Financial report for the period 1 January 2023 to 30 June 2023
10 August 2023
Novo Nordisk's sales increased by 29% in Danish kroner and by 30% at constant
exchange rates to DKK 107.7 billion in the first six months of 2023
• Operating profit increased by 30% in Danish kroner and by 32% at constant exchange rates (CER) to DKK 48.9 billion.
• Sales in North America Operations increased by 45% in Danish kroner (44% at CER). Sales in International Operations
increased by 14% in Danish kroner (17% at CER).
• Sales within Diabetes and Obesity care increased by 36% in Danish kroner to DKK 99.0 billion (37% at CER), mainly
driven by GLP-1 diabetes sales growth of 49% in Danish kroner (50% at CER) and Obesity care growing by 158% in
Danish Kroner to DKK 18.1 billion (157% at CER). Rare disease sales decreased by 18% in both Danish kroner and CER
reflecting a temporary reduction in manufacturing output.
• In August 2023, Novo Nordisk announced that semaglutide 2.4 mg statistically significantly reduced the risk of major
adverse cardiovascular events in the SELECT cardiovascular outcomes trial. Further, the phase 3 obesity trials OASIS 1
and STEP HFpEF were successfully completed.
• For the 2023 outlook, sales and operating profit growth at CER are now expected to be 27-33% and 31-37%,
respectively. Sales and operating profit growth reported in Danish kroner are expected to be 6 and 9 percentage points
lower than at CER, respectively.
PROFIT AND LOSS H1 2023 H1 2022
Growth
as reported
Growth
at CER*
DKK million
Net sales 107,667 83,296 29% 30%
Operating profit 48,895 37,538 30% 32%
Net profit 39,242 27,528 43% N/A
Diluted earnings per share (in DKK) 17.41 12.08 44% N/A
* CER: Constant exchange rates (average 2022).
Lars Fruergaard Jørgensen, president and CEO: "We are very pleased with the sales growth in the first half of 2023. The
growth is driven by increasing demand for our GLP-1-based diabetes and obesity treatments, and we are serving more
patients than ever before. The performance in the first six months has enabled us to raise the outlook for the full year.
Within R&D, we are very excited about the results from the SELECT trial. Obesity is a serious chronic disease associated
with many comorbidities and the results from SELECT demonstrate that comorbidities associated with the condition can be
significantly reduced by treating people with semaglutide.
On 10 August 2023 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’.
Novo Nordisk A/S
Investor Relations
Novo Alle 1
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
www.novonordisk.com
CVR Number:
24 25 67 90
Company announcement No 52 / 2023
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 six months of 2023 (blue indicates second quarter developments)
PERFORMANCE HIGHLIGHTS
Purpose and sustainability (ESG)
Progress towards zero environmental impact:
– Carbon emissions from operations and transportation decreased by
28% compared to first half of 2019 (decreased by 10% compared to
2022)
Adding value to society:
– Medical treatment provided to 39.1 million people living with
diabetes (net increase of 4 million people)
– Reaching more than 45,000 children in Changing Diabetes
®
in
Children programme
– Human insulin with more flexible storage without refrigeration
now approved in 23 countries
Being recognised as a sustainable employer:
– Share of women in senior leadership positions has increased to
40% from 38% end of June 2022
Innovation and therapeutic focus
Further raise innovation bar for diabetes treatment:
– Regulatory submission of once-weekly insulin icodec in the EU, the
US and China
– Successful completion of phase 3 trial with higher doses of oral
semaglutide
– Completion of phase 2 trial and first cohorts of phase 1 trial with
GLP-1 and GIP combinations
Develop superior treatment solutions for obesity:
– Phase 3a trials REDEFINE 2 and 3 initiated with CagriSema in people
with obesity
– Successful completion of phase 3 trial with 50 mg of oral semaglutide
– Successful completion of SELECT cardiovascular outcomes trial
– Successful completion of STEP HFpEF phase 3 trial
– Acquisition of Inversago Pharma
Strengthen and progress Rare disease pipeline:
– Somapacitan approved in the US, EU and Japan for the
treatment of growth hormone deficiency in children
– Complete Response Letter received for concizumab in the US
Establish presence in other serious chronic diseases:
– Phase 1 trials initiated with cell therapy treatment in heart failure
and Parkinson's disease
Commercial execution
Strengthen diabetes leadership to more than one-third:
– Diabetes value market share increased by 1.7 percentage points to
32.7% (MAT)
More than DKK 25 billion in Obesity sales by 2025:
– Obesity care sales increased by 157% (CER) to DKK 18.1 billion
Secure a sustained growth outlook for Rare Disease:
– Rare disease sales decreased by 18% at (CER) at DKK 8.7 billion
Financials
Deliver solid sales and operating profit growth:
– Sales growth at 30% (CER)
– Operating profit growth of 32% (CER)
Drive operational efficiencies:
– Operational leverage reflecting sales growth
Enable attractive capital allocation to shareholders:
– Free cash flow of DKK 45.5 billion
– DKK 32.3billion returned to shareholders
Financial report for the period 1 January 2023 to 30 June 2023
Page 2 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
PERFORMANCE HIGHLIGHTS
FINANCIAL HIGHLIGHTS FOR THE FIRST SIX MONTHS OF 2023
PROFIT AND LOSS H1 2023 H1 2022
% change
H1 2023 to
H1 2022
% change
H1 2023 to
H1 2022 at
CER
(Amounts are in DKK million, except for earnings per share)
Net sales 107,667 83,296 29% 30%
Gross profit
91,629
70,310
30%
32%
Gross margin
85.1%
84.4%
Sales and distribution costs
(26,754)
(21,023)
27%
28%
Percentage of sales
24.8%
25.2%
Research and development costs
(13,855)
(10,329)
34%
34%
Percentage of sales
12.9%
12.4%
Administrative costs
(2,143)
(1,961)
9%
10%
Percentage of sales
2.0%
2.4%
Other operating income and expenses
18
541
(97%)
(96%)
Operating profit (EBIT)
48,895
37,538
30%
32%
Operating margin
45.4%
45.1%
Financial items (net)
96
(2,824)
(103%)
N/A
Profit before income taxes
48,991
34,714
41%
N/A
Income taxes
(9,749)
(7,186)
36%
N/A
Effective tax rate
19.9%
20.7%
Net profit
39,242
27,528
43%
N/A
Net profit margin
36.4%
33.0%
OTHER KEY NUMBERS
Depreciation, amortisation and impairment losses
3,896
3,286
19%
N/A
Capital expenditure (PP&E)
10,571
3,955
167%
N/A
Net cash generated from operating activities
58,391
47,547
23%
N/A
EBITDA
52,791
40,824
29%
31%
Free cash flow
45,537
42,725
7%
N/A
Average number of diluted shares outstanding (million)
2,253.9
2,279.7
(1%)
N/A
Diluted earnings per share / ADR (in DKK)
17.41
12.08
44%
N/A
Full-time equivalent employees end of period
59,337
50,816
17%
N/A
These unaudited consolidated financial statements for the first six months of 2023 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 2022 of Novo
Nordisk. As of 23 May 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 12 Income
Taxes. Novo Nordisk has assessed the impact from the tax reform as immaterial.
Financial report for the period 1 January 2023 to 30 June 2023
Page 3 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
COMMERCIAL EXECUTION
SALES DEVELOPMENT ACROSS THERAPEUTIC AREAS
Sales grew by 29% measured in Danish kroner and by 30% at CER in the first six months of 2023, driven by Diabetes care
sales growth of 24% (CER) and Obesity care sales growth of 157% (CER). Rare disease sales decreased by 18% (CER). Sales
growth has resulted in periodic supply constraints and related drug shortage notifications across a number of products
and geographies.
Sales split per therapy
Sales H1 2023
DKK million
Sales H1 2022
DKK million
Growth
as reported
Growth
at CER
Share of growth
at CER
Diabetes and Obesity care segment
Injectable GLP-1
46,392
32,416
43%
44%
57%
- Ozempic
®
41,741
26,384
58%
59%
62%
- Victoza
®
4,651
6,032
(23%)
(22%)
(5%)
Rybelsus
®
8,344
4,235
97%
98%
16%
Total GLP-1
54,736
36,651
49%
50%
73%
Long-acting insulin
1
7,487
8,900
(16%)
(14%)
(5%)
Premix insulin
2
5,232
5,513
(5%)
(3%)
(1%)
Fast-acting insulin
3
7,999
8,729
(8%)
(7%)
(2%)
Human insulin
3,979
4,163
(4%)
0%
0%
Total insulin
24,697
27,305
(10%)
(7%)
(8%)
Other Diabetes care
4
1,396
1,714
(19%)
(19%)
(2%)
Total Diabetes care
80,829
65,670
23%
24%
63%
Wegovy
®
12,081
2,585
367%
363%
37%
Saxenda
®
6,067
4,460
36%
38%
7%
Total Obesity care
18,148
7,045
158%
157%
44%
Diabetes and Obesity care total
98,977
72,715
36%
37%
107%
Rare disease segment
Rare blood disorders
5
5,885
5,940
(1%)
(1%)
0%
Rare endocrine disorders
6
2,030
3,743
(46%)
(46%)
(7%)
Other Rare disease
7
775
898
(14%)
(11%)
0%
Rare disease total
8,690
10,581
(18%)
(18%)
(7%)
Total sales 107,667 83,296 29% 30% 100%
1)
Comprises Tresiba
®
, Xultophy
®
and Levemir
®
.
2)
Comprises Ryzodeg
®
and NovoMix
®
.
3)
Comprises Fiasp
®
and NovoRapid
®
.
4)
Primarily NovoNorm
®
, needles and GlucaGen
®
HypoKit
®
.
5)
Comprises NovoSeven
®
, NovoEight
®
, Esperoct
®
,
Refixia
®
and NovoThirteen
®
.
6)
Primarily Norditropin
®
and Sogroya
®
7)
Primarily Vagifem
®
and Activelle
®
.
