Prepared by Imprima de Bussy

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 6-K


REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

OCTOBER 27, 2010


        NOVO NORDISK A/S       
(Exact name of Registrant as specified in its charter)

Novo Allé
DK- 2880, Bagsvaerd
Denmark

(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F

Form 20-F [X]     
     Form 40-F [  ]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [  ]     
      No [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g-32(b):82-_____________________

 


 

Company Announcement

Interim financial report for the period 1 January 2010 to 30 September 2010

27 October 2010

Novo Nordisk’s operating profit up by 24% in the first nine months of 2010 Sales grew by 17% driven by Victoza®, NovoRapid® and Levemir®

  • Sales increased by 17% in Danish kroner and by 12% in local currencies.
  o   Sales of modern insulins increased by 24% (18% in local currencies).
  o   Sales of NovoSeven® increased by 13% (9% in local currencies).
  o   Sales of Norditropin® increased by 10% (6% in local currencies).
  o   Sales in North America increased by 26% (21% in local currencies).
  o   Sales in International Operations increased by 23% (15% in local currencies).

  • Gross margin improved by 1.3 percentage points in Danish kroner to 80.8% in the first nine months of 2010, primarily reflecting a positive product mix development.

  • Reported operating profit increased by 24% to DKK 14,547 million. Adjusted for the impact from currencies, operating profit in local currencies increased by around 15%.

  • Net profit increased by 24% to DKK 10,457 million. Earnings per share (diluted) increased by 28% to DKK 17.78.

  • In the second phase 3a study for DegludecPlus, the trial results document at least similar glycaemic control compared to NovoMix® 30 and with a reduced rate of hypoglycaemia. The first phase 3a study for Degludec, the new generation ultra long-acting basal insulin, shows the potential for Degludec to provide dosing flexibility without compromising the glycaemic control or safety profile.

  • In the first phase 3 study with liraglutide in obesity, patients treated for 56 weeks with liraglutide lost 6 kg more than patients in the placebo group. Two additional phase 3 studies will be initiated in the first half of 2011.

  • The guidance for 2010 has been raised: sales growth measured in local currencies is now expected to be 11–12%, and operating profit growth measured in local currencies is now expected to be more than 15%.

Lars Rebien Sørensen, president and CEO: “We are increasing our guidance for 2010 based on the continued double-digit sales growth from Victoza®, NovoRapid® and Levemir®. We are also encouraged by the latest results from the phase 3a trials with DegludecPlus and Degludec, our two new generation insulins and by the progress made within our haemophilia pipeline.”

Company Announcement no 60 / 2010
Page 1 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Consolidated financial statement for the first nine months of 2010

The present unaudited interim financial report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and accounting policies set out in the Annual Report 2009 of Novo Nordisk. Furthermore, the interim financial report and Management’s review are prepared in accordance with additional Danish disclosure requirements for interim reports of listed companies. Novo Nordisk has adopted all new, amended or revised accounting standards and interpretations (‘IFRSs’) endorsed by the EU effective for the accounting period beginning on 1 January 2010. These IFRSs have not had a significant impact on the Group’s interim financial report.

Amounts in DKK million, except average number of shares outstanding, earnings per share and full-time employees.

% change
9M 2009
Profit and loss 9M 2010 9M 2009
to 9M 2010
Sales 44,652 38,016
17%
             
Gross profit 36,057 30,213
19%
Gross margin 80.8% 79.5%
 
Sales and distribution costs 12,921 11,183
16%
Percent of sales 28.9% 29.4%
   
Research and development costs 6,867 5,477
25%
Percent of sales 15.4% 14.4%
   
Administrative expenses 2,215 2,038
9%
Percent of sales 5.0% 5.4%
   
Licence fees and other operating income 493 199
148%
             
Operating profit 14,547 11,714
24%
Operating margin 32.6% 30.8%
 
Net financials (966 ) (718 )
35%
Profit before income taxes 13,581 10,996
24%
             
Net profit 10,457 8,445
24%
Net profit margin 23.4% 22.2%
 
Other key numbers
 
Depreciation, amortisation and impairment losses 1,783 1,797
(1%
)
Capital expenditure 2,167 1,695
28%
             
Cash flow from operating activities 14,774 11,795
25%
Free cash flow 12,306 9,930
24%
             
Total assets 57,162 52,589
9%
Equity 34,264 34,874
(2%
)
             
Equity ratio 59.9% 66.3%
 
Average number of shares outstanding (million) – diluted 588.1 607.4
(3%
)
Diluted earnings per share / ADR (in DKK) 17.78 13.90
28%
             
Full-time employees at the end of the period 29,515 28,497
4%

 

Company Announcement no 60 / 2010
Page 2 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Sales development
Sales increased by 17% in Danish kroner and by 12% measured in local currencies and all regions contributed to growth measured in local currencies. North America was the main contributor with 60% share of growth measured in local currencies, followed by International Operations and Europe, contributing 25% and 13%, respectively. Sales growth was realised within both diabetes care and biopharmaceuticals, with the primary growth contribution originating from the modern insulins and Victoza®.

Sales
Growth
Growth
Share of
9M 2010
as
in local
growth
DKK
reported
currencies
in local
million
currencies
The diabetes care segment
Modern insulins
19,474
24%
18%
61%
– NovoRapid®
8,691
21%
16%
24%
– NovoMix®
5,716
19%
13%
14%
– Levemir®
5,067
34%
29%
23%
Human insulins
8,835
2%
(2%
)
(4%
)
Protein-related products
1,653
13%
7%
2%
Victoza®
1,366
-
-
27%
Oral antidiabetic products
2,085
3%
(1%
)
0%
Diabetes care total
33,413
20%
15%
86%
                 
The biopharmaceuticals segment
NovoSeven®
6,034
13%
9%
10%
Norditropin®
3,561
10%
6%
4%
Other products
1,644
6%
(1%
)
0%
Biopharmaceuticals total
11,239
11%
6%
14%
                 
Total sales
44,652
17%
12%
100%

Diabetes care sales development
Sales of diabetes care products increased by 20% measured in Danish kroner to DKK 33,413 million and by 15% in local currencies compared to the first nine months of 2009.

