UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
October 31, 2013
NOVO
NORDISK A/S
(Exact name of Registrant as specified in its charter)
Novo Allé
DK- 2880, Bagsvaerd
Denmark
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F
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Form 20-F [X]
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Form 40-F [ ]
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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.
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Yes [ ]
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No [X]
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If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g-32(b):82-_____________________
Financial report for the period 1 January 2013 to 30 September 2013
31 October 2013
Novo
Nordisk increased operating profit by 10% in the first nine months of 2013
Sales growth
of 8% driven by Victoza®, Levemir® and NovoRapid®
Sales increased by 13% in local currencies and by 8% in Danish kroner to DKK 61.9 billion.
| • | Sales of modern insulins increased by 15% (10% in Danish kroner). |
| • | Sales of Victoza® increased by 28% (24% in Danish kroner). |
| • | Sales in North America increased by 20% (17% in Danish kroner). |
| • | Sales in International Operations increased by 15% (8% in Danish kroner). |
Gross margin improved by 0.7 percentage points in Danish kroner to 82.6%, reflecting a favourable price and product mix development.
Operating profit increased by 17% in local currencies and by 10% in Danish kroner to DKK 24.1 billion.
Net profit increased by 22% to DKK 19.1 billion. Diluted earnings per share increased by 25% to DKK 35.39.
The roll-out of Tresiba® (insulin degludec), the once-daily new-generation insulin with an ultra-long duration of action, continues to progress. Tresiba® has now also been commercially launched in Sweden and India. In October, the first patient was enrolled in DEVOTE, the cardiovascular outcomes trial for Tresiba®. Data for an interim analysis of the trial are expected to be available within two to three years.
For 2013, expectations to operating performance in local currencies are unchanged. Sales growth measured in local currencies is expected to be 11-13% and operating profit growth measured in local currencies is expected to be 12-15%.
The preliminary outlook for 2014 indicates high single-digit growth in sales and operating profit, both measured in local currencies.
Lars Rebien Sørensen, president and CEO: “We are pleased with the sustained robust financial performance. Sales growth continues to be driven by our portfolio of modern insulins and Victoza®. Tresiba® performance is encouraging and with the initiation of DEVOTE we have passed a significant milestone in the process of making Tresiba® available for people with diabetes in the US.”
| Novo Nordisk A/S Investor Relations |
Novo
Allé
2880
Bagsværd
Denmark |
Telephone:
+45
4444 8888
www.novonordisk.com |
CVR
No:
24
25 67 90
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Company
announcement No 68 / 2013
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| Financial report for the period 1 January 2013 to 30 September 2013 |
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ABOUT NOVO
NORDISK
Novo Nordisk is
a global healthcare company with 90 years of innovation and leadership in diabetes
care. The company also has leading positions within haemophilia care, growth
hormone therapy and hormone replacement therapy. Headquartered in Denmark, Novo
Nordisk employs approximately 37,000 employees in 75 countries, and markets
its products in more than 180 countries. Novo Nordisk’s B shares are listed
on NASDAQ OMX Copenhagen (Novo-B) and its ADRs are listed on the New York Stock
Exchange (NVO).
CONFERENCE
CALL DETAILS
On 31 October 2013
at 13.00 CET, corresponding to 8.00 am EDT, a conference call will be held.
Investors will be able to listen in via a link on novonordisk.com,
which can be found under ‘Investors – Download centre’. Presentation
material for the conference call will be available approximately one hour before
on the same page.
WEB CAST DETAILS
On 1 November 2013
at 13.30 CET, corresponding to 8.30 am EDT, management will give a presentation
to institutional investors and sell side-analysts in London. A webcast of the
presentation can be followed via a link on novonordisk.com,
which can be found under ‘Investors – Download centre’. Presentation
material for the conference call will be made available on the same page.
| FINANCIAL CALENDAR | |
| 3 December 2013 | Capital Markets Day |
| 30 January 2014 | Financial statement for 2013 |
| 3 February 2014 | PDF version of the Annual Report 2013 |
| 5 February 2014 | Deadline for the company’s receipt of shareholder proposals for the Annual General Meeting 2014 |
| 14 February 2014 | Printed version of the Annual Report 2013 |
| 20 March 2014 | Annual General Meeting 2014 |
| 1 May 2014 | Financial statement for the first three months of 2014 |
| 7 August 2014 | Financial statement for the first six months of 2014 |
| 30 October 2014 | Financial statement for the first nine months of 2014 |
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CONTACTS
FOR FURTHER INFORMATION
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Media:
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Mike
Rulis
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+45
4442 3573
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mike@novonordisk.com
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Ken
Inchausti (US)
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+1
609 514 8316
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kiau@novonordisk.com
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Investors:
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Kasper
Roseeuw Poulsen
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+45
4442 4303
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krop@novonordisk.com
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Frank
Daniel Mersebach
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+45
4442 0604
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fdni@novonordisk.com
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Lars
Borup Jacobsen
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+45
3075 3479
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lbpj@novonordisk.com
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Jannick
Lindegaard (US)
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+1
609 786 4575
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jlis@novonordisk.com
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Further information about Novo Nordisk is available on the company’s website novonordisk.com.
Company announcement No 68 / 2013
| Financial report for the period 1 January 2013 to 30 September 2013 |
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Financial
performance
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Outlook
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R&D
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Sustainability
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Equity
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Legal
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Financial
information
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Company
announcement No 68 / 2013
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| Financial report for the period 1 January 2013 to 30 September 2013 |
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CONSOLIDATED
FINANCIAL STATEMENT FOR THE FIRST NINE MONTHS OF 2013
These unaudited
consolidated financial statements for the first nine months of 2013 have been
prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and
on the basis of the same accounting policies as were applied in the Annual
Report 2012 of Novo Nordisk. Furthermore, the financial report including
the consolidated financial statements for the first nine months of 2013 and
Management’s review have been 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’) as published by the IASB, and also those that are endorsed
by the EU effective for the accounting period beginning on 1 January 2013. These
IFRSs have not had a significant impact on the consolidated financial statements
for the first nine months of 2013.
Amounts in DKK million, except number of shares, earnings per share and full-time equivalent employees.
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| PROFIT AND LOSS |
9M
2013
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9M
2012
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%
change
9M 2012 to 9M 2013 |
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Sales
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61,874 | 57,064 | 8% | |||
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| Gross profit | 51,134 | 46,752 | 9% | |||
| Gross margin | 82.6% | 81.9% | ||||
| Sales and distribution costs | 16,893 | 15,352 | 10% | |||
| Percentage of sales | 27.3% | 26.9% | ||||
| Research and development costs | 8,167 | 7,687 | 6% | |||
| Percentage of sales | 13.2% | 13.5% | ||||
| Administrative costs | 2,438 | 2,321 | 5% | |||
| Percentage of sales | 3.9% | 4.1% | ||||
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Licence
income and other operating income
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503 | 510 | (1% | ) | ||
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| Operating profit | 24,139 | 21,902 | 10% | |||
| Operating margin | 39.0% | 38.4% | ||||
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Net
financials
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610 | (1,543 | ) |
N/A
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Profit
before income taxes
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24,749 | 20,359 | 22% | |||
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| Net profit | 19,131 | 15,677 | 22% | |||
| Net profit margin | 30.9% | 27.5% | ||||
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OTHER
KEY NUMBERS
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| Depreciation, amortisation and impairment losses | 2,010 | 1,938 | 4% | |||
| Capital expenditure | 2,468 | 2,313 | 7% | |||
| Net cash generated from operating activities | 20,570 | 20,700 | (1% | ) | ||
| Free cash flow | 17,820 | 18,237 | (2% | ) | ||
| Total assets | 68,134 | 66,620 | 2% | |||
| Equity | 39,125 | 35,660 | 10% | |||
| Equity ratio | 57.4% | 53.5% | ||||
| Average number of diluted shares outstanding (million) | 540.5 | 553.5 | (2% | ) | ||
| Diluted earnings per share / ADR (in DKK) | 35.39 | 28.32 | 25% | |||
| Full-time equivalent employees end of period | 36,851 | 33,501 | 10% | |||
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announcement No 68 / 2013
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SALES
DEVELOPMENT
Sales increased
by 13% measured in local currencies and by 8% in Danish kroner. North America
was the main contributor with 69% share of growth measured in local currencies,
followed by International Operations and Region China contributing 18% and 8%
respectively. Sales growth was realised within both diabetes care and biopharmaceuticals,
with the majority of growth originating from the modern insulins and Victoza®.
Sales growth has been positively impacted by approximately 1 percentage point
due to a number of non-recurring events, primarily related to prior year adjustments
in the provisions for rebates in North America.
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Sales
9M 2013 DKK million |
Growth
as reported |
Growth
in local currencies |
Share
of
growth in local currencies |
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| The diabetes care segment | ||||||||
| - NovoRapid® |
12,393
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9%
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13%
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20%
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| - NovoMix® |
7,238
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5%
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10%
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9%
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| - Levemir® |
8,379
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18%
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22%
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22%
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| Modern insulins | 28,010 | 10% | 15% | 51% | ||||
| Human insulins | 8,175 | (1% | ) | 2% | 2% | |||
| Victoza® | 8,402 | 24% | 28% | 26% | ||||
| Protein-related products | 1,915 | 1% | 7% | 2% | ||||
| Oral antidiabetic products | 1,879 | (10% | ) | (8% | ) | (2% | ) | |
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Diabetes
care total
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48,381 | 9% | 13% | 79% | ||||
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| The biopharmaceuticals segment | ||||||||
| NovoSeven® | 6,997 | 7% | 11% | 10% | ||||
| Norditropin® | 4,452 | 5% | 12% | 8% | ||||
| Other products | 2,044 | 8% | 12% | 3% | ||||
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Biopharmaceuticals
total
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13,493 | 7% | 12% | 21% | ||||
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| Total sales | 61,874 | 8% | 13% | 100% | ||||
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Please refer to appendix 6 for further details on sales in the first nine months of 2013.