Financial report for the period 1 January 2023 to 30 June 2023
Page 4 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
DIABETES AND OBESITY CARE
Diabetes care, sales and market share development
Sales in Diabetes care increased by 23% measured in Danish kroner and by 24% at CER to DKK 80,829 million driven by
growth of GLP-1-based products. Novo Nordisk has improved the global diabetes value market share over the last 12
months to 32.7% from 31.0% 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 North America Operations and International Operations.
In the following sections, unless otherwise noted, market data are based on moving annual total (MAT) from May 2022 and
May 2023 provided by the independent data provider IQVIA. EMEA covers Europe, the Middle East and Africa; Region
China covers mainland China, Hong Kong and Taiwan; 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
May
May
Sales H1 2023
DKK million
Growth
at CER
2023
2022
Global
32.7%
31.0%
80,829
24%
North America Operations
34.2%
32.8%
41,379
28%
- The US
33.8%
32.7%
37,505
25%
International Operations
27.1%
25.8%
39,450
20%
- EMEA *
29.6%
29.1%
20,114
21%
- Region China **
31.8%
33.0%
8,445
11%
- Rest of World ***
21.4%
17.6%
10,891
27%
Source: IQVIA, May 2023 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 49% measured in Danish
kroner and by 50% at CER to DKK 54,736 million. The estimated global GLP-1 share of total diabetes prescriptions has
increased to 5.4% compared with 3.7% 12 months ago. Novo Nordisk continues to be the global market leader in the
GLP-1 segment with a 54.1% value market share.
GLP-1, development per geographical area
Novo Nordisk's share of the
diabetes GLP-1 market (value, MAT) GLP-1, sales development
May
May
Sales H1 2023
DKK million
Growth
at CER
2023
2022
Global
54.1%
54.8%
54,736
50%
North America Operations
52.4%
53.8%
35,794
44%
- The US
51.4%
52.9%
32,454
39%
International Operations
67.0%
61.3%
18,942
62%
- EMEA *
62.0%
59.4%
10,407
55%
- Region China **
71.1%
62.7%
3,118
97%
- Rest of World ***
78.8%
66.2%
5,417
58%
Source: IQVIA, May 2023 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. Note: the estimated GLP-1 share of prescriptions is based on volume packs from IQVIA. Volume packs are converted into full-year patients/prescriptions
based on WHO assumptions for average daily doses or if not available, Novo Nordisk assumptions.
Rybelsus
®
sales increased by 97% measured in Danish kroner and by 98% at CER to DKK 8,344 million. Sales growth was
driven by North America Operations as well as EMEA and Rest of World.
Ozempic
®
sales increased by 58% measured in Danish kroner and by 59% at CER to DKK 41,741 million. Sales growth was
driven by both North America Operations and International Operations. Sales growth has resulted in periodic supply
constraints and related drug shortage notifications across geographies.
Financial report for the period 1 January 2023 to 30 June 2023
Page 5 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
Victoza
®
sales decreased by 23% measured in Danish kroner and by 22% at CER to DKK 4,651 million as the GLP-1 market
is moving towards once-weekly and tablet-based treatments. The sales decline was driven by North America Operations.
North America Operations
Sales of GLP-1 diabetes products in North America Operations increased by 45% measured in Danish kroner and by 44%
at CER. Wholesaler inventory movements in the US positively impacted sales growth. Novo Nordisk is the market leader
with a 52.4% value market share compared to 53.8% 12 months ago. The estimated GLP-1 share of total diabetes
prescriptions has increased to 13.3% compared with 9.0% 12 months ago.
Sales of GLP-1 in the US increased by 39% 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.
Sales growth in the US is driven by a prescription volume growth of the GLP-1 class above 60% in the second quarter of
2023 compared to the second quarter of 2022. The combined Novo Nordisk GLP-1 new-to-brand prescription market
share is now 62.3% driven by Ozempic
®
with 52.4% and Rybelsus
®
with 7.3%. Novo Nordisk is the market leader with 55.4%
measured by total monthly prescriptions for the combined GLP-1 portfolio.
International Operations
Sales of GLP-1 diabetes products in International Operations increased by 58% measured in Danish kroner and by 62% at
CER. Sales growth is driven by all geographical areas. The estimated GLP-1 share of total diabetes prescriptions has
increased to 3.5% compared with 2.5% 12 months ago. Novo Nordisk is the market leader with a value market share of
67.0% compared to 61.3% 12 months ago.
EMEA
Sales in EMEA increased by 53% measured in Danish kroner and by 55% at CER. The sales growth reflects the uptake of
Ozempic
®
and Rybelsus
®
,
partially offset by lower sales of Victoza
®
. Novo Nordisk remains the market leader in EMEA with
a value market share of 62.0%. The estimated GLP-1 share of total diabetes prescriptions has increased to 4.8% compared
with 3.6% 12 months ago.
Region China
Sales in Region China increased by 86% measured in Danish kroner and by 97% at CER. The sales growth reflects the
uptake of Ozempic
®
. The GLP-1 share of total diabetes prescriptions has increased to 3.0% compared with 1.6% 12 months
ago. Novo Nordisk is the market leader in Region China with a value market share of 71.1%.
Rest of World
Sales in Rest of World increased by 54% measured in Danish kroner and by 58% at CER. The sales growth reflects
increased sales of Rybelsus
®
and
Ozempic
®
, partially offset by Victoza
®
. Novo Nordisk remains the market leader with a
value market share of 78.8%. The estimated GLP-1 share of total diabetes prescriptions has increased to 2.1% compared
with 1.5% 12 months ago.
Financial report for the period 1 January 2023 to 30 June 2023
Page 6 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
Insulin
Sales of insulin decreased by 10% measured in Danish kroner and by 7% at CER to DKK 24,697 million. Sales decline at CER
was driven by declining sales in the US, Region China and EMEA.
Insulin, development per geographical area
Novo Nordisk’s share of the total
insulin market (volume, MAT) Insulin, sales development
May
May
Sales H1 2023
DKK million
Growth
at CER
2023
2022
Global
45.7%
47.1%
24,697
(7%)
North America Operations
37.9%
38.4%
5,284
(25%)
- The US
37.5%
37.9%
4,778
(26%)
International Operations
48.5%
50.3%
19,413
(2%)
- EMEA *
47.1%
47.8%
9,383
(1%)
- Region China **
43.3%
50.4%
4,783
(11%)
- Rest of World ***
57.8%
57.1%
5,247
9%
Source: IQVIA, May 2023 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.
North America Operations
Sales of insulin in North America Operations decreased by 24% measured in Danish kroner and by 25% at CER. The sales
decrease in the US was driven by lower realised prices due to channel and payer mix and rebate enhancements as well as
a decline in volume with the US insulin volume market declining 3% compared to the first six months of 2022. Novo
Nordisk has a volume market share of 37.5% of the total US insulin market.
International Operations
Sales of insulin in International Operations decreased by 4% measured in Danish kroner and by 2% at CER. The sales
decline at CER was driven by lower insulin sales in Region China due to the implementation of Volume Based Procurement
in May 2022 as well as lower sales in EMEA.
EMEA
Sales of insulin in EMEA decreased by 2% measured in Danish kroner and by 1% at CER. The sales decline at CER was
driven by long-acting insulin, pre-mix insulin and fast-acting insulin, partially countered by human insulin. Novo Nordisk
has a volume market share of 47.1% of the total insulin market.
Region China
Sales of insulin in Region China decreased by 16% measured in Danish kroner and by 11% at CER. The sales decline was
driven by all insulin products due to the implementation of Volume Based Procurement from May 2022 except for
Ryzodeg
®
and Xultophy
®
. Novo Nordisk has a volume market share of 43.3% of the total insulin market.
Rest of World
Sales of insulin in Rest of World increased by 3% measured in Danish kroner and by 9% at CER. The sales growth at CER
was driven by human insulin, long-acting insulin and fast-acting insulin, partially countered by premix insulin. Novo Nordisk
has a volume market share of 57.8% of the total insulin market.
Financial report for the period 1 January 2023 to 30 June 2023
Page 7 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
Obesity care, sales development
Sales of Obesity care products, Wegovy
®
and Saxenda
®
, increased by 158% measured in Danish kroner and by 157% at
CER to DKK 18,148 million. Sales growth was driven by both North America Operations and International Operations.
Wegovy
®
has been launched in the US, Denmark, Norway and Germany. The volume growth of the global branded obesity
market was 75.9%.
Obesity care, development per geographical area
Global branded
obesity market growth
(Volume, MAT) Obesity care, sales development
May
Sales H1 2023
DKK million
Growth
at CER
2023
Global
75.9%
18,148
157%
North America Operations
79.9%
14,159
207%
- The US
87.8%
13,906
216%
International Operations
71.4%
3,989
66%
- EMEA
101.6%
2,640
79%
- Region China
N/A
100
33%
- Rest of World
40.2%
1,249
47%
Source: IQVIA, May 2023 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.
Wegovy
®
sales increased by 367% measured in Danish kroner and by 363% at CER to DKK 12,081 million. Sales of
Saxenda
®
increased by 36% measured in Danish kroner and by 38% at CER to DKK 6,067 million.
North America Operations
Sales of Obesity care products in North America Operations increased by 210% measured in Danish kroner and by 207% at
CER to DKK 14,159 million. Sales of Wegovy
®
increased by 350% measured in Danish kroner and by 344% at CER to DKK
11,621 million reflecting the commercial relaunch in January 2023. Demand for Wegovy
®
exceeds supply and to safeguard
continuity of care, the supply of the lower Wegovy
®
dose strengths in the US was reduced in May 2023. Broad commercial
formulary access has been achieved. Sales of Saxenda
®
increased by 28% measured in Danish kroner and by 27% at CER
to DKK 2,538 million. The volume growth of the branded obesity market in the US was 87.8%.
International Operations
Sales of Obesity care products in International Operations increased by 61% measured in Danish kroner and by 66% at
CER to DKK 3,989 million driven by increased sales in EMEA and Rest of World. Sales of Saxenda
®
in International
Operations increased by 42% measured in Danish kroner and by 47% at CER to DKK 3,529 million and sales of Wegovy
®
reached DKK 460 million. Wegovy
®
has been launched in three countries in International Operations. The volume growth
of the branded obesity market in International Operations was 71.4%.
