UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
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REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
April 28 2005
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NOVO NORDISK A/S
(Exact name of Registrant as specified in its charter)
NOVO ALLE
DK-2880, BAGSVAERD
DENMARK
(Address of principal executive offices)
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Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F
Form 20-F [X] Form 40-F [ ]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g-32(b):82-_____________________
1ST QUARTER RESULTS
FINANCIAL STATEMENT FOR THE PERIOD 1 JANUARY 2005 TO 31 MARCH 2005
Novo Nordisk increased sales by 11% in the first quarter of 2005
* In local currencies sales in the first quarter of 2005 increased by 13%
o Sales of insulin analogues increased by 67%
o Sales of NovoSeven(R) increased by 10%
o Sales in North America increased by 27%
* Operating profit increased by 1% to DKK 1,512 million, reflecting a
negative impact from the depreciation of the US dollar and the absence
of non-recurring income in the first quarter of 2005. Adjusted for the
impact from currencies and changes in the level of non-recurring
income, underlying operating profit increased by around 15%.
* Net profit increased by 17% to DKK 1,232 million and earnings per share
(diluted) increased by 19% to DKK 3.70.
* Operating profit for the full year 2005 is still expected to grow by
around 5%.
* In January 2005, Novo Nordisk filed an application for European marketing
approval for the use of NovoSeven(R) in blunt trauma based on clinical
phase 2 data. Novo Nordisk has now received preliminary information that
additional clinical data may be needed. Novo Nordisk is in consultation
with EMEA (The European Medicines Agency) about these issues and expects
a conclusion in the second half of this year. To further support the
filing Novo Nordisk has decided to initiate a confirmatory clinical
trial.
* Lars Rebien S0rensen, president & CEO, said: "The solid business
performance during the first three months, driven by sales of insulin
analogues and NovoSeven(R), confirms our positive expectations for 2005.
We remain confident about the therapeutic benefits and the market
potential of NovoSeven(R) despite a more challenging regulatory
environment."
1
FINANCIAL STATEMENT FOR THE FIRST THREE MONTHS OF 2005
This interim report has been prepared in accordance with International Financial
Reporting Standards (IFRS). The accounting policies used in the interim report
are consistent with those used in the Annual Report 2004, which includes the
expense impact of share-based payment schemes. The interim report has not been
audited.
Amounts in DKK million, except average number of shares outstanding, earnings
per share and full-time employees.
% CHANGE Q1
Income statement Q1 Q1 2004 to
----------------- 2005 2004 Q1 2005
SALES 7,258 6,515 11%
GROSS PROFIT 5,173 4,661 11%
Gross margin 71.3% 71.5%
Sales and distribution costs 2,139 1,886 13%
Percent of sales 29.5% 28.9%
Research and development costs 1,106 1,040 6%
Percent of sales 15.2% 16.0%
Administrative expenses 483 477 1%
Percent of sales 6.7% 7.3%
Licence fees and other operating income 67 232 (71%)
OPERATING PROFIT 1,512 1,490 1%
Operating margin 20.8% 22.9%
Share of profit in associated companies 238 (69) -
Other net financial income 38 156 (88%)
PROFIT BEFORE TAX 1,788 1,577 13%
NET PROFIT 1,232 1,053 17%
Net profit margin 17.0% 16.2%
OTHER KEY NUMBERS
-----------------
Depreciation, amortisation and
impairment losses 412 380 8%
Capital expenditure 723 392 84%
Cash flow from operating activities 1,343 1,350 (1%)
Free cash flow 614 886 (31%)
Total assets 36,497 33,838 8%
Equity 25,729 23,942 7%
Equity ratio 70.5% 70.8%
Average number of shares
outstanding (million) - diluted 333.2 339.8 (2%)
DILUTED EARNINGS PER SHARE (IN DKK) 3.70 3.10 19%
Full-time employees at the end of the period 20,942 19,179 9%
2
SALES DEVELOPMENT BY SEGMENTS
Sales increased by 13% measured in local currencies. Growth was realised both
within diabetes care and biopharmaceuticals - primarily driven by strategically
important products such as the insulin analogues as well as NovoSeven(R).