In the following sections, unless otherwise noted, market data are based on moving annual total (MAT) from August 2013 and August 2012 provided by the independent data provider IMS Health.
DIABETES
CARE SALES DEVELOPMENT
Sales of diabetes
care products increased by 13% measured in local currencies and by 9% in Danish
kroner to DKK 48,381 million. Novo Nordisk is the world leader in diabetes care
and now holds a global value market share of 27% compared to 25% at the same
time the year before.
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Insulins and
protein-related products
Sales of modern
insulins, human insulins and protein-related products increased by 11% in local
currencies and by 7% in Danish kroner to DKK 38,100 million. Measured in local
currencies, sales growth was driven by North America, International Operations
and Region China. Novo Nordisk is the global leader with 48% of the total insulin
market and 46% of the market for modern insulin and new-generation insulin,
both measured in volume.
The roll-out of Tresiba® (insulin degludec), the once-daily new-generation insulin with an ultra-long duration of action, continues to progress. Tresiba® has now been launched in seven countries, most recently in Sweden and India. Launch activities are progressing as planned and feedback from patients and prescribers is encouraging. In Japan, the first country to launch Tresiba® with broad market access, Tresiba® has steadily expanded its share of the basal insulin market. Eight months after launch, Tresiba® now represents 9% of the basal insulin market measured in weekly value market share. In the UK and Denmark, where Tresiba® has been launched with restricted market access, market penetration remains limited.
Sales of modern insulins increased by 15% in local currencies and by 10% in Danish kroner to DKK 28,010 million. North America accounted for two thirds of the growth, followed by International Operations and Region China. Sales of modern insulins now constitute 77% of Novo Nordisk’s sales of insulin.
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| INSULIN
MARKET SHARES (volume, MAT) |
Novo
Nordisk’s share of total insulin market |
Novo
Nordisk’s share of the modern insulin and new-generation insulin market |
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| August 2013 |
August 2012 |
August 2013 |
August 2012 |
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| Global | 48% | 49% | 46% | 46% | ||||
| USA | 40% | 41% | 39% | 38% | ||||
| Europe | 49% | 51% | 49% | 50% | ||||
| International Operations* | 56% | 58% | 53% | 55% | ||||
| China** | 60% | 61% | 64% | 66% | ||||
| Japan | 53% | 56% | 49% | 51% | ||||
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Source: IMS, August 2013 data. *: Data for 12 selected markets representing approximately 60% of Novo Nordisk’s diabetes sales in the region. **: Data for mainland China, excluding Hong Kong and Taiwan.
North America
Sales of insulins
and protein-related products in North America increased by 19% in local currencies
and by 16% in Danish kroner. Sales growth reflects a continued positive contribution
from pricing in the US, solid market penetration of all three modern insulins,
NovoLog®, Levemir® and NovoLog®
Mix 70/30 as well as human insulin sales growth. In addition, US sales are positively
impacted by an adjustment in the provisions for rebates related to prior years.
54% of Novo Nordisk’s modern insulin volume in the US is used in the prefilled
device FlexPen®.
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| Financial report for the period 1 January 2013 to 30 September 2013 |
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Europe
Sales of insulins
and protein-related products in Europe remained unchanged in local currencies
and decreased by 1% in Danish kroner. The development reflects that the declining
human insulin sales are only partially offset by the continued progress for
Levemir® and NovoRapid®. Furthermore, sales are
impacted by a lower than normal volume growth of the insulin market, around
2%, as well as the implementation of pricing reforms in several European markets.
The device penetration in Europe remains high with 96% of Novo Nordisk’s
insulin volume being used in devices, primarily NovoPen® and
FlexPen®.
International
Operations
Sales of insulins
and protein-related products in International Operations increased by 15% in
local currencies and by 7% in Danish kroner. The growth, which is positively
impacted by the timing in tenders and shipments in a number of countries, is
driven by all three modern insulins and a contribution from human insulins.
Currently, 59% of Novo Nordisk’s insulin volume in the major private markets
is used in devices.
Region China
Sales of insulins
and protein-related products in Region China increased by 15% in local currencies
and by 15% in Danish kroner. The sales growth was driven by all three modern
insulins, while sales of human insulins only grew modestly. Currently, 97% of
Novo Nordisk’s insulin volume in China is used in devices, primarily the
durable device NovoPen®.
Japan &
Korea
Sales of insulins
and protein-related products in Japan & Korea decreased by 5% in local currencies
and by 23% measured in Danish kroner. The sales development reflects a stagnant
Japanese insulin volume market and the negative impact of a challenging competitive
environment, which is only partly offset by the initial uptake of Tresiba®.
The device penetration in Japan remains high with 98% of Novo Nordisk’s
insulin volume being used in devices, primarily FlexPen®.
Victoza®
(GLP-1 therapy for type 2 diabetes)
Victoza®
sales increased by 28% in local currencies and by 24% in Danish kroner to DKK
8,402 million, reflecting robust sales performance driven by North America,
Europe and International Operations. Victoza® holds the global
market share leadership in the GLP-1 segment with a 70% value market share compared
to 66% in 2012. In volume terms, the growth of the GLP-1 market has decelerated,
while the GLP-1 segment’s value share of the total diabetes care market
has increased to 6.8% compared to 5.6% in 2012.
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| Financial report for the period 1 January 2013 to 30 September 2013 |
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| GLP-1 MARKET
SHARES (value, MAT) |
GLP-1
share of total diabetes care market |
Victoza®
share of GLP-1 market |
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| August 2013 |
August 2012 |
August
2013 |
August 2012 |
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| Global | 6.8% | 5.6% |
70%
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66% | ||||
| USA | 8.5% | 6.8% |
66%
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61% | ||||
| Europe | 7.4% | 6.3% |
78%
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75% | ||||
| International Operations* | 2.8% | 3.0% |
76%
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81% | ||||
| China** | 0.7% | 0.5% |
73%
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33% | ||||
| Japan | 2.2% | 2.2% |
73%
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79% | ||||
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Source: IMS, August 2013 data. *: Data for 12 selected markets representing approximately 60% of Novo Nordisk’s diabetes sales in the region. **: Data for mainland China, excluding Hong Kong and Taiwan.
North America
Sales of Victoza®
in North America increased by 30% in local currencies and by 26% in Danish kroner.
This reflects a continued expansion of the GLP-1 class, which represents 8.5%
of the total US diabetes care market in value compared to 6.8% in 2012. Despite
the launch of a competing product in 2012, Victoza® continues
to drive the US GLP-1 market expansion and is the GLP-1 market leader, now with
a 66% value market share compared to 61% a year ago.
Europe
Sales in Europe
increased by 25% in local currencies and by 24% in Danish kroner. Sales growth
is primarily driven by France, the UK, Spain and Italy. In Europe, the GLP-1
class’ share of the total diabetes care market in value has increased to
7.4% compared to 6.3% in 2012. Victoza® is the GLP-1 market leader
with a value market share of 78%.
International
Operations
Sales in International
Operations increased by 36% in local currencies and by 27% in Danish kroner.
Sales growth is primarily driven by a number of Middle Eastern countries. The
contraction of the GLP-1 class to 2.8% of the total diabetes care market in
value compared to 3.0% in 2012 reflects a decline in Brazil following a strong
launch, whereas the class continues to expand outside Brazil. Victoza®
is the GLP-1 market leader across International Operations with a value market
share of 76%.
Region China
Sales in Region
China increased by 100% in local currencies and by 100% in Danish kroner. The
GLP-1 class in China is not reimbursed and relatively modest in size. However,
its share of the total diabetes care market in value has expanded to 0.7% compared
to 0.5% in 2012. Victoza® holds a GLP-1 value market share of
73%.
Japan &
Korea
Sales in Japan &
Korea decreased by 8% in local currencies and by 26% in Danish kroner. In Japan,
the GLP-1 class represents 2.2% of the total diabetes care market value. Victoza®
remains the leader in the class with a value market share of 73%.
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| Financial report for the period 1 January 2013 to 30 September 2013 |
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NovoNorm®/Prandin®/PrandiMet® (oral
antidiabetic products)
Sales of oral antidiabetic
products decreased by 8% in local currencies and 10% in Danish kroner to DKK
1,879 million. The negative sales development reflects an impact from generic
competition in the US and Europe as well as a changed inventory setup in China.
BIOPHARMACEUTICALS
SALES DEVELOPMENT
Sales of biopharmaceutical
products increased by 12% measured in local currencies and by 7% in Danish kroner
to DKK 13,493 million. Sales growth was primarily driven by North America and
International Operations.
NovoSeven®
(bleeding disorders therapy)
Sales of NovoSeven®
increased by 11% in local currencies and by 7% in Danish kroner to DKK 6,997
million. The market for NovoSeven® remains volatile and sales
growth is primarily driven by North America and International Operations.
Norditropin®
(growth hormone therapy)
Sales of Norditropin®
increased by 12% in local currencies and by 5% in Danish kroner to DKK 4,452
million. The sales growth is primarily driven by North America and by International
Operations. Novo Nordisk is the leading company in the global growth hormone
market with a 28% market share measured by volume.
Other biopharmaceuticals
Sales of other products
within biopharmaceuticals, which predominantly consist of hormone replacement
therapy (HRT)-related products, increased by 12% in local currencies and by
8% in Danish kroner to DKK 2,044 million. Sales growth is driven by North America
and reflects a positive impact of pricing and non-recurring adjustments to the
provisions for rebates.
