Financial report for the period 1 January 2021 to 31 March 2021
5 May 2021
Novo Nordisk's net profit increased by 6% in the first three months of 2021
• Operating profit decreased by 8% in Danish kroner and increased by 3% at constant exchange rates (CER).
• Sales remained unchanged in Danish kroner and increased by 7% at CER to DKK 33.8 billion. Sales in International
Operations increased by 2% in Danish kroner (9% at CER), and sales in North America Operations decreased by 3% in
Danish kroner (increased 6% at CER). Sales growth is negatively impacted by COVID-19-related stocking in 2020, partially
offset by inventory changes and timing of shipments in 2021.
• Sales within Diabetes and Obesity care increased by 1% in Danish kroner to DKK 28.8 billion (9% at CER), driven by GLP-1
growth of 13% in Danish kroner (23% at CER) reflecting the uptake of Ozempic
®
and Rybelsus
®
. Biopharm sales
decreased by 6% in Danish kroner (increased by 1% at CER).
• Within R&D, Novo Nordisk decided to initiate phase 3a development with 50 mg oral semaglutide in obesity. Following
the Refusal to File letter in the US covering the label expansion application for once-weekly semaglutide 2.0 mg for the
treatment of type 2 diabetes, Novo Nordisk is working towards resubmission in the second quarter of 2021.
• For the 2021 outlook, sales growth is now expected to be 6-10% at CER, and operating profit growth is now expected to
be 5-9% at CER. The ongoing share buyback programme will be expanded to DKK 18 billion.
PROFIT AND LOSS Q1 2021 Q1 2020
Growth
as reported
Growth
at CER*
DKK million
Net sales 33,804 33,875 0% 7%
Operating profit 14,982 16,302 (8%) 3%
Net profit 12,623 11,897 6% N/A
Diluted earnings per share (in DKK) 5.45 5.05 8% N/A
* CER: Constant exchange rates (average 2020).
Lars Fruergaard Jørgensen, president and CEO: "We are very encouraged with the sales growth in the first three months of
2021. Sales growth was driven by all therapy areas and across geographical areas within International Operations as well
as North America Operations where growth has accelerated in the US. We were also pleased to announce plans to develop
oral semaglutide as a convenient and effective treatment option for people with obesity, complementing our injectable
obesity medications. The solid financial performance in the first three months of 2021 has enabled us to raise our outlook
range for the full year."
On 5 May 2021 at 13.00 CEST, corresponding to 7.00 am EDT, an earnings call will be held. Investors will be able to listen in via a
link on novonordisk.com, which can be found under ‘Investors’.
Novo Nordisk A/S
Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
www.novonordisk.com
CVR Number:
24 25 67 90
Company announcement No 30 / 2021
STRATEGIC ASPIRATIONS
STRATEGIC ASPIRATIONS 2025
The strategic aspirations are objectives that Novo Nordisk intends to work towards and are not a projection of Novo
Nordisk's financial outlook or expected growth. Novo Nordisk intends to describe how its activities develop in relation to
each of the four dimensions on an ongoing basis.
Performance highlights for the first three months of 2021:
Purpose and sustainability
Innovation and therapeutic focus
Adding value to society:
• Progress on 'Defeat Diabetes' strategy:
◦ Collaboration with the University of Toronto focusing on
prevention
◦ Initiation of 'Diabetes Compass' by the World Diabetes
Foundation to improve access to diabetes care in low-
and middle-income countries
Progress towards zero environmental impact:
• Progress on supplier target aiming at 100% renewable
power across all suppliers by 2030 with around 15%
reduction in supplier CO
2
emissions
• 48% reduction in CO
2
emissions compared to the first three
months 2019
rog
Further raise innovation bar for diabetes treatment:
• Ozempic
®
approved in China for the treatment of type 2
diabetes
• Refusal to File letter received for semaglutide 2.0 mg
Develop superior treatment solutions for obesity:
• Phase 3a clinical trial initiated with once-weekly semaglutide
2.4 mg in people with heart failure with preserved ejection
fraction (HFpEF)
• Decision to initiate phase 3a development with 50 mg oral
semaglutide in obesity
Dev Strengthen and progress Biopharm pipeline:
• Sogroya
®
approved in the EU for adults with growth
hormone deficiency
Establish presence in Other serious chronic diseases:
• Phase 3a development initiated with once-weekly
semaglutide 2.4 mg for treatment of NASH
• Gilead Sciences and Novo Nordisk expanded NASH clinical
collaboration
Commercial execution Financials
stre Strengthen diabetes leadership:
• Diabetes value market share increased by 0.6 percentage
point to 29.3% (MAT)
Sgd Strengthen obesity leadership and double sales:
• Obesity care sales increased by 9% (CER) to DKK 1.6 billion
Stre
Sec Secure a sustained growth outlook for Biopharm:
• Biopharm sales increased by 1% (CER)
Deliver solid sales and operating profit growth:
• Sales growth at 7% (CER)
• International Operations sales growth at 9% (CER)
• In the US, sales grew 5% and 52% of sales came from
products launched since 2015
• Operating profit growth of 3% (CER)
Drive operational efficiencies:
• Gross margin positively impacted by productivity gains in
Product Supply
Enable attractive capital allocation to shareholders:
• Free cash flow of DKK 9.5 billion and DKK 16.5 billion
returned to shareholders
Financial report for the period 1 January 2021 to 31 March 2021
Page 2 of 26
Strategic
aspirations
Financial
Statement
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 30 / 2021
FINANCIAL STATEMENT
CONSOLIDATED FINANCIAL STATEMENT FOR THE FIRST THREE MONTHS OF 2021
PROFIT AND LOSS Q1 2021 Q1 2020
% change Q1
2021 to Q1 2020
(Amounts are in DKK million, except for earnings per share, dividend per share and employees)
Net sales 33,804 33,875 0%
Gross profit
27,993
28,489
(2%)
Gross margin
82.8%
84.1%
Sales and distribution costs
8,256
7,590
9%
Percentage of sales
24.4%
22.4%
Research and development costs
3,944
3,777
4%
Percentage of sales
11.7%
11.1%
Administrative costs
932
927
1%
Percentage of sales
2.8%
2.7%
Other operating income, net
121
107
13%
Operating profit
14,982
16,302
(8%)
Operating margin
44.3%
48.1%
Financial items (net)
956
(1,281)
(175%)
Profit before income taxes
15,938
15,021
6%
Income taxes
3,315
3,124
6%
Effective tax rate
20.8%
20.8%
Net profit
12,623
11,897
6%
Net profit margin
37.3%
35.1%
OTHER KEY NUMBERS
Depreciation, amortisation and impairment losses
1,377
1,086
27%
Capital expenditure
1,402
1,667
(16%)
Net cash generated from operating activities
11,255
10,012
12%
Free cash flow
9,532
7,669
24%
Total assets
141,387
126,256
12%
Equity
58,496
54,399
8%
Equity ratio
41.4%
43.1%
Average number of diluted shares outstanding (million) 2,315.6 2,354.8 (2%)
Diluted earnings per share / ADR (in DKK) 5.45 5.05 8%
Full-time equivalent employees end of period 45,157 43,158 5%
These unaudited consolidated financial statements for the first three months of 2021 have been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’ and additional Danish disclosure requirements for listed companies. The
accounting policies adopted in the preparation are consistent with those applied in the Annual Report 2020 of Novo
Nordisk.
Financial report for the period 1 January 2021 to 31 March 2021
Page 3 of 26
Strategic
aspirations
Financial
Statement
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 30 / 2021
COMMERCIAL EXECUTION
SALES DEVELOPMENT ACROSS THERAPEUTIC AREAS
Sales remained unchanged measured in Danish kroner and grew by 7% at CER the first three months of 2021, driven by
growth across all therapy areas with Diabetes care sales growth of 9% (CER), Obesity care sales growth of 9% (CER) and
Biopharm sales growth of 1% (CER). Sales growth is negatively impacted by COVID-19-related stocking in the first three
months of 2020, partially offset by inventory changes and timing of shipments in 2021.