EMEA
Sales of Obesity care products in EMEA increased by 74% measured in Danish kroner and by 79% at CER. The volume
growth of the branded obesity market in EMEA was 101.6%.
Rest of World
Sales of Saxenda
®
in Rest of World increased by 41% measured in Danish kroner and by 47% at CER. The volume growth of
the branded obesity market in Rest of World was 40.2%.
Financial report for the period 1 January 2023 to 30 June 2023
Page 8 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
Rare disease, sales development
Rare disease sales decreased by 18% in both Danish kroner and CER to DKK 8,690 million. Sales of rare blood disorder
products decreased by 1% in both Danish kroner and CER to DKK 5,885 million driven by NovoSeven
®
, partially offset by
the launch products in haemophilia A and B. Sales of rare endocrine disorder products decreased by 46% in both Danish
kroner and CER to DKK 2,030 million reflecting a temporary reduction in manufacturing output. Novo Nordisk has a value
market share of 29.5% (MAT) in the global human growth disorder market.
Rare disease, development per geographical area Rare disease, sales development
Sales H1 2023
DKK million
Growth
at CER
Global
8,690
(18%)
North America Operations
3,422
(18%)
- The US
3,120
(19%)
International Operations
5,268
(17%)
- EMEA
2,844
(18%)
- Region China
383
35%
- Rest of World
2,041
(23%)
North America Operations
Rare disease sales in North America Operations decreased by 17% measured in Danish kroner and by 18% at CER. The
sales decline was driven by lower sales of rare endocrine disorder products decreasing by 44% measured in Danish kroner
and by 45% at CER reflecting a temporary reduction in manufacturing output and lower realised prices in the US. Sales of
rare blood disorders products decreased by 3% measured in Danish kroner and by 4% at CER driven by lower sales of
NovoSeven
®
, partially countered by sales of haemophilia A and B products.
International Operations
Rare disease sales in International Operations decreased by 18% measured in Danish kroner and by 17% at CER. The sales
decline was driven by lower sales of rare endocrine disorder products decreasing by 47% in both Danish kroner and CER
reflecting a temporary reduction in manufacturing output. Sales of rare blood disorder products increased by 1%
measured in Danish kroner and by 2% at CER driven by haemophilia A and B products, partially countered by NovoSeven
®
.
EMEA
Rare disease sales decreased by 18% in both Danish kroner and CER driven by a decrease of rare endocrine disorder
products by 71% measured in Danish kroner and by 72% at CER reflecting a temporary reduction in manufacturing output.
Sales of rare blood disorder products increased by 12% measured in Danish kroner and by 13% at CER, primarily driven by
NovoSeven
®
and haemophilia A products.
Region China
Rare disease sales increased by 29% measured in Danish kroner and by 35% at CER driven by sales of both rare blood
disorder products, especially haemophilia A following the launch of NovoEight
®
, and rare endocrine disorder products.
Rest of World
Rare disease sales decreased by 23% in both Danish kroner and CER. The sales decline was driven by sales of rare blood
disorder products. Sales of rare blood disorder products decreased by 21% in both Danish kroner and CER driven by
NovoSeven
®
and haemophilia A products. Sales of rare endocrine disorder products decreased by 29% measured in
Danish kroner and by 28% at CER reflecting a temporary reduction in manufacturing output.
Financial report for the period 1 January 2023 to 30 June 2023
Page 9 of 32
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Financial
Information
Company announcement No 52 / 2023
FINANCIALS
GEOGRAPHIC SALES DEVELOPMENT
Sales increased by 29% measured in Danish kroner and by 30% at CER to DKK 107,667 million in the first six months of
2023. Wholesaler inventory movements in the US positively impacted sales growth. Sales growth has resulted in periodic
supply constraints and related drug shortage notifications across a number of products and geographies. Sales in North
America Operations increased by 45% measured in Danish kroner and by 44% at CER. Sales in International Operations
increased by 14% measured in Danish kroner and by 17% at CER.
Sales split per geographical area
Sales H1 2023
DKK million
Growth
as reported
Growth
at CER
Share of growth
at CER
North America Operations
58,960
45%
44%
71%
- The US
54,531
44%
42%
63%
International Operations
48,707
14%
17%
29%
- EMEA
25,598
18%
19%
16%
- Region China
8,928
6%
12%
4%
- Rest of World
14,181
14%
18%
9%
Total sales 107,667 29% 30% 100%
North America Operations
Sales in North America Operations increased by 45% measured in Danish kroner and by 44% at CER. Wholesaler inventory
movements in the US positively impacted sales growth. The sales increase reflects GLP-1 diabetes sales growing by 44% at
CER and Obesity care sales growing by 207% at CER. This was partially offset by insulin sales decreasing by 25% at CER
driven by lower realised prices due to channel and payer mix, rebate enhancements as well as a decline in volume. Rare
disease sales decreased by 18% at CER reflecting a temporary reduction in manufacturing output.
International Operations
Sales in International Operations increased by 14% measured in Danish kroner and by 17% at CER. Sales growth was
driven by GLP-1 sales growing by 62% at CER and Obesity care sales growing by 66% at CER, partially countered by insulin
sales decreasing by 2% at CER and Rare disease sales decreasing by 17% at CER reflecting a temporary reduction in
manufacturing output.
EMEA
Sales in EMEA increased by 18% measured in Danish kroner and by 19% at CER. Sales growth was driven by Diabetes care
growing by 21% at CER driven by increased GLP-1 sales, partially countered by decreased insulin sales. Obesity care sales
increased by 79% at CER and Rare disease sales decreased by 18% at CER.
Region China
Sales in Region China increased by 6% measured in Danish kroner and by 12% at CER. The sales increase at CER was driven
by GLP-1 sales growing by 97% at CER, partially countered by insulin sales declining by 11% at CER. Insulin sales were
negatively impacted by the implementation of Volume Based Procurement from May 2022. Other diabetes care sales
decreased by 17% at CER. Rare disease sales increased by 35% at CER.
Rest of World
Sales in Rest of World increased by 14% measured in Danish kroner and by 18% 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 47% at
CER and Rare disease decreasing by 23% at CER.
Financial report for the period 1 January 2023 to 30 June 2023
Page 10 of 32
Strategic
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Commercial
execution
Financials
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capital allocation
Outlook
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therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
DEVELOPMENT IN COSTS AND OPERATING PROFIT
The cost of goods sold increased by 24% measured in Danish kroner and by 23% at CER to DKK 16,038 million, resulting in
a gross margin of 85.1% measured in Danish kroner compared with 84.4% in 2022. The increase in gross margin reflects a
positive product mix, driven by increased sales of GLP-1-based treatments and a positive currency impact. This is partially
countered by costs related to ongoing capacity expansions and lower realised prices mainly in the US and Region China.
Sales and distribution costs increased by 27% measured in Danish kroner and by 28% at CER to DKK 26,754 million. The
increase in costs is driven by both North America Operations and International Operations. In North America Operations,
the cost increase is driven by the relaunch of Wegovy
®
and promotional activities for Ozempic
®
. In International
Operations, the cost increase is mainly related to promotional activities for Rybelsus
®
as well as Obesity care market
development activities. The increase in sales and distribution costs is impacted by adjustments to legal provisions.
Research and development costs increased by 34% in both Danish kroner and at CER to DKK 13,855 million reflecting
increased late-stage clinical trial activity and increased early research activities compared to the first six months of 2022.
The acquisition of Forma Therapeutics Inc. in 2022 also impacted the costs.
Administration costs increased by 9% measured in Danish kroner and by 10% at CER to DKK 2,143 million.
Other operating income and expenses (net) was DKK 18 million compared with DKK 541 million in 2022, driven by lower
income from partnerships related to Dicerna Pharmaceuticals Inc.
Operating profit increased by 30% measured in Danish kroner and by 32% at CER to DKK 48,895 million reflecting the
sales growth.
Financial items (net) showed a net gain of DKK 96 million compared with a net loss of DKK 2,824 million in 2022.
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 133 million
compared with a net loss of DKK 1,995 million in 2022.
As per the end of June 2023, a positive market value of financial contracts of approximately DKK 1.8 billion has been
deferred for recognition later in 2023 and 2024.
The effective tax rate was 19.9% in the first six months of 2023 compared with an effective tax rate of 20.7% in the first six
months of 2022.
Net profit increased by 43% to DKK 39,242 million and diluted earnings per share increased by 44% to DKK 17.41.
Financial report for the period 1 January 2023 to 30 June 2023
Page 11 of 32
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Financial
Information
Company announcement No 52 / 2023
KEY DEVELOPMENTS IN THE SECOND QUARTER OF 2023
Sales in the second quarter of 2023 increased by 32% measured in Danish kroner and by 36% at CER compared to the
same period in 2022. Operating profit increased by 30% measured in Danish kroner and by 37% at CER. Sales growth has
resulted in periodic supply constraints and related drug shortage notifications across a number of products and
geographies. Please refer to appendix 1 for an overview of the quarterly numbers in DKK and to appendix 6 for additional
details on sales in the second quarter of 2023.
Sales split per geographical area
Sales Q2 2023
DKK million
Growth
as reported
Growth
at CER
Share of growth
at CER
North America Operations
29,663
43%
47%
65%
- The US
27,209
42%
45%
58%
International Operations
24,637
20%
25%
35%
- EMEA
12,856
18%
20%
15%
- Region China
4,467
25%
35%
9%
- Rest of World
7,314
20%
27%
11%
Total sales 54,300 32% 36% 100%
The increased global sales of 36% at CER were driven by Diabetes and Obesity care sales as GLP-1 diabetes sales increased
by 50% at CER, Obesity care sales increased by 188% at CER, partially offset by insulin sales decreasing by 4% at CER and
Rare disease sales decreasing by 20% at CER.
North America Operations
Sales in North America Operations increased by 43% measured in Danish kroner and by 47% at CER. Sales growth was
driven by GLP-1 growing by 40% at CER and Obesity care sales increasing by 255% at CER. Insulin sales decreased by 34%
at CER driven by lower realised prices reflecting channel and payer mix. Rare disease sales decreased by 22% at CER
reflecting a temporary reduction in manufacturing output.