Modern insulins, human insulins and protein-related products
In the first nine months of 2010, sales of modern insulins, human insulins and protein-related products increased by 16% in Danish kroner to DKK 29,962 million and by 11% measured in local currencies compared to the same period last year, with North America and International Operations having the highest growth rates. Novo Nordisk is the global leader with 51% of the total insulin market and 46% of the modern insulin market, both measured in volume.

Sales of modern insulins increased by 24% in Danish kroner to DKK 19,474 million and by 18% in local currencies compared to the first nine months of 2009, reflecting steady sales growth globally. All regions realised solid growth rates, with North America accounting for more than half of the growth, followed by International Operations and Europe. Sales of modern insulins now constitute close to 70% of Novo Nordisk’s sales of insulin.

North America
Sales in North America increased by 23% in Danish kroner and by 18% in local currencies in the first nine months of 2010, reflecting a continued solid market penetration of the modern insulins, Levemir®, NovoLog® and NovoLog® Mix 70/30. Novo Nordisk maintains its leadership

Company Announcement no 60 / 2010
Page 3 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


position in the US insulin market with 42% of the total insulin market and 36% of the modern insulin market, both measured in volume. Currently, around 42% of Novo Nordisk’s modern insulin volume in the US is being sold in the prefilled device FlexPen®.

Europe
Sales in Europe increased by 5% measured in Danish kroner and by 3% in local currencies in the first nine months of 2010, reflecting continued progress for the portfolio of modern insulins and declining human insulin sales. Novo Nordisk holds 53% of the total insulin market and 51% of the modern insulin market, both measured in volume. The device penetration in Europe remains high with more than 96% of Novo Nordisk’s insulin volume being used in devices, primarily NovoPen® and FlexPen®.

International Operations
Sales in International Operations increased by 25% in Danish kroner and by 17% in local currencies in the first nine months of 2010. The main contributor to growth was sales of modern insulins, primarily in China. Sales of human insulins continue to add to overall growth in the region, also driven by China.

Japan & Korea
Sales in Japan & Korea increased by 8% measured in Danish kroner and decreased by 2% in local currencies in the first nine months of 2010. The sales development reflects sales growth for all three modern insulins, Levemir®, NovoRapid® and NovoRapid Mix® 30, offset by a decline in human insulin sales. In a continuously challenging competitive environment, Novo Nordisk now holds 64% of the total insulin market in Japan and 57% of the modern insulin market, both measured in volume. The device penetration in Japan remains high with more than 98% of Novo Nordisk’s insulin volume being used in devices, primarily NovoPen® and FlexPen®.

Victoza® (GLP-1 therapy for type 2 diabetes)
Victoza® sales reached DKK 1,366 million during the first nine months of 2010 reflecting solid market performance in both Europe and the US, but also encouraging initial uptake in Japan since the mid-2010 launch. The global launch is progressing according to plan and most recently the product has been made commercially available in Italy as of 1 September 2010. Based on communication from the Center for Drug Evaluation in China, formal regulatory feedback on the new drug application for Victoza® is now expected in the second half of 2011.

NovoNorm®/Prandin®/PrandiMet® (oral antidiabetic products)
In the first nine months of 2010, sales of oral antidiabetic products increased by 3% in Danish kroner to DKK 2,085 million and decreased by 1% in local currencies compared to the same period in 2009. The sales development reflects lower sales in Europe due to generic competition primarily in Germany.

Biopharmaceuticals sales development
In the first nine months of 2010, sales of biopharmaceutical products increased by 11% measured in Danish kroner to DKK 11,239 million and by 6% measured in local currencies compared to the first nine months of 2009.

NovoSeven® (bleeding disorders therapy)
Sales of NovoSeven® increased by 13% in Danish kroner to DKK 6,034 million and by 9% in local currencies compared to the first nine months of 2009. Sales growth for NovoSeven® was

Company Announcement no 60 / 2010
Page 4 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


primarily realised in North America, but also International Operations and Japan & Korea contributed to the growth.

Norditropin® (growth hormone therapy)
Sales of Norditropin® increased by 10% measured in Danish kroner to DKK 3,561 million and by 6% measured in local currencies compared to the first nine months of 2009. Growth in local currencies was realised in all regions, with International Operations having the highest growth rate. Novo Nordisk is the second-largest company in the global growth hormone market with a 25% market share measured in volume.

Other products
Sales of other products within biopharmaceuticals, which predominantly consist of hormone replacement therapy (HRT)-related products, increased by 6% in Danish kroner to DKK 1,644 million and decreased by 1% in local currencies. This development primarily reflects continued sales progress for Vagifem® being partly offset by generic competition to Activella® in the US. In Europe the launch of 10 mcg Vagifem® is progressing, and in the US 10 mcg Vagifem® has now replaced the previous version, 25 mcg Vagifem®.

Development in costs
The cost of goods sold was DKK 8,595 million in the first nine months of 2010, reflecting a gross margin of 80.8% compared to 79.5% in the same period of 2009. This improvement primarily reflects a favourable product mix impact due to increased sales of modern insulins and Victoza®, and a positive 0.4 percentage points currency impact.

In the first nine months of 2010, total non-production-related costs increased by 18% to DKK 22,003 million and by 14% in local currencies compared to the same period last year.

Sales and distribution costs increased by 16% to DKK 12,921 million, primarily reflecting the launch costs of Victoza® in Europe and the US, as well as a continued expansion of the global field sales force.