DEVELOPMENT
IN COSTS AND OPERATING PROFIT
The cost of goods
sold grew 4% to DKK 10,740 million, resulting in a gross margin of 82.6% compared
to 81.9% in 2012. This development primarily reflects an underlying improvement
driven by favourable price development in North America and a positive net impact
from product mix due to increased sales of modern insulins and Victoza®.
The gross margin was negatively impacted by around 0.3 percentage point due
to the depreciation of key invoicing currencies versus the Danish krone compared
to prevailing exchange rates in 2012.
Total non-production-related costs increased by 11% in local currencies and by 8% in Danish kroner to DKK 27,498 million.
Sales and distribution costs increased by 13% in local currencies and by 10% in Danish kroner to DKK 16,893 million. The growth in costs is driven by the expansion of the US sales force in the second half of 2012 and sales and marketing investments in China and selected countries in International Operations, costs related to the launch of Tresiba® in
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Europe and Japan. The growth percentage for costs is furthermore impacted by changes to legal provisions in 2012 and 2013.
Research and development costs increased by 8% in local currencies and by 6% in Danish kroner to DKK 8,167 million. The modest cost increase reflects timing of clinical trial activity. Within diabetes care, costs are primarily driven by development costs related to the initiation of the Tresiba® cardiovascular outcome study, the ongoing phase 3a trials for semaglutide, the once-weekly GLP-1 analogue and faster-acting insulin aspart. Within biopharmaceuticals, costs are primarily related to the continued progress of the portfolio of development projects within haemophilia and the phase 2 trial for anti-IL-20, a recombinant human monoclonal antibody, in rheumatoid arthritis.
Administration costs increased by 8% in local currencies and by 5% in Danish kroner to DKK 2,438 million. The increase in costs is primarily driven by back-office infrastructure costs to support the expansion of the sales organisation in North America and International Operations as well as an impact from a cost refund in the first half of 2012 of a previously expensed fine related to an import licence for a major market in International Operations.
Licence income and other operating income constituted DKK 503 million compared to DKK 510 million in 2012.
Operating profit in local currencies increased by 17% and by 10% in Danish kroner to DKK 24,139 million.
NET
FINANCIALS
Net financials showed
a net income of DKK 610 million compared to a net expense of DKK 1,543 million
in 2012.
In line with Novo Nordisk’s treasury policy, the most significant foreign exchange risks for the group have been hedged, primarily through foreign exchange forward contracts. The foreign exchange result was an income of DKK 696 million compared to an expense of DKK 1,455 million in 2012. This development reflects gains on foreign exchange hedging involving especially the Japanese yen and the US dollar due to their depreciation versus the Danish krone compared to the prevailing exchange rates in 2012. This positive effect is partly offset by losses on commercial balances, primarily related to non-hedged currencies.
CAPITAL
EXPENDITURE AND FREE CASH FLOW
Net capital expenditure
for property, plant and equipment was DKK 2.5 billion compared to DKK 2.3 billion
in 2012. Net capital expenditure was primarily related to filling capacity in
Denmark and Russia, new offices in Denmark, new diabetes research facilities
in Denmark as well as device production facilities in the US and Denmark.
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Free cash flow was DKK 17.8 billion compared to DKK 18.2 billion in 2012. The decrease of 2% compared to 2012 reflects the growth in net profit of 22% being more than offset by increased tax payments and earlier payment of rebate liabilities in the US.
KEY
DEVELOPMENTS IN THE THIRD QUARTER OF 2013
Please refer to
appendix 1 for an overview of the quarterly numbers in DKK and appendix 6 for
details on sales in the third quarter of 2013.
Sales in the third quarter of 2013 increased by 10% in local currencies and by 3% in Danish kroner to 20.5 billion compared to the same period in 2012. The growth, which was driven by the three modern insulins and Victoza®, was partly offset by generic competition to Prandin® in the US. Sales of Victoza® in the third quarter of 2013 were primarily driven by the US and Europe. From a geographic perspective, North America, International Operations and Europe represented the majority of total sales growth in local currencies.
The gross margin increased to 82.8% in the third quarter of 2013 compared to 82.4% in the same period last year. The increase of 0.4 percentage point was driven by a positive impact from pricing in the US and a favourable product mix development which was partly offset by a negative currency impact of 0.2 percentage point.
In the third quarter of 2013, total non-production-related costs increased by 10% in local currencies and by 5% in Danish kroner to DKK 9,146 million compared to the same period last year.
Sales and distribution costs increased by 10% in local currencies and by 4% in Danish kroner in the third quarter of 2013 compared to the same period last year. The growth in costs is driven by the expansion of the US sales force in the second half of 2012, sales and marketing investments in China and selected countries in International Operations as well as an impact from adjustments of legal provisions.
Research and development costs increased by 9% in local currencies and by 7% in Danish kroner in the third quarter of 2013 compared to the same period last year. The cost increase is primarily driven by the continued progress of key development projects within diabetes and biopharmaceuticals, the initiation of the Tresiba® cardiovascular outcomes trial, as well as the expansion of Novo Nordisk’s research activities in the US and China.
Administration costs increased by 13% in local currencies and by 7% in Danish kroner in the third quarter of 2013 compared to the same period last year. The increase in costs is primarily driven by back-office infrastructure costs to support the expansion of the sales organisation in North America and International Operations as well as costs related to new offices in Denmark.
Operating profit in local currencies increased by 12% and by 2% in Danish kroner in the third quarter of 2013 compared to the same period last year.
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OUTLOOK 2013
The current expectations
for 2013 are summarised in the table below:
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| Expectations
are as reported, if not otherwise stated |
Current
expectations
31 October 2013 |
Previous
expectations
8 August 2013 |
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| Sales growth | ||||
| in local currencies |
11-13%
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11-13%
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| as reported | Around
4.5 percentage points lower |
Around 4 percentage points lower |
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12-15%
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12-15%
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| as reported | Around
7 percentage points lower |
Around 6 percentage points lower |
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| Net financials | Income
of around DKK 1,100 million |
Income of
around DKK 900 million |
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| Effective tax rate | Around 23% | Around 23% | ||
| Capital expenditure | Around DKK 3.5 billion | Around DKK 3.5 billion | ||
| Depreciation,
amortisation and impairment losses |
Around DKK 3.0 billion | Around DKK 3.0 billion | ||
| Free cash flow | Around DKK 22 billion | Around DKK 22 billion | ||
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Sales growth for 2013 is still expected to be 11-13% measured in local currencies. This reflects expectations for continued robust performance for the portfolio of modern insulins and Victoza® as well as a modest sales contribution from Tresiba®. These sales drivers are partly expected to be countered by generic competition to Prandin® in the US, intensifying competition within diabetes care as well as biopharmaceuticals and the macroeconomic conditions in a number of markets in International Operations. Given the current level of exchange rates versus the Danish krone, the reported sales growth is now expected to be around 4.5 percentage points lower than growth measured in local currencies.
For 2013, operating profit growth is still expected to be 12-15% measured in local currencies. This reflects significant sales and marketing investments in the portfolio of modern insulins and Victoza® in the US, the launch of Tresiba® outside the US, sales and marketing investments in China and in a selected number of countries in International Operations as well as a significant increase in costs related to the continued progress of key development projects within diabetes and biopharmaceuticals. Given the current level of exchange rates versus the Danish krone, the reported operating profit growth is now expected to be around 7 percentage points lower than growth measured in local currencies.
For 2013, Novo Nordisk now expects a net financial income of around DKK 1,100 million. The current expectation primarily reflects gains associated with foreign exchange hedging contracts following the depreciation of the Japanese yen and the US dollar
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versus the Danish krone compared to the average prevailing exchange rates in 2012. This positive effect is partly offset by losses on commercial balances, primarily related to non-hedged currencies.
The effective tax rate for 2013 is still expected to be around 23%.
Capital expenditure is still expected to be around DKK 3.5 billion in 2013, primarily related to investments in filling capacity and prefilled device production facilities and new offices in Denmark. Depreciation, amortisation and impairment losses are still expected to be around DKK 3.0 billion. Free cash flow is still expected to be around DKK 22 billion.
With regard to the financial outlook for 2014, Novo Nordisk expects to provide detailed guidance on expectations in connection with the release of the full-year financial results for 2013 on 30 January 2014. At present, the preliminary plans for 2014 indicate high single-digit growth in sales and operating profit, both measured in local currencies. The outlook reflects expectations for continued robust performance of the portfolio of modern insulins and Victoza® as well as a positive sales contribution from Tresiba®. These sales drivers are expected to be partly countered by an impact from a more challenging contract environment in the US, generic competition to Prandin® in the US, intensifying competition within both diabetes and biopharmaceuticals as well as the macroeconomic conditions in a number of markets in International Operations. In addition, the outlook for operating profit reflects significant costs related to the continued progress of key late-stage clinical development projects. Given the current level of exchange rates versus the Danish krone, reported growth in operating profit in 2014 is expected to be approximately 5% lower than the growth measured in local currencies. The currency impact on reported operating profit growth is expected to be partly offset by a net gain on foreign exchange contracts hedging operating cash flows in 2014. Income recognition of this net gain has been deferred to 2014 when the hedged operating cash flows will be realised. The net hedging gain pertaining to 2014 is currently expected to be around DKK 900 million.
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 2013 and 2014, and that currency exchange rates, especially for the US dollar, will remain at the current level versus the Danish krone. Please refer to appendix 7 for key currency assumptions.
Novo Nordisk has hedged expected net cash flows in a number of key invoicing currencies and, all other things being equal, movements in these key invoicing currencies will impact Novo Nordisk’s operating profit as outlined in the table below.