International Operations
Sales in International Operations increased by 20% measured in Danish kroner and by 25% at CER. Sales growth was
driven by all Regions.
Sales growth was driven by Diabetes and Obesity care growing by 33% at CER driven by GLP-1 diabetes sales growing by
71% at CER, Obesity care increasing by 67% at CER and insulin sales increasing by 6% at CER. Rare disease sales decreased
by 18% at CER reflecting a temporary reduction in manufacturing output.
Financial report for the period 1 January 2023 to 30 June 2023
Page 12 of 32
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sustainability
Financial
Information
Company announcement No 52 / 2023
PROFIT AND LOSS Q2 2023 Q2 2022
% change
Q2 2023 to
Q2 2022
% change
Q2 2023 to
Q2 2022 at CER
Net sales 54,300 41,265 32% 36%
Gross profit
46,444
35,196
32%
37%
Gross margin
85.5%
85.3%
Sales and distribution costs
(14,342)
(10,840)
32%
36%
Percentage of sales
26.4%
26.3%
Research and development costs
(7,127)
(5,123)
39%
41%
Percentage of sales
13.1%
12.4%
Administrative costs
(1,072)
(991)
8%
10%
Percentage of sales
2.0%
2.4%
Other operating income and expenses
(15)
149
(110%)
(107%)
Operating profit (EBIT)
23,888
18,391
30%
37%
Operating margin
44.0%
44.6%
Financial items (net)
366
(1,596)
(123%)
N/A
Profit before income taxes
24,254
16,795
44%
N/A
Income taxes
(4,826)
(3,477)
39%
N/A
Effective tax rate
19.9%
20.7%
Net profit
19,428
13,318
46%
N/A
Net profit margin
35.8%
32.3%
Costs and operating profit
The gross margin was 85.5% in the second quarter of 2023 compared with 85.3% in 2022. The 0.2 percentage point gross
margin increase reflects a positive product mix countered by costs related to ongoing capacity expansions, lower realised
prices in the US and Region China and a negative currency impact of 0.4 percentage point.
Sales and distribution costs increased by 32% measured in Danish kroner and by 36% at CER compared with 2022. The
increase was driven by both International Operations and North America Operations reflecting promotional activities
related to Ozempic
®
and Rybelsus
®
as well as Obesity care market development activities. Adjustments to legal provisions
are impacting the increase in costs.
Research and development costs increased by 39% measured in Danish kroner and by 41% at CER compared with 2022
driven by increased late-stage clinical trial and research activities as well as impairments of intangible assets. The
acquisition of Forma Therapeutics Inc. in 2022 also impacted the costs.
Administrative costs increased by 8% measured in Danish kroner and by 10% at CER compared with the same period in
2022.
Other operating income and expenses showed expenses of DKK 15 million in the second quarter of 2023.
Operating profit increased by 30% measured in Danish kroner and by 37% at CER compared with the same period in
2022.
Financial items (net) showed a net gain of DKK 366 million compared with a net loss of DKK 1,596 million in the second
quarter of 2022 reflecting gain on hedged currencies, primarily the US dollar.
The effective tax rate is 19.9% in the second quarter of 2023 compared with an effective tax rate of 20.7% in the second
quarter of 2022.
Net profit increased by 46% to DKK 19,428 million and diluted earnings per share increased by 47% to DKK 8.63.
Financial report for the period 1 January 2023 to 30 June 2023
Page 13 of 32
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Information
Company announcement No 52 / 2023
CASH FLOW AND CAPITAL ALLOCATION
FREE CASH FLOW IN THE FIRST SIX MONTHS OF 2023 AND CAPITAL EXPENDITURE
Free cash flow was DKK 45.5 billion compared with DKK 42.7 billion in the first six months of 2022 supporting the strategic
aspiration to deliver attractive capital allocation to shareholders. The cash conversion in the first six months of 2023 is
positively impacted by timing of payment of rebates in the US, including provisions related to the revised 340B distribution
policy in the US. Income under the 340B Program has been partially recognised.
Capital expenditure for property, plant and equipment was DKK 10.6 billion compared with DKK 4.0 billion in the first six
months of 2022, primarily reflecting investments in additional capacity for active pharmaceutical ingredient (API)
production and fill-finish capacity for both current and future injectable and oral products.
EQUITY AND CAPITAL ALLOCATION
Total equity was DKK 90,473 million at the end of the first six months of 2023, equivalent to 32.2% of total assets,
compared with 34.0% at the end of the first six months of 2022. Please refer to appendix 5 for further elaboration of
changes in equity.
Novo Nordisk returned DKK 32.3billion to shareholders via share buybacks (DKK 14.0 billion) and dividend (DKK 18.3
billion) during the first six months of 2023.
Interim dividend
The Board of Directors has decided to pay out interim dividend for 2023 of DKK 6.00 for each Novo Nordisk A and B
share of DKK 0.20, which will be paid in August 2023. The ex-dividend date for the interim dividend will be 18
August 2023. The record date will be 21 August 2023 for the A and B shares as well as the ADRs. The payment date
for the A and B shares will be 22 August 2023, while the payment date for the ADRs will be 29 August 2023. No
dividend will be paid on the company’s holding of B shares.
Change in trading units
Novo Nordisk’s B shares are listed on Nasdaq Copenhagen in trading units of DKK 0.20 and its American Depositary
Receipts (ADRs) that equals B-shares of DKK 0.20 are listed on New York Stock Exchange (NYSE). To secure liquidity for
both the Novo Nordisk B shares and ADRs and bring price levels in line with market practice for especially the ADRs, the
Board of Directors has decided to split the units in a two-for-one ratio. The trading unit of the Novo Nordisk B shares listed
on Nasdaq Copenhagen will as of 13 September 2023 be changed from DKK 0.20 to DKK 0.10. The ADRs listed on New
York Stock Exchange (NYSE) will as of 20 September 2023 similarly be split to maintain the one-to-one relationship between
the B-share and the ADRs.
2023 share repurchase programme
As of 8 August 2023, Novo Nordisk has repurchased 14,218,581 B shares of DKK 0.20 for an amount of DKK
15,289,230,585 as part of the overall share repurchase programme of up to DKK 30 billion to be executed during a 12-
month period beginning 1 February 2023.
The execution of Novo Nordisk’s overall share repurchase programme for 2023 of DKK 30 billion continues. As part of this,
a new share repurchase programme for an amount up to DKK 5.7 billion will be initiated 10 August 2023 and ending on 31
October 2023 in accordance with Article 5 of Regulation No 596/2014 of the European Parliament and Council of 16 April
2014 (MAR) and the Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 (the "Safe Harbour Rules”). The
purpose of the programme is to reduce the company’s share capital and to meet obligations arising from share-based
incentive programmes.
A maximum of 180,000,000 B shares of DKK 0.20 in total (or the equivalent number of B shares of DKK 0.10 after the
planned change in trading units) can be bought during the trading period.
Financial report for the period 1 January 2023 to 30 June 2023
Page 14 of 32
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Financial
Information
Company announcement No 52 / 2023
OUTLOOK
The current expectations for 2023 are summarised in the table below:
Expectations are as reported, if not otherwise stated
Expectations
10 August 2023
Expectations
4 May 2023
Sales growth
at CER 27% to 33% 24% to 30%
as reported
Around 6 percentage points lower
than at CER
Around 6 percentage points lower
than at CER
Operating profit growth
at CER 31% to 37% 28% to 34%
as reported
Around 9 percentage points lower
than at CER
Around 9 percentage points lower
than at CER
Financial items (net) Gain of around DKK 2.8 billion Gain of around DKK 3.0 billion
Effective tax rate 19% to 21% 19% to 21%
Capital expenditure (PP&E) Around DKK 25 billion Around DKK 25 billion
Depreciation, amortisation and impairment losses Around DKK 8 billion Around DKK 8 billion
Free cash flow (excluding impact from business development) DKK 64-72 billion DKK 66-74 billion
Sales growth is now expected to be 27% to 33% at CER. Given the current exchange rates versus the Danish krone, sales
growth reported in DKK is expected to be around 6 percentage points lower than at CER. The increased sales outlook is
primarily reflecting higher full-year expectations for GLP-1 diabetes products, particularly Ozempic
®
in the US.
The guidance reflects expectations for sales growth in both North America Operations and International Operations,
mainly driven by volume growth of GLP-1-based treatments for Diabetes and Obesity care, partially countered by declining
sales in Rare disease due to a temporary reduction in manufacturing output. Intensifying competition and continued
pricing pressure within Diabetes care are included in the guidance.
The guidance ranges reflect the level of volume growth of GLP-1-based diabetes treatments and the inherent uncertainty
of the pace of Obesity care market expansion following the relaunch of Wegovy
®
in the US and a limited roll-out in
International Operations.
Following higher than expected volume growth in recent years, including GLP-1-based products such as Ozempic
®
and
Wegovy
®
, combined with the expectation of continued volume growth and capacity limitations at some manufacturing
sites, the outlook also reflects expected continued periodic supply constraints and related drug shortage notifications
across a number of products and geographies. Novo Nordisk is investing in internal and external capacity to increase
supply both short and long term. While supply capacity for Wegovy
®
is gradually being expanded, the supply of the lower
dose strengths in the US will remain restricted to safeguard continuity of care.
Operating profit growth is now expected to be 31% to 37% at CER. Given the current exchange rates versus the Danish
krone, growth reported in DKK is expected to be around 9 percentage points lower than at CER. The expectation for
operating profit growth primarily reflects the sales growth outlook and continued investments in future and current
growth drivers within Research, Development and Commercial. Within R&D, investments are related to the continued
expansion and progression of the early and late-stage pipeline. Commercial investments are mainly related to the relaunch
of Wegovy
®
in the US, Obesity care market development activities in International Operations as well as promotional
activities for Ozempic
®
and Rybelsus
®
.
Novo Nordisk now expects financial items (net) to amount to a gain of around DKK 2.8 billion, mainly reflecting gains
associated with foreign exchange hedging contracts.
The effective tax rate for 2023 is still expected to be in the range of 19-21%.
