no difference on HbA1c between the two Degludec arms. In the once daily flexible dosing regimen, Degludec was statistically superior to insulin glargine in lowering the fasting glucose level. The trial shows Degludec has the potential to provide patients with an increased dosing flexibility without compromising their glycaemic control.

A trend towards a lower risk of nocturnal hypoglycaemia was observed in both groups of participants treated with Degludec compared to participants treated with insulin glargine. Degludec demonstrated a good safety and tolerability profile and there were no apparent differences between the treatment groups with respect to adverse events and standard safety parameters.

First phase 3 obesity data for liraglutide (NN8022-1923)
The results from the first of three phase 3 studies conducted as part of the liraglutide obesity SCALE™ programme (Satiety and Clinical Adiposity – Liraglutide Evidence in non-diabetic and diabetic subjects) have been reported. The double-blinded, placebo-controlled trial of 56 weeks duration investigated treatment with 3.0 mg liraglutide daily as an adjunct to dietary counselling in obese people without diabetes who had already lost at least 5% of body weight during a 4–12-week run-in period on a low-calorie diet.

The mean weight loss for participants during the run-in period was approximately 6 kg. The trial then randomised a total of 422 participants with an average body weight at randomisation of approximately 100 kg. Participants treated with liraglutide lost approximately 6 kg additionally compared to the placebo-treated group, who maintained a stable body weight during the 56-week study period. During the treatment period beneficial effects were observed on markers of metabolic state and cardiovascular risk.

Liraglutide was generally well tolerated, and the 56-week completion rate was 75% and 70% for the liraglutide and placebo groups, respectively. Withdrawals due to adverse events were below 10% and similar between the groups. Consistent with previous liraglutide trials, the most common adverse events were related to the gastrointestinal system.

Company Announcement no 60 / 2010	Page 9 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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Biopharmaceuticals
Long-acting factor IX phase 1 results (NN7999-3639)
Novo Nordisk has successfully concluded a phase 1 study with a long-acting factor IX compound, NN7999, for treatment of people with haemophilia B. The study showed that the compound was well tolerated, with a long half-life potentially enabling once-weekly or less frequent dosing. Pending discussions with regulatory authorities, Novo Nordisk expects to initiate a phase 3 trial programme in the first half of 2011.

Long-acting factor VIII phase 1 initiated (NN7088-3776)
Novo Nordisk has initiated a phase 1 study with a long-acting factor VIII compound, NN7088, in 30 people with haemophilia A.

Long-acting growth hormone phase 2 results (NN8630-1824)
Novo Nordisk has finalised a single-dose study in children with a long-acting growth hormone compound intended for once-weekly dosing. The study showed a good safety and tolerability profile, but a satisfactory once-weekly profile could not be achieved. Novo Nordisk has thus decided to terminate the project.

Monoclonal antibody phase 2a initiated (NN8555-3796)
Novo Nordisk has initiated a phase 2a study with a recombinant, fully human monoclonal antibody to obtain Proof of Principle in rheumatoid arthritis.

Monoclonal antibody phase 1 initiated (NN8828-3837)
Novo Nordisk has initiated a phase 1 study with anti-IL-21, a recombinant fully human monoclonal antibody, in rheumatoid arthritis.

Equity
Total equity was DKK 34,264 million at the end of the first nine months of 2010, equal to 59.9% of total assets, compared to 65.3% at the end of 2009. The equity at 30 September 2010 was negatively impacted by DKK 480 million related to unrealised loss on currency hedging contracts accrued for future profit or loss, corresponding to DKK 370 million net of tax effect. Please refer to appendix 5 for further elaboration of changes in equity in the first nine months of 2010.

Treasury shares and share repurchase programme
On 12 August 2010, Novo Nordisk initiated a share repurchase programme in accordance with the provisions of the European Commission’s regulation no 2273/2003 of 22 December 2003 (The Safe Harbour Regulation), with J.P. Morgan Securities Ltd. as lead manager. The purpose of the programme was a reduction of the company’s share capital. Under the programme Novo Nordisk has repurchased B shares for an amount of DKK 1.0 billion in the period from 12 August 2010 to 25 October 2010. The programme was concluded on 25 October 2010.

As per 25 October 2010, Novo Nordisk A/S and its wholly-owned affiliates owned 26,798,755 of its own B shares, corresponding to 4.5% of the total share capital.