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Key
invoicing
currencies |
Annual
impact on Novo Nordisk’s
operating profit of a 5% movement in currency |
Hedging
period
(months) |
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| USD | DKK 1,200 million |
12
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| JPY | DKK 200 million |
13
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| CNY | DKK 180 million |
12*
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| GBP | DKK 85 million |
12
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| CAD | DKK 55 million |
10
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* USD used as proxy when hedging Novo Nordisk’s CNY currency exposure
The financial impact from foreign exchange hedging is included in ‘Net financials’. R&D
DIABETES CARE: INSULIN AND GLP-1
Annual meeting
of the European Association for the Study of Diabetes (EASD)
In September, at
the annual meeting of the European Association for the Study of Diabetes (EASD)
held in Barcelona, Spain, Novo Nordisk presented results from the company’s
diabetes research and development activities in 49 accepted abstracts, including
nine oral presentations. Among the key presentations was the presentation of
results from the DUAL™ I phase 3a trial for IDegLira, a combination product
of insulin degludec (Tresiba®), the once-daily new-generation
basal insulin analogue, with an ultra-long duration of action, and liraglutide
(Victoza®), the once-daily human GLP-1 analogue. Furthermore,
presentations included results from a phase 3a trial comparing Ryzodeg®
with NovoMix® and the baseline characteristics for LEADER®,
the ongoing cardiovascular outcomes trial for Victoza®.
DEVOTE, the
Tresiba® cardiovascular outcomes trial initiated
In October, Novo
Nordisk initiated DEVOTE, the cardiovascular outcomes trial for Tresiba®.
As previously announced, DEVOTE is a double-blind trial, using insulin glargine
as comparator and is expected to include around 7,500 type 2 diabetes patients
that have existing, or high risk of, cardiovascular disease. The primary endpoint
of the study is major adverse cardiovascular events (cardiovascular death, non-fatal
myocardial infarction or non-fatal stroke). The study will be event-driven and
complete when a predefined number of major adverse cardiovascular events has
occurred. Novo Nordisk expects to have sufficient data to support a prespecified
interim analysis within two to three years and to complete the study within
four to six years.
Phase 3 initiated
for faster-acting insulin aspart (NN1218)
In August, onset®,
the phase 3 programme for faster-acting insulin aspart was initiated. Two of
the three initiated trials investigate the efficacy and safety of faster-acting
insulin aspart compared to insulin aspart in combination with basal insulin
in 1,100 people with type 1 diabetes for 52 weeks and 670 people with type 2
diabetes for 26 weeks respectively. In the third trial, faster-acting insulin
aspart used as part of a basal-bolus
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regimen is compared with basal insulin treatment for 18 weeks in 220 people with type 2 diabetes.
Phase 4 trial
comparing Victoza® with lixisenatide initiated
In October, Novo
Nordisk initiated a phase 4 trial comparing Victoza 1.8 mg with lixisenatide
20 microgram. The randomised, open-label trial will investigate the efficacy
and safety of Victoza® versus lixisenatide treatment for 26 weeks
as add-on to metformin in 400 people with type 2 diabetes.
BIOPHARMACEUTICALS:
HAEMOPHILIA
Turoctocog alfa
approved as Novoeight® in the US and received positive opinion
in the EU
In October, the
U.S. Food and Drug Administration (FDA) approved Novo Nordisk’s Biologics
License Application (BLA) for recombinant coagulation factor VIII, turoctocog
alfa. Novoeight® is approved for use in adults and children with
haemophilia A for control and prevention of bleeding, perioperative management
as well as routine prophylaxis to prevent or reduce the frequency of bleeding
episodes. Novoeight® is the first biological product approved
under PDUFA V, which was enacted in 2012.
In Europe, the Committee for Medicinal Products for Human Use (CHMP) under the European Medicines Agency (EMA) adopted a positive opinion for the product and recommended marketing authorisation for the treatment and prophylaxis of bleeding in patients with haemophilia A. Novo Nordisk expects to receive the final marketing authorisation from the European Commission within the coming months.
Novo Nordisk expects to launch the product in Europe early 2014 and in the US in the first half of 2015.
NovoThirteen®
resubmitted in the US
In October, Novo
Nordisk resubmitted the application for approval of NovoThirteen®
in the US to the FDA following the receipt of a complete response letter, which
was announced in August 2013.
Continued job
creation at Novo Nordisk
The number of full-time
equivalent employees was 36,851 as of 30 September 2013 compared to 33,501 as
of 30 September 2012. New hiring was led by expansion in the sales affiliates
in US, China and countries in the International Operations region. Furthermore,
the research & development and production activities in Denmark contributed
to growth in the number of employees.
New initiatives
within clinical data transparency
All Novo Nordisk
trial data are today made public in the form of scientific publications and
trial summaries (synopses). In addition, Novo Nordisk will from 1 March 2014
make the actual clinical study reports publically available for trials completed
after 1 January 2006 on product indications approved both in the EU and US.
The clinical study reports will be
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redacted to assure personal data protection for patients and healthcare personnel participating in the trials.
Furthermore, Novo Nordisk will from 1 March 2014, upon request, make raw data from trials completed after 2001 available to bona fide researchers with legitimate and valid research proposals. The data will be made available after research proposals have been reviewed by an independent expert governing body established by Novo Nordisk.
The development of future products that can improve patient care depends strongly on the collaboration with patients, study sites and investigators. Novo Nordisk is expanding activities on clinical data transparency to assure confidence in our scientific handling and communication of data and to ensure maximal benefit for future medical progress from the data captured in the trials. Novo Nordisk’s full policy on the sharing of clinical trials data can found at http://www.novonordisk-trials.com/WebSite/Content/NN-code-of-conduct.aspx.
Novo Nordisk
and Indonesian Ministry of Health join to address diabetes challenges
On 3 September,
the Indonesian Ministry of Health and Novo Nordisk launched a joint platform
to address the rising prevalence of diabetes and its associated costs in the
country of 242 million people. It is estimated that close to eight million people
in Indonesia have diabetes of which less than 1% achieve treatment targets.
The launch brought together key public and private stakeholders and commitment
was made to increase public awareness, build capacity among healthcare professionals
and improve treatments, eg by upgrading 15 government-mandated community health
clinics to become diabetes clinics.
Novo Nordisk
recognised in the Dow Jones Sustainability Index
Novo Nordisk received
top placement in the Dow Jones Sustainability Index (DJSI), an investor focused
benchmark of the world’s leading companies based on long-term economic,
environmental and social criteria.
As last year, Novo Nordisk was ranked second in the pharmaceutical sector and recognised as being best in class in a number of categories. This year, Novo Nordisk was considered best in class across sectors in the categories ‘Environmental Policy/Management System’, ‘Human Capital Development’ and ‘Social Reporting’.
Total equity was DKK 39,125 million at the end of the third quarter of 2013, equivalent to 57.4% of total assets, compared to 53.5% at the end of the third quarter of 2012. Please refer to appendix 5 for further elaboration of changes in equity.
Change in trading
units
In order to secure
liquidity for both the Novo Nordisk B shares and American Depositary Receipts
(ADRs) and bring price levels in line with market practice for especially the
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ADRs, the Board of Directors has decided to split the share in a five-for-one ratio. The trading unit of the Novo Nordisk B shares listed on NASDAQ OMX Copenhagen will be changed from DKK 1 to DKK 0.20. The ratio of B shares to ADRs listed on the New York Stock Exchange will remain 1:1. These changes in trading units are expected to take effect as of 2 January 2014 for the Novo Nordisk B shares and as of 9 January 2014 for the ADRs.
2013 share
repurchase programme
On 8 August, as
part of an overall programme of DKK 14 billion to be executed during a 12-month
period beginning 31 January 2013, Novo Nordisk announced a share repurchase
programme of up to DKK 2.5 billion to be executed from 8 August to 29 October
2013. The purpose of the programme is to reduce the company’s share capital.
Under the programme, announced 8 August, Novo Nordisk has repurchased B shares
for an amount of DKK 2.5 billion in the period from 8 August to 29 October 2013.
The programme announced on 8 August was concluded on 29 October 2013.
As of 29 October 2013, Novo Nordisk A/S and its wholly-owned affiliates owned 18,880,918 of its own B shares, corresponding to 3.4% of the total share capital.
As of 29 October 2013, Novo Nordisk A/S has repurchased a total of 11,438,443 B shares equal to a transaction value of DKK 11.0 billion under the DKK 14 billion programme beginning 31 January 2013.
As part of the execution of Novo Nordisk A/S’ ongoing share repurchase programme of DKK 14.0 billion to be executed during a 12-month period beginning 31 January 2013, a new share repurchase programme has been initiated in accordance with the provisions of the European Commission’s regulation No 2273/2003 of 22 December 2003, also referred to as the Safe Harbour rules. For that purpose, Novo Nordisk A/S has appointed Skandinaviska Enskilda Banken, Denmark, as lead manager to execute the programme independently and without influence from Novo Nordisk. Under the agreement, Skandinaviska Enskilda Banken, Denmark, will repurchase B shares on behalf of Novo Nordisk A/S for an amount of up to DKK 2.8 billion during the trading period starting 31 October 2013 and ending on 28 January 2014. A maximum of 122,645 shares of DKK 1, currently equalling 122,645 shares prior to the change in trading unit, 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 2013. A maximum of 7,236,055 shares of DKK 1 in total, currently equalling 7,236,055 shares prior to the change in trading unit, can be bought in the period from 31 October 2013 to 28 January 2014. At least once every seven trading days, Novo Nordisk A/S will issue an announcement in respect of the transactions made under the repurchase programme.
In addition to the agreement with Skandinaviska Enskilda Banken of repurchasing shares of an amount of up to DKK 2.8 billion, Novo Nordisk expects to purchase B-shares from employees in November for approximately DKK 0.2 billion. The purchase is related to a 2010 employee share programme for employees outside Denmark. Novo Nordisk will purchase the shares at the average trading price of Novo Nordisk B shares on NASDAQ OMX Copenhagen during the period starting on 31 October 2013 and ending on 14
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November 2013. The repurchase of shares in this transaction is not part of the Safe Harbour programme, but is part of the overall DKK 14 billion share repurchase programme.