Capital expenditure is still expected to be around DKK 25 billion in 2023 reflecting the upscaling of the supply chain and
the innovation-based growth strategy pursued by Novo Nordisk. The CAPEX is primarily relating to investments in
Financial report for the period 1 January 2023 to 30 June 2023
Page 15 of 32
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Financial
Information
Company announcement No 52 / 2023
additional capacity for active pharmaceutical ingredient (API) production and fill-finish capacity for both current and future
injectable and oral products. In the coming years, the capital expenditure to sales ratio is expected to be low double digit.
Depreciation, amortisation and impairment losses are expected to be around DKK 8 billion.
The free cash flow is now expected to be DKK 64-72 billion reflecting the sales growth, a favourable impact from rebates
in the US and investments in capital expenditure. The updated cash flow expectation is mainly reflecting business
development activities.
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 2023, 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 Program 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 new significant business development transactions and significant impairments of intangible
assets during 2023. Finally, 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.
FX (average rates) Q2 2023 Q2 2022 % change H1 2023 H1 2022 % change
Spot rate
7 August
2023
USD
684
699
(2%)
689
681
1%
678
CNY
97
106
(8%)
100
105
(5%)
94
JPY
4.97
5.38
(8%)
5.12
5.55
(8%)
4.77
CAD
510
547
(7%)
511
535
(4%)
507
GBP
857
877
(2%)
849
883
(4%)
865
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 4,150 million
12
CNY
2
DKK 470 million
6
CAD
DKK 430 million
9
JPY
DKK 195 million
12
GBP
DKK 160 million
5
1)
As of 30 June 2023.
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 2023 to 30 June 2023
Page 16 of 32
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Company announcement No 52 / 2023
INNOVATION AND THERAPEUTIC FOCUS
Diabetes care
Submission of dasiglucagon for treatment of severe hypoglycaemia to the European Medicines Agency (EMA)
In June 2023, Zealand Pharma A/S (Zealand) submitted a marketing authorisation application to EMA for dasiglucagon
injection for the treatment of severe hypoglycaemia in paediatric and adult patients with diabetes aged 6 and above.
Dasiglucagon injection was approved in the US in March 2021 under the brand name Zegalogue
®
. In September 2022,
Novo Nordisk entered into a global licence and development agreement with Zealand to commercialise Zegalogue
®
.
Phase 1 trial with a fixed dose combination of semaglutide and an SGLT2 inhibitor completed
In June 2023, Novo Nordisk completed a phase 1 trial with an oral once-daily fixed dose combination of semaglutide and
an SGLT-2 inhibitor. The objective of the trial was to investigate pharmacokinetics of the fixed dose combination compared
to each of the components. Following the completion of the trial, Novo Nordisk has terminated further development of the
fixed dose combination.
Obesity care
Successful completion of the SELECT cardiovascular outcomes trial with semaglutide 2.4 mg
In August 2023, Novo Nordisk announced the headline results from SELECT. SELECT was a cardiovascular outcomes trial
comparing subcutaneous once-weekly semaglutide 2.4 mg with placebo as an adjunct to standard of care for prevention
of major adverse cardiovascular events (MACEs) in people with overweight or obesity and established cardiovascular
disease (CVD) with no prior history of diabetes. The trial achieved its primary objective by demonstrating a statistically
significant and superior reduction in MACE of 20% for people treated with semaglutide 2.4 mg compared to placebo. In
the trial, semaglutide 2.4 mg appeared to have a safe and well-tolerated profile in line with previous semaglutide 2.4 mg
trials. For further information, please see the company announcement: link
Successful completion of the OASIS 1 phase 3 trial with oral semaglutide 50 mg in people with obesity or overweight
In May 2023, Novo Nordisk announced the headline results from OASIS 1, a phase 3a trial in the global OASIS programme.
OASIS 1 was a 68-week, efficacy and safety trial comparing once-daily oral semaglutide 50 mg for weight management to
placebo in 667 adults with obesity or overweight with one or more comorbidities. Oral semaglutide 50 mg achieved 15.1%
weight loss (17.4% if all people adhered to treatment) in adults with obesity or overweight in the OASIS 1 phase 3 trial. For
further information, please see the company announcement: link
Successful completion of phase 3 trial with semaglutide 2.4 mg in people with heart failure with preserved ejection fraction
(HFpEF)
In May 2023, Novo Nordisk successfully completed the STEP HFpEF trial. STEP-HFpEF was a 52-week trial investigating the
effects of semaglutide 2.4 mg once-weekly on physical function, symptoms (assessed by Kansas City Cardiomyopathy
Questionnaire – Clinical Summary Score (KCCQ-CSS)) and body weight in people with HFpEF. A superior improvement in
KCCQ-CSS was observed for semaglutide 2.4 mg vs placebo. The estimated change in mean KCCQ-CSS score from baseline
to week 52 was 16.6 with semaglutide 2.4 mg and 8.7 with placebo and the estimated treatment difference (semaglutide
2.4 mg vs placebo) was 7.8. A superior reduction in body weight was observed for semaglutide 2.4 mg vs placebo. The
estimated change in mean body weight from baseline to week 52 was -13.3% with semaglutide 2.4 mg and -2.6% with
placebo and the estimated treatment difference (semaglutide 2.4 mg vs placebo) was -10.7%. In the trial, semaglutide 2.4
mg appeared to have a safe and well-tolerated profile.
Phase 2 trial completed with PYY 1875 in people with obesity
In May 2023, Novo Nordisk completed a phase 2 proof of concept trial with PYY 1875 for weight management. The 42-
week trial investigated safety, tolerability, pharmacokinetics and pharmacodynamics of different doses of PYY 1875 in
combination with subcutaneous semaglutide 2.4 mg compared to placebo in 75 people with obesity. Following the
completion of the trial, Novo Nordisk has terminated further development of PYY 1875 .
Financial report for the period 1 January 2023 to 30 June 2023
Page 17 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
Rare disease
Sogroya
®
approved in Japan and the EU for the treatment of children with growth hormone deficiency
In June and July 2023, Sogroya
®
, the long-acting growth hormone somapacitan, was approved in Japan and the EU,
respectively, for the treatment of children with growth hormone deficiency. The approvals are based on the REAL4 trial
comparing the efficacy and safety of once-weekly dosing of Sogroya
®
with daily Norditropin
®
in children with growth
hormone deficiency. Novo Nordisk has launched Sogroya
®
in the US and Japan for children with growth hormone
deficiency.
Other serious chronic diseases
Phase 3 programme initiated with ziltivekimab in people with heart failure with preserved injection fraction
In May 2023, Novo Nordisk initiated a randomised and placebo-controlled phase 3 cardiovascular outcomes trial
assessing the efficacy and safety of subcutaneous ziltivekimab 15 mg in around 5,600 people with heart failure with mildly
reduced or preserved ejection fraction and systemic inflammation. The event-driven trial is expected to complete in 2027.
Business development
Novo Nordisk to acquire Inversago Pharma and the anti-obesity lead asset, INV-202
Novo Nordisk has agreed to acquire Inversago Pharma (Inversago) for up to USD 1.075 billion if certain development and
commercial milestones are achieved. Inversago is a privately owned biopharmaceutical company based in Montreal
Canada, focusing on the development of CB1 receptor blocker therapies designed to help people living with obesity,
diabetes and complications associated with metabolic disorders. CB1 is a cannabinoid receptor that plays an important
role in appetite regulation and other cardiometabolic pathways. The acquisition of Inversago includes the lead asset
INV-202, an oral CB1 inverse agonist. It is specifically designed to preferentially block CB1 receptors in peripheral tissues
such as adipose tissues, gastrointestinal tract, as well as the kidneys, liver, pancreas, muscles and lungs. INV-202
demonstrated weight loss in a phase 1b trial and is currently in phase 2 development for diabetic kidney disease. The
acquisition is expected to be completed in 2023.
Acquisition of BIOCORP Production SA (BIOCORP)
In June 2023, Novo Nordisk announced an agreement to acquire a controlling stake in BIOCORP. BIOCORP is a French
company specialised in the design, development and manufacturing of delivery systems and innovative medical devices,
including Mallya, a Bluetooth enabled smart add-on device for pen injectors. The acquisition of the controlling stake was
closed on 4 August 2023.
Financial report for the period 1 January 2023 to 30 June 2023
Page 18 of 32
Strategic
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Performance
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Commercial
execution
Financials
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capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
Purpose and sustainability
Environment
ENVIRONMENTAL PERFORMANCE H1 2023 H1 2022
H1 2019
(baseline)
% change
H1 2023 to
H1 2022
% change
H1 2023 to
H1 2019
Emissions
CO
2
emissions from operations and transportation (1,000 tonnes)
112
124
155
(10%)
(28%)
- Scope 1 emissions
1
36
39
43
(8%)
(16%)
- Scope 2 emissions
2
7
9
40
(22%)
(83%)
- Partial scope 3 emissions
3
69
76
72
(9%)
(4%)
1. Scope 1: Direct emissions from 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, heating and cooling).
3. Scope 3: Emissions are limited to CO
2
emissions from business flights and product distribution
Note: H1 2019 baseline figures have been restated by adding two thousand tonnes of CO
2
for business flights
Emissions
Under the environmental strategy Circular for Zero, CO
2
emissions from operations and transportation decreased by 28%
compared to the first six months of 2019. CO
2
emissions from operations and transportation decreased by 10% in the first
six months of 2023 compared to the same period in 2022. Scope 1 and 2 CO
2
emissions decreased by 16% and 83%,
respectively, due to an increase in the usage of renewable energy sources. Scope 3 CO
2
emissions from product
distribution and business flights decreased by 4% mainly due to a decrease in emissions from product distribution, driven
by the purchase of sustainable aviation fuel.
Social
SOCIAL PERFORMANCE H1 2023 H1 2022
% change
H1 2023 to
H1 2022
Patients
Patients reached with Novo Nordisk's Diabetes care products (estimate in million)
1
39.1
35.1
11%
Hereof children reached through the Changing Diabetes
®
in Children programme (cumulative)
45,348 34,300 32%
Sustainable employer
Gender in leadership positions
2
(ratio men:women) 55:45 56:44 N/A
Gender in senior leadership positions
3
(ratio men:women) 60:40 62:38 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
Under the social responsibility strategy ‘Defeat Diabetes’, Novo Nordisk continues to take action on access and affordability
and prevention. The number of people with diabetes treated with Novo Nordisk products, calculated as a moving annual
total, was 39.1 million in the first six months of 2023. This represents a net increase of 4.0 million patients compared to
end of June 2022.