The 2010 share repurchase programme of DKK 8.5 billion has been expanded by DKK 1.0 billion to DKK 9.5 billion based on the improved outlook for free cash flow generation in 2010 primarily related to the divestment of shares in ZymoGenetics, Inc. So far in 2010, Novo Nordisk has repurchased 17,073,378 million B shares at a total purchase price of DKK 8.1 billion.

Company Announcement no 60 / 2010	Page 10 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

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As part of the execution of Novo Nordisk A/S’ overall DKK 9.5 billion share repurchase programme for 2010, a new programme has been initiated. According to this, J.P. Morgan Securities Ltd. as lead manager will repurchase shares on behalf of Novo Nordisk for an amount of up to DKK 1.4 billion during the trading period from 27 October 2010 to 23 December 2010. A maximum of 105,200 shares can be bought during one single trading day, equal to 20% of the average daily trading volume of Novo Nordisk B shares on NASDAQ OMX Copenhagen during the month of September 2010, and a maximum of 4,418,400 shares in total can be bought during the trading period. At least once every seven trading days, Novo Nordisk will issue an announcement in respect of the transactions made under the repurchase programme.

Sustainability update
People
During the first nine months of 2010, Novo Nordisk established 706 full-time equivalent positions compared to 1,922 in the same period last year. Novo Nordisk had 29,515 full-time equivalent employees on 30 September 2010 compared to 28,497 on 30 September 2009.

Diabetes Leadership Forum in Africa
At the Diabetes Leadership Forum Africa 2010, held on 30 September and 1 October 2010 and sponsored by the International Diabetes Federation and Novo Nordisk, about 250 government representatives, doctors, nurses, international organisations, patient associations and key opinion leaders met in Johannesburg to discuss the rapidly growing burden of diabetes in Africa - referred to as a ‘silent epidemic’ that is increasingly affecting the younger population. In Africa about 12 million people have been diagnosed with diabetes, but in most African countries the number of undiagnosed cases is higher than those diagnosed. The Forum was co-hosted by the Department of Health of the Republic of South Africa and the World Diabetes Foundation.

Legal update
As of 20 October 2010, Novo Nordisk Inc., along with a majority of the hormone therapy product manufacturers in the US, is a defendant in product liability lawsuits related to hormone therapy products. These lawsuits currently involve a total of 50 individuals who allege use of a Novo Nordisk hormone therapy product. The products (Activella^® and Vagifem^®) have been sold and marketed in the US since 2000. Until July 2003, the products were sold and marketed exclusively in the US by Pharmacia & Upjohn Company (now Pfizer Inc.). Furthermore, 66 individuals currently allege, in relation to similar lawsuits against Pfizer Inc., that they have also used a Novo Nordisk hormone therapy product. Currently, Novo Nordisk does not have any court trials scheduled in 2010. Novo Nordisk does not expect the pending claims to have a material impact on Novo Nordisk’s financial position.

As previously announced, Novo Nordisk is involved in an ongoing patent infringement dispute with Caraco Pharmaceutical Laboratories, Ltd. (Caraco) regarding Caraco’s application to market a generic version of Prandin^® (repaglinide) in the US. The validity trial regarding Novo Nordisk’s U.S. Patent No. 6,677,358 (‘358 patent), which is directed toward the Prandin^®/metformin combination, concluded in August in the District Court. The Court’s decision is pending.

Financial calendar
2 February 2011	Financial results for 2010
4 February 2011	PDF version of the Annual Report 2010

 

Company Announcement no 60 / 2010	Page 11 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

---

8 February 2011	Deadline for the company’s receipt of shareholder proposals for the
	Annual General Meeting 2011
18 February 2011	Printed version of the Annual Report 2010
23 March 2011	Annual General Meeting 2011
28 April 2011	Financial statement for the first three months of 2011
4 August 2011	Financial statement for the first six months of 2011
27 October 2011	Financial statement for the first nine months of 2011

Conference call details
At 13.00 CET today, corresponding to 7.00 am EDT, a conference call will be held. Investors will be able to listen in via a link on novonordisk.com, which can be found under ‘Investors – Download centre’. Presentation material for the conference call will be made available approximately one hour before on the same page.

