Financial report for the period 1 January 2022 to 31 March 2022
29 April 2022
Novo Nordisk's sales increased by 24% in Danish kroner and by 18% at constant
exchange rates to DKK 42.0 billion in the first three months of 2022
• Operating profit increased by 28% in Danish kroner and by 18% at constant exchange rates (CER) to DKK 19.1 billion.
• Sales in International Operations increased by 18% in Danish kroner (13% at CER), and sales in North America
Operations increased by 33% in Danish kroner (24% at CER).
• Sales within Diabetes and Obesity care increased by 27% in Danish kroner to DKK 36.7 billion (20% at CER), mainly
driven by GLP-1 diabetes sales growth of 54% in Danish kroner (45% at CER). Rare disease sales increased by 8%
measured in Danish kroner (3% at CER).
• Obesity care sales grew 119% in Danish Kroner (107% at CER) driven by Wegovy
®
sales of DKK 1.4 billion. The contract
manufacturer filling syringes for Wegovy
®
has reinitiated commercial production and Novo Nordisk expects to make all
Wegovy
®
dose strengths available in the US during the second half of 2022.
• Within R&D, Novo Nordisk in April 2022 successfully completed the first phase 3a trial with insulin icodec, a long-acting
once-weekly insulin. In February 2022, the phase 3 trial with concizumab in people with haemophilia A and B with
inhibitors was successfully completed.
• For the 2022 outlook, sales growth is now expected to be 10-14% at CER and operating profit growth is now expected
to be 9-13% at CER. Sales and operating profit growth reported in Danish kroner are now expected to be 7 and 11
percentage points higher than at CER, respectively. The ongoing share repurchase programme is expanded by DKK 2
billion to DKK 24 billion
PROFIT AND LOSS Q1 2022 Q1 2021
Growth
as reported
Growth
at CER*
DKK million
Net sales 42,031 33,804 24% 18%
Operating profit 19,147 14,982 28% 18%
Net profit 14,210 12,623 13% N/A
Diluted earnings per share (in DKK) 6.22 5.45 14% N/A
* CER: Constant exchange rates (average 2021).
Lars Fruergaard Jørgensen, president and CEO: "We are very pleased with the sales growth in the first three months of
2022 which is driven by increasing demand for our GLP-1-based treatments. The sales momentum has enabled us to raise
our outlook for the full year. Within R&D, we are encouraged by the first phase 3 trial with once-weekly insulin icodec
showing the potential to reduce the number of injections and improve quality of life for people needing insulin treatment
as well as the progress with our late-stage pipeline in Rare disease."
On 29 April 2022 at 13.00 CEST, corresponding to 07.00 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’.
Investor Relations
Telephone:
CVR Number:
Company announcement No 33 / 2022
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. Three strategic aspirations were updated in connection with the Capital
Markets Day 2022 on 3 March 2022. For further information, please see here.
Performance highlights for the first three months of 2022:
Purpose and sustainability
Innovation and therapeutic focus
Progress towards zero environmental impact:
• Carbon emissions from operations and transportation
increased by 46% compared to first quarter of 2021 and
decreased by 25% compared to the first quarter of 2019
Adding value to society:
• Progress on 'Defeat Diabetes' strategy:
◦ Medical treatment provided to 34.9 million people living
with diabetes
◦ Reaching 23 countries and more than 33,000 children in
Changing Diabetes
®
in Children programme
• Two months’ supply of diabetes and haemophilia
medication donated to the Ukrainian Ministry of Health
• Positive scientific opinion from EMA on human insulin with
more flexible storage without refrigeration
Being recognised as a sustainable employer:
• Share of females in senior leadership positions has
increased to 37% from 35% in the first quarter of 2021
Further raise innovation bar for diabetes treatment:
• Approval of Ozempic
®
2.0 mg in the US
• Successful completion of first phase 3 trial with once-weekly
insulin icodec
• Phase 1 trial with Ideal Pump insulin successfully completed
• Phase 1 trial initiated with a once-daily oral GLP-1/GIP
agonist
the
Strengthen and progress Rare disease pipeline:
• Concizumab phase 3 trial successfully completed in people
with haemophilia A and B with inhibitors
Commercial execution Financials
Strengthen diabetes leadership to more than one-third:
• Diabetes value market share increased by 1.2 percentage
points to 30.5% (MAT)
More than DKK 25 billion in Obesity care sales by 2025:
• Obesity care sales increased by 107% (CER) to DKK 3.4
billion
Secure a sustained growth outlook for Rare disease:
• Rare disease sales increased by 3% (CER) to DKK 5.4 billion
Deliver solid sales and operating profit growth:
• Sales growth at 18% (CER)
• International Operations sales growth of 13% (CER)
• US sales growth of 23% (CER) with 67% of sales coming
from products launched since 2015
• Operating profit growth of 18% (CER)
Drive operational efficiencies:
• Continued productivity gains in Product Supply
Enable attractive capital allocation to shareholders:
• Free cash flow of DKK 21.6 billion
• DKK 20.2billion in total returned to shareholders during the
first quarter
Financial report for the period 1 January 2022 to 31 March 2022
Page 2 of 29
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
PERFORMANCE HIGHLIGHTS
FINANCIAL HIGHLIGHTS FOR THE FIRST THREE MONTHS OF 2022
PROFIT AND LOSS Q1 2022 Q1 2021
% change
Q1 2022 to
Q1 2021
% change
Q1 2022 to
Q1 2021 at
CER
(Amounts are in DKK million, except for earnings per share and employees)
Net sales 42,031 33,804 24% 18%
Gross profit
35,114
27,993
25%
18%
Gross margin
83.5%
82.8%
Sales and distribution costs
(10,183)
(8,256)
23%
18%
Percentage of sales
24.2%
24.4%
Research and development costs
(5,206)
(3,944)
32%
29%
Percentage of sales
12.4%
11.7%
Administrative costs
(970)
(932)
4%
2%
Percentage of sales
2.3%
2.8%
Other operating income and expenses
392
121
224%
204%
Operating profit
19,147
14,982
28%
18%
Operating margin
45.6%
44.3%
Financial items (net)
(1,228)
956
(228%)
N/A
Profit before income taxes
17,919
15,938
12%
N/A
Income taxes
(3,709)
(3,315)
12%
N/A
Effective tax rate
20.7%
20.8%
Net profit
14,210
12,623
13%
N/A
Net profit margin
33.8%
37.3%
OTHER KEY NUMBERS
Depreciation, amortisation and impairment losses
1,650
1,377
20%
N/A
Capital expenditure (PP&E)
1,520
1,402
8%
N/A
Net cash generated from operating activities
23,586
11,255
110%
N/A
Free cash flow
21,568
9,532
126%
N/A
Total assets
197,136
141,387
39%
N/A
Equity
66,550
58,496
14%
N/A
Equity ratio
33.8%
41.4%
Average number of diluted shares outstanding (million) 2,283.3 2,315.6 (1%) N/A
Diluted earnings per share / ADR (in DKK) 6.22 5.45 14% N/A
Full-time equivalent employees end of period 49,295 45,157 9% N/A
These unaudited consolidated financial statements for the first three months of 2022 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 2021 of Novo
Nordisk.
Financial report for the period 1 January 2022 to 31 March 2022
Page 3 of 29
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
COMMERCIAL EXECUTION
SALES DEVELOPMENT ACROSS THERAPEUTIC AREAS
Sales grew by 24% measured in Danish kroner and by 18% at CER the first three months of 2022, driven by growth across
all therapy areas with Diabetes care sales growth of 16% (CER), Obesity care sales growth of 107% (CER) and Rare disease
sales growth of 3% (CER).