Research and development costs increased by 25% to DKK 6,867 million, primarily reflecting the ongoing phase 3 programme for the new generation of insulins, Degludec and DegludecPlus.

Licence fees and other operating income constituted DKK 493 million in the first nine months of 2010 compared to DKK 199 million in the same period of 2009. This development reflects a sustainable higher level of licence fees as well as a non-recurring income of approximately DKK 100 million related to a patent settlement during the first quarter of 2010.

Net financials
Net financials showed a net expense of DKK 966 million in the first nine months of 2010 compared to a net expense of DKK 718 million in the same period of 2009.

For the first nine months of 2010, the foreign exchange result was an expense of DKK 805 million compared to an expense of DKK 617 million in the first nine months of 2009. This development reflects losses on foreign exchange hedging of especially US dollars due to the appreciation versus the Danish krone in 2010 compared to the exchange rate level prevailing in 2009.

Company Announcement no 60 / 2010
Page 5 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Also included in net financials is the result from associated companies with an income of DKK 39 million. In the same period of 2009, the result from associated companies was an expense of DKK 53 million. In the fourth quarter of 2010, Novo Nordisk will record a non-recurring income of approximately DKK 1.1 billion in relation to the sale of shares in ZymoGenetics, Inc. as announced on 8 October 2010.

Key developments in the third quarter of 2010
Please refer to appendix 1 for an overview of the quarterly numbers in DKK.

Sales in the third quarter of 2010 increased by 25% to DKK 15,584 million and by 14% in local currencies compared to the same period in 2009. The growth was driven by the modern insulins, Victoza® and NovoSeven®, and with North America and International Operations representing the majority of the growth from a geographic perspective. International Operations’ sales growth was primarily driven by modern insulins, especially in China. Victoza® sales of DKK 700 million in the third quarter of 2010 were primarily driven by sales in the US and Europe.

The gross margin increased to 81.2% in the third quarter of 2010 compared to 78.5% in the same period last year. The increase was primarily driven by a favourable development in product mix and with a positive 1.2 percentage points’ currency impact.

In the third quarter of 2010, total non-production-related costs increased by 26% to DKK 7,634 million and by 18% in local currencies compared to the same period last year.

Sales and distribution costs increased by 31% in the third quarter of 2010 compared to the same period last year, primarily driven by Victoza® launch costs and field sales force expansions in Japan, Europe and International Operations.

Research and development costs increased by 22% in the third quarter of 2010 compared to the same period last year, primarily driven by the phase 3 development programme for Degludec and DegludecPlus as well as the initiation of the cardiovascular outcomes trial for Victoza® named LEADER™.

Licence fees and other operating income increased from DKK 34 million to DKK 110 million compared to the same period last year, primarily driven by recurring licence fee income related to intellectual property rights.

Reported operating profit increased by 34% in the third quarter of 2010 compared to the same period last year, and by around 15% in local currencies. This primarily reflects the sales growth, the improvement in gross margin and the increased license fees offset by the increase in sales and distribution costs.

Company Announcement no 60 / 2010
Page 6 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Outlook

The current expectations for 2010 are summarised and compared to the previous expectations in the table below (changes highlighted in bold and italics):

Expectations are as reported, if not
Current expectations
Previous expectations
 
otherwise stated
27 October 2010
5 August 2010
 



 
Sales growth
 
   - in local currencies
11-12%
9–10%
 
   - as reported
Around 5 percentage points
Around 6 percentage points
 
 
higher
higher
 



 
Operating profit growth
 
   - underlying
More than 15%
12–15%
 
   - as reported
Around 10 percentage
Around 11 percentage points
 
 
points higher
higher
 



 
Net financial expense
Around DKK 300 million
Around DKK 1,750 million
 



 
Effective tax rate
Approximately 21.5%*
Approximately 23%
 



 
Capital expenditure
More than DKK 3 billion
Around DKK 3.5 billion
 



 
Depreciation, amortisation and
 
impairment losses
Around DKK 2.6 billion
Around DKK 2.7 billion
 



 
Free cash flow
More than DKK 14 billion
Close to DKK 13 billion
 



 
* Including a non-recurring reduction of 1.5 percentage points related to the divestment of shares in ZymoGenetics, Inc.

Novo Nordisk now expects sales growth in 2010 of 11–12% measured in local currencies. This is based on expectations of continued market penetration for Novo Nordisk’s key products within diabetes care - including continued global roll-out of Victoza® - and biopharmaceuticals, as well as expectations of continued intense competition, generic competition to NovoNorm® in Europe and an impact from the implementation of healthcare reforms primarily in the US and Europe. Given the current level of exchange rates versus the Danish krone, the reported sales growth is now expected to be around 5 percentage points higher than measured in local currencies.

For 2010, growth in operating profit is now expected to be more than 15% measured in local currencies, primarily driven by the increase in sales growth expectations. Given the current level of exchange rates versus the Danish krone, the reported operating profit growth is now expected to be around 10 percentage points higher than measured in local currencies.

For 2010, Novo Nordisk now expects a net financial expense of around DKK 300 million. The current expectation primarily reflects losses on foreign exchange hedging contracts and a non-recurring income of DKK 1.1 billion to be realised in the fourth quarter of 2010 stemming from the divestment of Novo Nordisk’s ownership share of ZymoGenetics, Inc. as announced on 8 October 2010.

The effective tax rate for 2010 is now expected to be approximately 21.5%. The lowered expectation for the effective tax rate is driven by the divestment of Novo Nordisk’s ownership share of ZymoGenetics, Inc., where the income is exempt from tax charges under applicable Danish tax laws. This non-recurring effect will reduce the effective tax rate in the fourth quarter of 2010.