Forward-looking statement
Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company’s Annual Report 2009 and Form 20-F, both filed with the SEC in February 2010, and written information released, or oral statements made, to the public in the future by or on behalf of Novo Nordisk, may contain forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Examples of such forward-looking statements include, but are not limited to:

-	statements of plans, objectives or goals for future operations, including those related to Novo Nordisk’s products, product research, product development, product introductions and product approvals as well as cooperation in relation thereto
-	statements containing projections of or targets for revenues, income (or loss), earnings per share, capital expenditures, dividends, capital structure or other net financials
-	statements of future economic performance, future actions and outcome of contingencies such as legal proceedings
-	statements of the assumptions underlying or relating to such statements.

In this document, examples of forward-looking statements can be found under the headings ‘Outlook for 2010’, ‘Research and development update’, ‘Equity’ and ‘Legal update’.

These statements are based on current plans, estimates and projections. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific. Novo Nordisk cautions that a number of important factors, including those described in this document, could cause actual results to differ materially from those contemplated in any forward-looking statements.

Factors that may affect future results include, but are not limited to, global as well as local political and economic conditions, including interest rate and currency exchange rate fluctuations, delay or failure of projects related to research and/or development, unplanned loss of patents, interruptions of supplies and production, product recall, unexpected contract breaches or terminations, government-mandated or market-driven price decreases for Novo Nordisk’s products, introduction of competing products, reliance on information technology, Novo Nordisk’s ability to successfully market current and new products, exposure to product

Company Announcement no 60 / 2010	Page 12 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

---

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 ‘Risk Management’ on pp 40–42 of the Annual Report 2009 available on the company’s website (novonordisk.com).

Unless required by law, Novo Nordisk is under no duty and undertakes no obligation to update or revise any forward-looking statement after the distribution of this document, whether as a result of new information, future events or otherwise.

Company Announcement no 60 / 2010	Page 13 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

---

Management statement

Today, the Board of Directors and Executive Management reviewed and approved the interim financial report of Novo Nordisk A/S for the first nine months of 2010. The interim financial report has not been audited or reviewed by the company’s independent auditors.

The interim financial report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and accounting policies set out in the Annual Report 2009 of Novo Nordisk. Furthermore, the interim financial report and Management’s Review are prepared in accordance with additional Danish disclosure requirements for interim reports of listed companies.

In our opinion, the accounting policies used are appropriate and the overall presentation of the interim financial report is adequate. Furthermore, in our opinion, Management’s Review includes a true and fair account of the development in the operations and financial circumstances, of the results for the period and of the financial position of the Group as well as a description of the most significant risks and elements of uncertainty facing the Group in accordance with Danish disclosure requirements for listed companies.

Bagsværd 27 October 2010

Executive Management:
Lars Rebien Sørensen	Jesper Brandgaard
President and CEO	CFO
Lise Kingo	Kåre Schultz	Mads Krogsgaard Thomsen
COS	COO	CSO

Board of Directors:

Sten Scheibye	Göran A Ando
Chairman	Vice chairman
Henrik Gürtler	Ulrik Hjulmand-Lassen	Pamela J Kirby
Anne Marie Kverneland	Kurt Anker Nielsen	Søren Thuesen Pedersen
Hannu Ryöppönen	Stig Strøbæk	Jørgen Wedel

 

Company Announcement no 60 / 2010	Page 14 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

---

Contacts for further information

Media:	Investors:
Mike Rulis	Klaus Bülow Davidsen
Tel: (+45) 4442 3573	Tel: (+45) 4442 3176
mike@novonordisk.com	klda@novonordisk.com
	Kasper Roseeuw Poulsen
	Tel: (+45) 4442 4471
	krop@novonordisk.com
	Jannick Lindegaard
	Tel: (+45) 4442 4765
	jlis@novonordisk.com
In North America:	In North America
Lori Moore	Hans Rommer
Tel: (+1) 609 919 7991	Tel: (+1) 609 919 7937
lrmo@novonordisk.com	hrmm@novonordisk.com

Further information about Novo Nordisk is available on the company’s website novonordisk.com

Company Announcement no 60 / 2010	Page 15 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