The Changing Diabetes
®
in Children programme aims to reach 100,000 children by 2030. By end of June 2023, more than
45,000 children were reached, an increase of 32% compared to end of June 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 levels and achieve a minimum of 45% women and a
minimum of 45% men in senior leadership positions by the end of 2025.
At the end of June 2023, 45% of all leaders were women, and 40% of leaders in senior leadership positions were women
compared to 44% and 38%, respectively, by the end of June 2022.
Financial report for the period 1 January 2023 to 30 June 2023
Page 19 of 32
Strategic
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Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
The number of full-time employees at the end of the first six months of 2023 increased by 17% compared to 12 months
ago. The total number of full-time employees was 59,337. The increase is driven by Product Supply, International
Operations and Global Business Services in Bangalore, 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.
In Ukraine, Novo Nordisk has continued the supply of medicines, which are currently broadly available throughout the
country, also through collaboration with humanitarian organisations to provide access in bordering areas. Moreover, Novo
Nordisk has donated 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 Russia, Novo Nordisk has suspended marketing investments and changed focus from launching new medications and
clinical investment to securing supply of insulin to ensure that the more than 700,000 patients can continue their
treatment with essential medication.
Sales in Russia and Ukraine constituted less than 1% of Novo Nordisk's global sales.
Financial report for the period 1 January 2023 to 30 June 2023
Page 20 of 32
Strategic
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Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
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therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
MANAGEMENT STATEMENT
The Board of Directors and Executive Management have reviewed and approved the financial report of Novo Nordisk A/S
for the first six months of 2023. The financial report has not been audited or reviewed by the company’s
independent auditors.
The financial report for the first six months of 2023 has 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 2022 of Novo Nordisk.
In our opinion, the financial report for the first six months of 2023 gives a true and fair view of the Group’s assets,
liabilities and financial position at 30 June 2023, and of the results of the Group’s operations and cash flow for the
period 1 January 2023 to 30 June 2023. Furthermore, in our opinion, Management’s Review includes a true and fair
account of the development in the operations and financial circumstances of the results for the period and of the financial
position of the Group as well as a description of the most significant risks and elements of uncertainty facing the Group in
accordance with Danish disclosure requirements for listed companies.
Besides what has been disclosed in the quarterly financial report, no changes in the Group’s most significant risks and
uncertainties have occurred relative to what was disclosed in the consolidated Annual Report 2022.
Bagsværd, 10 August 2023
Executive Management:
Lars Fruergaard Jørgensen
President and CEO
Karsten Munk Knudsen
CFO
Martin Holst Lange
Marcus Schindler Camilla Sylvest Henrik Wulff
Board of Directors:
Helge Lund
Chair
Henrik Poulsen
Vice chair
Elisabeth Dahl Christensen
Laurence Debroux
Andreas Fibig Sylvie Grégoire
Liselotte Hyveled Mette Bøjer Jensen Kasim Kutay
Christina Law Martin Mackay Thomas Rantzau
Financial report for the period 1 January 2023 to 30 June 2023
Page 21 of 32
Strategic
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Commercial
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Financials
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therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
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 serious chronic diseases, built upon our heritage in diabetes.. We do so by pioneering scientific
breakthroughs, expanding access to our medicines and working to prevent and ultimately cure disease. Novo Nordisk
employs about 59,000 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 and YouTube.
Financial calendar
2 November 2023
Financial statement for the first nine months of 2023
31 January 2024
Financial statement for 2023
Contacts for further information
Media:
Ambre James-Brown
+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
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
Sina Meyer
+45 3075 6656
azey@novonordisk.com
Frederik Taylor Pitter
+45 3075 8259
fptr@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 2022 and Form 20-F both filed with the SEC in February 2023 in continuation of the publication of the Annual Report 2022, 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, shortages of supplies, including energy
supplies, 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, strikes and other labour market disputes, 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 2022.
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 2023 to 30 June 2023
Page 22 of 32
Strategic
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Performance
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Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
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
2023
2022
Q2 2023 vs.
Q2
Q1
Q4
Q3
Q2
Q1
Q2 2022
Net sales
54,300
53,367
48,092
45,566
41,265
42,031
32%
Gross profit
46,444
45,185
39,830
38,366
35,196
35,114
32%
Gross margin
85.5%
84.7%
82.8%
84.2%
85.3%
83.5%
Sales and distribution costs
(14,342)
(12,412)
(13,743)
(11,451)
(10,840)
(10,183)
32%
Percentage of sales
26.4%
23.3%
28.6%
25.1%
26.3%
24.2%
Research and development costs
(7,127)
(6,728)
(8,085)
(5,633)
(5,123)
(5,206)
39%
Percentage of sales
13.1%
12.6%
16.8%
12.4%
12.4%
12.4%
Administrative costs
(1,072)
(1,071)
(1,348)
(1,158)
(991)
(970)
8%
Percentage of sales
2.0%
2.0%
2.8%
2.5%
2.4%
2.3%
Other operating income and expenses
(15)
33
433
60
149
392
(110%)
Operating profit (EBIT)
23,888
25,007
17,087
20,184
18,391
19,147
30%
Operating margin
44.0%
46.9%
35.5%
44.3%
44.6%
45.6%
Financial income
(281)
852
(3,200)
1,573
1,656
210
(117%)
Financial expenses
647
(1,122)
2,429
(3,725)
(3,252)
(1,438)
(120%)
Financial items (net)
366
(270)
(771)
(2,152)
(1,596)
(1,228)
(123%)
Profit before income taxes
24,254
24,737
16,316
18,032
16,795
17,919
44%
Income taxes
(4,826)
(4,923)
(2,724)
(3,627)
(3,477)
(3,709)
39%
Net profit
19,428
19,814
13,592
14,405
13,318
14,210
46%
Depreciation, amortisation and impairment losses
2,177
1,719
2,035
2,041
1,636
1,650
33%
Capital expenditure (PP&E)
5,878
4,693
4,961
3,230
2,435
1,520
141%
Net cash generated from operating activities
28,577
29,814
7,101
24,239
23,961
23,586
19%
EBITDA
26,065
26,726
19,122
22,225
20,027
20,797
30%
Free cash flow
20,773
24,764
(5,128)
19,765
21,157
21,568
(2%)
Total assets
280,753
250,025
241,257
242,836
218,928
197,136
28%
Total equity
90,473
79,874
83,486
76,680
74,452
66,550
22%
Equity ratio
32.2%
31.9%
34.6%
31.6%
34.0%
33.8%
Full-time equivalent employees end of period
59,337
57,089
54,393
52,696
50,816
49,295
17%
Basic earnings per share/ADR (in DKK)
8.65
8.81
6.03
6.37
5.87
6.24
47%
Diluted earnings per share/ADR (in DKK)
8.63
8.78
6.02
6.34
5.86
6.22
47%
Average number of shares outstanding (million)
2,245.2
2,249.6
2,254.0
2,261.6
2,269.2
2,276.4
(1%)
Average number of diluted shares outstanding (million)
2,251.3
2,256.6
2,261.4
2,268.5
2,276.1
2,283.3
(1%)
Sales by business segment:
Total GLP-1
27,925
26,811
24,352
22,368
19,231
17,420
45%
Long-acting insulin
3,354
4,133
3,902
3,939
4,104
4,796
(18%)
Premix insulin
2,456
2,776
2,343
2,706
2,501
3,012
(2%)
Fast-acting insulin
3,511
4,488
4,471
4,263
3,887
4,842
(10%)
Human insulin
1,967
2,012
1,970
2,053
1,851
2,312
6%
Total insulin
11,288
13,409
12,686
12,961
12,343
14,962
(9%)
Other Diabetes care
667
729
713
798
830
884
(20%)
Total Diabetes care
39,880
40,949
37,751
36,127
32,404
33,266
23%
Wegovy
®
7,518
4,563
2,446
1,157
1,181
1,404
537%
Saxenda
®
2,788
3,279
3,042
3,174
2,462
1,998
13%
Total Obesity care
10,306
7,842
5,488
4,331
3,643
3,402
183%
Diabetes and Obesity care total
50,186
48,791
43,239
40,458
36,047
36,668
39%
Rare blood disorders
2,836
3,049
2,881
2,885
2,863
3,077
(1%)
Rare endocrine disorders
902
1,128
1,602
1,793
1,923
1,820
(53%)
Other Rare disease
376
399
370
430
432
466
(13%)
Rare disease total
4,114
4,576
4,853
5,108
5,218
5,363
(21%)
Sales by geographic segment:
North America Operations
29,663
29,297
26,660
23,754
20,703
19,990
43%
- The US
27,209
27,322
24,768
22,014
19,121
18,753
42%
International Operations
24,637
24,070
21,432
21,812
20,562
22,041
20%
- EMEA
12,856
12,742
11,514
10,983
10,915