Sales split per therapy
Sales Q1 2021
DKK million
Sales Q1 2020
DKK million
Growth
as reported
Growth
at CER
Share of growth
at CER
Diabetes and Obesity care segment
Rybelsus
®
729
229
218%
247%
22%
Ozempic
®
6,662
4,755
40%
52%
99%
Victoza
®
3,909
4,991
(22%)
(16%)
(31%)
Total GLP-1
11,300
9,975
13%
23%
90%
Long-acting insulin
4,822
5,158
(7%)
0%
0%
- Tresiba
®
2,365
2,460
(4%)
3%
3%
- Xultophy
®
681
662
3%
8%
2%
- Levemir
®
1,776
2,036
(13%)
(6%)
(5%)
Premix insulin
2,953
2,955
0%
6%
7%
- Ryzodeg
®
420
337
25%
34%
5%
- NovoMix
®
2,533
2,618
(3%)
2%
2%
Fast-acting insulin
4,556
5,114
(11%)
(4%)
(9%)
- Fiasp
®
402
390
3%
9%
1%
- NovoRapid
®
4,154
4,724
(12%)
(5%)
(10%)
Human insulin
2,535
2,687
(6%)
2%
3%
Total insulin
14,866
15,914
(7%)
0%
1%
Other Diabetes care
1
1,110
1,125
(1%)
4%
1%
Total Diabetes care
27,276
27,014
1%
9%
92%
Obesity care (Saxenda
®
)
1,551
1,577
(2%)
9%
6%
Diabetes and Obesity care total 28,827 28,591 1% 9% 98%
Biopharm segment
Rare blood disorders
2
2,678
2,810
(5%)
2%
3%
- Haemophilia A
497
452
10%
16%
3%
- Haemophilia B
147
130
13%
18%
1%
- NovoSeven
®
1,980
2,181
(9%)
(2%)
(2%)
Rare endocrine disorders
3
1,920
2,031
(5%)
2%
1%
Other Biopharm
4
379
443
(14%)
(12%)
(2%)
Biopharm total
4,977
5,284
(6%)
1%
2%
Total sales 33,804 33,875 0% 7% 100%
1)
Primarily NovoNorm
®
, needles and GlucaGen
®
HypoKit
®
.
2)
Comprises NovoSeven
®
, NovoEight
®
, Esperoct
®
,
Refixia
®
and NovoThirteen
®
3)
Primarily Norditropin
®
.
4)
Primarily Vagifem
®
and Activelle
®
.
Financial report for the period 1 January 2021 to 31 March 2021
Page 4 of 26
Strategic
aspirations
Financial
Statement
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 30 / 2021
DIABETES AND OBESITY CARE
Diabetes care, sales and market share development
Sales in Diabetes care increased by 1% measured in Danish kroner and by 9% at CER to DKK 27,276 million driven by GLP-1
growth. Novo Nordisk has improved the global diabetes value market share over the last 12 months from 28.8% to 29.3%
in line with the aspiration of strengthening the diabetes care leadership, aiming at reaching a global value market share of
more than one third in 2025. The market share increase was driven by market share gains in both International Operations
and North America Operations.
In the following sections, unless otherwise noted, market data are based on moving annual total (MAT) from February 2021
and February 2020 provided by the independent data provider IQVIA. EMEA covers Europe, the Middle East and Africa,
Region China covers mainland China, Hong Kong and Taiwan, and Rest of World covers all other countries except for North
America.
Diabetes care, development per geographical area
Novo Nordisk’s share of the total
diabetes market (value, MAT) Diabetes care, sales development
February
February
Sales Q1 2021
DKK million
Growth
at CER
2021
2020
Global
29.3%
28.8%
27,276
9%
International Operations
23.6%
22.2%
14,898
10%
- EMEA *
27.9%
27.0%
7,270
2%
- Region China **
31.5%
27.3%
4,270
21%
- Rest of World ***
13.7%
13.1%
3,358
18%
North America Operations
31.5%
31.2%
12,378
7%
- The US
31.5%
31.4%
11,702
6%
Source: IQVIA, February 2021 data. *Data for EMEA available for European markets and seven markets outside Europe representing approximately 90% of Novo Nordisk Diabetes care
sales in the area. **Data for mainland China, excluding Hong Kong and Taiwan. *** Data for Rest of World available for seven markets representing approximately 70% of total Novo
Nordisk’s Diabetes care sales in the area.
GLP-1 therapy for type 2 diabetes
Sales of GLP-1 products for type 2 diabetes (Rybelsus
®
,
Ozempic
®
and Victoza
®
) increased by 13% measured in Danish
kroner and by 23% at CER to DKK 11,300 million. The GLP-1 segment’s value share of the total diabetes market has
increased to 22.8% compared with 18.9% 12 months ago. Novo Nordisk continues to be the global market leader in the
GLP-1 segment with a 50.8% value market share, an increase of 2.5 percentage points compared to 12 months ago.
GLP-1, development per geographical area
Novo Nordisk's share of the
diabetes GLP-1 market (value, MAT) GLP-1, sales development
February
February
Sales Q1 2021
DKK million
Growth
at CER
2021
2020
Global
50.8%
48.3%
11,300
23%
International Operations
54.8%
51.2%
3,537
31%
- EMEA *
56.0%
53.0%
2,320
18%
- Region China **
88.6%
93.3%
403
86%
- Rest of World ***
45.3%
40.2%
814
54%
North America Operations
50.2%
47.8%
7,763
19%
- The US
49.5%
47.3%
7,372
18%
Source: IQVIA, February 2021 data. *Data for EMEA available for European markets and seven markets outside Europe representing approximately 90% of Novo Nordisk GLP-1 sales in
the area. **Data for mainland China, excluding Hong Kong and Taiwan. *** Data for Rest of World available for seven markets representing approximately 70% of total Novo Nordisk
Diabetes care sales in the area.
Rybelsus
®
sales increased by 218% measured in Danish kroner and by 247% at CER to DKK 729 million. Sales growth was
driven by North America Operations as well as EMEA and Rest of World. Rybelsus
®
has now been launched in 15 countries.
Ozempic
®
sales increased by 40% measured in Danish kroner and by 52% at CER to DKK 6,662 million. Sales growth was
driven by North America Operations and International Operations. Ozempic
®
has now been launched in 58 countries.
Inventory changes in the US positively impacted sales growth.
Financial report for the period 1 January 2021 to 31 March 2021
Page 5 of 26
Strategic
aspirations
Financial
Statement
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 30 / 2021
Victoza
®
sales decreased by 22% measured in Danish kroner and by 16% at CER to DKK 3,909 million. The sales decline
was driven by North America Operations, EMEA and Rest of World, partially offset by higher sales in Region China.
International Operations
Sales of GLP-1 diabetes products in International Operations increased by 25% measured in Danish kroner and by 31% at
CER. Sales growth is driven by all geographical areas. The value share of the GLP-1 class of the total diabetes market has
increased to 11.2% from 9.4% 12 months ago. Novo Nordisk is the market leader with a value market share of 54.8%.
EMEA
Sales in EMEA increased by 16% measured in Danish kroner and by 18% at CER. The sales growth reflects the uptake of
Ozempic
®
,
partially offset by lower sales of Victoza
®
. Rybelsus
®
has now been launched in 14 countries in EMEA. Novo
Nordisk remains the market leader in EMEA with a value market share of 56.0%.
Region China
Sales in Region China increased by 82% measured in Danish kroner and by 86% at CER. The sales growth reflects the
uptake of Victoza
®
in mainland China and the launch of Ozempic
®
in Taiwan
®
. The GLP-1 class' share of the overall diabetes
market value in Region China increased to 3.4% from 2.2% 12 months ago with a Victoza
®
market share of 88.6%.
Rest of World
Sales in Rest of World increased by 33% measured in Danish kroner and by 54% at CER. The sales growth reflects
increased sales of Ozempic
®
and the launch of Rybelsus in Japan
®
, partially offset by lower sales of Victoza
®
. Novo Nordisk
remains the market leader with a value market share of 45.3%.
North America Operations
Sales of GLP-1 diabetes products in North America Operations increased by 9% measured in Danish kroner and by 19% at
CER. Novo Nordisk is the market leader with a 50.2% value market share compared to 47.8% 12 months ago. The value
market share of the GLP-1 class of the total North American diabetes market has increased to 27.3% compared to 22.8%
12 months ago.
Sales growth in the US is driven by a prescription volume growth of the GLP-1 class of around 20% in the quarter.
Rybelsus
®
weekly new-to-brand market share is 12.5%. The combined Novo Nordisk GLP-1 new-to-brand prescription
market share is now 58.0%. Novo Nordisk is the market leader measured on total monthly prescriptions for the combined
GLP-1 portfolio.