---

Appendix 1: Quarterly numbers in DKK

															% change
	2010						2009								Q3 2010 vs
	Q3		Q2		Q1		Q4		Q3		Q2		Q1		Q3 2009
Sales	15,584		15,394		13,674		13,062		12,517		13,001		12,498		25%
Gross profit	12,648		12,425		10,984		10,427		9,832		10,391		9,990		29%
Gross margin	81.2%		80.7%		80.3%		79.8%		78.5%		79.9%		79.9%
Sales and distribution costs	4,573		4,364		3,984		4,237		3,502		3,837		3,844		31%
Percent of sales	29.3%		28.3%		29.1%		32.4%		28.0%		29.5%		30.8%
Research and development costs	2,302		2,434		2,131		2,387		1,884		1,849		1,744		22%
Percent of sales	14.8%		15.8%		15.6%		18.3%		15.1%		14.2%		14.0%
Administrative expenses	759		745		711		726		666		693		679		14%
Percent of sales	4.9%		4.8%		5.2%		5.6%		5.3%		5.3%		5.4%
Licence fees and other operating income (net)	110		159		224		142		34		78		87		224%
Operating profit	5,124		5,041		4,382		3,219		3,814		4,090		3,810		34%
Operating margin	32.9%		32.7%		32.0%		24.6%		30.5%		31.5%		30.5%
Share of profit/(loss) in associated companies	(22	)	(4	)	65		(2	)	(7	)	(11	)	(35	)	214%
Financial income	31		146		65		58		9		166		142		244%
Financial expenses	477		575		195		283		209		361		412		128%
Profit before income taxes	4,656		4,608		4,317		2,992		3,607		3,884		3,505		29%
Net profit	3,585		3,548		3,324		2,323		2,755		2,991		2,699		30%
Depreciation, amortisation and impairment losses	607		595		581		754		657		533		607		(8%	)
Capital expenditure	755		744		668		935		726		557		413		4%
Cash flow from operating activities	6,318		4,225		4,231		3,583		5,039		2,608		4,148		25%
Free cash flow	5,453		3,444		3,409		2,402		4,242		2,062		3,626		29%
Total assets	57,162		57,048		54,155		54,742		52,589		51,246		50,205		9%
Total equity	34,264		33,635		32,916		35,734		34,874		34,086		31,345		(2%	)
Equity ratio	59.9%		59.0%		60.8%		65.3%		66.3%		66.5%		62.4%
Full-time employees at the end of the period	29,515		29,364		29,154		28,809		28,497		27,998		27,429		4%
Basic earnings per share (in DKK)	6.21		6.07		5.66		3.95		4.62		4.96		4.44		34%
Diluted earnings per share (in DKK)	6.15		6.02		5.61		3.92		4.58		4.91		4.41		34%
Average number of shares outstanding (million)	577.6		584.0		587.6		589.9		596.4		603.1		607.4		(3%	)
Average number of shares outstanding incl
dilutive effect of options 'in the money' (million)	582.3		588.9		593.0		595.2		601.4		607.9		612.7		(3%	)
Sales by business segments:
Modern insulins (insulin analogues)	6,820		6,792		5,862		5,714		5,353		5,414		4,990		27%
Human insulins	2,963		3,099		2,773		2,685		2,747		2,879		3,004		8%
Victoza®	700		296		370		59		28		-		-		2400%
Protein-related products	567		583		503		510		491		492		484		15%
Oral antidiabetic products (OAD)	736		704		645		636		650		675		691		13%
Diabetes care total	11,786		11,474		10,153		9,604		9,269		9,460		9,169		27%
NovoSeven®	1,965		2,155		1,914		1,742		1,651		1,874		1,805		19%
Norditropin®	1,233		1,245		1,083		1,171		1,074		1,122		1,034		15%
Hormone replacement therapy	517		450		443		460		440		435		409		18%
Other products	83		70		81		85		83		110		81		0%
Biopharmaceuticals total	3,798		3,920		3,521		3,458		3,248		3,541		3,329		17%
Sales by geographic regions:
North America	6,114		5,988		5,221		4,510		4,527		4,710		4,532		35%
Europe	4,675		4,671		4,432		4,594		4,376		4,375		4,195		7%
International Operations	3,341		3,296		2,865		2,656		2,447		2,661		2,607		37%
Japan & Korea	1,454		1,439		1,156		1,302		1,167		1,255		1,164		25%
Segment operating profit:
Diabetes care	3,419		3,033		2,554		1,720		2,286		2,333		2,171		50%
Biopharmaceuticals	1,705		2,008		1,828		1,499		1,528		1,757		1,639		12%