Sales split per therapy
Sales Q1 2022
DKK million
Sales Q1 2021
DKK million
Growth
as reported
Growth
at CER
Share of growth
at CER
Diabetes and Obesity care segment
Rybelsus
®
2,063
729
183%
167%
20%
Ozempic
®
12,035
6,662
81%
70%
77%
Victoza
®
3,322
3,909
(15%)
(20%)
(13%)
Total GLP-1
17,420
11,300
54%
45%
84%
Long-acting insulin
4,796
4,822
(1%)
(4%)
(3%)
- Tresiba
®
2,564
2,365
8%
4%
2%
- Xultophy
®
717
681
5%
3%
0%
- Levemir
®
1,515
1,776
(15%)
(18%)
(5%)
Premix insulin
3,012
2,953
2%
(3%)
(2%)
- Ryzodeg
®
637
420
52%
48%
3%
- NovoMix
®
2,375
2,533
(6%)
(12%)
(5%)
Fast-acting insulin
4,842
4,556
6%
2%
1%
- Fiasp
®
497
402
24%
20%
1%
- NovoRapid
®
4,345
4,154
5%
0%
0%
Human insulin
2,312
2,535
(9%)
(14%)
(6%)
Total insulin
14,962
14,866
1%
(4%)
(10%)
Other Diabetes care
1
884
1,110
(20%)
(25%)
(4%)
Total Diabetes care
33,266
27,276
22%
16%
70%
Wegovy
®
1,404
—
—
—
21%
Saxenda
®
1,998
1,551
29%
23%
6%
Total Obesity care
3,402
1,551
119%
107%
27%
Diabetes and Obesity care total
36,668
28,827
27%
20%
97%
Rare disease segment
Rare blood disorders
2
3,077
2,678
15%
9%
4%
- Haemophilia A
565
497
14%
10%
1%
- Haemophilia B
177
147
20%
18%
0%
- NovoSeven
®
2,271
1,980
15%
8%
3%
Rare endocrine disorders
3
1,820
1,920
(5%)
(8%)
(2%)
Other Rare disease
4
466
379
23%
18%
1%
Rare disease total
5,363
4,977
8%
3%
3%
Total sales 42,031 33,804 24% 18% 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 2022 to 31 March 2022
Page 4 of 29
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
DIABETES AND OBESITY CARE
Diabetes care, sales and market share development
Sales in Diabetes care increased by 22% measured in Danish kroner and by 16% at CER to DKK 33,266 million driven by
GLP-1 growth. Novo Nordisk has improved the global diabetes value market share over the last 12 months from 29.3% to
30.5% 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 2022 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 2022
DKK million
Growth
at CER
2022
2021
Global
30.5%
29.3%
33,266
16%
International Operations
25.4%
23.6%
17,532
13%
- EMEA *
28.9%
27.8%
8,416
15%
- Region China **
33.1%
31.7%
4,656
0%
- Rest of World ***
16.4%
13.7%
4,460
27%
North America Operations
32.3%
31.5%
15,734
18%
- The US
32.2%
31.5%
14,740
17%
Source: IQVIA, February 2022 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 54% measured in Danish
kroner and by 45% at CER to DKK 17,420 million. The GLP-1 segment’s value share of the total diabetes market has
increased to 27.8% compared with 22.8% 12 months ago. Novo Nordisk continues to be the global market leader in the
GLP-1 segment with a 53.6% value market share, an increase of 2.8 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 2022
DKK million
Growth
at CER
2022
2021
Global
53.6%
50.8%
17,420
45%
International Operations
60.1%
54.9%
5,874
60%
- EMEA *
58.9%
56.0%
3,249
38%
- Region China **
67.3%
88.9%
888
101%
- Rest of World ***
61.8%
45.3%
1,737
104%
North America Operations
52.6%
50.2%
11,546
38%
- The US
51.8%
49.5%
10,861
37%
Source: IQVIA, February 2022 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 183% measured in Danish kroner and by 167% at CER to DKK 2,063 million. Sales growth was
driven by North America Operations as well as EMEA and Rest of World. Rybelsus
®
has now been launched in 34 countries.
Ozempic
®
sales increased by 81% measured in Danish kroner and by 70% at CER to DKK 12,035 million. Sales growth was
driven by both North America Operations and International Operations. Ozempic
®
has been launched in 72 countries.
Financial report for the period 1 January 2022 to 31 March 2022
Page 5 of 29
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
Victoza
®
sales decreased by 15% measured in Danish kroner and by 20% at CER to DKK 3,322 million as the GLP-1 market
is moving towards once-weekly and tablet-based treatments. The sales decline was driven by both North America
Operations and International Operations.
International Operations
Sales of GLP-1 diabetes products in International Operations increased by 66% measured in Danish kroner and by 60% 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 14.5% from 11.2% 12 months ago. Novo Nordisk is the market leader with a value market share of 60.1%.
EMEA
Sales in EMEA increased by 40% measured in Danish kroner and by 38% at CER. The sales growth reflects the uptake of
Ozempic
®
and Rybelsus
®
,
partially offset by lower sales of Victoza
®
. Rybelsus
®
has been launched in 24 countries in EMEA.
Novo Nordisk remains the market leader in EMEA with a value market share of 58.9%.
Region China
Sales in Region China increased by 120% measured in Danish kroner and by 101% at CER. The sales growth reflects the
uptake of Ozempic
®
. As of 1 January 2022, Ozempic
®
has been included on the National Reimbursement List in China. The
GLP-1 class' share of the overall diabetes market value in Region China increased to 6.8% from 3.4% 12 months ago.
Rest of World
Sales in Rest of World increased by 113% measured in Danish kroner and by 104% at CER. The sales growth reflects
increased sales of Ozempic
®
and Rybelsus
®
, following the launch in Japan, partially offset by Victoza
®
. Novo Nordisk
remains the market leader with a value market share of 61.8%.
North America Operations
Sales of GLP-1 diabetes products in North America Operations increased by 49% measured in Danish kroner and by 38%
at CER. Novo Nordisk is the market leader with a 52.6% value market share compared to 50.2% 12 months ago. The value
market share of the GLP-1 class of the total North American diabetes market has increased to 32.5% compared to 27.0%
12 months ago.
Sales growth in the US is driven by a prescription volume growth of the GLP-1 class of more than 30% in the first quarter of
2022 compared to the first quarter of 2021 as well as market share gains for Ozempic
®
and Rybelsus
®
. During 2022, the
weekly-new-to-brand scripts for Ozempic
®
has increased from around 20,000 to around 28,000. The weekly new-to-brand
market share for Ozempic
®
is 48.2% and 12.5% for Rybelsus
®
.
The combined Novo Nordisk GLP-1 new-to-brand
prescription market share is now 65.7%. Novo Nordisk is the market leader with 54.2% measured on total monthly
prescriptions for the combined GLP-1 portfolio.
Sales of GLP-1 in the US increased by 37% 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.
Financial report for the period 1 January 2022 to 31 March 2022
Page 6 of 29
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
Insulin
Sales of insulin increased by 1% measured in Danish kroner and decreased by 4% at CER to DKK 14,962 million. Sales
decline at CER was driven by declining sales in the US.
Insulin, development per geographical area
Novo Nordisk’s share of the total
insulin market (volume, MAT) Insulin, sales development
February
February
Sales Q1 2022
DKK million
Growth
at CER
2022
2021
Global
47.0%
47.2%
14,962
(4%)
International Operations
50.1%
50.2%
10,996
1%
- EMEA *
47.4%
47.5%
4,992
4%
- Region China **
50.8%
50.6%
3,427
(6%)
- Rest of World ***
57.1%
57.3%
2,577
2%
North America Operations
38.6%
39.4%
3,966
(15%)
- The US
38.1%
39.1%
3,691
(16%)
Source: IQVIA, February 2022 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
Diabetes care sales in the area.
International Operations
Sales of insulin in International Operations increased by 5% measured in Danish kroner and by 1% at CER. Sales growth at
CER was driven by all insulin products except for human insulin, NovoMix
®
and Levemir
®
.
EMEA
Sales of insulin in EMEA increased by 5% measured in Danish kroner and by 4% at CER. The sales growth at CER was mainly
driven by Tresiba
®
, NovoRapid
®
, Levemir
®
and Fiasp
®
, partially countered by NovoMix
®
and human insulin. Novo Nordisk
has a volume market share of 47.4% of the total insulin market.