10,824
18%
- Region China
4,467
4,461
3,364
4,438
3,566
4,841
25%
- Rest of World
7,314
6,867
6,554
6,391
6,081
6,376
20%
Segment operating profit:
Diabetes and Obesity care
22,707
24,163
16,985
18,158
15,873
16,379
43%
Rare disease
1,181
844
102
2,026
2,518
2,768
(53%)
Financial report for the period 1 January 2023 to 30 June 2023
Page 23 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
APPENDIX 2: INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
DKK million
H1 2023
H1 2022
Q2 2023
Q2 2022
Income statement
Net sales
Cost of goods sold
(16,038 )
(12,986 )
(7,856 )
(6,069 )
Gross profit
Sales and distribution costs
(26,754 )
(21,023 )
(14,342 )
(10,840 )
Research and development costs
(13,855 )
(10,329 )
(7,127 )
(5,123 )
Administrative costs
(2,143 )
(1,961 )
(1,072 )
(991 )
Other operating income and expenses
(15 )
Operating profit
8
0
0
Financial income
(281 )
Financial expenses
(475 )
(4,690 )
(3,252 )
Profit before income taxes
Income taxes
(9,749 )
(7,186 )
(4,826 )
(3,477 )
NET PROFIT
8
0
0
Basic earnings per share (DKK)
Diluted earnings per share (DKK)
Segment Information
Segment sales:
Diabetes and Obesity care
98,977
72,715
50,186
36,047
Rare disease
8,690
10,581
4,114
5,218
Segment operating profit:
Diabetes and Obesity care
46,870
32,252
22,707
15,873
Operating margin
47.4 %
44.4 %
45.2 %
44.0 %
Rare disease
2,025
5,286
1,181
2,518
Operating margin
23.3 %
50.0 %
28.7 %
48.3 %
Total segment operating profit
48,895
37,538
23,888
18,391
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
(9 )
Items that will be reclassified subsequently to the Income
statement
Exchange rate adjustments of investments in subsidiaries
(957 )
Cash flow hedges, realisation of previously deferred (gains)/losses
Cash flow hedges, deferred gains/(losses) incurred during the period
(3,053 )
(1,749 )
(2,401 )
Other items
(2 )
Tax on other comprehensive income, net
(359 )
(18 )
Other comprehensive income for the period (512 ) 3,224 (456 ) 1,702
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 38,730 30,752 18,972 15,020
Financial report for the period 1 January 2023 to 30 June 2023
Page 24 of 32
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Performance
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Commercial
execution
Financials
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Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
APPENDIX 3: CASH FLOW STATEMENT
DKK million H1 2023 H1 2022
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
(14,231 )
Interest received
Interest paid
(262 )
(120 )
Income taxes paid
(11,347 )
(8,229 )
Net cash generated from operating activities
Purchase of intangible assets
(1,265 )
(400 )
Purchase of property, plant and equipment
(10,571 )
(3,955 )
Proceeds from other financial assets
Purchase of other financial assets
(251 )
(7 )
Purchase of marketable securities
(7,259 )
(4,904 )
Sale of marketable securities
Net cash used in investing activities
(15,932 )
(6,107 )
Purchase of treasury shares
(14,022 )
(11,927 )
Dividends paid
(18,337 )
(15,690 )
Proceeds from issue of bonds
Proceeds from borrowings
Repayment of borrowings
(851 )
(13,099 )
Net cash used in financing activities
(33,210 )
(29,566 )
NET CASH GENERATED FROM ACTIVITIES
Cash and cash equivalents at the beginning of the year
Exchange gain/(loss) on cash and cash equivalents
(328 )
Cash and cash equivalents at the end of the period
Financial report for the period 1 January 2023 to 30 June 2023
Page 25 of 32
Strategic
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Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
APPENDIX 4: BALANCE SHEET
DKK million
30 Jun 2023
31 Dec 2022
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 137,551 108,194
TOTAL ASSETS 280,753 241,257
EQUITY AND LIABILITIES
Share capital
Treasury shares
(3 )
(6 )
Retained earnings
Other reserves
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 280,753 241,257
Financial report for the period 1 January 2023 to 30 June 2023
Page 26 of 32
Strategic
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Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
APPENDIX 5: EQUITY STATEMENT
DKK million
Share
capital
Treasury
shares
Retained
earnings
Other
reserves Total
H1 2023
Balance at the beginning of the year
(6 )
Net profit for the period
Other comprehensive income for the period
(542 )
(512 )
Total comprehensive income for the period
(542 )
Transactions with owners:
Dividends
(18,337 )
(18,337 )
Share-based payments
Tax related to restricted stock units
(205 )
(205 )
Purchase of treasury shares
(2 )
(14,020 )
(14,022 )
Reduction of the B share capital
(5 )
Balance at the end of the period 451 (3 ) 88,118 1,907 90,473
DKK million
Share
capital
Treasury
shares
Retained
earnings
Other
reserves Total
H1 2022
Balance at the beginning of the year
(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
Purchase of treasury shares
(3 )
(11,924 )
(11,927 )
Reduction of the B share capital
(6 )
Balance at the end of the period 456 (3 ) 73,166 833 74,452
Financial report for the period 1 January 2023 to 30 June 2023
Page 27 of 32
Strategic
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Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
APPENDIX 6: SALES SPLIT PER AREA
Q2 2023 sales split per area
DKK million Total
North America
Operations The US
International
Operations EMEA
Region
China
Rest of
World
Diabetes and Obesity care segment
Injectable GLP-1
23,937
15,584
13,733
8,353
4,356
1,738
2,259
% change at CER
45%
39%
32%
57%
35%
143%
62%
Ozempic
®
22,101
14,991
13,181
7,110
3,806
1,363
1,941
% change at CER
59%
51%
44%
78%
50%
228%
83%
Victoza
®
1,836
593
552
1,243
550
375
318
% change at CER
(30%)
(53%)
(55%)
(6%)
(20%)
27%
(9%)
Rybelsus
®
3,988
2,232
2,185
1,756
1,003
31
722
% change at CER
90%
46%
46%
203%
279%
106%
142%
Total GLP-1
27,925
17,816
15,918
10,109
5,359
1,769
2,981
% change at CER
50%
40%
34%
71%
53%
143%
76%
Long-acting insulin
3,354
524
362
2,830
1,745
418
667
% change at CER
(14%)
(55%)
(64%)
3%
0%
17%
5%
Tresiba
®
1,747
372
232
1,375
789
195
391
% change at CER
(19%)
(49%)
(62%)
(3%)
(5%)
(7%)
3%
Xultophy
®
854
74
73
780
461
127
192
% change at CER
28%
(27%)
(26%)
37%
10%
—
30%
Levemir
®
753
78
57
675
495
96
84
% change at CER
(31%)
(76%)
(80%)
(10%)
(1%)
(31%)
(23%)
Premix insulin
2,456
132
128
2,324
652
1,117
555
% change at CER
3%
25%
27%
2%
(8%)
15%
(9%)
Ryzodeg
®
986
—
—
986
168
534
284
% change at CER
47%
—
—
47%
51%
106%
(5%)
NovoMix
®
1,470
132
128
1,338
484
583
271
% change at CER
(15%)
25%
27%
(17%)
(19%)
(18%)
(13%)
Fast-acting insulin
3,511
897
822
2,614
1,661
377
576
% change at CER
(5%)
(26%)
(26%)
5%
7%
(6%)
9%
Fiasp
®
447
78
68
369
312
—
57
% change at CER
(9%)
(55%)
(60%)
17%
16%
—
23%
NovoRapid
®
3,064
819
754
2,245
1,349
377
519
% change at CER
(5%)
(21%)
(21%)
3%
5%
(6%)
8%
Human insulin
1,967
325
311
1,642
488
284
870
% change at CER
14%
(13%)
(12%)
21%
11%
(16%)
51%
Total insulin
11,288
1,878
1,623
9,410
4,546
2,196
2,668
% change at CER
(4%)
(34%)
(37%)
6%
2%
6%
14%
Other Diabetes care
1
667
140
126
527
159
255
113
% change at CER
(16%)
(10%)
6%
(18%)
(17%)
(21%)
(12%)
Total Diabetes care
39,880
19,834
17,667
20,046
10,064
4,220
5,762
% change at CER
28%
26%
21%
30%
24%
35%
38%
Wegovy
®
7,518
7,196
7,196
322
322
—
—
% change at CER
543%
515%
515%
—
—
—
—
Saxenda
®
2,788
1,052
921
1,736
1,102
47
587
% change at CER
18%
(7%)
(10%)
41%
45%
22%
37%
Total Obesity care
10,306
8,248
8,117
2,058
1,424
47
587
% change at CER
188%
255%
267%
67%
87%
22%
37%
Diabetes and Obesity care total
50,186
28,082
25,784
22,104
11,488
4,267
6,349
% change at CER
44%
54%
53%
33%
29%
35%
38%
Rare disease segment
Rare blood disorders
2
2,836
1,161
1,097
1,675
1,036
138
501
% change at CER
1%
(5%)
(2%)
6%
3%
69%
3%
Haemophilia A
688
141
138
547
302
123
122
% change at CER
13%
25%
32%
10%
2%
400%
(32%)
Haemophilia B
250
104
73
146
92
3
51
% change at CER
60%
66%
128%
56%
48%
0%
78%
NovoSeven
®
1,794
837
811
957
625
12
320
% change at CER
(9%)
(16%)
(14%)
(1%)
(2%)
(76%)
17%
Rare endocrine disorders
3
902
273
264
629
163
60
406
% change at CER
(53%)
(56%)
(57%)
(52%)
(73%)
8%
(38%)
Other Rare disease
4
376
147
64
229
169
2
58
% change at CER
(9%)
(20%)
(39%)
(1%)
(12%)
0%
54%
Rare disease total
4,114
1,581
1,425
2,533
1,368
200
965
% change at CER
(20%)
(22%)
(22%)
(18%)
(23%)
44%
(17%)
Total sales
54,300
29,663
27,209
24,637
12,856
4,467
7,314
% change at CER
36%
47%
45%
25%
20%
35%
27%
% change as reported
32%
43%
42%
20%
18%
25%
20%
Share of growth
100%
65%
58%
35%
15%
9%
11%
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 2023 to 30 June 2023
Page 28 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
H1 2023 sales split per area
DKK million Total
North America
Operations The US
International
Operations EMEA
Region
China
Rest of
World
Diabetes and Obesity care segment
Injectable GLP-1
46,392
30,861
27,605
15,531
8,434
3,051
4,046
% change at CER
44%
43%
37%
46%
36%
95%
39%
Ozempic
®
41,741
29,002