 

Company Announcement no 60 / 2010	Page 16 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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Appendix 2: Statement of comprehensive income

	9M		9M		Q3		Q3
DKK million	2010		2009		2010		2009
Income statement
Sales	44,652		38,016		15,584		12,517
Cost of goods sold	8,595		7,803		2,936		2,685
Gross profit	36,057		30,213		12,648		9,832
Sales and distribution costs	12,921		11,183		4,573		3,502
Research and development costs	6,867		5,477		2,302		1,884
Administrative expenses	2,215		2,038		759		666
Licence fees and other operating income (net)	493		199		110		34
Operating profit	14,547		11,714		5,124		3,814
Share of profit or loss of associated companies, net of tax	39		(53	)	(22	)	(7	)
Financial income	242		317		31		9
Financial expenses	1,247		982		477		209
Profit before income taxes	13,581		10,996		4,656		3,607
Income taxes	3,124		2,551		1,071		852
NET PROFIT	10,457		8,445		3,585		2,755
Basic earnings per share (DKK)	17.94		14.02		6.21		4.62
Diluted earnings per share (DKK)	17.78		13.90		6.15		4.58

Segment Information

Segment sales:
Diabetes care	33,413		27,898		11,786		9,269
Biopharmaceuticals	11,239		10,118		3,798		3,248
Segment operating profit:
Diabetes care	9,006		6,790		3,419		2,286
Operating margin	27.0%		24.3%		29.0%		24.7%
Biopharmaceuticals	5,541		4,924		1,705		1,528
Operating margin	49.3%		48.7%		44.9%		47.0%
Total segment operating profit	14,547		11,714		5,124		3,814

 

Statement of comprehensive income
Net profit for the period	10,457		8,445		3,585		2,755
Other comprehensive income:
Gains and losses arising from translating the financial statement of
foreign operations and re-measuring available-for-sale financial assets	172		430		(241	)	102
Adjustment of cash flow hedges for the year	(873	)	1,374		1,937		487
Share of other comprehensive income of associated companies	27		8		19		(1	)
Other	31		14		38		29
Income taxes relating to other comprehensive income	237		(47	)	(614	)	(17	)
Other comprehensive income for the period, net of tax	(406	)	1,779		1,139		600
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	10,051		10,224		4,724		3,355

 

Company Announcement no 60 / 2010	Page 17 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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Appendix 3: Balance sheet

DKK million	30 Sep 2010		31 Dec 2009
ASSETS
Intangible assets	1,276		1,037
Property, plant and equipment	20,004		19,226
Investments in associated companies	274		176
Deferred income tax assets	1,511		1,455
Other non-current financial assets	174		182
TOTAL NON-CURRENT ASSETS	23,239		22,076
Inventories	9,764		10,016
Trade receivables	8,515		7,063
Tax receivables	491		799
Other current assets	2,164		1,962
Marketable securities and financial instruments	637		1,530
Cash at bank and in hand	12,352		11,296
TOTAL CURRENT ASSETS	33,923		32,666
TOTAL ASSETS	57,162		54,742

 

EQUITY AND LIABILITIES
Share capital	600		620
Treasury shares	(26	)	(32	)
Retained earnings	33,385		34,435
Other reserves	305		711
TOTAL EQUITY	34,264		35,734
Non-current debt	995		970
Deferred income tax liabilities	2,943		3,010
Retirement benefit obligations	537		456
Provisions for other liabilities	1,494		1,157
Total non-current liabilities	5,969		5,593
Current debt and financial instruments	1,001		418
Trade payables	2,005		2,242
Tax payables	1,271		701
Other current liabilities	7,967		6,813
Provisions for other liabilities	4,685		3,241
Total current liabilities	16,929		13,415
TOTAL LIABILITIES	22,898		19,008
TOTAL EQUITY AND LIABILITIES	57,162		54,742

 

Company Announcement no 60 / 2010	Page 18 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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Appendix 4: Statement of cash flow