Region China
Sales of insulin in Region China increased by 3% measured in Danish kroner and decreased by 6% at CER. The sales decline
at CER was driven by NovoMix
®
, human insulin and Levemir
®
, partially countered by Ryzodeg
®
and Tresiba
®
. Xultophy
®
was
launched in February 2022. Insulin sales were negatively affected by supply chain impacts related to the implementation of
Volume Based Procurement in May 2022. Novo Nordisk has a volume market share of 50.8% of the total insulin market.
Rest of World
Sales of insulin in Rest of World increased by 6% measured in Danish kroner and by 2% at CER. The sales growth at CER
was driven by all insulin products except for human insulin and Levemir
®
. Novo Nordisk has a volume market share of
57.1% of the total insulin market.
North America Operations
Sales of insulin in North America Operations decreased by 9% measured in Danish kroner and by 15% at CER. The sales
decrease in the US was driven by lower realised prices due to rebate enhancements and channel and payer mix as well as
a decline in volume with the US insulin volume market declining 1% compared to the first quarter of 2021. Novo Nordisk
has a volume market share of 38.6% of the total insulin market.
Financial report for the period 1 January 2022 to 31 March 2022
Page 7 of 29
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
Obesity care, sales development
Sales of Obesity care products, Saxenda
®
and Wegovy
®
increased by 119% measured in Danish kroner and by 107% at CER
to DKK 3,402 million. Sales growth was driven by both North America Operations and International Operations. Saxenda
®
has been launched in 65 countries, and Wegovy
®
was launched in the US in June 2021.
Obesity care, development per geographical area Obesity care, sales development
Sales Q1 2022
DKK million
Growth
at CER
Global
3,402
107%
International Operations
1,193
63%
- EMEA
726
94%
- Region China
37
—
- Rest of World
430
22%
North America Operations
2,209
146%
- The US
2,108
158%
International Operations
Sales of Saxenda
®
in International Operations increased by 67% measured in Danish kroner and by 63% at CER driven by
increased sales in EMEA and Rest of World. Novo Nordisk currently has a value market share of 54.3% in the branded
obesity prescription drug market.
EMEA
Sales of Saxenda
®
in EMEA increased by 96% measured in Danish kroner and by 94% at CER. Novo Nordisk currently has a
value market share of 73.5% in the branded obesity prescription drug market.
Rest of World
Sales of Saxenda
®
in Rest of World increased by 28% measured in Danish kroner and by 22% at CER. Saxenda
®
has been
launched in 19 countries in Rest of World. Novo Nordisk currently has a value market share of 42.7% in the branded
obesity prescription drug market.
North America Operations
Sales of Obesity care products in North America Operations increased by 164% measured in Danish kroner and by 146% at
CER. Novo Nordisk now has a value market share of 91.5% in the branded anti-obesity prescription drug market in North
America. Wegovy
®
was made available to patients in June 2021 and market access has progressed and commercial
formulary access is now around 80%. Feedback from prescribers and patients has been encouraging and demand from
patients exceeded supply.
In December 2021, Novo Nordisk announced that a contract manufacturer filling syringes for Wegovy
®
pens for the US
market has temporarily stopped deliveries and manufacturing following issues with current Good Manufacturing Practices.
Focus is on ensuring continuity of care to patients that have already initiated treatment, and in March 2022 Novo Nordisk
had to stop supply of the lower Wegovy
®
doses (0.25 and 0.50 mg) to prevent new patients from initiating treatment. In
addition, the 1.0 mg dose is currently out of stock.
The contract manufacturer has reinitiated commercial production and Novo Nordisk expects to make all Wegovy
®
dose
strengths available in the US during the second half 2022.
Financial report for the period 1 January 2022 to 31 March 2022
Page 8 of 29
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
Rare disease
Rare disease, sales development
Sales of Rare disease products increased by 8% measured in Danish kroner and by 3% at CER to DKK 5,363 million in line
with the strategic aspiration of sustained growth in Rare disease. The sales growth at CER was driven by both International
Operations and North America Operations. Sales growth was driven by Rare blood disorders.
Rare disease, development per geographical area Rare disease, sales development
Sales Q1 2022
DKK million
Growth
at CER
Global
5,363
3%
International Operations
3,316
3%
- EMEA
1,682
(13%)
- Region China
148
155%
- Rest of World
1,486
21%
North America Operations
2,047
3%
- The US
1,905
4%
Rare blood disorders
Sales of Rare blood disorder products increased by 15% measured in Danish kroner and by 9% at CER to DKK 3,077 million.
The increasing sales were driven by NovoSeven
®
as well as the launch products Esperoct
®
and Refixia
®
.
Sales of haemophilia A products increased by 14% measured in Danish kroner and by 10% at CER to DKK 565 million. The
sales increase was driven by International Operations. Esperoct
®
has now been launched in 27 countries.
Sales of haemophilia B products increased by 20% measured in Danish kroner and by 18% at CER to DKK 177 million. The
sales increase was driven by International Operations. Refixia
®
has now been launched in 25 countries.
Sales of NovoSeven
®
increased by 15% measured in Danish kroner and by 8% at CER to DKK 2,271 million. The sales
development was driven by increasing sales in both North America Operations and International Operations.
Rare endocrine disorders
Sales of Rare endocrine disorder products decreased by 5% measured in Danish kroner and by 8% at CER to DKK 1,820
million. The sales development was driven by North America Operations' sales decreasing by 20% at CER and by
International Operations sales decreasing by 2% at CER. Novo Nordisk continues being the leading company in the global
human growth disorder market with a value market share of 36.4% compared to 36.1% a year ago.
Financial report for the period 1 January 2022 to 31 March 2022
Page 9 of 29
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Financial
Information
Company announcement No 33 / 2022
FINANCIALS
GEOGRAPHIC SALES DEVELOPMENT
Sales increased by 24% measured in Danish kroner and by 18% at CER to DKK 42,031 million in the first three months of
2022. Sales in International Operations increased by 18% measured in Danish kroner and by 13% at CER. The strategic
aspiration for International Operations is sales growth between 6-10%. Sales in North America Operations increased by
33% measured in Danish kroner and by 24% at CER. The strategic aspiration of transforming 70% of sales in the US has
progressed, and 67% of sales are now derived from products launched since 2015.
Sales split per geographical area
Sales Q1 2022
DKK million
Growth
as reported
Growth
at CER
Share of growth
at CER
International Operations
22,041
18%
13%
42%
- EMEA
10,824
14%
12%
20%
- Region China
4,841
12%
2%
1%
- Rest of World
6,376
30%
26%
21%
North America Operations
19,990
33%
24%
58%
- The US
18,753
32%
23%
54%
Total sales 42,031 24% 18% 100%
International Operations
Sales in International Operations increased by 18% measured in Danish kroner and by 13% at CER. Sales growth was
driven by all therapy areas with GLP-1 sales growing by 60% at CER, insulin sales growing by 1% at CER, Obesity care sales
growing by 63% at CER and Rare disease sales growing by 3% at CER.
EMEA
Sales in EMEA increased by 14% measured in Danish kroner and by 12% at CER. Sales growth was driven by Diabetes care
growing by 15% at CER driven by increased GLP-1 sales. Obesity care sales increased by 94% at CER and Rare disease sales
decreased by 13% at CER.
Region China
Sales in Region China increased by 12% measured in Danish kroner and by 2% at CER. Sales growth was driven by GLP-1
sales growing 101% at CER partially offset by Other diabetes care declining 43% at CER and insulin sales declining 6% at
CER. Insulin sales were negatively impacted by supply chain impacts related to the implementation of Volume Based
Procurement in May 2022
Rest of World
Sales in Rest of World increased by 30% measured in Danish kroner and by 26% at CER. Sales growth was driven by
Diabetes care growing by 27% at CER, reflecting increased GLP-1 and insulin sales, Obesity care sales growing by 22% at
CER and Rare disease growing by 21% at CER.