Sales of GLP-1 in the US increased by 18% at CER. The sales increase was driven by continued uptake of Ozempic
®
and
Rybelsus
®
, partially offset by declining Victoza
®
sales. GLP-1 sales growth was negatively impacted by rebate
enhancements as well as unfavourable channel and payer mix, partially countered by inventory changes.
Financial report for the period 1 January 2021 to 31 March 2021
Page 6 of 26
Strategic
aspirations
Financial
Statement
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 30 / 2021
Insulin
Sales of insulin decreased by 7% measured in Danish kroner, and remained unchanged at CER to DKK 14,866 million. The
unchanged sales at CER were driven by declining sales in the US, offset by increased sales in International Operations.
Insulin, development per geographical area
Novo Nordisk’s share of the total
insulin market (volume, MAT) Insulin, sales development
February
February
Sales Q1 2021
DKK million
Growth
at CER
2021
2020
Global
47.3%
46.7%
14,866
0%
International Operations
50.2%
49.4%
10,520
5%
- EMEA *
47.5%
46.6%
4,775
(4%)
- Region China **
50.7%
50.5%
3,322
16%
- Rest of World ***
57.4%
56.6%
2,423
12%
North America Operations
39.3%
39.7%
4,346
(10%)
- The US
39.1%
39.7%
4,097
(10%)
Source: IQVIA, February 2021 data. *Data for EMEA available for European markets and seven markets outside Europe representing approximately 90% of Novo Nordisk insulin sales in
the area. **Data for mainland China, excluding Hong Kong and Taiwan. *** Data for Rest of World available for seven markets representing approximately 70% of total Novo Nordisk’s
Diabetes care sales in the area.
International Operations
Sales of insulin in International Operations decreased by 1% measured in Danish kroner and increased by 5% at CER. Sales
growth at CER was driven by long-acting and premix insulin.
EMEA
Sales of insulin in EMEA decreased by 9% measured in Danish kroner and by 4% at CER. The sales decline was driven by
fast-acting insulin, human insulin and premix insulin, partially offset by long-acting insulin.
Region China
Sales of insulin in Region China increased by 13% measured in Danish kroner and by 16% at CER. The sales growth was
driven by all insulin products except for human insulin.
Rest of World
Sales of insulin in Rest of World remained unchanged in Danish kroner and increased by 12% at CER. The sales growth was
driven by human insulin, long-acting and fast-acting insulin.
North America Operations
Sales of insulin in North America Operations decreased by 18% measured in Danish kroner and by 10% at CER. The sales
decrease in the US was driven by a decline in volume and rebate enhancements, partially offset by channel mix. Novo
Nordisk has a volume market share of 39.1% of the total insulin market.
Financial report for the period 1 January 2021 to 31 March 2021
Page 7 of 26
Strategic
aspirations
Financial
Statement
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 30 / 2021
Obesity care, sales development
Sales of Saxenda
®
decreased by 2% measured in Danish kroner and increased by 9% at CER to DKK 1,551 million.
Saxenda
®
sales growth at CER was driven by International Operations and North America Operations. Saxenda
®
has now
been launched in 58 countries. Novo Nordisk currently has a value market share of 66.1% of the global obesity prescription
drug market. The strategic aspiration for Obesity care is to more than double reported sales from the base in 2019 of DKK
5,679 million by 2025.
Obesity care, development per geographical area Obesity care, sales development
Sales Q1 2021
DKK million
Growth
at CER
Global
1,551
9%
International Operations
715
18%
- EMEA
371
18%
- Region China
7
—
- Rest of World
337
17%
North America Operations
836
2%
- The US
759
0%
International Operations
Sales of Saxenda
®
in International Operations increased by 5% measured in Danish kroner and by 18% at CER, driven by
increased sales in EMEA and Rest of World. Novo Nordisk currently has a value market share of 41.4% in the obesity
prescription drug market.
EMEA
Sales of Saxenda
®
in EMEA increased by 10% measured in Danish kroner and by 18% at CER. Novo Nordisk currently has a
value market share of 67.0% in the obesity prescription drug market.
Rest of World
Sales of Saxenda
®
in Rest of World decreased by 1% measured in Danish kroner and increased by 17% at CER. Saxenda
®
has been launched in 19 countries in Rest of World. Novo Nordisk currently has a value market share of 32.2% in the
obesity prescription drug market.
North America Operations
Sales of Saxenda
®
in North America Operations decreased by 7% measured in Danish kroner and increased by 2% at CER.
Saxenda
®
continues to grow in volume and Novo Nordisk now has a value market share of 82.2% in the obesity
prescription drug market in North America. Sales were negatively impacted by unfavourable channel mix development.
Financial report for the period 1 January 2021 to 31 March 2021
Page 8 of 26
Strategic
aspirations
Financial
Statement
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 30 / 2021
BIOPHARM
Biopharm, sales development
Sales of biopharm products decreased by 6% measured in Danish kroner and increased by 1% at CER to DKK 4,977 million
in line with the strategic aspiration of sustained growth in Biopharm. The sales growth at CER was driven by North America
Operations, partially offset by International Operations. Sales growth was driven by both rare blood disorders and rare
endocrine disorders. Sales growth was negatively impacted by COVID-19-related stocking in 2020.
Biopharm, development per geographical area Biopharm, sales development
Sales Q1 2021
DKK million
Growth
at CER
Global
4,977
1%
International Operations
3,134
0%
- EMEA
1,889
6%
- Region China
53
(74%)
- Rest of World
1,192
2%
North America Operations
1,843
3%
- The US
1,711
3%
Rare blood disorders
Sales of rare blood disorder products decreased by 5% measured in Danish kroner and increased by 2% at CER to DKK
2,678 million. The increasing sales at CER were driven by the launch products Esperoct
®
and Refixia
®
, partially offset by
declining NovoSeven
®
sales.
Sales of haemophilia A products increased by 10% measured in Danish kroner and by 16% at CER to DKK 497 million. The
sales increase was driven by International Operations and North America Operations. Esperoct
®
has been launched in 20
countries.
Haemophilia B products increased by 13% measured in Danish kroner and by 18% at CER to DKK 147 million. The sales
increase was driven by International Operations and North America Operations. Refixia
®
has been launched in 19
countries.
Sales of NovoSeven
®
decreased by 9% measured in Danish kroner and by 2% at CER to DKK 1,980 million. The sales
development was driven by declining sales in Region China and Rest of World, partially offset by increasing sales in EMEA.
The sales decline in Region China reflects increased distributor stock levels in 2020. Sales in North America Operations
were unchanged at CER.
Rare endocrine disorders
Sales of rare endocrine disorder products decreased by 5% measured in Danish kroner and increased by 2% at CER to DKK
1,920 million driven by Norditropin
®
. The sales growth at CER was driven by North America Operations increasing by 2%
and International Operations increasing by 1% at CER. Novo Nordisk is the leading company in the global human growth
disorder market with a value market share of 35.5% compared to 33.1% a year ago, driven by new indications and the
global roll-out of the next-generation device.
Financial report for the period 1 January 2021 to 31 March 2021
Page 9 of 26
Strategic
aspirations
Financial
Statement
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 30 / 2021
FINANCIALS
GEOGRAPHIC SALES DEVELOPMENT
Sales remained unchanged in Danish kroner and increased by 7% at CER to DKK 33,804 million in the first three months of
2021. Sales in International Operations increased by 2% measured in Danish kroner and by 9% at CER in line with the
strategic aspiration of sales growth between 6-10%. Sales in North America Operations decreased by 3% measured in
Danish kroner and increased by 6% at CER. The strategic aspiration of transforming 70% of sales in the US has progressed,
and 52% of sales are now derived from products launched since 2015.
Sales split per geographical area
Sales Q1 2021
DKK million
Growth
as reported
Growth
at CER
Share of growth
at CER
International Operations
18,747
2%
9%
64%
- EMEA
9,530
(1%)
3%
13%
- Region China
4,330
14%
16%
24%
- Rest of World
4,887
2%
14%
27%
North America Operations
15,057
(3%)
6%
36%
- The US
14,172
(4%)
5%
32%
Total sales 33,804 0% 7% 100%
International Operations
Sales in International Operations increased by 2% measured in Danish kroner and by 9% at CER. Sales growth was driven
by all geographical areas, with Rest of World growing by 14% (CER), Region China growing by 16% (CER) and EMEA growing
by 3% (CER). Sales growth was driven by all therapy areas except for Biopharm. Sales growth was negatively impacted by
COVID-19-related stocking in 2020, partially offset by timing of shipments.