LEGAL MATTERS AND EVENTS AFTER THE END OF THE THIRD QUARTER
Product liability
lawsuits related to hormone therapy products
As of 28 October
2013, 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 13
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.). In addition,
13 individuals currently allege, in relation to similar lawsuits against Pfizer
Inc., that they have also used a Novo Nordisk hormone therapy product. Pfizer
Inc. has publicly announced the settlement of many of its hormone therapy cases.
The continued reduction in pending cases is the result of Pfizer Inc. settling
several cases that also involve Novo Nordisk’s products. Currently, Novo
Nordisk does not have any trials scheduled in 2013. Novo Nordisk does not expect
the pending claims to have a material impact on its financial position, operating
profit and cash flow.
Patent infringement
lawsuits related to Prandin®
In the patent infringement
lawsuit against Caraco Pharmaceutical Laboratories, Ltd. (Caraco) regarding
Caraco’s abbreviated new drug application (ANDA) for a generic version
of Prandin® (repaglinide), Novo Nordisk petitioned the Federal
Circuit for an en banc rehearing of the 3-judge 2-1 decision finding invalid
the Novo Nordisk patent related to the use of repaglinide in combination with
metformin for the treatment of type 2 diabetes. On 18 September, the Federal
Circuit denied Novo Nordisk’s petition. While Novo Nordisk continues to
believe in the validity of its patent, it will not pursue further appeals. Generic
repaglinide products are currently available in the US market.
Product liability
lawsuits related to Victoza®
Novo Nordisk is
per 28 October 2013 named in 19 single-plaintiff lawsuits primarily seeking
to recover damages for pancreatic cancer experienced by patients who allege
to have been prescribed Victoza® and other GLP-1/DPP-IV products.
Twelve of the 19 Novo Nordisk cases include other defendants, and most cases
have been filed in California federal court. Currently, Novo Nordisk does not
have any trials scheduled in 2013. Novo Nordisk does not expect the pending
claims to have a material impact on its financial position, operating profit
and cash flow.
Recall of NovoMix®
30 batches in some European countries
On 25 October 2013,
Novo Nordisk initiated a recall of a number of batches of NovoMix®
30 from 13 European countries. The products were recalled after a quality control
conducted by Novo Nordisk showed that a small percentage (0.14%) of the products
in these batches did not meet the specifications for insulin strength. To protect
patient safety, Novo Nordisk recalled all products in the affected batches from
wholesalers, pharmacies and patients. Novo Nordisk does not expect the recall
to have a material impact on its financial position, operating profit and cash
flow.
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FORWARD-LOOKING STATEMENTS
Novo Nordisk’s
reports filed with or furnished to the US Securities and Exchange Commission
(SEC), including this document as well as the company’s Annual Report 2012
and Form 20-F, both filed with the SEC in February 2013, 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 targets, 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, costs, income (or loss), earnings per share, capital expenditures, dividends, capital structure, net financials and other financial measures |
| • | statements regarding future economic performance, future actions and outcome of contingencies such as legal proceedings |
| • | statements regarding the assumptions underlying or relating to such statements. |
In this document, examples of forward-looking statements can be found under the headings ‘Outlook’, ‘Research and Development update’, Equity’ and ‘Legal matters and events after the end of third quarter’.
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 recalls, unexpected contract breaches or terminations, government-mandated or market-driven price decreases for Novo Nordisk’s products, introduction of competing products, reliance on information technology, Novo Nordisk’s ability to successfully market current and new products, exposure to product liability and legal proceedings and investigations, changes in governmental laws and related interpretation thereof, including on reimbursement, intellectual property protection and regulatory controls on testing, approval, manufacturing and marketing, perceived or actual failure to adhere to ethical marketing practices, investments in and divestitures of domestic and foreign companies, unexpected growth in costs and expenses, failure to recruit and retain the right employees, and failure to maintain a culture of compliance.
Please also refer to the overview of risk factors in the ‘Risk overview’ on p 43 of the Annual Report 2012 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.
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The Board of Directors and Executive Management have reviewed and approved the financial report of Novo Nordisk A/S for the first nine months of 2013. The financial report has not been audited or reviewed by the company’s independent auditors.
The financial report for the first nine months of 2013 has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and accounting policies set out in the Annual Report 2012 of Novo Nordisk. Furthermore, the financial report for the first nine months of 2013 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 financial report for the first nine months of 2013 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.
Besides what has been disclosed in the quarterly financial reports, no changes in the Group’s most significant risks and uncertainties have occurred relative to what was disclosed in the consolidated annual report for 2012.
Bagsværd, 31 October 2013
| Executive Management: | ||
| Lars Rebien Sørensen |
Jesper
Brandgaard
|
Lars
Fruergaard Jørgensen
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| President and CEO |
CFO
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|
| Lise Kingo |
Jakob
Riis
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Kåre
Schultz
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| Mads Krogsgaard Thomsen |
| Board of Directors: | ||
| Göran Ando |
Jeppe
Christiansen
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Bruno
Angelici
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| Chairman |
Vice
chairman
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| Henrik Gürtler |
Liz
Hewitt
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Ulrik
Hjulmand-Lassen
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| Thomas Paul Koestler |
Anne
Marie Kverneland
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Søren
Thuesen Pedersen
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| Hannu Ryöppönen |
Stig
Strøbæk
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Financial
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|
Outlook
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announcement No 68 / 2013
|
||||||
| Financial report for the period 1 January 2013 to 30 September 2013 |
Page
21 of 28
|
APPENDIX 1: QUARTERLY NUMBERS IN DKK
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|
| (Amounts in DKK million, except number of full-time equivalent employees, earnings per share and number of shares outstanding). | ||||||||||||||||
| 2013 | 2012 | %
change Q3 2013 vs Q3 2012 |
||||||||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||
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||||
| Sales | 20,511 | 21,380 | 19,983 | 20,962 | 19,845 | 19,468 | 17,751 | 3% | ||||||||
| Gross profit | 16,986 | 17,774 | 16,374 | 17,809 | 16,360 | 16,044 | 14,348 | 4% | ||||||||
| Gross margin | 82.8% | 83.1% | 81.9% | 85.0% | 82.4% | 82.4% | 80.8% | |||||||||
| Sales and distribution costs | 5,529 | 5,834 | 5,530 | 6,192 | 5,299 | 5,203 | 4,850 | 4% | ||||||||
| Percentage of sales | 27.0% | 27.3% | 27.7% | 29.5% | 26.7% | 26.7% | 27.3% | |||||||||
| Research and development costs | 2,795 | 2,715 | 2,657 | 3,210 | 2,617 | 2,563 | 2,507 | 7% | ||||||||
| Percentage of sales | 13.6% | 12.7% | 13.3% | 15.3% | 13.2% | 13.2% | 14.1% | |||||||||
| Administrative costs | 822 | 815 | 801 | 991 | 766 | 779 | 776 | 7% | ||||||||
| Percentage of sales | 4.0% | 3.8% | 4.0% | 4.7% | 3.9% | 4.0% | 4.4% | |||||||||
| Licence income and other operating income | 152 | 175 | 176 | 156 | 186 | 154 | 170 | (18% | ) | |||||||
| Operating profit | 7,992 | 8,585 | 7,562 | 7,572 | 7,864 | 7,653 | 6,385 | 2% | ||||||||
| Operating margin | 39.0% | 40.2% | 37.8% | 36.1% | 39.6% | 39.3% | 36.0% | |||||||||
| Financial income | 418 | 363 | 315 | 17 | (85 | ) | 146 | 47 |
N/A
|
|||||||
| Financial expenses | 111 | 267 | 108 | 137 | 420 | 856 | 375 | (74% | ) | |||||||
| Net financials | 307 | 96 | 207 | (120 | ) | (505 | ) | (710 | ) | (328 | ) |
N/A
|
||||
| Profit before income taxes | 8,299 | 8,681 | 7,769 | 7,452 | 7,359 | 6,943 | 6,057 | 13% | ||||||||
| Net profit | 6,415 | 6,734 | 5,982 | 5,755 | 5,667 | 5,346 | 4,664 | 13% | ||||||||