SALES GROWTH SHARE OF
3M 2005 GROWTH IN LOCAL GROWTH IN LOCAL
DKK MILLION AS REPORTED CURRENCIES CURRENCIES
THE DIABETES CARE SEGMENT
Insulin analogues 1,448 63% 67% 69%
Human insulin and insulin-related sales 3,346 4% 5% 20%
Oral antidiabetic products 376 (10%) (7%) (3%)
DIABETES CARE - TOTAL 5,170 15% 16% 86%
THE BIOPHARMACEUTICALS SEGMENT
NovoSeven(R) 1,090 7% 10% 12%
Growth hormone therapy 596 8% 10% 6%
Other products 402 (8%) (7%) (4%)
BIOPHARMACEUTICALS - TOTAL 2,088 4% 6% 14%
TOTAL SALES 7,258 11% 13% 100%
Sales growth was realised in all regions, with North America, now constituting
29% of total sales, as the main growth driver.
DIABETES CARE
Sales of diabetes care products increased by 16% in local currencies compared to
the first three months of 2004 and by 15% in Danish kroner to DKK 5,170 million.
INSULIN ANALOGUES, HUMAN INSULIN AND INSULIN-RELATED PRODUCTS
Sales of insulin analogues, human insulin and insulin-related products increased
by 19% measured in local currencies and by 17% to DKK 4,794 million in Danish
kroner. All regions contributed to growth both measured in local currencies and
in Danish kroner.
Sales of insulin analogues increased by 67% in local currencies and by 63% in
Danish kroner to DKK 1,448 million in the first three months of 2005. All
regions realised solid growth rates, with North America as the primary growth
driver. Sales of insulin analogues contributed with 69% of the overall growth in
local currencies and now constitute more than 30% of Novo Nordisk's total sales
of all insulin and insulin-related products.
North America
Sales in North America increased by 46% in local currencies in the first three
months of 2005 and by 40% in Danish kroner. The sales growth reflects a solid
penetration of the insulin analogues NovoLog(R) and NovoLog(R) Mix 70/30, with
Novo Nordisk now holding more than 35% of the total insulin market and over 20%
of the analogue market, measured by volume. Furthermore, sales of human insulin
products also increased as a consequence of increased volume as well as higher
prices.
3
Europe
Sales in Europe increased by 7% in local currencies and by 8% in Danish kroner,
with growth being driven by the portfolio of insulin analogues. The growth rate
for insulin sales in the first three months of 2005 was negatively impacted by
accelerated buying behaviour by patients in Germany in the fourth quarter of
2004. Moreover, insulin sales in Europe have been negatively impacted by
healthcare reforms in several countries.
Japan & Oceania Sales in Japan & Oceania increased by 17% in local currencies
and by 14% in Danish kroner. Growth is primarily driven by sales of NovoRapid(R)
and NovoRapid(R) Mix 30, supported by a continued conversion from durable to
prefilled devices, but is also reflecting a reduction in wholesalers'
inventories in the same period last year in anticipation of mandatory price
reductions effective as of 1 April 2004.
International Operations
Sales within International Operations increased by 22% in local currencies and
by 19% in Danish kroner. The main growth driver is sales of human insulin,
driven especially by China, while insulin analogues continue to add to overall
growth.
ORAL ANTIDIABETIC PRODUCTS
Sales of oral antidiabetic products decreased compared to the same period in
2004 by 7% in local currencies and 10% in Danish kroner to DKK 376 million. The
decrease was mainly caused by an inventory build-up during the first quarter of
2004 by some US wholesalers. The sales development in Europe and International
Operations was positive compared to the same period last year.
BIOPHARMACEUTICALS
Sales of biopharmaceutical products increased by 6% in local currencies compared
to the first three months of 2004 and by 4% measured in Danish kroner to DKK
2,088 million.
NOVOSEVEN(R)
Sales of NovoSeven(R) increased by 10% in local currencies compared to the same
period last year. Measured in Danish kroner sales increased by 7% to DKK 1,090
million. Sales growth for NovoSeven(R) was primarily driven by North America,
followed by International Operations.
The sales growth of NovoSeven(R) was driven by several factors during the first
three months of 2005. Due to the high penetration within spontaneous bleeds in
congenital inhibitor patients, the predominant part of the growth within the
inhibitor segment has been generated by treatment of acquired haemophilia
patients and usage of NovoSeven(R) in connection with elective surgery.
Treatment of spontaneous bleeds for congenital inhibitor patients remains the
largest area of use. In addition, sales are perceived to have been positively
affected by increased investigational use of NovoSeven(R) influenced by data
from clinical trials from the NovoSeven(R) expansion programme.
GROWTH HORMONE THERAPY (NORDITROPIN(R) AND NORDITROPIN(R) SIMPLEXX(R))
In local currencies sales of Norditropin(R) and Norditropin(R) SimpleXx(R)
products increased by 10% compared to the first three months of 2004. Measured
in Danish kroner sales increased by 8% to DKK 596 million, and the sales growth
was primarily driven by North America.