EMEA
Sales in EMEA decreased by 1% measured in Danish kroner and increased by 3% at CER. Sales growth was driven by
Diabetes care growing by 2% (CER) driven by increased GLP-1 sales. Biopharm sales increased by 6% (CER) and Obesity
care increased by 18% (CER).
Region China
Sales in Region China increased by 14% measured in Danish kroner and by 16% at CER. Sales growth was driven by
Diabetes care growth of 21% (CER) reflecting increased insulin and GLP-1 sales, partially offset by Biopharm declining by
74% (CER) reflecting increased distributor stock levels in the first three months of 2020.
Rest of World
Sales in Rest of World increased by 2% measured in Danish kroner and by 14% at CER. Sales growth was driven by
Diabetes care growing by 18% (CER) reflecting increased GLP-1 and insulin sales, Obesity care growing by 17% (CER) and
Biopharm growing by 2% (CER).
North America Operations
Sales in North America Operations decreased by 3% measured in Danish kroner and increased by 6% at CER. Sales growth
was negatively impacted by COVID-19-related stocking in 2020, partially offset by inventory changes in 2021.
The sales development at CER reflects GLP-1 sales growing by 19% (CER), Biopharm sales growing by 3% (CER) and Obesity
care growing by 2% (CER). This was partially offset by insulin sales decreasing by 10% (CER) driven by a decline in volume
and rebate enhancements, partially offset by channel mix.
Financial report for the period 1 January 2021 to 31 March 2021
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Company announcement No 30 / 2021
DEVELOPMENT IN COSTS AND OPERATING PROFIT
The cost of goods sold increased by 8% measured in Danish kroner and by 11% at CER to DKK 5,811 million, resulting in a
gross margin of 82.8% measured in Danish kroner compared with 84.1% in 2020. The decline in gross margin reflects
lower realised prices in the US, a negative currency impact of 0.8% percentage point and amortisation of intangible assets
related to the acquisition of Emisphere Technologies in 2020. This is countered by a positive product mix driven by
increased GLP-1 sales and productivity improvements in line with the strategic aspiration of driving operational efficiencies.
Sales and distribution costs increased by 9% measured in Danish kroner and by 16% at CER to DKK 8,256 million. The
increase in costs is driven by both International Operations and North America Operations. In International Operations,
promotional spend is related to launch activities for Rybelsus
®
and Ozempic
®
, field force expansion in China as well as
obesity market development activities. In North America Operations, the cost increase is driven by promotional activities
for Rybelsus
®
and Ozempic
®
, partially offset by lower promotional spend related to insulin and Biopharm.
Research and development costs increased by 4% measured in Danish kroner and by 7% at CER to DKK 3,944 million.
Increased activities within Other serious chronic diseases are driving the cost increase reflecting the progression of the
early pipeline within cardiovascular disease and NASH as well as increased costs within obesity driven by the ongoing
cardiovascular outcomes trials, SOUL and SELECT.
Administration costs increased by 1% measured in Danish kroner and by 3% at CER to DKK 932 million, reflecting broadly
unchanged spend across administrative areas.
Other operating income (net) was DKK 121 million compared with DKK 107 million in 2020.
Operating profit decreased by 8% measured in Danish kroner and increased by 3% at CER to DKK 14,982 million.
FINANCIAL ITEMS (NET) AND TAX
Financial items (net) showed a net gain of DKK 956 million compared with a net loss of DKK 1,281 million in 2020.
In line with Novo Nordisk’s treasury policy, the most significant foreign exchange risks for Novo Nordisk have been hedged,
primarily through foreign exchange forward contracts. The foreign exchange result was a net gain of DKK 947 million
compared with a net loss of DKK 1,090 million in 2020. This reflects gains on hedged currencies, primarily the US dollar.
As per the end of March 2021, a negative market value of financial contracts of approximately DKK 0.7 billion has been
deferred for recognition later in 2021 and 2022.
The effective tax rate is 20.8% in the first three months of 2021 in line with an effective tax rate of 20.8% in the first three
months of 2020.
Financial report for the period 1 January 2021 to 31 March 2021
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Company announcement No 30 / 2021
CASH FLOW AND CAPITAL ALLOCATION
CAPITAL EXPENDITURE AND FREE CASH FLOW
Capital expenditure for property, plant and equipment was DKK 1.4 billion compared with DKK 1.7 billion in 2020. The
lower capital expenditure was mainly related to lower investments in the new production facility for diabetes active
pharmaceutical ingredients in Clayton, North Carolina, US.
Free cash flow was DKK 9.5 billion compared with DKK 7.7 billion in 2020 in line with the strategic aspiration to deliver
attractive capital allocation to shareholders. The increase reflects higher net profit and a favourable impact from change in
working capital.
Novo Nordisk’s financial reserves were DKK 24.3 billion by end of March 2021 comprising cash at bank, marketable
securities (measured at fair value based on active market data) and undrawn credit facilities less overdrafts and loans
repayable within 12 months.
EQUITY AND CAPITAL ALLOCATION
Total equity was DKK 58,496 million at the end of the first three months of 2021, equivalent to 41.4% of total assets,
compared with 43.1% at the end of the first three month of 2020. Please refer to appendix 5 for further elaboration of
changes in equity.
Reduction in share capital
At the Annual General Meeting of Novo Nordisk A/S, held on 25 March 2021, a 1.7% reduction in the total share
capital was approved. The reduction was effectuated by a cancellation of 40,000,000 treasury B shares of DKK 0.20
at a nominal value of DKK 8,000,000. After the legal implementation of the share capital reduction on 27 April
2021, Novo Nordisk’s share capital now amounts to DKK 462,000,000 divided into an A share capital of DKK
107,487,200 and a B share capital of DKK 354,512,800.
2021 share repurchase programme
On 3 February 2021, Novo Nordisk announced a share repurchase programme of up to DKK 3.0 billion to be
executed from 3 February to 3 May 2021, as part of an overall programme of up to DKK 17 billion to be executed
during a 12-month period beginning 3 February 2021. The purpose of the programme was to reduce the company’s
share capital and to meet obligations arising from share-based incentive programmes. Under the programme, Novo
Nordisk has repurchased 6,754,777 B shares for an amount of DKK 3.0 billion in the period from 3 February to 3
May 2021. The programme was concluded on 3 May 2021.
As of 3 May 2021, Novo Nordisk and its wholly-owned affiliates owned 5,657,389 of its own B shares,
corresponding to 0.2% of the total share capital.
Based on the increased expectations for cash flow generation in 2021, the Board of Directors has approved an expansion
of the 2021 share repurchase programme with DKK 1.0 billion to DKK 18 billion.
Share repurchase under the overall programme of up to DKK 18 billion that began 3 February 2021 is expected to be
resumed shortly. As announced in February 2021, Novo Nordisk’s majority shareholder Novo Holdings A/S, a holding
company fully owned by the Novo Nordisk Foundation, has informed Novo Nordisk that it intends to consider its
participation in the Novo Nordisk share repurchase programme on a year-by-year basis. For 2021, Novo Holdings A/S
has informed Novo Nordisk that it plans to participate in the share repurchase programme. Novo Holdings A/S has an
ownership of 28.5% of the Novo Nordisk share capital after the implementation of the share capital decrease, and
Novo Holdings A/S currently intends to maintain its ownership of the Novo Nordisk share capital around 28%.