North America Operations
Sales in North America Operations increased by 33% measured in Danish kroner and by 24% at CER. The sales increase
reflects GLP-1 diabetes sales growing by 38% at CER, Obesity care sales growing by 146% at CER and Rare disease sales
growing by 3% at CER. This was partially offset by insulin sales decreasing by 15% at CER driven by lower realised prices
due to rebate enhancements and channel and payer mix as well as a decline in volume.
Financial report for the period 1 January 2022 to 31 March 2022
Page 10 of 29
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Company announcement No 33 / 2022
DEVELOPMENT IN COSTS AND OPERATING PROFIT
The cost of goods sold increased by 19% measured in Danish kroner and by 17% at CER to DKK 6,917 million, resulting in
a gross margin of 83.5% measured in Danish kroner compared with 82.8% in 2021. The increase in gross margin reflects a
positive product mix, driven by increased GLP-1 sales, a positive currency impact of 0.5 percentage point and productivity
improvements. This is partially countered by lower realised prices mainly in the US.
Sales and distribution costs increased by 23% measured in Danish kroner and by 18% at CER to DKK 10,183 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 Ozempic
®
and Rybelsus
®
as well as Obesity care market development
activities. In North America Operations, the cost increase is driven by promotional activities for Rybelsus
®
and Ozempic
®
as
well as market development activities for Obesity care, partially offset by lower promotional spend related to insulin.
Research and development costs increased by 32% measured in Danish kroner and by 29% at CER to DKK 5,206 million
reflecting increased late-stage clinical trial activity compared to the first three months of 2021. Increased activities within
Other serious chronic diseases are driving the cost increase reflecting the progression of the pipeline within cardiovascular
disease and NASH as well as the operating costs and amortisations related to acquisition of Dicerna Pharmaceuticals Inc.
Administration costs increased by 4% measured in Danish kroner and by 2% at CER to DKK 970 million.
Other operating income and expenses (net) was DKK 392 million compared with DKK 121 million in 2021, driven by
income from partnerships related to Dicerna Pharmaceuticals Inc.
Operating profit increased by 28% measured in Danish kroner and by 18% at CER to DKK 19,147 million. Operating profit
growth was negatively impacted by around 2 percentage points from the acquisition of Dicerna Pharmaceuticals Inc. in
2021.
Financial items (net) showed a net loss of DKK 1,228 million compared with a net gain of DKK 956 million in 2021.
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 loss of DKK 777 million
compared with a net gain of DKK 947 million in 2021. This reflects losses on hedged currencies, primarily the US dollar.
As per the end of March 2022, a negative market value of financial contracts of approximately DKK 1.8 billion has been
deferred for recognition later in 2022 and 2023.
The effective tax rate was 20.7% in the first three months of 2022 compared with an effective tax rate of 20.8% in 2021.
Net profit increased by 13% to DKK 14,210 million and diluted earnings per share increased by 14% to DKK 6.22.
Financial report for the period 1 January 2022 to 31 March 2022
Page 11 of 29
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Company announcement No 33 / 2022
CASH FLOW AND CAPITAL ALLOCATION
FREE CASH FLOW IN THE FIRST THREE MONTHS OF 2022 AND CAPITAL EXPENDITURE
Free cash flow was DKK 21.6 billion compared with DKK 9.5 billion in 2021 supporting the strategic aspiration to deliver
attractive capital allocation to shareholders. The increase is driven by higher net profit, higher provisions for rebates in the
US and a positive impact from change in working capital.
Capital expenditure for property, plant and equipment was DKK 1.5 billion compared with DKK 1.4 billion in 2021.
Novo Nordisk’s financial reserves were DKK 31.1 billion by end of March 2022 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 66,550 million at the end of the first three months of 2022, equivalent to 33.8% of total assets,
compared with 41.4% at the end of the first three months of 2021. 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 24 March 2022, a 1.3% reduction in the total share
capital was approved. The reduction was effectuated by a cancellation of 30,000,000 treasury B shares of DKK 0.20
at a nominal value of DKK 6,000,000. After the legal implementation of the share capital reduction on 27 April
2022, Novo Nordisk’s share capital now amounts to DKK 456,000,000 divided into an A share capital of DKK
107,487,200 and a B share capital of DKK 348,512,800.
2022 share repurchase programme
On 2 February 2022, Novo Nordisk announced an overall share repurchase programme of up to DKK 22 billion to be
executed during a 12-month period beginning 2 February 2022. Under the programme, Novo Nordisk has as of 22 April
2022 repurchased 5,595,250 B shares for an amount of DKK 4.0 billion.
Based on the increased expectations for cash flow generation in 2022, the Board of Directors has approved an expansion
of the 2022 share repurchase programme by DKK 2 billion to DKK 24 billion.
As announced in February 2022, 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 2022, 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 28.4% 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%
Issuance of Eurobonds
On 24 March 2022, Novo Nordisk announced the successful Eurobond issuance in an aggregate principal amount of EUR
1.5 billion under its EUR 5 billion Euro Medium Term Note Programme. The first tranche maturing on 31 March 2025 was
issued in an aggregate principal amount of EUR 500 million with a coupon of 0.750%. The second tranche maturing on 30
September 2027 was issued in an aggregate principal amount of EUR 500 million with a coupon of 1.125%.The third
tranche maturing on 31 March 2030 was issued in an aggregate principal amount of EUR 500 million with a coupon of
1.375%. Net proceeds of the issuances will be used by Novo Nordisk for general corporate purposes. Further, part of the
net proceeds have been used for refinancing of the bridge loan facility established in connection with Novo Nordisk’s
acquisition of Dicerna Pharmaceuticals, Inc. in 2021. The bonds are recognised as borrowings measured at amortised cost.
Financial report for the period 1 January 2022 to 31 March 2022
Page 12 of 29
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Company announcement No 33 / 2022
OUTLOOK
OUTLOOK 2022
The current expectations for 2022 are summarised in the table below:
Expectations are as reported, if not otherwise stated
Expectations
29 April 2022
Expectations
2 February 2022
Sales growth
at CER 10% to 14% 6% to 10%
as reported
Around 7 percentage points higher than at
CER
Around 5 percentage points higher than at CER
Operating profit growth
at CER 9% to 13% 4% to 8%
as reported
Around 11 percentage points higher than at
CER
Around 7 percentage points higher than at CER
Financial items (net) Loss of around DKK 4.1 billion Loss of around DKK 2.8 billion
Effective tax rate 20% to 22% 20% to 22%
Capital expenditure (PP&E) Around DKK 12.0 billion Around DKK 12.0 billion
Depreciation, amortisation and impairment losses Around DKK 6.5 billion Around DKK 6.5 billion
Free cash flow (excluding impact from business
development)
DKK 55-60 billion DKK 50-55 billion
For 2022, sales growth is now expected to be 10% to14% at CER. Given the current exchange rates versus the Danish
krone, sales growth reported in DKK is now expected to be around 7 percentage points higher than at CER. The guidance
reflects expectations for sales growth in both International Operations and North America Operations, mainly driven by
Diabetes and Obesity care. Intensifying competition within both Diabetes care and Rare disease as well as an estimated
negative impact on global sales growth of around 3 percentage points from Volume Based Procurement of insulin in China
are also reflected in the guidance. Furthermore, continued pricing pressure within Diabetes care, especially in the US, is
expected to negatively impact sales development. Following higher than expected volume growth of GLP-1-based
products, including Ozempic
®
, the outlook also reflects expected periodic supply constraints. Finally, the outlook also
reflects the expectation of making all dose strengths of Wegovy
®
available in the US during the second half of 2022.
Operating profit growth is now expected to be 9% to 13% at CER. Given the current exchange rates versus the Danish
krone, growth reported in DKK is now expected to be around 11 percentage points higher than at CER. The expectation for
operating profit growth primarily reflects the updated sales growth outlook and continued investments in current and
future growth drivers within Research and development and Commercial. Across the operating units, commercial
investments are related to the continued roll-out of Ozempic
®
and Rybelsus
®
as well as global investments in building the
anti-obesity market and the launch of Wegovy
®
. Furthermore, resources are allocated to both early and late-stage pipeline
activities. The acquisition of Dicerna Pharmaceuticals Inc. is negatively impacting operating profit growth by around 3
percentage points due to higher operating costs and amortisations of intangible assets.