4
OTHER PRODUCTS
Sales of other products within biopharmaceuticals, which predominantly
consist of hormone replacement therapy (HRT) related products, decreased by 7%
in local currencies and by 8% in Danish kroner to DKK 402 million. For the first
three months of 2005, global sales continued to be negatively impacted by the
overall contraction of the HRT market.
COSTS, LICENCE FEES AND OTHER OPERATING INCOME
The cost of goods sold increased by 12% to DKK 2,085 million, leaving the gross
margin at 71.3%, compared to 71.5% in the first three months of 2004. The gains
from an improved product mix as well as productivity increases were more than
offset by an adverse currency impact of approximately 0.5 percentage point.
Total non-production-related costs increased by 10% to DKK 3,728 million. The
increase in non-production-related costs reflects especially costs related to
sales and distribution, which increased slightly more than sales. This is
primarily a consequence of the increase in the US diabetes care sales force that
was implemented during the second quarter of 2004.
Licence fees and other operating income in the first three months of 2005 were
DKK 67 million, compared to DKK 232 million in the same period last year when a
non-recurring settlement income related to Pfizer's early termination of an
out-licence agreement for certain HRT products in the US was recorded.
NET FINANCIALS
Net financials showed a net income of DKK 276 million in the first three months
of 2005 compared to DKK 87 million in the same period in 2004. As previously
reported, Novo Nordisk has recorded a gain of around DKK 250 million from the
divestment of the shareholding in Ferrosan A/S. Included in net financials are
foreign exchange gains of DKK 38 million compared to a gain of DKK 138 million
in the same period last year. The results from foreign exchange hedging in the
first quarter of 2005 were negatively impacted by the IFRS mandated
mark-to-market valuation of foreign exchange options.
OUTLOOK 2005
The expectation for SALES growth in 2005 measured in local currencies remains
between 10-15%, whereas reported sales growth is still expected to be around
10%. Reported OPERATING PROFIT is still expected to grow by around 5% reflecting
a significant impact from the depreciation of the US dollar and related
currencies and the absence of non-recurring income in 2005. Excluding the impact
from currency movements and non-recurring items, expectations for underlying
operating profit growth remain in line with the long-term financial target of
growing operating profit by 15%.
For 2005, Novo Nordisk now expects a NET FINANCIAL INCOME of DKK 150 million due
to the non-recurring income related to the divestment of shares in Ferrosan A/S.
Novo Nordisk now expects the TAX RATE for 2005 to be approximately 31%, 1
percentage point lower than previously expected, as a consequence of the
tax-exempt status of the capital gain from the divestment of shares in Ferrosan
A/S.
However, provided that the Danish parliament (Folketinget) formally approves a
recently proposed change of Danish corporation tax laws during 2005, Novo
Nordisk expects the tax rate for 2005 to be approximately 29%, as a consequence
of:
5
* a reduction of the tax rate by approximately 1 percentage point caused by a
reduction in the Danish corporate income tax rate from 30% to 28% with
effect from 2005 onwards; and
* a non-recurring reduction of the tax rate by approximately 1 percentage
point due to a re-evaluation of the company's deferred tax liabilities as a
consequence of the reduction in the Danish corporate income tax rate.
Novo Nordisk still expects CAPITAL EXPENDITURE of close to DKK 4 billion in
2005. DEPRECIATIONS, AMORTISATION AND IMPAIRMENT LOSSES are still expected to be
around DKK 1.9 billion, whereas FREE CASH FLOW is now expected to be around DKK
2.5 billion.
Novo Nordisk has hedged expected net cash flows in relation to US dollars,
Japanese yen and British pounds for 14, 11 and 9 months, respectively. The
financial impact from currency hedging is included in 'Net financials'.
All of the above expectations are provided that currency exchange rates remain
at the current level for the rest of 2005.
RESEARCH AND DEVELOPMENT UPDATE
DIABETES CARE
The European Commission has extended the marketing authorisation for Levemir(R)
(insulin detemir) to include treatment of diabetes in children and adolescents
6-17 years of age. Moreover, an extended authorisation has also been received in
Europe for NovoRapid(R) (insulin aspart) to include treatment of diabetes in
children 2-6 years of age.
In Japan, a phase 2 clinical trial with liraglutide has been started, and some
200 patients are expected to be included in the trial. Novo Nordisk still
expects to start phase 3 clinical trials with liraglutide in the US around the
turn of the year.