Financial report for the period 1 January 2021 to 31 March 2021
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Company announcement No 30 / 2021
OUTLOOK
OUTLOOK 2021
The current expectations for 2021 are summarised in the table below:
Expectations are as reported, if not otherwise
stated
Expectations
5 May 2021
Expectations
3 February 2021
Sales growth
at CER 6% to 10% 5% to 9%
as reported Around 4 percentage points lower than at CER Around 4 percentage points lower than at CER
Operating profit growth
at CER 5% to 9% 4% to 8%
as reported Around 6 percentage points lower than at CER Around 6 percentage points lower than at CER
Financial items (net) Gain of around DKK 0.7 billion Gain of around DKK 0.7 billion
Effective tax rate 20% to 22% 20% to 22%
Capital expenditure (PP&E) Around DKK 7.5 billion Around DKK 8.0 billion
Depreciation, amortisation and impairment
losses
Around DKK 6 billion Around DKK 6 billion
Free cash flow DKK 37-42 billion DKK 36-41 billion
For 2021, sales growth is now expected to be 6% to 10% at CER. The guidance reflects expectations for continued sales
growth in International Operations in line with the strategic aspiration of 6-10% growth as well as growth in North America
Operations. The guidance reflects expectations for sales growth within Diabetes care, mainly driven by the GLP-1 products
Ozempic
®
and Rybelsus
®
, as well as growth within Obesity care. Intensifying competition within both Diabetes care and
Biopharm is also reflected in the guidance. Furthermore, continued pricing pressure within Diabetes care, especially in the
US, is expected to negatively impact sales development. Given the current exchange rates versus the Danish krone, growth
reported in DKK is still expected to be around 4 percentage points lower than at CER.
Operating profit growth is now expected to be 5% to 9% at CER. The expectation for operating profit growth primarily
reflects the sales growth outlook and continued investments in current and future growth drivers across the operating
units, including the continued roll-out of Ozempic
®
and Rybelsus
®
as well as global investments in building the anti-obesity
market and the expected launch of semaglutide 2.4 mg in the US. Furthermore, resources are allocated to both early and
late-stage pipeline activities, including expected initiations of several phase 3a clinical trial programmes in 2021. Given the
current exchange rates versus the Danish krone, growth reported in DKK is still expected to be around 6 percentage
points lower than at CER.
The current COVID-19 pandemic causes uncertainty to the outlook regarding the number of patients initiating treatment
and societal impacts such as the unemployment rate in the US, which is impacting healthcare insurance coverage. The
outlook is based on a number of assumptions related to the severity and duration of impacts from COVID-19.
Consequently, volatility in quarterly results should be expected.
For 2021, Novo Nordisk still expects financial items (net) to amount to a gain of around DKK 0.7 billion, mainly reflecting
gains associated with foreign exchange hedging contracts.
The effective tax rate for 2021 is still expected to be in the range of 20-22%.
Capital expenditure is now expected to be around DKK 7.5 billion in 2021 compared to DKK 8.0 billion in February 2021
reflecting phasing of investments.
Depreciation, amortisation and impairment losses are still expected to be around DKK 6.0 billion.
The free cash flow is now expected to be DKK 37-42 billion, and the share repurchase programme will be expanded with
DKK 1 billion to DKK 18 billion.
Financial report for the period 1 January 2021 to 31 March 2021
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Company announcement No 30 / 2021
All of the above expectations are based on assumptions that the global or regional macroeconomic and political
environment will not significantly change business conditions for Novo Nordisk during 2021, including the potential
implications from major healthcare reforms and legislative changes as well as outcome of legal cases, and that the
currency exchange rates, especially the US dollar, will remain at the current level versus the Danish krone. Neither does the
guidance include the financial implications of significant business development transactions during the remainder of 2021.
FX Q1 2021 Q1 2020 % change
Spot rate
28 April 2021
USD
617
678
(9%)
616
CNY
95
97
(2%)
95
JPY
5.82
6.22
(6%)
5.66
CAD
488
505
(3%)
497
GBP
851
867
(2%)
855
Novo Nordisk has hedged expected net cash flows in a number of invoicing currencies and, all other things being equal,
movements in key invoicing currencies will impact Novo Nordisk’s operating profit as outlined in the table below.
Key invoicing currencies
Impact on Novo Nordisk's operating profit in the next 12
months of a 5% movement in currency Hedging period (months)
1
USD
DKK 2,000 million
12
CNY
2
DKK 490 million
2
JPY
DKK 200 million
12
CAD
DKK 150 million
9
GBP
DKK 120 million
11
1)
As of 28 April 2021.
2)
Chinese yuan traded offshore (CNH) used as proxy when hedging Novo Nordisk’s CNY currency exposure.
The financial impact from foreign exchange hedging is included in Financial items (net).
Financial report for the period 1 January 2021 to 31 March 2021
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Company announcement No 30 / 2021
INNOVATION AND THERAPEUTIC FOCUS
Diabetes care
Ozempic
®
approved in China for the treatment of type 2 diabetes and established cardiovascular disease
In April 2021, Ozempic
®
was approved by the China National Medical Products Administration for both the treatment of
insufficiently controlled type 2 diabetes and for reducing the risk of major adverse cardiovascular events in patients with
type 2 diabetes and established cardiovascular disease. Novo Nordisk expects to launch Ozempic
®
in China in the second
half of 2021.
Refusal to File letter for once-weekly semaglutide 2.0 mg for the treatment of type 2 diabetes
On 22 March 2021, Novo Nordisk announced that the US Food and Drug Administration (FDA) had issued a Refusal to File
letter covering the label expansion application for once-weekly semaglutide 2.0 mg for the treatment of type 2 diabetes,
which was filed on 20 January 2021. In the letter, FDA requested additional manufacturing data. While additional
information needs to be included in the resubmission, Novo Nordisk believes the already completed clinical trial
programme will be sufficient for approval of the label expansion application. Novo Nordisk is working towards
resubmission in the second quarter of 2021.
Obesity care
Phase 3a clinical trial initiated with once-weekly semaglutide 2.4 mg in people with heart failure with preserved ejection fraction
(HFpEF)
In March 2021, Novo Nordisk initiated a phase 3a clinical trial with once-weekly semaglutide 2.4 mg in people with obesity-
related HFpEF. The objective of the trial is to investigate the effects of semaglutide 2.4 mg on physical function, symptoms
and body weight compared with placebo, both added to standard of care. The 52-week trial is expected to enrol
approximately 500 people. In the second quarter of 2021, Novo Nordisk expects to initiate a second phase 3a trial, similar
in design, with semaglutide 2.4 mg in people with obesity-related HFpEF and type 2 diabetes.
Decision to initiate phase 3a development in obesity with oral semaglutide
On 21 April 2021, Novo Nordisk announced the decision to enter phase 3a development in obesity with oral semaglutide
50 mg in approximately 1,000 people with obesity or overweight with comorbidities. The decision follows the completion of
the STEP phase 3a clinical programme with once-weekly subcutaneous semaglutide 2.4 mg. The global 68-week trial is
planned for initiation in the second half of 2021 and will investigate the efficacy and safety of oral semaglutide compared
to placebo. For more information, please read the company announcement here.
Biopharm
Sogroya
®
approved in the EU for adults with growth hormone deficiency
In April 2021, once-weekly somapacitan was approved by the European Commission under the brand name Sogroya
®
for
substitution of endogenous growth hormone in adults with growth hormone deficiency (AGHD). The approval is based on
results from the REAL programme where the global pivotal trial enrolled 301 treatment-naïve adults with growth hormone
deficiency. Sogroya
®
administered once-weekly demonstrated superiority over placebo on the primary endpoint, change in
truncal fat percentage. Sogroya
®
is currently in phase 3a clinical development for paediatric indications.
Other serious chronic diseases
Phase 3a development initiated with once-weekly semaglutide 2.4 mg for treatment of non-alcoholic steatohepatitis (NASH)
In April 2021, Novo Nordisk initiated the phase 3a trial ESSENCE with semaglutide once-weekly 2.4 mg for treatment of
NASH. ESSENCE is expected to enrol approximately 1,200 people with NASH and fibrosis stage 2 or 3. The trial is planned
in two parts: part 1 will assess the effect of semaglutide 2.4 mg versus placebo on liver histology after 72 weeks of
treatment, and in part 2, the effect of semaglutide 2.4 mg versus placebo on liver-related clinical events after a total of 240
weeks of treatment. The submission for regulatory approval is expected to be based on part 1 of the trial combined with
the already completed results from the phase 2 trial.
Gilead Sciences and Novo Nordisk expand NASH clinical collaboration: Triple combination regimen to be investigated in new
phase 2b study in NASH patients with cirrhosis
On 18 March 2021, Gilead Sciences, Inc. and Novo Nordisk announced an expanded clinical collaboration in NASH. The
companies expect to conduct a phase 2b trial investigating the safety and efficacy of once-weekly semaglutide 2.4 mg
alone and in a combination with a fixed-dose combination of Gilead’s investigational FXR agonist cilofexor and
investigational ACC inhibitor firsocostat, in people with compensated cirrhosis stage 4 due to NASH. The objective of the
trial is to evaluate the treatment's impact on liver fibrosis improvement and NASH resolution. The trial is expected to enrol
approximately 440 people and is planned for initiation in the second half of 2021.