The potential wider consequences of Russia's invasion of Ukraine, including impacts on energy supply and supply chains,
could cause uncertainty to the outlook and the business performance of Novo Nordisk.
For 2022, Novo Nordisk now expects financial items (net) to amount to a loss of around DKK 4.1 billion, mainly reflecting
losses associated with foreign exchange hedging contracts.
The effective tax rate for 2022 is still expected to be in the range of 20-22%.
Capital expenditure is still expected to be around DKK 12 billion in 2022 primarily relating to investments in additional
capacity for active pharmaceutical ingredient (API) production at existing manufacturing sites.
Depreciation, amortisation and impairment losses are still expected to be around DKK 6.5 billion.
The free cash flow is now expected to be DKK 55-60 billion reflecting higher sales and net profit expectations.
Financial report for the period 1 January 2022 to 31 March 2022
Page 13 of 29
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Company announcement No 33 / 2022
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 2022, including energy and supply
chain disruptions, the potential implications from major healthcare reforms and legislative changes as well as outcome of
legal cases including litigations related to the 340B Drug Pricing Programme in the US, 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 any significant business development transactions during the remainder of 2022.
FX (average rates) Q1 2022 Q1 2021 % change
Spot rate
26 April 2022
USD
664
617
8%
697
CNY
105
95
11%
107
JPY
5.70
5.82
(2%)
5.46
CAD
524
488
7%
546
GBP
890
851
5%
884
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 2,600 million
12
CNY
2
DKK 360 million
0
JPY
DKK 220 million
12
CAD
DKK 210 million
9
GBP
DKK 120 million
11
1)
As of 28 April 2022.
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 2022 to 31 March 2022
Page 14 of 29
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Company announcement No 33 / 2022
INNOVATION AND THERAPEUTIC FOCUS
Diabetes care
Ozempic
®
2.0 mg approved in the US for the treatment of adults with type 2 diabetes
On 28 March, Ozempic
®
2.0 mg was approved by the US Food and Drug Administration (FDA) for the treatment of type 2
diabetes in adults. Ozempic
®
is now approved in the US at 0.5 mg,1.0 mg and 2.0 mg doses for the treatment of type 2
diabetes in adults. Further, Ozempic
®
is indicated to reduce the risk of major cardiovascular events such as heart attack,
stroke or cardiovascular death in adults with type 2 diabetes and known heart disease. Novo Nordisk expects to launch
Ozempic
®
2.0 mg in the United States in the second quarter of 2022. For further information, please see the company
announcement.
Once-weekly insulin icodec demonstrates superior reduction in HbA
1c
in ONWARDS 2 phase 3 trial
On 28 April, Novo Nordisk announced headline results from the ONWARDS 2 trial, a phase 3a, 26-week efficacy and safety
treat-to-target trial investigating once-weekly insulin icodec vs insulin degludec in people with type 2 diabetes. The
remainder of trials in the ONWARDS programme will read out during the rest of 2022. For information, please see the
company announcement.
Phase 1 trial with Ideal Pump insulin (insulin 119) successfully completed
In February 2022, Novo Nordisk successfully completed a phase 1 trial with insulin 119. The trial investigated safety,
tolerability, pharmacokinetics and pharmacodynamics of insulin 119 compared to faster-acting insulin aspart in people
with type 1 diabetes. In March 2022, a phase 1 formulation guidance trial was initiated designed to identify the formulation
suitable for further clinical development.
Phase 1b trial with insulin 965 completed and development terminated
During the first quarter of 2022, Novo Nordisk successfully completed a phase 1b trial investigating biomarkers of
functional selective insulin 965. Following the completion of the trial, development of insulin 965 has been terminated due
to portfolio considerations.
Phase 1 trial initiated with an oral once-daily GLP-1/GIP co-agonist
In April 2022, Novo Nordisk initiated a phase 1 trial with a once-daily GLP-1/GIP co-agonist. The trial is investigating safety,
tolerability, pharmacokinetics and pharmacodynamics of different doses of once-daily GLP-1/GIP.
Rare disease
Phase 3 trial with concizumab successfully completed
In February 2022, Novo Nordisk successfully completed the pivotal phase 3 trial with concizumab, explorer 7. The trial
investigated subcutaneous concizumab prophylaxis treatment in people with haemophilia A and B with inhibitors. The trial
met its primary endpoint by showing concizumab prophylaxis was effective in reducing the annual bleeding rate (ABR) by
86% compared to no prophylaxis treatment in people with haemophilia A with inhibitors (HAwI) and haemophilia B with
inhibitors (HBwI). The overall median ABR on concizumab prophylaxis was 0, and the median ABR was 0 in the HAwI and
HBwI subgroups, respectively. The estimated mean ABR was 1.7 for concizumab prophylaxis and 11.8 for people not
receiving prophylaxis treatment . Concizumab appeared to have a safe and well tolerated profile with no thromboembolic
events reported after the restart of the phase 3 in August 2020. Novo Nordisk expects to submit concizumab for
regulatory approval in the second half of 2022.
Technology platforms
Phase 1 trial initiated with SOMA oral Device (DV3395)
In March 2022, Novo Nordisk initiated a phase 1 trial with the DV3395 oral device concept. The trial is investigating safety
and gastrointestinal transit of the DV3395 device, without active pharmaceutical ingredient, in around 60 people.
Financial report for the period 1 January 2022 to 31 March 2022
Page 15 of 29
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Company announcement No 33 / 2022
Purpose and sustainability
Environment
ENVIRONMENTAL PERFORMANCE Q1 2022 Q1 2021
Q1 2019
(pre-
COVID)
4
% change
Q1 2022 to
Q1 2021
% change
Q1 2022 to
Q1 2019
Emissions
CO
2
emissions from operations and transportation (1,000 tonnes)
60
41
80
46%
(25%)
- Scope 1 emissions
1
20
18
22
11%
(9%)
- Scope 2 emissions
2
6
5
20
20%
(70%)
- Scope 3 emissions
3
34
18
38
89%
(11%)
1. Scope 1: Direct emissions from company owned and controlled resources (including emissions from production processes and transport.
2. Scope 2: Indirect emissions from the generation of energy purchased from a utility provider (including electricity, steam, heat and cooling).
3. Scope 3: Emissions are limited to CO
2
emissions from business flights and product distribution.
4. In 2019, some emission categories were only reported at an annual basis. For these categories, the quarterly emissions have been estimated based on the full-
year results
Emissions
Novo Nordisk's ambition is to have zero environmental impact. The environmental strategy is called Circular for Zero.
Carbon emissions from operations and transportation increased by 46% in the first three months of 2022 compared to the
first three months of 2021, mainly reflecting COVID-19 impact on activities in 2021. Scope 3 emissions increased by 89%
due to increased business travel and product distribution done by air freight. Compared with the first quarter of 2019, total
carbon emissions decreased by 25%. Novo Nordisk has recently entered into a new partnership with SkyNRG enabling the
use of sustainable aviation fuel, which is estimated to reduce carbon emissions from product distribution by around 25%
as of 2025 compared to 2021.
Social
SOCIAL PERFORMANCE Q1 2022 Q1 2021
% change
Q1 2022 to
Q1 2021
Patients
Patients reached with Novo Nordisk's Diabetes care products (estimate in million)
1
34.9
33.0
6%
'- Hereof children reached through the Changing Diabetes
®
in Children programme (cumulative)
33,209
29,052
14%
Sustainable employer
Gender in leadership positions
2
(ratio men:women)
57:43
58:42
N/A
Gender in senior leadership positions
3
(ratio men:women)
63:37
65:35
N/A
1. Calculated as a moving annual total.
2. Defined as team leaders, managers, directors, vice presidents, corporate vice presidents, senior vice presidents and executive management.