The findings from the pharmacokinetic and pharmacodynamic (PK/PD) analysis in
connection with the phase 3 safety study for the AERx(R) iDMS project conducted
during 2003-2004 show that the impaired regulation of meal-related plasma
glucose is not caused by formation of insulin antibodies. Hence, the lower than
expected post-prandial efficacy is likely to be a result of the chosen
comparator insulin, which was subcutaneously injected NovoRapid(R). Furthermore,
data from the phase 3 safety study reveals that patients treated with pulmonary
insulin over a 24-month period obtain a similar level of long-term glycaemic
control, as measured by glycosylated haemoglobin A1c (HbA1c), compared to
patients on an intensified treatment regimen of subcutaneously injected
NovoRapid(R).
Following additional strip and device optimisation and validation, Novo Nordisk
expects to make the decision about the re-initiation of the remaining phase 3
clinical studies for the AERx(R) iDMS project at the turn of the year.
Novo Nordisk has decided to cease further clinical development of NN2501, an
oral glucagon receptor antagonist, with the potential ability to inhibit
excessive glucose production in the liver of patients with type 2 diabetes.
Clinical data from the phase 1 trial revealed that NN2501 did not demonstrate a
competitive glucose lowering profile. No safety concerns were identified.
6
BIOPHARMACEUTICALS
As previously communicated, Novo Nordisk filed an application with EMEA (The
European Medicines Agency) in January 2005 for marketing approval for the use of
NovoSeven(R) in blunt trauma. The filing was based on results obtained from a
phase 2 clinical trial. Given prior discussions with the European regulatory
authorities, Novo Nordisk found it prudent to apply for marketing approval on
this basis as this would have led to an early approval to the benefit of
patients and the company.
Preliminary information from EMEA now indicates that additional data related to
efficacy/safety may be needed. Novo Nordisk is in consultation with EMEA about
these issues and expects a conclusion in the second half of this year. To
further support the filing, Novo Nordisk has decided to initiate a confirmatory
clinical trial in the EU and other countries outside the US. This trial is
expected to start mid-2005.
In the US, Novo Nordisk is in the process of finalising the details of the trial
protocol for the use of NovoSeven(R) in trauma. Based on ongoing consultations
with FDA (the US regulatory authorities), the clinical trial is expected to
encompass around 1000 patients. Pending final FDA approval, the trial is
expected to be initiated in the third quarter of 2005.
Novo Nordisk expects to file an application in Europe in the third quarter of
2005 for marketing approval for the use of NovoSeven(R) in connection with
intracerebral haemorrhage (ICH). The filing will be supported with additional
safety data from a confirmatory clinical trial.
This confirmatory clinical trial is still expected to be initiated around
mid-2005. In addition to supporting the European filing, it is also expected to
generate the necessary clinical documentation for filing with FDA for regulatory
approval in the US of the use of NovoSeven(R) in connection with ICH. The trial
is expected to involve around 450 patients and to involve clinical centres in
the US, Europe as well as other countries.
Within HRT, a phase 3 clinical trial with an ultra-low dose version of
Vagifem(R), Novo Nordisk's topical oestrogen product, has been initiated in the
US. The study will involve around 600 patients and a treatment period of twelve
months. The results from this study are expected to support the move towards
lower-dose versions of HRT products.
EQUITY
Total equity was DKK 25,729 million at the end of the first three months of
2005, equal to 70.5% of total assets, compared to 70.8% at the end of 2004.
Please refer to appendix 5 for further elaboration of changes in equity during
2005.
HOLDING OF TREASURY SHARES
As per 27 April 2005, Novo Nordisk A/S and its wholly-owned affiliates owned
23,174,069 of its own B shares, corresponding to 6.53% of the total share
capital.
SHARE REPURCHASE PROGRAMME
Novo Nordisk expects to accelerate the ongoing DKK 5 billion share repurchase
programme announced in April 2004, which was originally communicated to last
until 2006. As a consequence of the solid free cash flow generation in 2004 as
well as the improved expecta-tions for free cash flow generation in 2005, Novo
Nordisk now expects to repurchase shares with a market value equivalent to the
remaining DKK 3 billion of this programme during 2005.
7
SUSTAINABILITY ISSUES UPDATE
On 31 March 2005, Novo Nordisk was awarded the MIA Prize 2005 - 'Diversity in
Working'. This award is given to companies that take the lead in promoting
diversity and consistently prevent discrimination. It was launched in 2004 by
the Danish Institute for Human Rights with support from the European Union,
which has adopted new rules ensuring equal opportunities for all regardless of
gender, ethnic background, religion, handicap, age or sexual orientation. In its
motivation, the jury highlighted the fact that Novo Nordisk has realised a
compassionate and respectful people policy in an exemplary way, viewing
diversity and equal opportunities as requirements for competitive strength.