Capital expenditure is now expected to be more than DKK 3 billion in 2010, primarily related to investments in the new insulin formulation and filling plant in China and a new prefilled device production facility in Denmark. Expectations for depreciation, amortisation and

Company Announcement no 60 / 2010
Page 7 of 22
Interim financial report for the period 1 January to 30 September 2010  

 

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

impairment losses are now around DKK 2.6 billion whereas free cash flow is expected to be more than DKK 14 billion.

With regard to the financial outlook for 2011, Novo Nordisk will provide detailed guidance on expectations in connection with the release of full-year financial results for 2010 on 2 February 2011. At present, the preliminary plans for 2011 indicate close to 10% sales growth and 10–15% growth in operating profit, both measured in local currencies. The preliminary plans reflect expectations for continued solid penetration of the portfolio of modern insulins, continued global roll-out of Victoza® and progress for key products within biopharmaceuticals. The preliminary plans also reflect expected generic competition to oral antidiabetic products, further impact from healthcare reforms and continued intense competition within both diabetes care and biopharmaceuticals. Due to an expected negative currency impact following the recent significant depreciation of Novo Nordisk’s main invoicing currencies, the reported sales growth for 2011 is expected to be around 2 percentage points lower than the growth measured in local currencies, whereas the reported operating profit growth is expected to be around 4 percentage points lower than the growth measured in local currencies. The accounting effect of foreign exchange hedging contracts, deferred for income recognition in 2011 when the hedged operating cash flows will be realised, is currently expected to be approximately neutral.

All of the above expectations are based on the assumption that the global economic environment will not significantly change business conditions for Novo Nordisk during the remainder of 2010 and in 2011 and that currency exchange rates, especially the US dollar, remain at the current level versus the Danish krone during the remaining part of 2010 and in 2011. Please refer to appendix 7 for key currency assumptions.

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
Annual impact on Novo Nordisk’s
Hedging period
 
currencies
operating profit of a 5%
(months)
 
movement in currency
 
USD
DKK 620 million
16
 
JPY
DKK 155 million
14
 
CNY
DKK 120 million
12*
 
GBP
DKK 85 million
10
 
CAD
DKK 45 million
6
 

* USD used as proxy when hedging Novo Nordisk’s CNY currency exposure

The financial impact from foreign exchange hedging is included in ‘Net financials’.

Research and development update

Diabetes care and obesity
DegludecPlus versus NovoMix® in type 2 diabetes results (NN5401-3592)
A phase 3a treat-to-target study with DegludecPlus, a fixed ratio combination of the ultra- long-acting basal insulin degludec and insulin aspart, in people with late-stage type 2 diabetes has been completed. The study was a randomised, controlled trial conducted in three continents. Participants were randomised to treatment with either DegludecPlus or NovoMix® 30 twice daily, as add-on to standard oral antidiabetic therapy. DegludecPlus effectively improved long-term glycaemic control, achieving the primary objective of showing HbA1c non-inferiority, with HbA1c decreasing by around 1.5%-points to 7.1% in both treatment arms.

Company Announcement no 60 / 2010
Page 8 of 22
Interim financial report for the period 1 January to 30 September 2010  

 

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

Titration targets were achieved faster, and fasting as well as mean plasma glucose levels were lower for the DegludecPlus group compared to the NovoMix® 30 group. The total daily insulin dose at study completion was lower in the DegludecPlus group than in the NovoMix® 30 group.

The rate of confirmed hypoglycaemia, defined as the need for third-party assistance or plasma glucose level below 3.1 mmol/l, was statistically significantly reduced overall, and by more than two-thirds during the night using DegludecPlus compared to the NovoMix® 30 treatment. Participants treated with DegludecPlus gained on average slightly less weight than those in the comparator group. DegludecPlus demonstrated a good safety and tolerability profile and there were no apparent differences between the treatment groups with respect to adverse events and standard safety parameters.

Degludec versus insulin glargine in type 2 diabetes results (NN1250-3668)
The first 26-week randomised controlled phase 3a treat-to-target study has been completed in people with type 2 diabetes. Patients, previously treated with oral anti-diabetic therapy and/or basal insulin, were randomised to either Degludec given in a flexible dosing regimen with 8 to 40 hour intervals between doses, Degludec given in the evening or insulin glargine given according to label. For all three treatment groups the insulin therapy was added to the existing oral anti-diabetic therapy, if any. The primary objective of HbA1c non-inferiority for Degludec in the flexible dosing regimen compared to insulin glargine was confirmed, with HbA<1c decreasing by 1.3%-points to around 7.2% in both treatment arms. There was no difference on HbA1c between the two Degludec arms. In the once daily flexible dosing regimen, Degludec was statistically superior to insulin glargine in lowering the fasting glucose level. The trial shows Degludec has the potential to provide patients with an increased dosing flexibility without compromising their glycaemic control.

A trend towards a lower risk of nocturnal hypoglycaemia was observed in both groups of participants treated with Degludec compared to participants treated with insulin glargine. Degludec demonstrated a good safety and tolerability profile and there were no apparent differences between the treatment groups with respect to adverse events and standard safety parameters.

First phase 3 obesity data for liraglutide (NN8022-1923)
The results from the first of three phase 3 studies conducted as part of the liraglutide obesity SCALE™ programme (Satiety and Clinical Adiposity – Liraglutide Evidence in non-diabetic and diabetic subjects) have been reported. The double-blinded, placebo-controlled trial of 56 weeks duration investigated treatment with 3.0 mg liraglutide daily as an adjunct to dietary counselling in obese people without diabetes who had already lost at least 5% of body weight during a 4–12-week run-in period on a low-calorie diet.

The mean weight loss for participants during the run-in period was approximately 6 kg. The trial then randomised a total of 422 participants with an average body weight at randomisation of approximately 100 kg. Participants treated with liraglutide lost approximately 6 kg additionally compared to the placebo-treated group, who maintained a stable body weight during the 56-week study period. During the treatment period beneficial effects were observed on markers of metabolic state and cardiovascular risk.