DKK million	9M 2010		9M 2009
Net profit	10,457		8,445
Adjustment for non-cash items:
Income taxes	3,124		2,551
Depreciation, amortisation and impairment losses	1,783		1,797
Interest income and interest expenses	159		(4	)
Other adjustment	1,541		467
Income taxes paid	(2,021	)	(1,177	)
Interest received	186		213
Interest paid	(197	)	(21	)
Cash flow before change in working capital	15,032		12,271
(Increase)/decrease in trade receivables and other current assets	(1,654	)	(599	)
(Increase)/decrease in inventories	252		(137	)
Increase/(decrease) in trade payables and other current liabilities	917		481
Exchange rate adjustment	227		(221	)
Cash flow from operating activities	14,774		11,795
Purchase of intangible assets and non-current financial assets	(301	)	(188	)
Proceeds from sale of property, plant and equipment	37		1
Purchase of property, plant and equipment	(2,204	)	(1,696	)
Net change in marketable securities (maturity exceeding three months)	500		-
Dividend received	-		18
Cash flow from investing activities	(1,968	)	(1,865	)
Repayment of non-current debt	-		-
Purchase of treasury shares	(7,656	)	(4,965	)
Proceeds from sale of treasury shares	335		100
Dividends paid to the Company´s owners	(4,400	)	(3,650	)
Cash flow from financing activities	(11,721	)	(8,515	)
NET CASH FLOW	1,085		1,415
Unrealised gain/(loss) on exchange rates and marketable securities
included in cash and cash equivalents	36		21
Net change in cash and cash equivalents	1,121		1,436
Cash and cash equivalents at the beginning of the period	11,034		8,726
Cash and cash equivalents at the end of the period	12,155		10,162
Additional information:
Cash and cash equivalents at the end of the period	12,155		10,162
Bonds with original term to maturity exceeding three months	513		1,017
Undrawn committed credit facilities	4,471		7,444
FINANCIAL RESOURCES AT THE END OF THE PERIOD	17,139		18,623
Cash flow from operating activities	14,774		11,795
+ Cash flow from investing activities	(1,968	)	(1,865	)
- Net change in marketable securities (maturity exceeding three months)	500		-
FREE CASH FLOW	12,306		9,930

 

Company Announcement no 60 / 2010	Page 19 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

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Appendix 5: Statement of changes in equity

							Other reserves
							Exchange		Deferred gain/		Tax and
	Share		Treasury		Retained		rate adjust		loss on cash flow		other
DKK million	capital		shares		earnings		ments		hedges		adjustments		Total
9M 2010
Balance at the beginning of the period	620		(32	)	34,435		271		393		47		35,734
Total comprehensive income for the period					10,457		172		(873	)	295		10,051
Dividends					(4,400	)							(4,400	)
Share-based payment					200								200
Reduction of the B share capital	(20	)	20										-
Purchase of treasury shares			(16	)	(7,640	)							(7,656	)
Sale of treasury shares			2		333								335
Balance at the end of the period	600		(26	)	33,385		443		(480	)	342		34,264

At the end of the period proposed dividends (declared in 2010) of DKK 4,400 million (7.50 DKK per share) are included in Retained earnings. No dividend is declared on treasury shares.

							Other reserves
							Exchange		Deferred gain/		Tax and
	Share		Treasury		Retained		rate adjust		loss on cash flow		other
DKK million	capital		shares		earnings		ments		hedges		adjustments		Total
9M 2009
Balance at the beginning of the period	634		(26	)	33,433		(256	)	(859	)	53		32,979
Total comprehensive 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 period proposed dividends (declared in 2009) of DKK 3,650 million (6.00 DKK per share) are included in Retained earnings. No dividend is declared on treasury shares.

Company Announcement no 60 / 2010	Page 20 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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Appendix 6: Quarterly numbers in EUR / supplementary information

(Amounts in EUR million, except number of employees, earnings per share and number of shares outstanding). Key figures are translated into EUR as supplementary information - the translation is based on average exchange rate for income statement and exchange rate at the balance sheet date for balance sheet items.
The specified percent changes are based on the changes in the 'Quarterly numbers in DKK', see appendix 1.