| Depreciation, amortisation and impairment losses | 643 | 676 | 691 | 755 | 644 | 656 | 638 | 0% | ||||||||
| Capital expenditure | 908 | 778 | 782 | 1,006 | 942 | 855 | 516 | (4% | ) | |||||||
| Net cash generated from operating activities1 | 6,217 | 7,283 | 7,070 | 1,514 | 7,962 | 7,151 | 5,587 | (22% | ) | |||||||
| Free cash flow1 | 5,219 | 6,423 | 6,178 | 408 | 6,926 | 6,273 | 5,038 | (25% | ) | |||||||
| Total assets | 68,134 | 64,289 | 62,447 | 65,669 | 66,620 | 60,978 | 61,210 | 2% | ||||||||
| Total equity | 39,125 | 35,357 | 33,801 | 40,632 | 35,660 | 31,334 | 32,358 | 10% | ||||||||
| Equity ratio | 57.4% | 55.0% | 54.1% | 61.9% | 53.5% | 51.4% | 52.9% | |||||||||
| Full-time equivalent employees end of period | 36,851 | 35,869 | 35,154 | 34,286 | 33,501 | 32,819 | 32,252 | 10% | ||||||||
| Basic earnings per share/ADR (in DKK) | 12.03 | 12.52 | 11.04 | 10.59 | 10.40 | 9.72 | 8.38 | 16% | ||||||||
| Diluted earnings per share/ADR (in DKK) | 11.96 | 12.45 | 10.98 | 10.53 | 10.33 | 9.67 | 8.32 | 16% | ||||||||
| Average number of shares outstanding (million) | 533.5 | 537.7 | 541.6 | 542.9 | 544.6 | 549.1 | 556.7 | (2% | ) | |||||||
| Average number of diluted shares | ||||||||||||||||
| outstanding (million) | 536.3 | 540.5 | 544.7 | 546.0 | 547.8 | 552.4 | 560.5 | (2% | ) | |||||||
| Sales by business segment: | ||||||||||||||||
| Modern insulins (insulin analogues) | 9,393 | 9,626 | 8,991 | 9,462 | 8,879 | 8,613 | 7,867 | 6% | ||||||||
| Human insulins | 2,572 | 2,779 | 2,824 | 3,009 | 2,794 | 2,781 | 2,718 | (8% | ) | |||||||
| Victoza® | 2,847 | 2,877 | 2,678 | 2,709 | 2,503 | 2,293 | 1,990 | 14% | ||||||||
| Protein-related products | 666 | 643 | 606 | 621 | 644 | 621 | 625 | 3% | ||||||||
| Oral antidiabetic products (OAD) | 504 | 681 | 694 | 670 | 719 | 653 | 716 | (30% | ) | |||||||
| Diabetes care total | 15,982 | 16,606 | 15,793 | 16,471 | 15,539 | 14,961 | 13,916 | 3% | ||||||||
| NovoSeven® | 2,428 | 2,542 | 2,027 | 2,420 | 2,153 | 2,451 | 1,909 | 13% | ||||||||
| Norditropin® | 1,436 | 1,479 | 1,537 | 1,461 | 1,451 | 1,440 | 1,346 | (1% | ) | |||||||
| Other biopharmaceuticals | 665 | 753 | 626 | 610 | 702 | 616 | 580 | (5% | ) | |||||||
| Biopharmaceuticals total | 4,529 | 4,774 | 4,190 | 4,491 | 4,306 | 4,507 | 3,835 | 5% | ||||||||
| Sales by geographic segment: | ||||||||||||||||
| North America | 9,763 | 10,038 | 9,009 | 9,559 | 8,981 | 8,356 | 7,324 | 9% | ||||||||
| Europe | 4,994 | 5,123 | 4,761 | 5,237 | 4,793 | 5,081 | 4,596 | 4% | ||||||||
| International Operations | 2,697 | 3,077 | 3,094 | 2,894 | 2,695 | 2,757 | 2,734 | 0% | ||||||||
| Japan & Korea | 1,312 | 1,368 | 1,239 | 1,698 | 1,710 | 1,724 | 1,485 | (23% | ) | |||||||
| Region China | 1,745 | 1,774 | 1,880 | 1,574 | 1,666 | 1,550 | 1,612 | 5% | ||||||||
| Segment operating profit: | ||||||||||||||||
| Diabetes care | 5,886 | 5,965 | 5,502 | 5,420 | 5,768 | 5,270 | 4,638 | 2% | ||||||||
| Biopharmaceuticals | 2,106 | 2,620 | 2,060 | 2,152 | 2,096 | 2,383 | 1,747 | 0% | ||||||||
|
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performance
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announcement No 68 / 2013
|
||||||
| Financial report for the period 1 January 2013 to 30 September 2013 |
Page
22 of 28
|
| APPENDIX 2: | INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME |
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9M
|
9M
|
Q3
|
Q3
|
|||||
|
DKK
million
|
2013
|
2012
|
2013
|
2012
|
||||
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| Income statement | ||||||||
| Sales | 61,874 | 57,064 | 20,511 | 19,845 | ||||
| Cost of goods sold | 10,740 | 10,312 | 3,525 | 3,485 | ||||
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| Gross profit | 51,134 | 46,752 | 16,986 | 16,360 | ||||
| Sales and distribution costs | 16,893 | 15,352 | 5,529 | 5,299 | ||||
| Research and development costs | 8,167 | 7,687 | 2,795 | 2,617 | ||||
| Administrative costs | 2,438 | 2,321 | 822 | 766 | ||||
| Licence income and other operating income | 503 | 510 | 152 | 186 | ||||
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| Operating profit | 24,139 | 21,902 | 7,992 | 7,864 | ||||
| Financial income | 1,096 | 108 | 418 | (85 | ) | |||
| Financial expenses | 486 | 1,651 | 111 | 420 | ||||
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| Profit before income taxes | 24,749 | 20,359 | 8,299 | 7,359 | ||||
|
Income
taxes
|
5,618 | 4,682 | 1,884 | 1,692 | ||||
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| NET PROFIT | 19,131 | 15,677 | 6,415 | 5,667 | ||||
| Basic earnings per share (DKK) | 35.59 | 28.50 | 12.03 | 10.40 | ||||
| Diluted earnings per share (DKK) | 35.39 | 28.32 | 11.96 | 10.33 |
Segment Information
| Segment sales: | |||||||||
| Diabetes care |
48,381
|
44,416
|
15,982
|
15,539
|
|||||
| Biopharmaceuticals |
13,493
|
12,648
|
4,529
|
4,306
|
|||||
| Segment operating profit: | |||||||||
| Diabetes care | 17,353 | 15,676 | 5,886 | 5,768 | |||||
| Operating margin | 35.9% | 35.3% | 36.8% | 37.1% | |||||
| Biopharmaceuticals | 6,786 | 6,226 | 2,106 | 2,096 | |||||
| Operating margin | 50.3% | 49.2% | 46.5% | 48.7% | |||||
|
Total
segment operating profit
|
24,139 | 21,902 | 7,992 | 7,864 | |||||
Statement of comprehensive income
| Net profit for the period |
19,131
|
15,677
|
6,415
|
5,667
|
||||
| Other comprehensive income: | ||||||||
| Items that will not be reclassified subsequently to the Income statement: | ||||||||
| Remeasurements on defined benefit plans | 23 | – | 75 | – | ||||
| Items
that will be reclassified subsequently to the Income statement, when specific conditions are met: |
||||||||
| Exchange rate adjustments of investments in subsidiaries | (234 | ) | (137 | ) | (224 | ) | (28 | ) |
| Cash flow hedges, realisation of previously deferred (gains)/losses | (698 | ) | 1,090 | (281 | ) | 252 | ||
| Cash flow hedges, deferred gains/(losses) incurred during the period | 756 | 34 | 556 | 562 | ||||
| Other items | (9 | ) | 23 | 95 | 5 | |||
| Tax on other comprehensive income, income/(expense) | (152 | ) | (282 | ) | (138 | ) | (231 | ) |
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| Other comprehensive income for the period, net of tax | (314 | ) | 728 | 83 | 560 | |||
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|
|
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 18,817 | 16,405 | 6,498 | 6,227 |
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announcement No 68 / 2013
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||||||
| Financial report for the period 1 January 2013 to 30 September 2013 |
Page
23 of 28
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|
DKK
million
|
30
Sep 2013
|
31
Dec 2012
|
||
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|
|
| ASSETS | ||||
| Intangible assets | 1,682 | 1,495 | ||
| Property, plant and equipment | 21,870 | 21,539 | ||
| Deferred income tax assets1 | 3,471 | 2,244 | ||
| Other financial assets | 204 | 228 | ||
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|
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|
| TOTAL NON-CURRENT ASSETS | 27,227 | 25,506 | ||
| Inventories | 9,340 | 9,543 | ||
| Trade receivables | 9,721 | 9,639 | ||
| Tax receivables1 | 4,220 | 1,240 | ||
| Other receivables and prepayments | 2,963 | 2,705 | ||
| Marketable securities | 4,054 | 4,552 | ||
| Derivative financial instruments | 1,181 | 931 | ||
| Cash at bank and on hand | 9,428 | 11,553 | ||
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TOTAL
CURRENT ASSETS
|
40,907 | 40,163 | ||
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|
TOTAL
ASSETS
|
68,134 | 65,669 | ||
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|
| EQUITY AND LIABILITIES | ||||
| Share capital | 550 | 560 | ||
| Treasury shares | (17 | ) | (17 | ) |
| Retained earnings | 37,818 | 39,001 | ||
| Other reserves | 774 | 1,088 | ||
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| TOTAL EQUITY | 39,125 | 40,632 | ||
| Deferred income tax liabilities1 | 448 | 732 | ||
| Retirement benefit obligations | 748 | 760 | ||
| Provisions | 2,154 | 1,907 | ||
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|
|
| TOTAL NON-CURRENT LIABILITIES | 3,350 | 3,399 | ||
| Current debt | 670 | 500 | ||
| Trade payables | 2,931 | 3,859 | ||
| Tax payables1 | 4,956 | 593 | ||
| Other liabilities | 9,336 | 8,982 | ||
| Derivative financial instruments | 1 | 48 | ||
| Provisions | 7,765 | 7,656 | ||
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|
|
|
| TOTAL CURRENT LIABILITIES | 25,659 | 21,638 | ||
|
TOTAL
LIABILITIES
|
29,009 | 25,037 | ||
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|
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|
|
|
|
TOTAL
EQUITY AND LIABILITIES
|
68,134 | 65,669 | ||
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|
|
|
|
|
1Following development in on-going tax disputes, uncertain tax positions previously presented net as part of deferred tax liabilities are as of Q3 2013 presented individually as part of deferred tax asset, current tax receivable and current tax payables. Comparative figures have not been restated.