Financial report for the period 1 January 2021 to 31 March 2021
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Company announcement No 30 / 2021
Purpose and sustainability
Environment
Circular for Zero
As part of the environmental strategy 'Circular for Zero', Novo Nordisk has a target of all direct suppliers supply Novo
Nordisk using 100% renewable power by 2030. Since the launch of the target in September 2020, engagement has been
focused on suppliers with high carbon emissions, and so far more than 100 suppliers have committed to using renewable
power. The single biggest carbon emitter is implementing renewable power as of 1 April which is expected to result in
35,000 tons of carbon emissions being reduced annually. With the current commitments, it is estimated that around 15%
of Novo Nordisk's supplier carbon emissions will be eliminated, equalling 43,000 tons.
Novo Nordisk carbon emissions from operations and transport decreased by 48% to 41,300 tons in the first three months
of 2021 compared to the first three months of 2019. The decrease was driven by renewable energy projects and impacts
from COVID-19 on travelling. 2019 is used as baseline as 2020 was impacted by the COVID-19 pandemic. Novo Nordisk's
carbon emissions from product distribution is expected to be further reduced as Novo Nordisk's transporter, AP Møller
Maersk A/S ocean freight transferred to an ECO Delivery solution which uses biofuel to fuel selected vessels. This is
expected to reduce 5,000 tons carbon emissions on an annual basis, representing one third of Novo Nordisk ocean freight.
Social
Defeat Diabetes
Novo Nordisk continues to take action under the social responsibility strategy ‘Defeat Diabetes’. In line with the focus on
preventing diabetes, Novo Nordisk in February 2021 announced a collaboration and a joint investment of DKK 200 million
with the University of Toronto to establish the Novo Nordisk Network for Healthy Populations. The network will focus on
new ways to support healthier urban populations.
Further, in April 2021, Novo Nordisk and the Novo Nordisk Foundation announced a partnership and a joint donation of
DKK 100 million to the World Diabetes Foundation to launch the Diabetes Compass, a programme which will leverage
digital tools to support frontline healthcare workers improving access to diabetes care in low- and middle-income
countries.
Employees
The number of full-time employees at the end of the first three months of 2021 increased by 5% compared to 12 months
ago. The total number of employees was 45,777 corresponding to 45,157 full-time positions. The increase is driven by
International Operations, Product Supply and R&D, partially countered by North America Operations.
LEGAL MATTERS
Victoza
®
product liability litigation, US
Numerous claims alleging pancreatic cancer, pancreatitis, and thyroid cancer have been filed in US courts against various
incretin class manufacturers, including Victoza
®
and Novo Nordisk. As of 3 May 2021, 388 plaintiffs have filed product
liability cases against Novo Nordisk, the vast majority alleging pancreatic cancer. In 2020, the defendants filed joint motions
for summary judgment in both the Federal MDL and State JCCP courts, seeking dismissal of the complaints on federal pre-
emption and lack of general causation grounds. These motions were granted by the Federal Judge on 9 March 2021 and
the State Judge on 6 April 2021, thereby dismissing all cases against Novo Nordisk relating to Victoza
®
. Plaintiffs have filed
a notice of appeal of the Federal Court ruling, and they have the right to file a similar notice of appeal of the State Court
ruling. Final decisions on both appeals are not expected before the end of 2022.
Financial report for the period 1 January 2021 to 31 March 2021
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Company announcement No 30 / 2021
MANAGEMENT STATEMENT
Bagsværd, 5 May 2021
Executive Management:
Lars Fruergaard Jørgensen
President and CEO
Karsten Munk Knudsen
CFO
Monique Carter
Martin Holst Lange Marcus Schindler Camilla Sylvest
Henrik Wulff
Board of Directors:
Helge Lund
Chair
Jeppe Christiansen
Vice chair
Laurence Debroux
Andreas Fibig Sylvie Grégoire Mette Bøjer Jensen
Kasim Kutay Anne Marie Kverneland Martin Mackay
Henrik Poulsen Thomas Rantzau Stig Strøbæk
Financial report for the period 1 January 2021 to 31 March 2021
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Company announcement No 30 / 2021
About Novo Nordisk
Novo Nordisk is a leading global healthcare company, founded in 1923 and headquartered in Denmark. Our purpose is to
drive change to defeat diabetes and other serious chronic diseases such as obesity and rare blood and endocrine
disorders. We do so by pioneering scientific breakthroughs, expanding access to our medicines and working to prevent
and ultimately cure disease. Novo Nordisk employs about 45,800 people in 80 countries and markets its products in
around 170 countries. Novo Nordisk's B shares are listed on Nasdaq Copenhagen (Novo-B). Its ADRs are listed on the New
York Stock Exchange (NVO). For more information, visit novonordisk.com, Facebook, Twitter, LinkedIn, YouTube.
Financial calendar
5 August 2021
Financial statement for the first six months of 2021
3 November 2021
Financial statement for the first nine months of 2021
2 February 2022
Financial statement for 2021
Contacts for further information
Media:
Mette Kruse Danielsen
+45 3079 3883
mkd@novonordisk.com
Michael Bachner (US)
+1 609 664 7308
mzyb@novonordisk.com
Investors:
Daniel Muusmann Bohsen
+45 3075 2175
dabo@novonordisk.com
Valdemar Borum Svarrer
+45 3079 0301
jvls@novonordisk.com
Ann Søndermølle Rendbæk
+45 3075 2253
arnd@novonordisk.com
David Heiberg Landsted
+45 3077 2253
dhel@novonordisk.com
Mark Joseph Root (US)
+1 848 213 3219
mjhr@novonordisk.com
Further information about Novo Nordisk is available on novonordisk.com.
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
statutory Annual Report 2020 and Form 20-F both filed with the SEC in February 2021 in continuation of the publication of the Annual Report 2020, 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, and
• 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’ and 'Equity’.
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, failure to maintain a culture of compliance and epidemics, pandemics or other public health crises.
For an overview of some, but not all, of the risks that could adversely affect Novo Nordisk’s results or the accuracy of forward-looking statements in this
document, reference is made to the overview of risk factors in ‘Risk Management’ of the Annual Report 2020.
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.
Financial report for the period 1 January 2021 to 31 March 2021
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Company announcement No 30 / 2021
APPENDIX 1: QUARTERLY NUMBERS IN DKK
(Amounts in DKK million, except number of full-time equivalent employees, earnings per share and number of shares outstanding).
% change
2021
2020
Q1 2021 vs.