Liraglutide was generally well tolerated, and the 56-week completion rate was 75% and 70% for the liraglutide and placebo groups, respectively. Withdrawals due to adverse events were below 10% and similar between the groups. Consistent with previous liraglutide trials, the most common adverse events were related to the gastrointestinal system.

Company Announcement no 60 / 2010
Page 9 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Biopharmaceuticals
Long-acting factor IX phase 1 results (NN7999-3639)
Novo Nordisk has successfully concluded a phase 1 study with a long-acting factor IX compound, NN7999, for treatment of people with haemophilia B. The study showed that the compound was well tolerated, with a long half-life potentially enabling once-weekly or less frequent dosing. Pending discussions with regulatory authorities, Novo Nordisk expects to initiate a phase 3 trial programme in the first half of 2011.

Long-acting factor VIII phase 1 initiated (NN7088-3776)
Novo Nordisk has initiated a phase 1 study with a long-acting factor VIII compound, NN7088, in 30 people with haemophilia A.

Long-acting growth hormone phase 2 results (NN8630-1824)
Novo Nordisk has finalised a single-dose study in children with a long-acting growth hormone compound intended for once-weekly dosing. The study showed a good safety and tolerability profile, but a satisfactory once-weekly profile could not be achieved. Novo Nordisk has thus decided to terminate the project.

Monoclonal antibody phase 2a initiated (NN8555-3796)
Novo Nordisk has initiated a phase 2a study with a recombinant, fully human monoclonal antibody to obtain Proof of Principle in rheumatoid arthritis.

Monoclonal antibody phase 1 initiated (NN8828-3837)
Novo Nordisk has initiated a phase 1 study with anti-IL-21, a recombinant fully human monoclonal antibody, in rheumatoid arthritis.

Equity
Total equity was DKK 34,264 million at the end of the first nine months of 2010, equal to 59.9% of total assets, compared to 65.3% at the end of 2009. The equity at 30 September 2010 was negatively impacted by DKK 480 million related to unrealised loss on currency hedging contracts accrued for future profit or loss, corresponding to DKK 370 million net of tax effect. Please refer to appendix 5 for further elaboration of changes in equity in the first nine months of 2010.

Treasury shares and share repurchase programme
On 12 August 2010, Novo Nordisk initiated a share repurchase programme in accordance with the provisions of the European Commission’s regulation no 2273/2003 of 22 December 2003 (The Safe Harbour Regulation), with J.P. Morgan Securities Ltd. as lead manager. The purpose of the programme was a reduction of the company’s share capital. Under the programme Novo Nordisk has repurchased B shares for an amount of DKK 1.0 billion in the period from 12 August 2010 to 25 October 2010. The programme was concluded on 25 October 2010.

As per 25 October 2010, Novo Nordisk A/S and its wholly-owned affiliates owned 26,798,755 of its own B shares, corresponding to 4.5% of the total share capital.

The 2010 share repurchase programme of DKK 8.5 billion has been expanded by DKK 1.0 billion to DKK 9.5 billion based on the improved outlook for free cash flow generation in 2010 primarily related to the divestment of shares in ZymoGenetics, Inc. So far in 2010, Novo Nordisk has repurchased 17,073,378 million B shares at a total purchase price of DKK 8.1 billion.

Company Announcement no 60 / 2010
Page 10 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

As part of the execution of Novo Nordisk A/S’ overall DKK 9.5 billion share repurchase programme for 2010, a new programme has been initiated. According to this, J.P. Morgan Securities Ltd. as lead manager will repurchase shares on behalf of Novo Nordisk for an amount of up to DKK 1.4 billion during the trading period from 27 October 2010 to 23 December 2010. A maximum of 105,200 shares can be bought during one single trading day, equal to 20% of the average daily trading volume of Novo Nordisk B shares on NASDAQ OMX Copenhagen during the month of September 2010, and a maximum of 4,418,400 shares in total can be bought during the trading period. At least once every seven trading days, Novo Nordisk will issue an announcement in respect of the transactions made under the repurchase programme.

Sustainability update
People
During the first nine months of 2010, Novo Nordisk established 706 full-time equivalent positions compared to 1,922 in the same period last year. Novo Nordisk had 29,515 full-time equivalent employees on 30 September 2010 compared to 28,497 on 30 September 2009.

Diabetes Leadership Forum in Africa
At the Diabetes Leadership Forum Africa 2010, held on 30 September and 1 October 2010 and sponsored by the International Diabetes Federation and Novo Nordisk, about 250 government representatives, doctors, nurses, international organisations, patient associations and key opinion leaders met in Johannesburg to discuss the rapidly growing burden of diabetes in Africa - referred to as a ‘silent epidemic’ that is increasingly affecting the younger population. In Africa about 12 million people have been diagnosed with diabetes, but in most African countries the number of undiagnosed cases is higher than those diagnosed. The Forum was co-hosted by the Department of Health of the Republic of South Africa and the World Diabetes Foundation.

Legal update
As of 20 October 2010, Novo Nordisk Inc., along with a majority of the hormone therapy product manufacturers in the US, is a defendant in product liability lawsuits related to hormone therapy products. These lawsuits currently involve a total of 50 individuals who allege use of a Novo Nordisk hormone therapy product. The products (Activella® and Vagifem®) have been sold and marketed in the US since 2000. Until July 2003, the products were sold and marketed exclusively in the US by Pharmacia & Upjohn Company (now Pfizer Inc.). Furthermore, 66 individuals currently allege, in relation to similar lawsuits against Pfizer Inc., that they have also used a Novo Nordisk hormone therapy product. Currently, Novo Nordisk does not have any court trials scheduled in 2010. Novo Nordisk does not expect the pending claims to have a material impact on Novo Nordisk’s financial position.