LEGAL ISSUES UPDATE
Novo Nordisk Inc, together with the majority of hormone therapy product
manufacturers in the US, is a defendant in product liability lawsuits related to
Novo Nordisk's hormone therapy products. These lawsuits currently involve a
total of 31 plaintiffs who allege to have used Novo Nordisk's hormone therapy
products. These products (Activella(R) and Vagifem(R)) have been sold and
marketed in the US since 2000. Until July 2003, the products were sold and
marketed exclusively in the US by Pharmacia & Upjohn Corporation (now Pfizer
Inc). According to information received from Pfizer an additional 11 individuals
allege, in relation to a similar lawsuit against Pfizer Inc, that they have used
Novo Nordisk's hormone therapy products. All of these proceedings are in their
preliminary stages; however, Novo Nordisk is not expecting the claims to impact
Novo Nordisk's financial outlook.
CONFERENCE CALL DETAILS
At 14.00 CET today, corresponding to 8.00 am New York time, a conference call
will be held. Investors will be able to listen in via a link on 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
The above sections contain forward-looking statements as the term is defined in
the US Private Securities Litigation Reform Act of 1995. Forward-looking
statements provide current expectations or forecasts of events such as new
product introductions, product approvals and financial performance.
Such forward-looking statements are subject to risks, uncertainties and
inaccurate assumptions. This may cause actual results to differ materially from
expectations. Factors that may affect future results include interest rate and
currency exchange rate fluctuations, delay or failure of development projects,
production problems, unexpected contract breaches or terminations,
government-mandated or market-driven price decreases for Novo Nordisk's
products, introduction of competing products, Novo Nordisk's ability to
successfully market both new and existing products, exposure to product
liability and other lawsuits, changes in reimbursement rules and governmental
laws and related interpretation thereof, and unexpected growth in costs and
expenses.
Risks and uncertainties are further described in reports filed by Novo Nordisk
with the US Securities and Exchange Commission (SEC) including the company's
Form 20-F, which was filed on 21 February 2005. Please also refer to the section
'Risk Management' in the Annual Report 2004. Novo Nordisk is under no duty to
update any of the forward-looking statements or to conform such statements to
actual results, unless required by law.
8
MANAGEMENT STATEMENT
Today, the Board of Directors and Executive Management reviewed and approved the
interim report and accounts of Novo Nordisk A/S for the first quarter of 2005.
The interim report and accounts have been prepared in accordance with
International Financial Reporting Standards and the additional Danish disclosure
requirements applying to listed companies' interim reports and accounts.
In our opinion the accounting policies used are appropriate and the overall
presentation of the interim report and accounts is adequate. Furthermore, in our
opinion the interim report and accounts give a true and fair view of the Group's
assets, liabilities, financial position and of the results of the operations and
consolidated cash flows for the period under review.
Bagsvaerd 28 April 2005
EXECUTIVE MANAGEMENT:
Lars Rebien Sorensen Jesper Brandgaard Lars Almblom Jorgensen
President and CEO CFO
Lise Kingo Kare Schultz Mads Krogsgaard Thomsen
BOARD OF DIRECTORS:
Mads Ovlisen Sten Scheibye Goran A Ando
Chairman Vice chairman
Kurt Briner Henrik Gurtler Johnny Henriksen
Niels Jacobsen Anne Marie Kverneland Kurt Anker Nielsen
Stig Strobaek Jorgen Wedel
9
CONTACTS FOR FURTHER INFORMATION
MEDIA: INVESTORS:
Outside North America: Outside North America:
Mike Rulis Mogens Thorsager Jensen
Tel (direct): (+45) 4442 3573 Tel (direct): (+45) 4442 7945
E-mail: mike@novonordisk.com E-mail: mtj@novonordisk.com
--------------------
Palle Holm Olesen
Tel (direct): (+45) 4442 6175
E-mail: phoo@novonordisk.com
Mads Veggerby Lausten
Tel (direct): (+45) 4443 7919
E-mail: mlau@novonordisk.com
In North America: In North America:
Susan T Jackson Any of the above contacts or
Tel (direct): (+1) 609 919 7776 tel (direct): (+1) 609 919 7937
E-mail: stja@novonordisk.com
Further information on Novo Nordisk is available on the company's internet
homepage at the address: novonordisk.com
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10
APPENDIX 1: QUARTERLY NUMBERS IN DKK
(Amounts in DKK million, except number of employees, earnings per share and
number of shares outstanding.)