															% change
			2010						2009						Q3 2010 vs
	Q3		Q2		Q1		Q4		Q3		Q2		Q1		Q3 2009
Sales	2,092		2,069		1,837		1,756		1,681		1,746		1,677		25%
Gross profit	1,698		1,669		1,476		1,401		1,321		1,395		1,341		29%
Gross margin	81.2%		80.7%		80.3%		79.8%		78.5%		79.9%		79.9%
Sales and distribution costs	614		587		535		570		471		515		516		31%
Percent of sales	29.3%		28.3%		29.1%		32.4%		28.0%		29.5%		30.8%
Research and development costs	309		327		286		321		253		248		234		22%
Percent of sales	14.8%		15.8%		15.6%		18.3%		15.1%		14.2%		14.0%
Administrative expenses	103		99		96		97		90		93		91		14%
Percent of sales	4.9%		4.8%		5.2%		5.6%		5.3%		5.3%		5.4%
Licence fees and other operating income (net)	16		21		30		19		5		10		12		224%
Operating profit	688		677		589		432		512		549		512		34%
Operating margin	32.9%		32.7%		32.0%		24.6%		30.5%		31.5%		30.5%
Share of profit/(loss) in associated companies	(3	)	(1	)	9		-		(1	)	(1	)	(5	)	214%
Financial income	5		19		9		8		2		22		19		244%
Financial expenses	64		76		27		38		28		49		55		128%
Profit before income taxes	626		619		580		402		485		521		471		29%
Net profit	482		476		447		312		370		402		362		30%
Depreciation, amortisation and impairment losses	81		80		78		102		88		72		81		(8%	)
Capital expenditure	101		100		90		125		98		75		55		4%
Cash flow from operating activities	848		568		568		481		677		350		557		25%
Free cash flow	732		463		458		323		569		277		487		29%
Total assets	7,671		7,659		7,274		7,356		7,064		6,881		6,741		9%
Total equity	4,598		4,515		4,421		4,802		4,685		4,577		4,208		(2%	)
Equity ratio	59.9%		59.0%		60.8%		65.3%		66.3%		66.5%		62.4%
Full-time employees at the end of the period	29,515		29,364		29,154		28,809		28,497		27,998		27,429		4%
Basic earnings per share (in EUR)	0.83		0.82		0.76		0.53		0.62		0.66		0.60		34%
Diluted earnings per share (in EUR)	0.83		0.81		0.75		0.52		0.62		0.66		0.59		34%
Average number of shares outstanding (million)	577.6		584.0		587.6		589.9		596.4		603.1		607.4		(3%	)
Average number of shares outstanding incl
dilutive effect of options 'in the money' (million)	582.3		588.9		593.0		595.2		601.4		607.9		612.7		(3%	)
Sales by business segments:
Modern insulins (insulin analogues)	917		913		787		767		719		727		670		27%
Human insulins	398		418		372		361		369		387		403		8%
Victoza®	94		39		50		8		4		-		-		2400%
Protein-related products	76		78		68		68		66		66		65		15%
Oral antidiabetic products (OAD)	98		94		87		86		87		90		93		13%
Diabetes care total	1,583		1,542		1,364		1,290		1,245		1,270		1,231		27%
NovoSeven®	264		290		257		234		222		252		242		19%
Norditropin®	165		168		145		158		144		150		139		15%
Hormone replacement therapy	69		60		60		62		59		58		55		18%
Other products	11		9		11		12		11		16		10		0%
Biopharmaceuticals total	509		527		473		466		436		476		446		17%
Sales by geographic regions:
North America	821		804		702		606		607		633		608		35%
Europe	628		628		595		618		588		587		563		7%
International Operations	448		443		385		357		329		357		350		37%
Japan & Korea	195		194		155		175		157		169		156		25%
Segment operating profit:
Diabetes care	459		408		343		230		307		314		291		50%
Biopharmaceuticals	229		269		246		202		205		235		221		12%

 

Company Announcement no 60 / 2010	Page 21 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790

 

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Appendix 7: Key currencies assumptions / supplementary information

DKK per 100	2009 average		Exchange rates as		YTD 2010 average		Current exchange
	exchange rates		of 30 September		exchange rates as		rate as of 22 October
			2010		of 22 October 2010		2010
USD	536		546		565		535
JPY	5.73		6.56		6.36		6.59
GBP	836		867		868		840
CNY	78		82		83		80
CAD	470		530		546		522

 

Company Announcement no 60 / 2010	Page 22 of 22
Interim financial report for the period 1 January to 30 September 2010

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4443 6626

Internet: novonordisk.com

CVR number: 24256790