As previously announced, Novo Nordisk is involved in an ongoing patent infringement dispute with Caraco Pharmaceutical Laboratories, Ltd. (Caraco) regarding Caraco’s application to market a generic version of Prandin® (repaglinide) in the US. The validity trial regarding Novo Nordisk’s U.S. Patent No. 6,677,358 (‘358 patent), which is directed toward the Prandin®/metformin combination, concluded in August in the District Court. The Court’s decision is pending.

Financial calendar
2 February 2011 Financial results for 2010
4 February 2011 PDF version of the Annual Report 2010

 

Company Announcement no 60 / 2010
Page 11 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


8 February 2011 Deadline for the company’s receipt of shareholder proposals for the
  Annual General Meeting 2011
18 February 2011 Printed version of the Annual Report 2010
23 March 2011 Annual General Meeting 2011
28 April 2011 Financial statement for the first three months of 2011
4 August 2011 Financial statement for the first six months of 2011
27 October 2011 Financial statement for the first nine months of 2011

Conference call details
At 13.00 CET today, corresponding to 7.00 am EDT, a conference call will be held. Investors will be able to listen in via a link on novonordisk.com, which can be found under ‘Investors – Download centre’. Presentation material for the conference call will be made available approximately one hour before on the same page.

Forward-looking statement
Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company’s Annual Report 2009 and Form 20-F, both filed with the SEC in February 2010, 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 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, income (or loss), earnings per share, capital expenditures, dividends, capital structure or other net financials
- statements of future economic performance, future actions and outcome of contingencies such as legal proceedings
- statements of the assumptions underlying or relating to such statements.

In this document, examples of forward-looking statements can be found under the headings ‘Outlook for 2010’, ‘Research and development update’, ‘Equity’ and ‘Legal update’.

These statements are based on current plans, estimates and projections. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific. Novo Nordisk cautions that a number of important factors, including those described in this document, could cause actual results to differ materially from those contemplated in any forward-looking statements.

Factors that may affect future results include, but are not limited to, global as well as local political and economic conditions, including interest rate and currency exchange rate fluctuations, delay or failure of projects related to research and/or development, unplanned loss of patents, interruptions of supplies and production, product recall, unexpected contract breaches or terminations, government-mandated or market-driven price decreases for Novo Nordisk’s products, introduction of competing products, reliance on information technology, Novo Nordisk’s ability to successfully market current and new products, exposure to product

Company Announcement no 60 / 2010
Page 12 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


liability and legal proceedings and investigations, changes in governmental laws and related interpretation thereof, including on reimbursement, intellectual property protection and regulatory controls on testing, approval, manufacturing and marketing, perceived or actual failure to adhere to ethical marketing practices, investments in and divestitures of domestic and foreign companies, unexpected growth in costs and expenses, failure to recruit and retain the right employees and failure to maintain a culture of compliance.

Please also refer to the overview of risk factors in ‘Risk Management’ on pp 40–42 of the Annual Report 2009 available on the company’s website (novonordisk.com).

Unless required by law, Novo Nordisk is under no duty and undertakes no obligation to update or revise any forward-looking statement after the distribution of this document, whether as a result of new information, future events or otherwise.

Company Announcement no 60 / 2010
Page 13 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Management statement

Today, the Board of Directors and Executive Management reviewed and approved the interim financial report of Novo Nordisk A/S for the first nine months of 2010. The interim financial report has not been audited or reviewed by the company’s independent auditors.

The interim financial report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and accounting policies set out in the Annual Report 2009 of Novo Nordisk. Furthermore, the interim financial report and Management’s Review are prepared in accordance with additional Danish disclosure requirements for interim reports of listed companies.

In our opinion, the accounting policies used are appropriate and the overall presentation of the interim financial report is adequate. Furthermore, in our opinion, Management’s Review includes a true and fair account of the development in the operations and financial circumstances, of the results for the period and of the financial position of the Group as well as a description of the most significant risks and elements of uncertainty facing the Group in accordance with Danish disclosure requirements for listed companies.

Bagsværd 27 October 2010

Executive Management:    
     
   Lars Rebien Sørensen
Jesper Brandgaard
 
   President and CEO CFO  
     
   Lise Kingo Kåre Schultz Mads Krogsgaard Thomsen
   COS COO CSO

Board of Directors:

   Sten Scheibye
Göran A Ando
 
   Chairman Vice chairman  
     
   Henrik Gürtler Ulrik Hjulmand-Lassen Pamela J Kirby
     
   Anne Marie Kverneland Kurt Anker Nielsen Søren Thuesen Pedersen
      
   Hannu Ryöppönen Stig Strøbæk Jørgen Wedel

 

Company Announcement no 60 / 2010
Page 14 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Contacts for further information

Media:
Investors:
   
Mike Rulis Klaus Bülow Davidsen
Tel: (+45) 4442 3573 Tel: (+45) 4442 3176
mike@novonordisk.com klda@novonordisk.com
   
  Kasper Roseeuw Poulsen
  Tel: (+45) 4442 4471
  krop@novonordisk.com
   
  Jannick Lindegaard
  Tel: (+45) 4442 4765
  jlis@novonordisk.com
   
In North America: In North America
Lori Moore Hans Rommer
Tel: (+1) 609 919 7991 Tel: (+1) 609 919 7937
lrmo@novonordisk.com hrmm@novonordisk.com
   

Further information about Novo Nordisk is available on the company’s website novonordisk.com

Company Announcement no 60 / 2010
Page 15 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Appendix 1: Quarterly numbers in DKK

% change
2010
2009
Q3 2010 vs
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q3 2009