% change
2005 2004 Q1 2004 -
Q1 Q4 Q3 Q2 Q1 Q1 2005
SALES 7,258 7,944 7,408 7,164 6,515 11%
Gross profit 5,173 5,783 5,318 5,219 4,661 11%
Gross margin 71.3% 72.8% 71.8% 72.9% 71.5%
Sales and distribution costs 2,139 2,364 2,039 1,991 1,886 13%
Percent of sales 29.5% 29.8% 27.5% 27.8% 28.9%
Research and development costs 1,106 1,243 1,086 983 1,040 6%
Percent of sales 15.2% 15.6% 14.7% 13.7% 16.0%
Administrative expenses 534 431 1%
483 502 477
Percent of sales 6.7% 6.7% 6.8% 6.0% 7.3%
Licence fees and other operating income (net) 67 213 5 71 232 -71%
OPERATING PROFIT 1,512 1,855 1,750 1,885 1,490 1%
Operating margin 20.8% 23.4% 23.6% 26.3% 22.9%
Share of profit/(loss) in associated companies 238 (20) 12 (40) (69) -
Financial income 114 491 125 104 178 -36%
114 491 125 104 178
Financial expenses 76 186 52 44 22 245%
Profit before taxation 1,788 2,140 1,835 1,905 1,577 13%
NET PROFIT 1,232 1,462 1,226 1,272 1,053 17%
Depreciation, amortisation and impairment losses 412 549 576 387 380 8%
Capital expenditure 723 1,092 873 642 392 84%
Cash flow from operating activities 1,343 2,103 2,426 1,710 1,350 -1%
Free cash flow 614 903 1,533 956 886 -31%
Equity 25,729 26,504 25,557 24,827 23,942 7%
Total assets 36,497 37,433 35,587 34,248 33,838 8%
Equity ratio 70.5% 70.8% 71.8% 72.5% 70.8%
Full-time employees at the end of the period 20,942 20,285 20,001 19,631 19,179 9%
Diluted earnings per share (in DKK)* 3.70 4.37 3.63 3.74 3.1 19%
Average number of shares outstanding (million)*
- used for diluted earnings per share 333.2 334.7 338.2 339.8 339.8 -2%
Sales by business segments:
Insulin analogues 1,448 1,332 1,252 1,037 886 63%
Human insulin and insulin-related sales 3,346 3,944 3,593 3,640 3,206 4%
Oral antidiabetic products (OAD) 376 403 445 379 416 -10%
DIABETES CARE TOTAL 5,170 5,679 5,290 5,056 4,508 15%
NovoSeven(R) 1,090 1,170 1,086 1,084 1,019 7%
Growth hormone therapy 596 651 559 557 550 8%
Hormone replacement therapy 328 364 396 389 339 -3%
Other products 74 80 77 78 99 -25%
BIOPHARMACEUTICALS TOTAL 2,088 2,265 2,118 2,108 2,007 4%
Sales by geographic segments:
Europe 3,006 3,364 3,057 3,106 2,884 4%
North America 2,092 1,816 2,098 1,837 1,727 21%
International Operations 1,128 1,559 1,171 1,134 980 15%
Japan & Oceania 1,032 1,205 1,082 1,087 924 12%
Diabetes care 750 1,047 746 936 675 11%
Biopharmaceuticals 762 808 1,004 949 815 -7%
*) For Q1 2005 diluted earnings per share/ADR of a nominal value of DKK 2, which
include options on Novo Nordisk's treasury shares with an exercise price below
current market value, have been based on an average number of shares of
333,232,912.
11
APPENDIX 2: QUARTERLY NUMBERS IN EUR
(Amounts in EUR million, except number of employees, earnings per share and
number of shares outstanding.)
Key figures are translated into EUR as supplementary information - the
translation is based on average exchange rate for income statement and exchange
rate at the balance sheet date for balance sheet items.