3. Defined as vice presidents, corporate vice presidents, senior vice presidents and executive management.
Patients
Novo Nordisk continued to take action under the social responsibility strategy ‘Defeat Diabetes’ with a keen focus on
access and affordability and prevention. The number of people with diabetes treated with Novo Nordisk products,
calculated as a moving annual total, at the end of March 2022 was 34.9 million. This estimate represents a net increase of
1.9 million patients compared to the end of March 2021.
Novo Nordisk has an ambition that no child should die from type 1 diabetes. To achieve this, the Changing Diabetes
®
in
Children programme aims to reach 100,000 children by 2030. By end of March 2022, more than 33,000 children were
reached, an increase of 14% compared to the first quarter of 2021. Jordan, Lebanon, Malawi, Mozambique and Rwanda
have been added to the programme which now includes 23 countries.
In April 2022, Novo Nordisk announced a positive scientific opinion from the European Medicines Agency (EMA) on human
insulin with more flexible storage without refrigeration. EMA’s positive scientific opinion will now be used to support
obtaining approval of the more flexible storage conditions by national health authorities in a number of relevant low- and
middle-income countries. The new guidance aims to improve flexibility and convenience for many people with diabetes in
low- and middle-income countries, who have limited access to reliable refrigeration, and who may live within long distances
from a clinic or pharmacy.
Financial report for the period 1 January 2022 to 31 March 2022
Page 16 of 29
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Company announcement No 33 / 2022
Sustainable employer
Novo Nordisk aspires to be a sustainable employer, and in 2021 two aspirational gender diversity targets were launched;
achieve a balanced gender representation across all managerial level and achieve a minimum of 45% women and a
minimum of 45% men in senior leadership positions by the end of 2025.
By the end of the first quarter in 2022, 43% of all leaders were women, and 37% of leaders in senior leadership positions
were women compared to 35% the end of first quarter in 2021.
Employees
The number of full-time employees at the end of the first three months of 2022 increased by 9.0% compared to 12
months ago. The total number of full-time employees was 49,295. The increase is driven by Product Supply, International
Operations, R&D and Global Business Services in India.
Russia's invasion of Ukraine
Following Russia's invasion of Ukraine, Novo Nordisk's key priorities have been to safeguard employees and continue the
supply of essential medicines.
Although Novo Nordisk's offices in Kyiv, Ukraine, were shuttered on 24 February, the company remains in regular contact
with the Ukrainian employees. Emergency funds have been provided to all affected employees to help meet the costs of
evacuation. Further, Novo Nordisk has coordinated support to help any employee who wanted to relocate or leave Ukraine
with the ability to do so. Novo Nordisk has to the extent possible continued supply of medicines in Ukraine. Moreover,
Novo Nordisk has donated two months’ supply of diabetes and haemophilia medication to the Ukrainian Ministry of Health
and together with humanitarian organisations Novo Nordisk continues to monitor the situation to be able to provide
further support. In neighbouring countries hosting refugees from Ukraine, Novo Nordisk has provided donations to
ensure access to insulin for people who have been forced to flee.
In Russia, Novo Nordisk has suspended further marketing investments, while maintaining supply of medicine to ensure
that more than 700,000 patients can continue their treatment with essential medication. Within regulatory, Novo Nordisk
has ceased filing for marketing authorisations of new medication, and within clinical development, Novo Nordisk has
suspended further clinical investments in Russia. Consequently, no new clinical trials are initiated in Russia, and active
enrolment of new patients in ongoing trials is halted. Currently, there are around 3,000 patients enrolled in Russia. Novo
Nordisk's factory in Russia is still operating to supply insulin to patients in Russia only.
Sales in Russia and Ukraine constituted less than 1% of Novo Nordisk's global sales in 2021.
Financial report for the period 1 January 2022 to 31 March 2022
Page 17 of 29
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Company announcement No 33 / 2022
LEGAL MATTERS
Abbreviated New Drug Applications have been filed for semaglutide with the U.S. FDA
In January 2022, four companies notified Novo Nordisk that they had filed Abbreviated New Drug Applications (ANDAs) for
semaglutide, the active pharmaceutical molecule in Ozempic
®
with the U.S. Food and Drug Administration. Accordingly,
these ANDAs contain Paragraph IV certifications to obtain approval to engage in the commercial manufacture, use or sale
of Ozempic
®
before the expiration of some or all of the patents currently listed for Ozempic
®
in the Orange Book with
expiration dates ranging from December 2023 until December 2033, including the drug substance patent expiring June
2032 (all expiration dates assume paediatric exclusivity extension). Subsequently, Dr. Reddy’s Laboratories, Ltd. (DRL),
Mylan Pharmaceuticals Inc. (Mylan) and Alvogen Inc., (Alvogen) have provided similar notifications to Novo Nordisk, while
Aurobindo Pharma US Inc. (Aurobindo) has informed Novo Nordisk that they have withdrawn their ANDA application. Novo
Nordisk has filed suit against the companies maintaining their ANDA application for patent infringement, asserting
infringement of Novo Nordisk’s patents. Novo Nordisk does not expect these matters to have a material impact on Novo
Nordisk’s financial position, operating profit or cash flow.
Abbreviated New Drug Application relating to Victoza
®
On 22 March 2022, Novo Nordisk entered into a settlement with Sandoz Inc. (Sandoz) regarding the US patent litigation
case for Victoza
®
(liraglutide), which was commenced in June 2020. Consequently, Sandoz is licensed to launch a generic
version of Victoza
®
as of 22 June 2024, or earlier under certain circumstances. The agreement follows earlier agreements
with Teva, Myland and Pfizer. The agreement is subject to review by the US Federal Trade Commission and the US
Department of Justice.
Victoza
®
product liability litigation in the US
Numerous claims alleging pancreatic cancer, pancreatitis and thyroid cancer have been filed in U.S. courts against various
incretin class manufacturers, including Victoza
®
and Novo Nordisk. As of 12 April 2022, 366 plaintiffs have filed product
liability cases against Novo Nordisk, most alleging pancreatic cancer. In March and April of 2021, the California federal and
state courts granted defendants’ motions for summary judgment on pre-emption and general causation grounds in all
pancreatic cancer cases before those courts as of the time of the rulings. On 28 March 2022, the U.S. Court of Appeals for
the Ninth Circuit affirmed the MDL court’s grant of summary judgment on general causation grounds.
Financial report for the period 1 January 2022 to 31 March 2022
Page 18 of 29
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Company announcement No 33 / 2022
MANAGEMENT STATEMENT
Executive Management:
Board of Directors:
Financial report for the period 1 January 2022 to 31 March 2022
Page 19 of 29
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Company announcement No 33 / 2022
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 49,300 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 June 2022
Investor event at ADA in New Orleans
4 August 2022
Financial statement for the first six months of 2022
2 November 2022
Financial statement for the first nine months of 2022
1 February 2023
Financial statement for 2022
Contacts for further information
Media:
Ambre Brown Morley
+45 3079 9289
abmo@novonordisk.com
Natalia Salomao Abrahao (US)
+1 848 304 1027
niaa@novonordisk.com
Investors:
Daniel Muusmann Bohsen
+45 3075 2175
dabo@novonordisk.com
Ann Søndermølle Rendbæk
+45 3075 2253
arnd@novonordisk.com
David Heiberg Landsted
+45 3077 6915
dhel@novonordisk.com
Jacob Martin Wiborg Rode
+45 3075 5956
jrde@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 2021 and Form 20-F both filed with the SEC in February 2022 in continuation of the publication of the Annual Report 2021, 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, such as 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, including as a result of interruptions or delays affecting supply chains on which Novo Nordisk relies, 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 including the risk of cybersecurity breaches, 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, epidemics, pandemics or other public health crises, and the effects of domestic or
international crises, civil unrest, war or other conflict, and factors related to the foregoing matters and other factors not specifically identified herein.
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 2021.