Sales 15,584 15,394 13,674 13,062 12,517 13,001 12,498 25%
                                 
Gross profit 12,648 12,425 10,984 10,427 9,832 10,391 9,990 29%
Gross margin 81.2% 80.7% 80.3% 79.8% 78.5% 79.9% 79.9%
                                 
Sales and distribution costs 4,573 4,364 3,984 4,237 3,502 3,837 3,844 31%
Percent of sales 29.3% 28.3% 29.1% 32.4% 28.0% 29.5% 30.8%
Research and development costs 2,302 2,434 2,131 2,387 1,884 1,849 1,744 22%
Percent of sales 14.8% 15.8% 15.6% 18.3% 15.1% 14.2% 14.0%
Administrative expenses 759 745 711 726 666 693 679 14%
Percent of sales 4.9% 4.8% 5.2% 5.6% 5.3% 5.3% 5.4%
Licence fees and other operating income (net) 110 159 224 142 34 78 87 224%
                                 
Operating profit 5,124 5,041 4,382 3,219 3,814 4,090 3,810 34%
Operating margin 32.9% 32.7% 32.0% 24.6% 30.5% 31.5% 30.5%
                                 
Share of profit/(loss) in associated companies (22 ) (4 ) 65 (2 ) (7 ) (11 ) (35 ) 214%
Financial income 31 146 65 58 9 166 142 244%
Financial expenses 477 575 195 283 209 361 412 128%
                                 
Profit before income taxes 4,656 4,608 4,317 2,992 3,607 3,884 3,505 29%
                                 
Net profit 3,585 3,548 3,324 2,323 2,755 2,991 2,699 30%
                                 
Depreciation, amortisation and impairment losses 607 595 581 754 657 533 607 (8% )
Capital expenditure 755 744 668 935 726 557 413 4%
Cash flow from operating activities 6,318 4,225 4,231 3,583 5,039 2,608 4,148 25%
Free cash flow 5,453 3,444 3,409 2,402 4,242 2,062 3,626 29%
                                 
Total assets 57,162 57,048 54,155 54,742 52,589 51,246 50,205 9%
Total equity 34,264 33,635 32,916 35,734 34,874 34,086 31,345 (2% )
                                 
Equity ratio 59.9% 59.0% 60.8% 65.3% 66.3% 66.5% 62.4%
                                 
Full-time employees at the end of the period 29,515 29,364 29,154 28,809 28,497 27,998 27,429 4%
                                 
Basic earnings per share (in DKK) 6.21 6.07 5.66 3.95 4.62 4.96 4.44 34%
Diluted earnings per share (in DKK) 6.15 6.02 5.61 3.92 4.58 4.91 4.41 34%
Average number of shares outstanding (million) 577.6 584.0 587.6 589.9 596.4 603.1 607.4 (3% )
Average number of shares outstanding incl
dilutive effect of options 'in the money' (million) 582.3 588.9 593.0 595.2 601.4 607.9 612.7 (3% )
                                 
Sales by business segments:
   Modern insulins (insulin analogues) 6,820 6,792 5,862 5,714 5,353 5,414 4,990 27%
   Human insulins 2,963 3,099 2,773 2,685 2,747 2,879 3,004 8%
   Victoza® 700 296 370 59 28 - - 2400%
   Protein-related products 567 583 503 510 491 492 484 15%
   Oral antidiabetic products (OAD) 736 704 645 636 650 675 691 13%
   Diabetes care total 11,786 11,474 10,153 9,604 9,269 9,460 9,169 27%
                                 
   NovoSeven® 1,965 2,155 1,914 1,742 1,651 1,874 1,805 19%
   Norditropin® 1,233 1,245 1,083 1,171 1,074 1,122 1,034 15%
   Hormone replacement therapy 517 450 443 460 440 435 409 18%
   Other products 83 70 81 85 83 110 81 0%
   Biopharmaceuticals total 3,798 3,920 3,521 3,458 3,248 3,541 3,329 17%
                                 
Sales by geographic regions:
   North America 6,114 5,988 5,221 4,510 4,527 4,710 4,532 35%
   Europe 4,675 4,671 4,432 4,594 4,376 4,375 4,195 7%
   International Operations 3,341 3,296 2,865 2,656 2,447 2,661 2,607 37%
   Japan & Korea 1,454 1,439 1,156 1,302 1,167 1,255 1,164 25%
                                 
Segment operating profit:
   Diabetes care 3,419 3,033 2,554 1,720 2,286 2,333 2,171 50%
   Biopharmaceuticals 1,705 2,008 1,828 1,499 1,528 1,757 1,639 12%

 

Company Announcement no 60 / 2010
Page 16 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Appendix 2: Statement of comprehensive income

 
9M
9M
Q3
Q3
 
DKK million 2010   2009   2010   2009  




 


 
                 
Income statement                
                 
Sales 44,652   38,016   15,584   12,517  
Cost of goods sold 8,595   7,803   2,936   2,685  




 


 
Gross profit 36,057   30,213   12,648   9,832  
                 
Sales and distribution costs 12,921   11,183   4,573   3,502  
Research and development costs 6,867   5,477   2,302   1,884  
Administrative expenses 2,215   2,038   759   666  
Licence fees and other operating income (net) 493   199   110   34  




 


 
Operating profit 14,547   11,714   5,124   3,814  
                 
Share of profit or loss of associated companies, net of tax 39   (53 ) (22 ) (7 )
Financial income 242   317   31   9  
Financial expenses 1,247   982   477   209  




 


 
Profit before income taxes 13,581   10,996   4,656   3,607  
                 
Income taxes 3,124   2,551   1,071   852  




 


 
NET PROFIT 10,457   8,445   3,585   2,755  




 


 
                 
Basic earnings per share (DKK) 17.94   14.02   6.21   4.62  
Diluted earnings per share (DKK) 17.78   13.90   6.15   4.58  