% change
2005 2004 Q1 2004 -
Q1 Q4 Q3 Q2 Q1 Q1 2005
SALES 975 1,068 997 962 875 11%
Gross profit 695 778 715 701 626 11%
Gross margin 71.3% 72.8% 71.8% 72.9% 71.5%
Sales and distribution costs 287 318 274 268 253 13%
Percent of sales 29.5% 29.8% 27.5% 27.8% 28.9%
Research and development costs 149 167 146 132 140 6%
Percent of sales 15.2% 15.6% 14.7% 13.7% 16.0%
Administrative expenses 65 72 67 58 64 1%
Percent of sales 6.7% 6.7% 6.8% 6.0% 7.3%
Licence fees and other operating income (net) 9 28 8 10 31 -71%
OPERATING PROFIT 203 249 236 253 200 1%
Operating margin 20.8% 23.4% 23.6% 26.3% 22.9%
Share of profit in associated R&D companies 32 (1) - (5) (9) -
Financial income 15 65 17 14 24 -36%
Financial expenses 24 25 7 6 3 245%
Profit before taxation 240 288 246 256 212 13%
NET PROFIT 166 197 165 171 141 17%
Depreciation, amortisation and impairment losses 55 74 77 52 51 8%
Capital expenditure 97 147 117 86 53 84%
Cash flow from operating activities 180 283 326 230 181 -1%
Free cash flow 82 121 207 128 119 -31%
Equity 3,454 3,563 3,434 3,340 3,216 7%
Total assets 4,899 5,033 4,782 4,608 4,545 8%
Equity ratio 70.5% 70.8% 71.8% 72.5% 70.8%
Full-time employees at the end of the period 20,942 20,285 20,001 19,631 19,179 9%
Diluted earnings per share (in EUR)* 0.50 0.58 0.49 0.50 0.42 19%
Average number of shares outstanding (million)*
- used for diluted earnings per share 333.2 334.7 338.2 339.8 339.8 -2%
Sales by business segments:
Insulin analogues 195 179 169 139 119 63%
Human insulin and insulin-related sales 450 531 483 489 430 4%
Oral antidiabetic products (OAD) 51 54 60 51 56 -10%
DIABETES CARE TOTAL 696 764 712 679 605 15%
NovoSeven(R) 146 157 147 145 137 7%
Growth hormone therapy 80 87 75 75 74 8%
Hormone replacement therapy 44 49 53 52 46 -3%
Other products 9 11 10 11 13 -25%
BIOPHARMACEUTICALS TOTAL 279 304 285 283 270 4%
Sales by geographic segments:
Europe 404 452 411 418 387 4%
North America 281 244 282 247 232 21%
International Operations 152 210 157 152 132 15%
Japan & Oceania 138 162 147 145 124 12%
Segment operating profit:
Diabetes care 101 141 101 125 91 11%
Biopharmaceuticals 102 108 135 128 109 -7%
*) For Q1 2005 diluted earnings per share/ADR of a nominal value of DKK 2, which
include options on Novo Nordisk's treasury shares with an exercise price below
current market value, have been based on an average number of shares of
333,232,912.
12
APPENDIX 3: INCOME STATEMENT
2005 2004
DKK million Q1 Q1
Sales 7,258 6,515
Cost of goods sold 2,085 1,854
GROSS PROFIT 5,173 4,661
Sales and distribution costs 2,139 1,886
Research and development costs 1,106 1,040
Administrative expenses 483 477
Licence fees and other operating income (net) 67 232
OPERATING PROFIT 1,512 1,490
Share of profit/(loss) in associated companies 238 (69)
Financial income 114 178
Financial expenses 76 22
PROFIT BEFORE TAXATION 1,788 1,577
Income taxes 556 524
NET PROFIT 1,232 1,053
BASIC EARNINGS PER SHARE (DKK) 3.71 3.11
DILUTED EARNINGS PER SHARE DILUTED (DKK) 3.70 3.10
SEGMENT SALES:
Diabetes care 5,170 4,508
Biopharmaceuticals 2,088 2,007
SEGMENT OPERATING PROFIT:
Diabetes care 750 675
Operating margin 14.5% 15.0%
Biopharmaceuticals 762 815
Operating margin 36.5% 40.6%
13
APPENDIX 4: BALANCE SHEET
DKK million 31 MAR 2005 31 Dec 2004
ASSETS
Intangible assets 403 314
Property, plant and equipment 18,240 17,559
Investments in associated companies 769 883
Deferred tax assets 579 769
Other financial assets 189 159
TOTAL LONG-TERM ASSETS 20,180 19,684
Inventories 7,335 7,163
Trade receivables 4,252 4,062
Tax receivables 447 710
Other receivables 1,435 1,855
Marketable securities 526 526
Cash at bank and in hand 2,322 3,433
TOTAL CURRENT ASSETS 16,317 17,749
TOTAL ASSETS 36,497 37,433
EQUITY AND LIABILITIES
Share capital 709 709
Treasury shares (47) (45)
Share premium account 2,565 -
Retained earnings 24,780 22,671
Other comprehensive income 287 604
TOTAL EQUITY 25,729 26,504
Long-term debt 1,246 1,188