Q1
Q4
Q3
Q2
Q1
Q1 2020
Net sales
33,804
32,138
30,927
30,006
33,875
0%
Gross profit
27,993
26,519
25,772
25,234
28,489
(2%)
Gross margin
82.8%
82.5%
83.3%
84.1%
84.1%
Sales and distribution costs
8,256
9,766
8,174
7,398
7,590
9%
Percentage of sales
24.4%
30.4%
26.4%
24.7%
22.4%
Research and development costs
3,944
4,483
3,911
3,291
3,777
4%
Percentage of sales
11.7%
13.9%
12.6%
11.0%
11.1%
Administrative costs
932
1,198
1,006
827
927
1%
Percentage of sales
2.8%
3.7%
3.3%
2.8%
2.7%
Other operating income, net
121
106
127
120
107
13%
Operating profit
14,982
11,178
12,808
13,838
16,302
(8%)
Operating margin
44.3%
34.8%
41.4%
46.1%
48.1%
Financial income
1,753
1,352
162
97
17
N/A
Financial expenses
797
528
279
519
1,298
(39%)
Financial items (net)
956
824
(117)
(422)
(1,281)
(175%)
Profit before income taxes
15,938
12,002
12,691
13,416
15,021
6%
Income taxes
3,315
2,684
2,393
2,791
3,124
6%
Net profit
12,623
9,318
10,298
10,625
11,897
6%
Depreciation, amortisation and
impairment losses
1,377 1,379 2,130 1,158 1,086 27%
Capital expenditure
1,402
1,518
1,401
1,239
1,667
(16%)
Net cash generated from operating activities
11,255
172
17,506
24,261
10,012
12%
Free cash flow
9,532
(12,994)
11,224
22,666
7,669
24%
Total assets
141,387
144,922
139,947
136,121
126,256
12%
Total equity
58,496
63,325
59,573
60,054
54,399
8%
Equity ratio
41.4%
43.7%
42.6%
44.1%
43.1%
Full-time equivalent employees end of period 45,157 44,723 44,326 43,526 43,158 5%
Basic earnings per share/ADR (in DKK)
5.47
4.02
4.42
4.54
5.07
8%
Diluted earnings per share/ADR (in DKK)
5.45
4.01
4.42
4.53
5.05
8%
Average number of shares outstanding (million)
2,309.6
2,318.9
2,329
2,338.8
2,348.8
(2%)
Average number of diluted shares outstanding (million)
2,315.6
2,325.1
2,335.1
2,344.9
2,354.8
(2%)
Sales by business segment:
Total GLP-1
11,300
11,780
10,651
9,425
9,975
13%
Long-acting insulin
4,822
5,013
4,048
4,220
5,158
(7%)
Premix insulin
2,953
2,705
2,572
2,693
2,955
0%
Fast-acting insulin
4,556
4,231
4,589
4,379
5,114
(11%)
Human insulin
2,535
1,678
2,194
2,314
2,687
(6%)
Total insulin
14,866
13,627
13,403
13,606
15,914
(7%)
Other Diabetes care
1,110
975
954
977
1,125
(1%)
Total Diabetes care
27,276
26,382
25,008
24,008
27,014
1%
Obesity care (Saxenda
®
)
1,551
1,385
1,338
1,308
1,577
(2%)
Diabetes and Obesity care total
28,827
27,767
26,346
25,316
28,591
1%
Rare blood disorders
1)
2,678
2,140
2,311
2,401
2,810
(5%)
Rare endocrine disorders
1)
1,920
1,833
1,891
1,952
2,031
(5%)
Other Biopharm
379
398
379
337
443
(14%)
Biopharm total
4,977
4,371
4,581
4,690
5,284
(6%)
Sales by geographic segment:
International Operations
18,747
15,430
15,988
16,115
18,296
2%
- EMEA
9,530
8,138
8,318
8,167
9,674
(1%)
- Region China
4,330
3,248
3,549
3,474
3,813
14%
- Rest of World
4,887
4,044
4,121
4,474
4,809
2%
North America Operations
15,057
16,708
14,939
13,891
15,579
(3%)
- The US
14,172
15,877
14,144
13,028
14,775
(4%)
Segment operating profit:
Diabetes and Obesity care
12,470
9,106
9,748
11,434
13,456
(7%)
Biopharm
2,512
2,072
3,060
2,404
2,846
(12%)
1)
Comparative numbers have been restated as Macrillen (previously disclosed under Other biopharm) is now disclosed as part of Rare endocrine disorders.
Financial report for the period 1 January 2021 to 31 March 2021
Page 19 of 26
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Company announcement No 30 / 2021
APPENDIX 2: INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
DKK million
Q1 2021
Q1 2020
Income statement
Net sales
Cost of goods sold
Gross profit
Sales and distribution costs
Research and development costs
Administrative costs
Other operating income, net
Operating profit
Financial income
Financial expenses
Profit before income taxes
Income taxes
NET PROFIT
Basic earnings per share (DKK)
Diluted earnings per share (DKK)
Segment Information
Segment sales:
Diabetes and Obesity care
28,827
28,591
Biopharm
4,977
5,284
Segment operating profit:
Diabetes and Obesity care
12,470
13,456
Operating margin
43.3 %
47.1 %
Biopharm
2,512
2,846
Operating margin
50.5 %
53.9 %
Total segment operating profit
14,982
16,302
Statement of comprehensive income
Net profit for the period
Other comprehensive income
Items that will not subsequently be reclassified to the Income
statement
Remeasurements on defined benefit plans
Items that will be reclassified subsequently to the Income
statement
Exchange rate adjustments of investments in subsidiaries
Cash flow hedges, realisation of previously deferred (gains)/losses
(976 )
Cash flow hedges, deferred gains/(losses) incurred during the period
(1,573 )
(581 )
Other items
(2 )
Tax on other comprehensive income, income/(expense)
(78 )
Other comprehensive income for the period, net of tax (1,138 ) (13 )
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 11,485 11,884
Financial report for the period 1 January 2021 to 31 March 2021
Page 20 of 26
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Company announcement No 30 / 2021
APPENDIX 3: CASH FLOW STATEMENT
DKK million Q1 2021 Q1 2020
Net profit
Adjustment for non-cash items:
Income taxes in the Income Statement
Depreciation, amortisation and impairment losses
Other non-cash items
Change in working capital
(1,126 )
(7,496 )
Interest received
Interest paid
(50 )
(112 )
Income taxes paid
(5,931 )
(4,502 )
Net cash generated from operating activities
Purchase of intangible assets
(97 )
(56 )
Purchase of property, plant and equipment
(1,402 )
(1,667 )
Proceeds from other financial assets
Purchase of other financial assets
(4 )
Sale of marketable securities
Purchase of marketable securities
(2,350 )
Investment in associated company
(392 )
Dividend received from associated company
Net cash used in investing activities
(3,481 )
(2,106 )
Purchase of treasury shares
(2,960 )
(2,690 )
Dividends paid
(13,495 )
(12,551 )
Repayment of borrowings
(349 )
(420 )
Withheld dividend tax
Net cash used in financing activities
(14,475 )
(13,509 )
NET CASH GENERATED FROM ACTIVITIES
(6,701 )
(5,603 )
Cash and cash equivalents at the beginning of the year
Exchange gain/(loss) on cash and cash equivalents
(95 )
Cash and cash equivalents at the end of the period
Financial report for the period 1 January 2021 to 31 March 2021
Page 21 of 26
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Company announcement No 30 / 2021
APPENDIX 4: BALANCE SHEET
DKK million
31 Mar 2021
31 Dec 2020
ASSETS
Intangible assets
Property, plant and equipment
Investments in associated companies
Deferred income tax assets
Other receivables and prepayments
Other financial assets
TOTAL NON-CURRENT ASSETS
Inventories
Trade receivables
Tax receivables
Other receivables and prepayments
Marketable securities
Derivative financial instruments
Cash at bank
TOTAL CURRENT ASSETS 61,389 65,809
TOTAL ASSETS 141,387 144,922
EQUITY AND LIABILITIES
Share capital
Treasury shares
(9 )
(8 )
Retained earnings
Other reserves
(2,262 )
(911 )
TOTAL EQUITY
Borrowings
Deferred income tax liabilities
Retirement benefit obligations
Provisions
Total non-current liabilities
Borrowings
Trade payables
Tax payables
Other liabilities
Derivative financial instruments
Provisions
Total current liabilities
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES 141,387 144,922
Financial report for the period 1 January 2021 to 31 March 2021
Page 22 of 26
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Company announcement No 30 / 2021
APPENDIX 5: EQUITY STATEMENT
DKK million
Share
capital
Treasury
shares
Retained
earnings
Other
reserves Total
Q1 2021
Balance at the beginning of the period
(8 )
(911 )
Net profit for the period
Other comprehensive income for the period
(1,351 )
(1,138 )
Total comprehensive income for the period
(1,351 )
Transactions with owners:
Dividends
(13,496 )
(13,496 )
Share-based payments
Tax related to restricted stock units
(33 )
(33 )
Purchase of treasury shares
(1 )
(2,959 )
(2,960 )