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announcement No 68 / 2013
|
||||||
| Financial report for the period 1 January 2013 to 30 September 2013 |
Page
24 of 28
|
APPENDIX 4: STATEMENT OF CASH FLOWS
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|
DKK
million
|
9M
2013
|
9M
2012
|
||
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|
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|
| Net profit | 19,131 | 15,677 | ||
| Adjustment for non-cash items | 7,854 | 9,019 | ||
| Change in working capital | (554 | ) | (666 | ) |
| Interest received | 111 | 192 | ||
| Interest paid | (30 | ) | (32 | ) |
| Income taxes paid | (5,942 | ) | (3,490 | ) |
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|
|
|
|
|
| Net cash generated from operating activities | 20,570 | 20,700 | ||
| Proceeds from intangible assets and other financial assets | 29 | - | ||
| Purchase of intangible assets and other financial assets | (311 | ) | (150 | ) |
| Proceeds from sale of property, plant and equipment | 10 | 17 | ||
| Purchase of property, plant and equipment | (2,478 | ) | (2,330 | ) |
| Net change in marketable securities | 498 | 10 | ||
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|
| Net cash used in investing activities | (2,252 | ) | (2,453 | ) |
| Purchase of treasury shares, net | (10,905 | ) | (10,690 | ) |
| Dividends paid | (9,715 | ) | (7,742 | ) |
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|
| Net cash used in financing activities | (20,620 | ) | (18,432 | ) |
| NET CASH GENERATED FROM ACTIVITIES | (2,302 | ) | (185 | ) |
| Cash and cash equivalents at the beginning of the period | 11,053 | 13,057 | ||
| Exchange gain/(loss) on cash and cash equivalents | 7 | 23 | ||
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| Cash and cash equivalents at the end of the period | 8,758 | 12,895 | ||
| Additional information: | ||||
| Cash and cash equivalents at the end of the period | 8,758 | 12,895 | ||
| Marketable securities at the end of the period | 4,054 | 4,063 | ||
| Undrawn committed credit facilities | 4,848 | 4,846 | ||
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|
|
| FINANCIAL RESOURCES AT THE END OF THE PERIOD | 17,660 | 21,804 | ||
| Net cash generated from operating activities | 20,570 | 20,700 | ||
| Net cash used in investing activities | (2,252 | ) | (2,453 | ) |
| Net change in marketable securities | (498 | ) | (10 | ) |
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|
|
FREE
CASH FLOW
|
17,820 | 18,237 | ||
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announcement No 68 / 2013
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||||||
| Financial report for the period 1 January 2013 to 30 September 2013 |
Page
25 of 28
|
APPENDIX 5: STATEMENT OF CHANGES IN EQUITY
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| Other reserves | ||||||||||||||||
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||||||||||||||||
|
DKK
million
|
Share
capital |
|
Treasury
shares |
|
Retained
earnings |
|
Exchange
rate adjust- ments |
|
Cash
flow
hedges |
|
Tax
and
other adjust- ments |
|
Total
other reserves |
Total
|
||
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| 9M 2013 | ||||||||||||||||
| Balance at the beginning of the period | 560 | (17 | ) | 39,001 | 226 | 847 | 15 | 1,088 | 40,632 | |||||||
| Net profit for the period | 19,131 | 19,131 | ||||||||||||||
| Other comprehensive income for the period, net of tax | (234 | ) | 58 | (138 | ) | (314 | ) | (314 | ) | |||||||
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|
|
|
|
|
|
|
|
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|
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|
|
|
|
| Total comprehensive income for the period | 560 | (17 | ) | 58,132 | (8 | ) | 905 | (123 | ) | 774 | 59,449 | |||||
| Transactions with owners, recognised directly in equity: | ||||||||||||||||
| Dividends | (9,715 | ) | (9,715 | ) | ||||||||||||
| Share-based payment | 296 | 296 | ||||||||||||||
| Purchase of treasury shares | (11 | ) | (10,941 | ) | (10,952 | ) | ||||||||||
| Sale of treasury shares | 1 | 46 | 47 | |||||||||||||
| Reduction of the B share capital | (10 | ) | 10 | – | ||||||||||||
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
| Balance at the end of the period | 550 | (17 | ) | 37,818 | (8 | ) | 905 | (123 | ) | 774 | 39,125 | |||||
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|
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|
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|
|
| Other reserves | ||||||||||||||||
|
|
||||||||||||||||
|
DKK
million
|
Share
capital |
Treasury
shares |
Retained
earnings |
Exchange
rate adjust- ments |
Cash
flow
hedges |
Tax
and
other adjust- ments |
Total
other reserves |
Total
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 9M 2012 | ||||||||||||||||
| Balance at the beginning of the period | 580 | (24 | ) | 37,111 | 398 | (1,184 | ) | 567 | (219 | ) | 37,448 | |||||
| Net profit for the period | 15,677 | 15,677 | ||||||||||||||
| Other comprehensive income for the period, net of tax | (137 | ) | 1,124 | (259 | ) | 728 | 728 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income for the period | 580 | (24 | ) | 52,788 | 261 | (60 | ) | 308 | 509 | 53,853 | ||||||
| Transactions with owners, recognised directly in equity: | ||||||||||||||||
| Dividends | (7,742 | ) | (7,742 | ) | ||||||||||||
| Share-based payment | 239 | 239 | ||||||||||||||
| Purchase of treasury shares | (13 | ) | (10,774 | ) | (10,787 | ) | ||||||||||
| Sale of treasury shares | 1 | 96 | 97 | |||||||||||||
| Reduction of the B share capital | (20 | ) | 20 | – | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at the end of the period | 560 | (16 | ) | 34,607 | 261 | (60 | ) | 308 | 509 | 35,660 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
performance
|
Outlook
|
R&D
|
Sustainability
|
Equity
|
Legal
|
Financial
information
|
|
Company
announcement No 68 / 2013
|
||||||
| Financial report for the period 1 January 2013 to 30 September 2013 |
Page
26 of 28
|
APPENDIX 6: REGIONAL SALES SPLIT
|
|
|
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|
|
|
|
|
|
Q3
2013 sales split per region
|
||||||||||||
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|
|
| DKK million |
Total
|
North
America |
Europe
|
Inter-
national Operations |
Japan
&
Korea |
Region
China
|
||||||
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|
|
| The diabetes care segment | ||||||||||||
| NovoRapid ® | 4,093 | 2,433 | 954 | 359 | 232 | 115 | ||||||
| % change in local currencies | 8% | 9% | 5% | 16% | 2% | 19% | ||||||
| NovoMix ® | 2,354 | 652 | 600 | 409 | 189 | 504 | ||||||
| % change in local currencies | 7% | 7% | (2% | ) | 13% | (7% | ) | 20% | ||||
| Levemir ® | 2,946 | 1,807 | 720 | 289 | 68 | 62 | ||||||
| % change in local currencies | 27% | 44% | 3% | 20% | (11% | ) | 34% | |||||
| Modern insulin | 9,393 | 4,892 | 2,274 | 1,057 | 489 | 681 | ||||||
| % change in local currencies | 13% | 19% | 2% | 16% | (4% | ) | 21% | |||||
| Human insulin | 2,572 | 453 | 602 | 671 | 117 | 729 | ||||||
| % change in local currencies | (2% | ) | (5% | ) | (5% | ) | (1% | ) | (17% | ) | 6% | |
| Victoza® | 2,847 | 1,822 | 746 | 173 | 78 | 28 | ||||||
| % change in local currencies | 20% | 22% | 24% | 12% | (11% | ) | 61% | |||||
| Other diabetes care | 1,170 | 379 | 222 | 186 | 127 | 256 | ||||||
| % change in local currencies | (7% | ) | (22% | ) | (3% | ) | 27% | 40% | (20% | ) | ||
| Diabetes care total | 15,982 | 7,546 | 3,844 | 2,087 | 811 | 1,694 | ||||||
| % change in local currencies | 10% | 15% | 4% | 11% | (2% | ) | 6% | |||||
| The biopharmaceuticals segment | ||||||||||||
| NovoSeven® | 2,428 | 1,252 | 579 | 382 | 169 | 46 | ||||||
| % change in local currencies | 20% | 17% | 20% | 27% | 20% | 47% | ||||||
| Norditropin® | 1,436 | 567 | 411 | 154 | 301 | 3 | ||||||
| % change in local currencies | 9% | 22% | 1% | (1% | ) | 7% | (25% | ) | ||||
| Other biopharmaceuticals | 665 | 398 | 160 | 74 | 31 | 2 | ||||||
| % change in local currencies | 2% | 5% | 6% | 30% | (45% | ) | 0% | |||||
| Biopharmaceuticals total | 4,529 | 2,217 | 1,150 | 610 | 501 | 51 | ||||||
| % change in local currencies | 13% | 16% | 11% | 19% | 4% | 42% | ||||||
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| Total sales | 20,511 | 9,763 | 4,994 | 2,697 | 1,312 | 1,745 | ||||||
| % change in local currencies | 10% | 15% | 6% | 12% | 0% | 7% | ||||||
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9M
2013 sales split per region
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| DKK million |
Total
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North
America |
Europe
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Inter-
national Operations |
Japan
&
Korea |
Region
China
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| The diabetes care segment | ||||||||||||
| NovoRapid ® | 12,393 | 7,350 | 2,807 | 1,176 | 698 | 362 | ||||||
| % change in local currencies | 13% | 16% | 4% | 24% | 0% | 32% | ||||||
| NovoMix ® | 7,238 | 2,026 | 1,819 | 1,353 | 591 | 1,449 | ||||||
| % change in local currencies | 10% | 16% | (3% | ) | 16% | (5% | ) | 24% | ||||
| Levemir ® | 8,379 | 4,885 | 2,146 | 947 | 222 | 179 | ||||||
| % change in local currencies | 22% | 32% | 4% | 28% | (6% | ) | 43% | |||||
| Modern insulin | 28,010 | 14,261 | 6,772 | 3,476 | 1,511 | 1,990 | ||||||
| % change in local currencies | 15% | 21% | 2% | 22% | (3% | ) | 27% | |||||
| Human insulin | 8,175 | 1,415 | 1,812 | 2,303 | 370 | 2,275 | ||||||
| % change in local currencies | 2% | 13% | (8% | ) | 5% | (21% | ) | 7% | ||||