Deferred tax liabilities 1,541 1,853
Provision for pensions 272 250
Other provisions 263 358
Total long-term liabilities 3,322 3,649
Short-term debt 424 507
Trade payables 1,025 1,061
Tax payables 442 631
Other liabilities 4,030 3,721
Other provisions 1,525 1,360
Total current liabilities 7,446 7,280
TOTAL LIABILITIES 10,768 10,929
TOTAL EQUITY AND LIABILITIES 36,497 37,433
14
APPENDIX 5: STATEMENT OF CHANGES IN EQUITY
Other comprehensive income
------------------------------------
Deferred
Exchange gain/loss
Share rate on cash Other
DKK million Share Treasury premium Retained adjust- flow adjust-
capital shares account earnings ments hedges ments TOTAL
Q1 2005
Balance at the beginning
of the year 709 (45) 2,565 22,671 (40) 461 183 26,504
Exchange rate adjustment of
investments in subsidiaries 8 8
Deferred (gain)/loss on cash flow
hedges at the beginning of the year
recognised in the Income statement
for the period (461) (461)
Deferred gain/(loss) on cash flow
hedges at the end of the period 102 102
Other adjustments 96 34 130
Net income recognised directly in
equity - - - 96 8 (359) 34 (221)
Net profit for the period 1,232 1,232
Total income for the period - - - 1,328 8 (359) 34 1,011
Share-based payment 20 20
Purchase of treasury shares (2) (225) (227)
Sale of treasury shares - 15 15
Transfer of share premium account
to retained earnings *) (2,565) 2,565 -
Dividends (1,594) (1,594)
BALANCE AT THE END OF THE PERIOD 709 (47) - 24,780 (32) 102 217 25,729
*) In accordance with changes in the Danish Companies Act the share premium
account is transferred to retained earnings.
Q1 2004
Balance at the beginning of the year 709 (33) 2,565 20,925 (79) 513 176 24,776
Exchange rate adjustment of
investments in subsidiaries (20) (20)
Deferred (gain)/loss on cash flow
hedges at the beginning of the
year recognised in the Income
statement for the period (513) (513)
Deferred gain/(loss) on cash flow
hedges at the end of the period 92 92
Other adjustments (1) (1)
Net income recognised directly in
equity - - - - (20) (421) (1) (442)
Net profit for the period 1,053 1,053
Total income for the period - - - 1,053 (20) (421) (1) 611
Share-based payment 26 26
Purchase of treasury shares - - -
Sale of treasury shares - 17 17
Dividends (1,488) (1,488)
----------------------------------------------------------------------------------------------------------------------------------
Balance at the end of the period 709 (33) 2,565 20,533 (99) 92 175 23,942
15
APPENDIX 6: CONDENSED CASH FLOW STATEMENT
DKK million Q1 2005 Q1 2004
NET PROFIT 1,232 1,053
Net reversals with no effect on cash flow 887 1,292
Income taxes paid and net interest received (558) (1,085)
CASH FLOW BEFORE CHANGE IN WORKING CAPITAL 1,561 1,260
Net change in working capital (218) 90
CASH FLOW FROM OPERATING ACTIVITIES 1,343 1,350
Net investments in intangible assets
and long-term financial assets (6) (72)
Capital expenditure for property, plant
and equipment (723) (392)
Net change in marketable securities (>3 months) 2 1,002
TOTAL CASH FLOW FROM INVESTING ACTIVITIES (727) 538
CASH FLOW FROM FINANCING ACTIVITIES (1,808) (1,506)
NET CASH FLOW (1,192) 382
Unrealised gain/(loss) on exchange rates in
cash and cash equivalents 130 4
NET CHANGE IN CASH AND CASH EQUIVALENTS (1,062) 386
Cash and cash equivalents at the beginning
of the year 2,963 841
CASH AND CASH EQUIVALENTS AT THE END
OF THE PERIOD 1,901 1,227
Bonds with original term to maturity
exceeding three months 507 815
Undrawn committed credit facilities 6,705 5,722
FINANCIAL RESOURCES AT THE END OF THE PERIOD 9,113 7,764
FREE CASH FLOW* 614 886
*) Cash flow from operating activities + Cash flow from investing activities -
Net change in marketable securities (>3 months)
16
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf of the
undersigned, thereunto duly authorized.
Date: April 28 2005 NOVO NORDISK A/S
---------------------------------------------------
Lars Rebien Sorensen,
President and Chief Executive Officer