Balance at the end of the period 470 (9 ) 60,297 (2,262 ) 58,496
DKK million
Share
capital
Treasury
shares
Retained
earnings
Other
reserves Total
Q1 2020
Balance at the beginning of the period
(10 )
(694 )
Net profit for the period
Other comprehensive income for the period
(230 )
(13 )
Total comprehensive income for the period
(230 )
Transactions with owners:
Dividends
(12,551 )
(12,551 )
Share-based payments
Tax related to restricted stock units
Purchase of treasury shares
(1 )
(2,689 )
(2,690 )
Balance at the end of the period 480 (11 ) 54,854 (924 ) 54,399
Financial report for the period 1 January 2021 to 31 March 2021
Page 23 of 26
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Company announcement No 30 / 2021
APPENDIX 6: SALES SPLIT PER AREA
Q1 2021 sales split per area
DKK million Total
International
Operations EMEA
Region
China
Rest of
World
North America
Operations The US
Diabetes and Obesity care segment
Rybelsus
®
729
98
35
—
63
631
621
% change at CER
247%
—
—
—
—
203%
198%
Ozempic
®
6,662
1,683
1,348
15
320
4,979
4,674
% change at CER
52%
98%
74%
—
249%
42%
41%
Victoza
®
3,909
1,756
937
388
431
2,153
2,077
% change at CER
(16%)
(5%)
(21%)
79%
(3%)
(23%)
(23%)
Total GLP-1
11,300
3,537
2,320
403
814
7,763
7,372
% change at CER
23%
31%
18%
86%
54%
19%
18%
Long-acting insulin
4,822
2,856
1,772
515
569
1,966
1,842
% change at CER
0%
10%
2%
49%
13%
(11%)
(12%)
Tresiba
®
2,365
1,347
756
222
369
1,018
923
% change at CER
3%
24%
13%
272%
4%
(15%)
(17%)
Xultophy
®
681
539
447
1
91
142
140
% change at CER
8%
16%
3%
—
154%
(12%)
(13%)
Levemir
®
1,776
970
569
292
109
806
779
% change at CER
(6%)
(6%)
(10%)
2%
(5%)
(4%)
(4%)
Premix insulin
2,953
2,789
773
1,422
594
164
158
% change at CER
6%
7%
(1%)
17%
(1%)
(6%)
(6%)
Ryzodeg
®
420
420
119
35
266
—
—
% change at CER
34%
34%
42%
—
20%
—
—
NovoMix
®
2,533
2,369
654
1,387
328
164
158
% change at CER
2%
3%
(7%)
14%
(13%)
(6%)
(6%)
Fast-acting insulin
4,556
2,794
1,657
615
522
1,762
1,663
% change at CER
(4%)
0%
(6%)
16%
5%
(11%)
(11%)
Fiasp
®
402
258
231
—
27
144
136
% change at CER
9%
20%
14%
—
123%
(7%)
(6%)
NovoRapid
®
4,154
2,536
1,426
615
495
1,618
1,527
% change at CER
(5%)
(2%)
(8%)
16%
2%
(11%)
(11%)
Human insulin
2,535
2,081
573
770
738
454
434
% change at CER
2%
4%
(15%)
0%
31%
(6%)
(5%)
Total insulin
14,866
10,520
4,775
3,322
2,423
4,346
4,097
% change at CER
0%
5%
(4%)
16%
12%
(10%)
(10%)
Other Diabetes care
1
1,110
841
175
545
121
269
233
% change at CER
4%
4%
(7%)
22%
(27%)
2%
2%
Total Diabetes care
27,276
14,898
7,270
4,270
3,358
12,378
11,702
% change at CER
9%
10%
2%
21%
18%
7%
6%
Obesity care (Saxenda
®
)
1,551
715
371
7
337
836
759
% change at CER
9%
18%
18%
—
17%
2%
0%
Diabetes and Obesity care total
28,827
15,613
7,641
4,277
3,695
13,214
12,461
% change at CER
9%
11%
3%
21%
18%
6%
6%
Biopharm segment
Rare blood disorders
2
2,678
1,634
1,099
21
514
1,044
973
% change at CER
2%
1%
16%
(89%)
5%
4%
5%
Haemophilia A
497
382
283
1
98
115
109
% change at CER
16%
11%
4%
(75%)
45%
35%
36%
Haemophilia B
147
92
64
—
28
55
20
% change at CER
18%
20%
23%
—
15%
14%
16%
NovoSeven
®
1,980
1,137
735
20
382
843
818
% change at CER
(2%)
(4%)
20%
(89%)
(3%)
0%
1%
Rare endocrine disorders
3
1,920
1,221
562
30
629
699
695
% change at CER
2%
1%
(1%)
173%
1%
2%
2%
Other Biopharm
4
379
279
228
2
49
100
43
% change at CER
(12%)
(14%)
(15%)
(50%)
(9%)
(5%)
(14%)
Biopharm total
4,977
3,134
1,889
53
1,192
1,843
1,711
% change at CER
1%
0%
6%
(74%)
2%
3%
3%
Total sales
33,804
18,747
9,530
4,330
4,887
15,057
14,172
% change at CER
7%
9%
3%
16%
14%
6%
5%
% change as reported
0%
2%
(1%)
14%
2%
(3%)
(4%)
Share of growth
100%
64%
13%
24%
27%
36%
32%
1)
Primarily NovoNorm
®
, needles and GlucaGen
®
HypoKit
®
.
2)
Comprises NovoSeven
®
, NovoEight
®
, Refixia
®
, NovoThirteen
®
and Esperoct
®
.
3)
Primarily Norditropin
®
.
4)
Primarily Vagifem
®
and Activelle
®
.
Financial report for the period 1 January 2021 to 31 March 2021
Page 24 of 26
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Company announcement No 30 / 2021
APPENDIX 7: NON-IFRS FINANCIAL MEASURES (ADDITIONAL INFORMATION)
In this Company Announcement, Novo Nordisk discloses certain financial measures of the Group’s financial performance,
financial position and cash flows that reflect adjustments to the directly comparable measures calculated and presented in
accordance with IFRS. These non-IFRS financial measures may not be defined and calculated by other companies in the
same manner and may thus not be comparable with such measures. The non-IFRS financial measures presented in the
Company Announcement are Sales and operating profit at CER, Free cash flow and Financial reserves.
Sales and operating profit growth at CER
'Growth at CER’ means that the effect of changes in exchange rates is excluded. It is defined as Net sales/Operating profit
for the period measured at the average exchange rates for the same period prior year compared with Net sales/Operating
profit for the same period prior year. Price adjustments within hyperinflation countries as defined in IAS 29 ‘Financial
reporting in hyperinflation economies’ are excluded from the calculation to avoid growth at CER being artificially inflated.
Growth at CER is considered to be relevant information for investors in order to understand the underlying development in
sales and operating profit by adjusting for the impact of currency fluctuations.
Sales at CER
DKK million
Q1 2021 Q1 2020
% change
Q1 2021 to
Q1 2020
Net sales
33,804
33,875
0%
Effect of exchange rates
2,586
—
Sales at CER 36,390 33,875 7%
Operating profit at CER
DKK million
Q1 2021 Q1 2020
% change
Q1 2021 to
Q1 2020
Operating profit
14,982
16,302
(8%)
Effect of exchange rates
1,751
—
Operating profit at CER 16,733 16,302 3%
Free cash flow
Novo Nordisk defines free cash flow as ’net cash generated from operating activities’, less ‘net cash used in investing
activities’, less repayment on lease liabilities and excluding net change of marketable securities. Free cash flow is a
measure of the amount of cash generated in the period which is available for the Board of Directors to allocate between
Novo Nordisk's capital providers, through eg dividends, share repurchases and repayment of debt (excluding lease liability
repayments) or for retaining in the business to fund future growth.
The following table shows a reconciliation of Free cash flow with Net cash generated from operating activities, the most
directly comparable IFRS financial measure:
Free cash flow
DKK million Q1 2021 Q1 2020
Net cash generated from operating activities 11,255 10,012
Net cash used in investing activities (3,481) (2,106)
Repayment on lease liabilities
(225)
(237)
Net change in marketable securities
1,983
—
Free cash flow 9,532 7,669
Financial report for the period 1 January 2021 to 31 March 2021
Page 25 of 26
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Company announcement No 30 / 2021
Financial reserves
'Financial reserves' is defined as the sum of cash and cash equivalents at the end of the period, marketable securities with
original term to maturity exceeding three months and undrawn committed credit and loan facilities, with a maturity of
more than 12 months, less loans and bank overdrafts classified as liabilities arising from financing activities with obliged
repayment within 12 months of the balance sheet date. The following table reconciles total financial reserves with cash and
cash equivalents, the most directly comparable IFRS financial measure:
Financial reserves
DKK million Q1 2021 Q1 2020
Cash and cash equivalents 5,679 9,713
Marketable securities 1,983 —
Undrawn committed credit facility 11,528 11,574
Undrawn bridge facility
5,578
—
Borrowings
(471)
(400)
Financial reserves 24,297 20,887
Financial report for the period 1 January 2021 to 31 March 2021
Page 26 of 26
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Company announcement No 30 / 2021