| Victoza® | 8,402 | 5,383 | 2,130 | 546 | 245 | 98 | ||||||
| % change in local currencies | 28% | 30% | 25% | 36% | (8% | ) | 100% | |||||
| Other diabetes care | 3,794 | 1,384 | 656 | 532 | 335 | 887 | ||||||
| % change in local currencies | (1% | ) | (2% | ) | (10% | ) | 14% | 12% | (3% | ) | ||
| Diabetes care total | 48,381 | 22,443 | 11,370 | 6,857 | 2,461 | 5,250 | ||||||
| % change in local currencies | 13% | 21% | 3% | 16% | (5% | ) | 12% | |||||
| The biopharmaceuticals segment | ||||||||||||
| NovoSeven® | 6,997 | 3,475 | 1,740 | 1,195 | 452 | 135 | ||||||
| % change in local currencies | 11% | 13% | 7% | 13% | 11% | 4% | ||||||
| Norditropin® | 4,452 | 1,619 | 1,284 | 623 | 916 | 10 | ||||||
| % change in local currencies | 12% | 28% | 1% | 10% | 7% | (9% | ) | |||||
| Other biopharmaceuticals | 2,044 | 1,273 | 484 | 193 | 90 | 4 | ||||||
| % change in local currencies | 12% | 21% | 6% | 21% | (35% | ) | 50% | |||||
| Biopharmaceuticals total | 13,493 | 6,367 | 3,508 | 2,011 | 1,458 | 149 | ||||||
| % change in local currencies | 12% | 18% | 5% | 13% | 4% | 3% | ||||||
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| Total sales | 61,874 | 28,810 | 14,878 | 8,868 | 3,919 | 5,399 | ||||||
| % change in local currencies | 13% | 20% | 3% | 15% | (2% | ) | 12% | |||||
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Financial
performance
|
Outlook
|
R&D
|
Sustainability
|
Equity
|
Legal
|
Financial
information
|
|
Company
announcement No 68 / 2013
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| Financial report for the period 1 January 2013 to 30 September 2013 |
Page
27 of 28
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APPENDIX 7: KEY CURRENCY ASSUMPTIONS
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| DKK per 100 |
2012
average
exchange rates |
YTD
2013 average
exchange rates as of 28 October 2013 |
Current
exchange rates as of 28 October 2013 |
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| USD | 579 | 564 | 541 | |||
| JPY | 7.27 | 5.84 | 5.54 | |||
| CNY | 91.8 | 91.6 | 88.9 | |||
| GBP | 918 | 876 | 874 | |||
| CAD | 580 | 551 | 518 |
|
Financial
performance
|
Outlook
|
R&D
|
Sustainability
|
Equity
|
Legal
|
Financial
information
|
|
Company
announcement No 68 / 2013
|
||||||
| Financial report for the period 1 January 2013 to 30 September 2013 |
Page
28 of 28
|
APPENDIX 8: QUARTERLY NUMBERS IN USD (ADDITIONAL INFORMATION)
Key figures are translated into USD as additional information - the translation is based on the average exchange rate for income statement and the 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.
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| (Amounts in USD million, except full-time equivalent employees, earnings per share and number of shares outstanding). |
%
change
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2013
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2012
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Q3 2013 vs | ||||||||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q3 2012 | |||||||||
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| Sales | 3,643 | 3,749 | 3,537 | 3,641 | 3,337 | 3,362 | 3,129 | 3% |
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| Gross profit | 3,017 | 3,117 | 2,898 | 3,093 | 2,752 | 2,771 | 2,529 | 4% |
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| Gross margin | 82.8% | 83.1% | 81.9% | 85.0% | 82.4% | 82.4% | 80.8% | |||||||||
| Sales and distribution costs | 982 | 1,024 | 978 | 1,075 | 890 | 900 | 854 | 4% |
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| Percentage of sales | 27.0% | 27.3% | 27.7% | 29.5% | 26.7% | 26.7% | 27.3% | |||||||||
| Research and development costs | 497 | 476 | 470 | 557 | 440 | 442 | 442 | 7% |
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| Percentage of sales | 13.6% | 12.7% | 13.3% | 15.3% | 13.2% | 13.2% | 14.1% | |||||||||
| Administrative costs | 145 | 143 | 142 | 172 | 129 | 134 | 137 | 7% |
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| Percentage of sales | 4.0% | 3.8% | 4.0% | 4.7% | 3.9% | 4.0% | 4.4% | |||||||||
| Licence income and other operating income | 27 | 31 | 31 | 27 | 31 | 27 | 30 | (18% |
)
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| Operating profit | 1,420 | 1,505 | 1,339 | 1,316 | 1,324 | 1,322 | 1,126 | 2% |
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| Operating margin | 39.0% | 40.2% | 37.8% | 36.1% | 39.6% | 39.3% | 36.0% | |||||||||
| Financial income | 73 | 65 | 55 | 3 | (15 | ) | 26 | 8 |
N/A
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| Financial expenses | 20 | 47 | 19 | 24 | 70 | 149 | 66 | (74% |
)
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| Net financials | 53 | 18 | 36 | (21 | ) | (85 | ) | (123 | ) | (58 | ) |
N/A
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| Profit before income taxes | 1,473 | 1,523 | 1,375 | 1,295 | 1,239 | 1,199 | 1,068 | 13% |
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| Net profit | 1,139 | 1,181 | 1,059 | 1,000 | 954 | 924 | 822 | 13% |
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| Depreciation, amortisation and impairment losses | 114 | 119 | 122 | 131 | 108 | 114 | 112 | 0% |
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| Capital expenditure | 161 | 137 | 138 | 175 | 159 | 148 | 91 | (4% |
)
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| Net cash generated from operating activities1 | 1,105 | 1,277 | 1,251 | 270 | 1,343 | 1,237 | 985 | (22% |
)
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| Free cash flow1 | 927 | 1,126 | 1,094 | 78 | 1,168 | 1,085 | 888 | (25% |
)
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| Total assets | 12,338 | 11,274 | 10,698 | 11,604 | 11,554 | 10,328 | 10,988 | 2% |
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| Total equity | 7,085 | 6,200 | 5,791 | 7,180 | 6,185 | 5,307 | 5,809 | 10% |
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| Equity ratio | 57.4% | 55.0% | 54.1% | 61.9% | 53.5% | 51.4% | 52.9% | |||||||||
| Full-time equivalent employees end of period | 36,851 | 35,869 | 35,154 | 34,286 | 33,501 | 32,819 | 32,252 | 10% |
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| Basic earnings per share/ADR (in USD) | 2.14 | 2.20 | 1.95 | 1.84 | 1.75 | 1.68 | 1.48 | 16% |
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| Diluted earnings per share/ADR (in USD) | 2.12 | 2.19 | 1.94 | 1.83 | 1.74 | 1.67 | 1.47 | 16% |
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| Average number of shares outstanding (million) | 533.5 | 537.7 | 541.6 | 542.9 | 544.6 | 549.1 | 556.7 | (2% |
)
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| Average number of diluted shares outstanding (million) | 536.3 | 540.5 | 544.7 | 546.0 | 547.8 | 552.4 | 560.5 | (2% |
)
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| Sales by business segment: | ||||||||||||||||
| Modern insulins (insulin analogues) | 1,669 | 1,688 | 1,591 | 1,644 | 1,493 | 1,487 | 1,387 | 6% |
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| Human insulins | 457 | 487 | 500 | 523 | 469 | 479 | 479 | (8% |
)
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| Victoza® | 505 | 505 | 474 | 470 | 422 | 396 | 351 | 14% |
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| Protein-related products | 118 | 113 | 107 | 108 | 108 | 107 | 110 | 3% |
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| Oral antidiabetic products (OAD) | 90 | 119 | 123 | 116 | 122 | 113 | 126 | (30% |
)
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| Diabetes care total | 2,839 | 2,912 | 2,795 | 2,861 | 2,614 | 2,582 | 2,453 | 3% |
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| NovoSeven® | 431 | 446 | 359 | 420 | 362 | 423 | 337 | 13% |
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| Norditropin® | 255 | 259 | 272 | 254 | 244 | 249 | 237 | (1% |
)
|
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| Other biopharmaceuticals | 118 | 132 | 111 | 106 | 117 | 108 | 102 | (5% |
)
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| Biopharmaceuticals total | 804 | 837 | 742 | 780 | 723 | 780 | 676 | 5% |
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| Sales by geographic segment: | ||||||||||||||||
| North America | 1,734 | 1,761 | 1,594 | 1,659 | 1,514 | 1,443 | 1,291 | 9% |
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| Europe | 887 | 898 | 843 | 910 | 804 | 878 | 810 | 4% |
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| International Operations | 479 | 539 | 548 | 503 | 452 | 476 | 482 | 0% |
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| Japan & Korea | 233 | 240 | 219 | 295 | 287 | 298 | 262 | (23% |
)
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| Region China | 310 | 311 | 333 | 274 | 280 | 267 | 284 | 5% |
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| Segment operating profit: | ||||||||||||||||
| Diabetes care | 1,045 | 1,046 | 974 | 942 | 972 | 910 | 818 | 2% |
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| Biopharmaceuticals | 375 | 459 | 365 | 374 | 352 | 412 | 308 | 0% |
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1Free cash flow for Q1 2012 and Q2 2012 has been reduced by USD 234 million and increased by USD 234 million, respectively, as withheld dividend tax is now presented as part of financing activities.
|
Financial
performance
|
Outlook
|
R&D
|
Sustainability
|
Equity
|
Legal
|
Financial
information
|
|
Company
announcement No 68 / 2013
|
||||||
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: October 31, 2013 |
NOVO NORDISK A/S Lars Rebien Sørensen, President and Chief Executive Officer |