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 2022 to 31 March 2022
Page 20 of 29
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Company announcement No 33 / 2022
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
2022
2021
Q1 2022 vs.
Q1
Q4
Q3
Q2
Q1
Q1 2021
Net sales
42,031
38,333
35,622
33,041
33,804
24%
Gross profit
35,114
32,092
29,563
27,494
27,993
25%
Gross margin
83.5%
83.7%
83.0%
83.2%
82.8%
Sales and distribution costs
(10,183)
(11,632)
(9,119)
(8,001)
(8,256)
23%
Percentage of sales
24.2%
30.3%
25.6%
24.2%
24.4%
Research and development costs
(5,206)
(5,632)
(4,252)
(3,944)
(3,944)
32%
Percentage of sales
12.4%
14.7%
11.9%
11.9%
11.7%
Administrative costs
(970)
(1,190)
(1,024)
(904)
(932)
4%
Percentage of sales
2.3%
3.1%
2.9%
2.7%
2.8%
Other operating income and expenses
392
(4)
81
134
121
224%
Operating profit
19,147
13,634
15,249
14,779
14,982
28%
Operating margin
45.6%
35.6%
42.8%
44.7%
44.3%
Financial income
210
254
790
90
1,753
(88%)
Financial expenses
(1,438)
(775)
(927)
48
(797)
80%
Financial items (net)
(1,228)
(521)
(137)
138
956
(228%)
Profit before income taxes
17,919
13,113
15,112
14,917
15,938
12%
Income taxes
(3,709)
(2,221)
(2,993)
(2,794)
(3,315)
12%
Net profit
14,210
10,892
12,119
12,123
12,623
13%
Depreciation, amortisation and impairment losses
1,650
2,082
1,349
1,217
1,377
20%
Capital expenditure (PP&E)
1,520
2,049
1,175
1,709
1,402
8%
Net cash generated from operating activities
23,586
(3,017)
21,507
25,255
11,255
110%
Free cash flow
21,568
(22,993)
19,616
23,164
9,532
126%
Total assets
197,136
194,508
174,084
158,095
141,387
39%
Total equity
66,550
70,746
66,112
65,559
58,496
14%
Equity ratio
33.8%
36.4%
38.0%
41.5%
41.4%
Full-time equivalent employees end of period 49,295 47,792 46,982 45,971 45,157 9%
Basic earnings per share/ADR (in DKK)
6.24
4.77
5.29
5.26
5.47
14%
Diluted earnings per share/ADR (in DKK)
6.22
4.76
5.27
5.26
5.45
14%
Average number of shares outstanding (million)
2,276.4
2,284.0
2,291.9
2,300.8
2,309.6
(1%)
Average number of diluted shares outstanding (million)
2,283.3
2,290.6
2,297.3
2,306.3
2,315.6
(1%)
Sales by business segment:
Total GLP-1
17,420
16,372
13,848
12,077
11,300
54%
Long-acting insulin
4,796
4,677
4,416
4,149
4,822
(1%)
Premix insulin
3,012
2,691
2,844
2,715
2,953
2%
Fast-acting insulin
4,842
4,520
4,359
4,252
4,556
6%
Human insulin
2,312
2,085
2,391
2,041
2,535
(9%)
Total insulin
14,962
13,973
14,010
13,157
14,866
1%
Other Diabetes care
884
816
859
809
1,110
(20%)
Total Diabetes care
33,266
31,161
28,717
26,043
27,276
22%
Wegovy
®
1,404
782
519
85
—
N/A
Saxenda
®
1,998
1,677
1,879
1,907
1,551
29%
Total Obesity care
3,402
2,459
2,398
1,992
1,551
119%
Diabetes and Obesity care total
36,668
33,620
31,115
28,035
28,827
27%
Rare blood disorders
3,077
2,490
2,326
2,723
2,678
15%
Rare endocrine disorders
1,820
1,719
1,805
1,859
1,920
(5%)
Other Rare disease
466
504
376
424
379
23%
Rare disease total
5,363
4,713
4,507
5,006
4,977
8%
Sales by geographic segment:
International Operations
22,041
18,216
18,337
18,237
18,747
18%
- EMEA
10,824
9,427
9,170
9,579
9,530
14%
- Region China
4,841
3,710
4,257
3,722
4,330
12%
- Rest of World
6,376
5,079
4,910
4,936
4,887
30%
North America Operations
19,990
20,117
17,285
14,804
15,057
33%
- The US
18,753
18,902
16,181
13,754
14,172
32%
Segment operating profit:
Diabetes and Obesity care
16,379
11,861
13,052
12,155
12,470
31%
Rare disease
2,768
1,773
2,197
2,624
2,512
10%
Financial report for the period 1 January 2022 to 31 March 2022
Page 21 of 29
Strategic
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sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
APPENDIX 2: INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
DKK million
Q1 2022
Q1 2021
Income statement
Net sales
Cost of goods sold
(6,917 )
(5,811 )
Gross profit
Sales and distribution costs
(10,183 )
(8,256 )
Research and development costs
(5,206 )
(3,944 )
Administrative costs
(970 )
(932 )
Other operating income and expenses
Operating profit
Financial income
Financial expenses
(1,438 )
(797 )
Profit before income taxes
Income taxes
(3,709 )
(3,315 )
NET PROFIT
Basic earnings per share (DKK)
Diluted earnings per share (DKK)
Segment Information
Segment sales:
Diabetes and Obesity care
36,668
28,827
Rare disease
5,363
4,977
Segment operating profit:
Diabetes and Obesity care
16,379
12,470
Operating margin
44.7 %
43.3 %
Rare disease
2,768
2,512
Operating margin
51.6 %
50.5 %
Total segment operating profit
19,147
14,982
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
(652 )
(1,573 )
Other items
(4 )
(2 )
Tax on other comprehensive income, income/(expense)
Other comprehensive income for the period, net of tax 1,522 (1,138 )
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 15,732 11,485
Financial report for the period 1 January 2022 to 31 March 2022
Page 22 of 29
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Company announcement No 33 / 2022
APPENDIX 3: CASH FLOW STATEMENT
DKK million Q1 2022 Q1 2021
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 )
Interest received
Interest paid
(52 )
(50 )
Income taxes paid
(5,260 )
(5,931 )
Net cash generated from operating activities
Purchase of intangible assets
(260 )
(97 )
Purchase of property, plant and equipment
(1,520 )
(1,402 )
Proceeds from other financial assets
Purchase of other financial assets
(7 )
(4 )
Purchase of marketable securities
(1,845 )
(2,350 )
Sale of marketable securities
Dividend received from associated company
Net cash used in investing activities
(1,907 )
(3,481 )
Purchase of treasury shares
(4,477 )
(2,960 )
Dividends paid
(15,690 )
(13,495 )
Proceeds from issue of bonds
Proceeds from borrowings
Repayment of borrowings
(12,855 )
(349 )
Withheld dividend tax
Net cash used in financing activities
(19,135 )
(14,475 )
NET CASH GENERATED FROM ACTIVITIES
(6,701 )
Cash and cash equivalents at the beginning of the year
Exchange gain/(loss) on cash and cash equivalents
(55 )
Cash and cash equivalents at the end of the period
Financial report for the period 1 January 2022 to 31 March 2022
Page 23 of 29
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Legal
Financial
Information
Company announcement No 33 / 2022
APPENDIX 4: BALANCE SHEET
DKK million
31 Mar 2022
31 Dec 2021
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 86,537 85,595
TOTAL ASSETS 197,136 194,508
EQUITY AND LIABILITIES
Share capital
Treasury shares
(7 )
(6 )
Retained earnings
Other reserves
(517 )
(1,714 )
TOTAL EQUITY
Borrowings
Deferred income tax liabilities
Retirement benefit obligations
Other liabilities
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 197,136 194,508
Financial report for the period 1 January 2022 to 31 March 2022
Page 24 of 29
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sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
APPENDIX 5: EQUITY STATEMENT