25,830
12,739
7,154
2,213
3,372
% change at CER
59%
57%
50%
64%
51%
154%
55%
Victoza
®
4,651
1,859
1,775
2,792
1,280
838
674
% change at CER
(22%)
(41%)
(42%)
(3%)
(11%)
21%
(9%)
Rybelsus
®
8,344
4,933
4,849
3,411
1,973
67
1,371
% change at CER
98%
56 %
56 %
214 %
268%
204%
161%
Total GLP-1
54,736
35,794
32,454
18,942
10,407
3,118
5,417
% change at CER
50%
44%
39%
62%
55%
97%
58%
Long-acting insulin
7,487
1,677
1,361
5,810
3,644
834
1,332
% change at CER
(14%)
(42%)
(48%)
(1%)
(3%)
(8%)
9%
Tresiba
®
3,926
1,035
765
2,891
1,674
436
781
% change at CER
(17%)
(40%)
(48%)
(5%)
(4%)
(17%)
2%
Xultophy
®
1,635
173
169
1,462
923
174
365
% change at CER
19%
(25%)
(25%)
27%
8%
—
28%
Levemir
®
1,926
469
427
1,457
1,047
224
186
% change at CER
(26%)
(50%)
(52%)
(13%)
(9%)
(38%)
7%
Premix insulin
5,232
271
263
4,961
1,357
2,427
1,177
% change at CER
(3%)
(1%)
0%
(3%)
(2%)
(1%)
(6%)
Ryzodeg
®
1,957
—
—
1,957
326
1,033
598
% change at CER
51%
—
—
51%
29%
113%
6%
NovoMix
®
3,275
271
263
3,004
1,031
1,394
579
% change at CER
(20%)
(1%)
0%
(21%)
(9%)
(30%)
(15%)
Fast-acting insulin
7,999
2,648
2,493
5,351
3,384
847
1,120
% change at CER
(7%)
(14%)
(13%)
(4%)
(1%)
(18%)
2%
Fiasp
®
965
198
177
767
645
—
122
% change at CER
(3%)
(45%)
(49%)
20%
17%
—
39%
NovoRapid
®
7,034
2,450
2,316
4,584
2,739
847
998
% change at CER
(8%)
(9%)
(8%)
(7%)
(4%)
(18%)
(1%)
Human insulin
3,979
688
661
3,291
998
675
1,618
% change at CER
0%
(13%)
(13%)
3%
3%
(30%)
28%
Total insulin
24,697
5,284
4,778
19,413
9,383
4,783
5,247
% change at CER
(7%)
(25%)
(26%)
(2%)
(1%)
(11%)
9%
Other Diabetes care
1
1,396
301
273
1,095
324
544
227
% change at CER
(19%)
(22%)
(13%)
(18%)
(12%)
(17%)
(27%)
Total Diabetes care
80,829
41,379
37,505
39,450
20,114
8,445
10,891
% change at CER
24%
28%
25%
20%
21%
11%
27%
Wegovy
®
12,081
11,621
11,621
460
460
—
—
% change at CER
363%
344%
344%
—
—
—
—
Saxenda
®
6,067
2,538
2,285
3,529
2,180
100
1,249
% change at CER
38%
27%
28%
47%
48%
33%
47%
Total Obesity care
18,148
14,159
13,906
3,989
2,640
100
1,249
% change at CER
157%
207%
216%
66%
79%
33%
47%
Diabetes and Obesity care total
98,977
55,538
51,411
43,439
22,754
8,545
12,140
% change at CER
37%
51%
49%
24%
26%
11%
29%
Rare disease segment
Rare blood disorders
2
5,885
2,449
2,323
3,436
2,131
265
1,040
% change at CER
(1%)
(4%)
(3%)
2%
13%
51%
(21%)
Haemophilia A
1,348
285
272
1,063
636
228
199
% change at CER
16%
22%
24%
14%
11%
456%
(38%)
Haemophilia B
447
181
119
266
168
6
92
% change at CER
36%
48%
92%
30%
28%
0%
35%
NovoSeven
®
3,895
1,854
1,811
2,041
1,279
31
731
% change at CER
(10%)
(12%)
(10%)
(8%)
10%
(76%)
(20%)
Rare endocrine disorders
3
2,030
695
678
1,335
332
114
889
% change at CER
(46%)
(45%)
(45%)
(47%)
(72%)
10%
(28%)
Other Rare disease
4
775
278
119
497
381
4
112
% change at CER
(11%)
(22%)
(42%)
(3%)
(11%)
0%
32%
Rare disease total
8,690
3,422
3,120
5,268
2,844
383
2,041
% change at CER
(18%)
(18%)
(19%)
(17%)
(18%)
35%
(23%)
Total sales
107,667
58,960
54,531
48,707
25,598
8,928
14,181
% change at CER
30%
44%
42%
17%
19%
12%
18%
% change as reported
29%
45%
44%
14%
18%
6%
14%
Share of growth
100%
71%
63%
29%
16%
4%
9%
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 2023 to 30 June 2023
Page 29 of 32
Strategic
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Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
APPENDIX 7: ACQUISITION OF BUSINESSES
Forma Therapeutics, Inc.
On 14 October 2022, Novo Nordisk acquired all outstanding shares of the publicly held US company Forma Therapeutics,
Inc. via a cash tender offer. Novo Nordisk did not hold any shares in Forma Therapeutics prior to the acquisition. The
acquisition of Forma Therapeutics, including its lead development candidate, etavopivat, is aligned with Novo Nordisk’s
strategy to complement and accelerate its scientific presence and pipeline in haemoglobinopathies, a group of disorders in
which there is abnormal production or structure of the haemoglobin protein in the red blood cells.
Details of the acquisition
The total purchase price amounts to DKK 8,102 million and has been settled in full by cash consideration.
Novo Nordisk completed the acquisition of Forma Therapeutics, Inc. through a merger of Novo Nordisk’s wholly owned
subsidiary with and into Forma Therapeutics in which all shares not tendered into the offer were cancelled and converted
into the right to receive cash equal to the USD 20 offer price per share, without interest, less any applicable tax
withholding. At the completion of the merger, Forma Therapeutics, Inc. became a wholly owned subsidiary of Novo
Nordisk. The common stock of Forma Therapeutics, Inc. is no longer listed or traded on the Nasdaq Global Select Market.
DKK million
Goodwill as of 14 October 2022 524
Exchange rate adjustment (55)
Goodwill as of 30 June 2023 469
For further information regarding the acquisition and the provisional purchase price allocation please refer to the Annual
Report for 2022.
Financial report for the period 1 January 2023 to 30 June 2023
Page 30 of 32
Strategic
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Performance
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Commercial
execution
Financials
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Outlook
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therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
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, EBITDA and EBITDA at CER as well as Free cash flow.
Sales, operating profit and EBITDA 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/
EBITDA for the period measured at the average exchange rates for the same period prior year compared with Net sales/
Operating profit/EBITDA 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, operating profit and EBITDA by adjusting for the impact of currency fluctuations.
Sales at CER
DKK million
H1 2023 H1 2022
% change
H1 2023 to
H1 2022
Q2 2023 Q2 2022
% change
Q2 2023 to
Q2 2022
Net sales
107,667
83,296
29%
54,300
41,265
32%
Effect of exchange rates
847
—
1,801
—
Sales at CER 108,514 83,296 30% 56,101 41,265 36%
Operating profit at CER
DKK million
H1 2023 H1 2022
% change
H1 2023 to
H1 2022
Q2 2023 Q2 2022
% change
Q2 2023 to
Q2 2022
Operating profit
48,895
37,538
30%
23,888
18,391
30%
Effect of exchange rates
677
—
1,239
—
Operating profit at CER 49,572 37,538 32% 25,127 18,391 37%
EBITDA
Novo Nordisk has significantly increased its Business Development M&A activities and Capital expenditure for property,
plant and equipment during recent years. Novo Nordisk defines Earnings before interest, taxes, depreciation and
amortisation (EBITDA) as ’Operating profit’, plus 'impairment charges' and 'depreciation and amortisation'. EBITDA is a
measure that is widely used by investors and analysts as it helps analyse operating results from core business operations
without including the effects of capital structure, tax rates and depreciation and amortisation. These factors can vary
substantially between companies.
Financial report for the period 1 January 2023 to 30 June 2023
Page 31 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023
EBITDA
DKK million H1 2023 H1 2022
% change
H1 2023 to
H1 2022
Q2 2023 Q2 2022
% change
Q2 2023 to
Q2 2022
Net profit
39,242
27,528
43%
19,428
13,318
46%
Income taxes
9,749
7,186
36%
4,826
3,477
39%
Financial items (net)
(96)
2,824
(103%)
(366)
1,596
(123%)
Operating profit (EBIT)
48,895
37,538
30%
23,888
18,391
30%
Depreciation, amortisation and impairment losses
3,896
3,286
19%
2,177
1,636
33%
EBITDA 52,791 40,824 29% 26,065 20,027 30%
DKK million H1 2023 H1 2022
% change
H1 2023 to
H1 2022
Q2 2023 Q2 2022
% change
Q2 2023 to
Q2 2022
Net profit
39,242
27,528
43%
19,428
13,318
46%
Income taxes
9,749
7,186
36%
4,826
3,477
39%
Financial items (net)
(96)
2,824
(103%)
(366)
1,596
(123%)
Operating profit (EBIT)
48,895
37,538
30%
23,888
18,391
30%
Effect of exchange rates
677
—
1,239
—
Operating profit (EBIT) at CER
49,572
37,538
32%
25,127
18,391
37%
Depreciation, amortisation and impairment losses
3,896
3,286
19%
2,177
1,636
33%
Effect of exchange rates (10) — — —
Depreciation, amortisation and impairment
losses at CER
3,886 3,286 18% 2,177 1,636 33%
EBITDA at CER 53,458 40,824 31% 27,304 20,027 36%
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 e.g. 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 H1 2023 H1 2022 Q2 2023 Q2 2022
Net cash generated from operating activities 58,391 47,547 28,577 23,961
Net cash used in investing activities (15,932) (6,107) (9,285) (4,200)
Net purchase of marketable securities
3,878
1,745
2,006
1,625
Repayment on lease liabilities
(800)
(460)
(525)
(229)
Free cash flow 45,537 42,725 20,773 21,157
Financial report for the period 1 January 2023 to 30 June 2023
Page 32 of 32
Strategic
aspirations
Performance
highlights
Commercial
execution
Financials
Cash flow and
capital allocation
Outlook
Innovation and
therapeutic focus
Purpose and
sustainability
Financial
Information
Company announcement No 52 / 2023