DKK million
Share
capital
Treasury
shares
Retained
earnings
Other
reserves Total
Q1 2022
Balance at the beginning of the period
(6 )
(1,714 )
Net profit for the period
Other comprehensive income for the period
Total comprehensive income for the period
Transactions with owners:
Dividends
(15,690 )
(15,690 )
Share-based payments
Tax related to restricted stock units
(7 )
(7 )
Purchase of treasury shares
(1 )
(4,476 )
(4,477 )
Balance at the end of the period 462 (7 ) 66,612 (517 ) 66,550
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
Financial report for the period 1 January 2022 to 31 March 2022
Page 25 of 29
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Company announcement No 33 / 2022
APPENDIX 6: SALES SPLIT PER AREA
Q1 2022 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
®
2,063
513
274
7
232
1,550
1,525
% change at CER
167%
—
—
—
—
128%
129%
Ozempic
®
12,035
3,817
2,217
473
1,127
8,218
7,622
% change at CER
70%
118%
61%
—
—
54%
52%
Victoza
®
3,322
1,544
758
408
378
1,778
1,714
% change at CER
(20%)
(15%)
(20%)
(4%)
(15%)
(23%)
(23%)
Total GLP-1
17,420
5,874
3,249
888
1,737
11,546
10,861
% change at CER
45%
60%
38%
101%
104%
38%
37%
Long-acting insulin
4,796
3,161
1,965
574
622
1,635
1,486
% change at CER
(4%)
8%
11%
2%
6%
(23%)
(25%)
Tresiba
®
2,564
1,624
917
329
378
940
820
% change at CER
4%
17%
20%
36%
(1%)
(14%)
(17%)
Xultophy
®
717
595
439
14
142
122
120
% change at CER
3%
9%
(4%)
—
55%
(20%)
(21%)
Levemir
®
1,515
942
609
231
102
573
546
% change at CER
(18%)
(4%)
10%
(28%)
(13%)
(34%)
(35%)
Premix insulin
3,012
2,849
646
1,550
653
163
158
% change at CER
(3%)
(3%)
(15%)
(1%)
7%
(7%)
(7%)
Ryzodeg
®
637
637
130
232
275
—
—
% change at CER
48%
48%
16%
—
3%
—
—
NovoMix
®
2,375
2,212
516
1,318
378
163
158
% change at CER
(12%)
(12%)
(21%)
(13%)
11%
(7%)
(7%)
Fast-acting insulin
4,842
3,080
1,819
660
601
1,762
1,660
% change at CER
2%
7%
10%
(2%)
10%
(7%)
(7%)
Fiasp
®
497
322
278
—
44
175
165
% change at CER
20%
25%
20%
—
63%
13%
13%
NovoRapid
®
4,345
2,758
1,541
660
557
1,587
1,495
% change at CER
0%
5%
8%
(2%)
7%
(9%)
(9%)
Human insulin
2,312
1,906
562
643
701
406
387
% change at CER
(14%)
(14%)
(4%)
(24%)
(11%)
(17%)
(17%)
Total insulin
14,962
10,996
4,992
3,427
2,577
3,966
3,691
% change at CER
(4%)
1%
4%
(6%)
2%
(15%)
(16%)
Other Diabetes care
1
884
662
175
341
146
222
188
% change at CER
(25%)
(25%)
1%
(43%)
19%
(23%)
(24%)
Total Diabetes care
33,266
17,532
8,416
4,656
4,460
15,734
14,740
% change at CER
16%
13%
15%
0%
27%
18%
17%
Wegovy
®
1,404
—
—
—
—
1,404
1,404
% change at CER
—
—
—
—
—
—
—
Saxenda
®
1,998
1,193
726
37
430
805
704
% change at CER
23%
63%
94%
—
22%
(11%)
(14%)
Total Obesity care
3,402
1,193
726
37
430
2,209
2,108
% change at CER
107%
63%
94%
—
22%
146%
158%
Diabetes and Obesity care total
36,668
18,725
9,142
4,693
4,890
17,943
16,848
% change at CER
20%
16%
19%
0%
27%
26%
26%
Rare disease segment
Rare blood disorders
2
3,077
1,803
885
97
821
1,274
1,212
% change at CER
9%
6%
(21%)
—
52%
14%
16%
Haemophilia A
565
449
283
17
149
116
110
% change at CER
10%
15%
(1%)
—
46%
(6%)
(6%)
Haemophilia B
177
118
70
3
45
59
29
% change at CER
18%
28%
9%
—
61%
0%
35%
NovoSeven
®
2,271
1,213
516
77
620
1,058
1,034
% change at CER
8%
2%
(32%)
—
54%
17%
18%
Rare endocrine disorders
3
1,820
1,218
553
49
616
602
596
% change at CER
(8%)
(2%)
(3%)
47%
(2%)
(20%)
(20%)
Other Rare disease
4
466
295
244
2
49
171
97
% change at CER
18%
4%
5%
0%
(2%)
59%
112%
Rare disease total
5,363
3,316
1,682
148
1,486
2,047
1,905
% change at CER
3%
3%
(13%)
155%
21%
3%
4%
Total sales
42,031
22,041
10,824
4,841
6,376
19,990
18,753
% change at CER
18%
13%
12%
2%
26%
24%
23%
% change as reported
24%
18%
14%
12%
30%
33%
32%
Share of growth
100%
42%
20%
1%
21%
58%
54%
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 2022 to 31 March 2022
Page 26 of 29
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
APPENDIX 7: ACQUISITION OF BUSINESSES
On 28 December 2021, Novo Nordisk acquired all outstanding shares of the publicly held US company Dicerna
Pharmaceuticals, Inc. via a cash tender offer. Before the acquisition, Novo Nordisk held 2.9% of the shares in Dicerna
Pharmaceuticals, Inc. at a fair value of DKK 573million.
Details of the acquisition
The total purchase price amounts to DKK 22,034million, which has been settled by the fair value of existing shareholdings
of DKK 573million, settlement of a pre-existing relationship of DKK 145million and a cash consideration of DKK
21,316million.
The purchase price allocation for the acquisition is considered provisional due to the fact that the transaction was closed
on 28 December 2021, and the process of identifying and determine fair value of assets acquired and liabilities assumed is
on-going. Adjustments may be applied to the purchase price allocation for a period of up to 12 months from the
acquisition date.
No Changes during the first 3 months of 2022 have been made to the provisional purchase price allocation as presented in
the 2021 Annual Report note 5.3. Acquisition of businesses.
The development in goodwill in the first three month of 2022 is as follows:
DKK million 31 Mar 2022
Goodwill as of 31 December 2021 4,346
Exchange rate adjustment 89
Goodwill as of 31 March 2022 4,435
For further information regarding the acquisition please refer to the Annual Report for 2021.
Financial report for the period 1 January 2022 to 31 March 2022
Page 27 of 29
Strategic
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Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
APPENDIX 8: 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 2022 Q1 2021
% change
Q1 2022 to
Q1 2021
Net sales
42,031
33,804
24%
Effect of exchange rates
(2,161)
—
Sales at CER 39,870 33,804 18%
Operating profit at CER
DKK million
Q1 2022 Q1 2021
% change
Q1 2022 to
Q1 2021
Operating profit
19,147
14,982
28%
Effect of exchange rates
(1,440)
—
Operating profit at CER 17,707 14,982 18%
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 2022 Q1 2021
Net cash generated from operating activities 23,586 11,255
Net cash used in investing activities (1,907) (3,481)
Net purchase of marketable securities
120
1,983
Repayment on lease liabilities
(231)
(225)
Free cash flow 21,568 9,532
Financial report for the period 1 January 2022 to 31 March 2022
Page 28 of 29
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022
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 2022 Q1 2021
Cash and cash equivalents 13,208 5,679
Marketable securities 6,752 1,983
Undrawn committed credit facility 11,529 11,528
Undrawn bridge facility
—
5,578
Borrowings
(387)
(471)
Financial reserves 31,102 24,297
Financial report for the period 1 January 2022 to 31 March 2022
Page 29 of 29
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Legal
Financial
Information
Company announcement No 33 / 2022