Segment Information

Segment sales:
 
   Diabetes care
33,413
27,898
11,786
9,269
 
   Biopharmaceuticals
11,239
10,118
3,798
3,248
 
                 
Segment operating profit:                
   Diabetes care 9,006   6,790   3,419   2,286  
   Operating margin 27.0% 24.3% 29.0% 24.7%
                 
   Biopharmaceuticals 5,541   4,924   1,705   1,528  
   Operating margin 49.3% 48.7% 44.9% 47.0%
                 
Total segment operating profit 14,547   11,714   5,124   3,814  

 

Statement of comprehensive income                
Net profit for the period
10,457
8,445
3,585
2,755
 
   Other comprehensive income:
               
   Gains and losses arising from translating the financial statement of                
   foreign operations and re-measuring available-for-sale financial assets 172   430   (241 ) 102  
   Adjustment of cash flow hedges for the year (873 ) 1,374   1,937   487  
   Share of other comprehensive income of associated companies 27   8   19   (1 )
   Other 31   14   38   29  
   Income taxes relating to other comprehensive income 237   (47 ) (614 ) (17 )




 


 
   Other comprehensive income for the period, net of tax (406 ) 1,779   1,139   600  




 


 
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 10,051   10,224   4,724   3,355  




 


 
 

 

Company Announcement no 60 / 2010
Page 17 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Appendix 3: Balance sheet

DKK million
30 Sep 2010
31 Dec 2009
 




 
 
 
ASSETS
 
Intangible assets
1,276
1,037
 
Property, plant and equipment
20,004
19,226
 
Investments in associated companies
274
176
 
Deferred income tax assets
1,511
1,455
 
Other non-current financial assets
174
182
 




 
TOTAL NON-CURRENT ASSETS
23,239
22,076
 
 
 
Inventories
9,764
10,016
 
Trade receivables
8,515
7,063
 
Tax receivables
491
799
 
Other current assets
2,164
1,962
 
Marketable securities and financial instruments
637
1,530
 
Cash at bank and in hand
12,352
11,296
 




 
TOTAL CURRENT ASSETS
33,923
32,666
 




 
TOTAL ASSETS
57,162
54,742
 




 
 

 

EQUITY AND LIABILITIES        
         
Share capital
600
 
620
 
Treasury shares
(26
)
(32
)
Retained earnings
33,385
 
34,435
 
Other reserves
305
 
711
 




 
TOTAL EQUITY 34,264   35,734  
         
Non-current debt 995   970  
Deferred income tax liabilities 2,943   3,010  
Retirement benefit obligations 537   456  
Provisions for other liabilities 1,494   1,157  




 
Total non-current liabilities 5,969   5,593  
         
Current debt and financial instruments 1,001   418  
Trade payables 2,005   2,242  
Tax payables 1,271   701  
Other current liabilities 7,967   6,813  
Provisions for other liabilities 4,685   3,241  




 
Total current liabilities 16,929   13,415  
         
TOTAL LIABILITIES 22,898   19,008  




 
TOTAL EQUITY AND LIABILITIES 57,162   54,742  




 

 

Company Announcement no 60 / 2010
Page 18 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Appendix 4: Statement of cash flow

DKK million
9M 2010
9M 2009




Net profit 10,457 8,445
 
Adjustment for non-cash items:
   Income taxes 3,124 2,551
   Depreciation, amortisation and impairment losses 1,783 1,797
   Interest income and interest expenses 159 (4 )
   Other adjustment 1,541 467
Income taxes paid (2,021 ) (1,177 )
Interest received 186 213
Interest paid (197 ) (21 )




Cash flow before change in working capital 15,032 12,271
 
(Increase)/decrease in trade receivables and other current assets (1,654 ) (599 )
(Increase)/decrease in inventories 252 (137 )
Increase/(decrease) in trade payables and other current liabilities 917 481
Exchange rate adjustment 227 (221 )




Cash flow from operating activities 14,774 11,795
 
Purchase of intangible assets and non-current financial assets (301 ) (188 )
Proceeds from sale of property, plant and equipment 37 1
Purchase of property, plant and equipment (2,204 ) (1,696 )
Net change in marketable securities (maturity exceeding three months) 500 -
Dividend received - 18




Cash flow from investing activities (1,968 ) (1,865 )
 
Repayment of non-current debt - -
Purchase of treasury shares (7,656 ) (4,965 )
Proceeds from sale of treasury shares 335 100
Dividends paid to the Company´s owners (4,400 ) (3,650 )




Cash flow from financing activities (11,721 ) (8,515 )
         
NET CASH FLOW 1,085 1,415
 
Unrealised gain/(loss) on exchange rates and marketable securities
included in cash and cash equivalents 36 21




Net change in cash and cash equivalents 1,121 1,436
 
Cash and cash equivalents at the beginning of the period 11,034 8,726




Cash and cash equivalents at the end of the period 12,155 10,162
 
Additional information:
Cash and cash equivalents at the end of the period 12,155 10,162
Bonds with original term to maturity exceeding three months 513 1,017
Undrawn committed credit facilities 4,471 7,444




FINANCIAL RESOURCES AT THE END OF THE PERIOD 17,139 18,623
 
Cash flow from operating activities 14,774 11,795
+ Cash flow from investing activities (1,968 ) (1,865 )
- Net change in marketable securities (maturity exceeding three months) 500 -




FREE CASH FLOW 12,306 9,930




 

 

Company Announcement no 60 / 2010
Page 19 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

Appendix 5: Statement of changes in equity

Other reserves

Exchange
Deferred gain/
Tax and
Share
Treasury
Retained
rate adjust
loss on cash flow
other
DKK million
capital
shares
earnings
ments
hedges
adjustments
Total














9M 2010
Balance at the beginning of the period 620 (32 ) 34,435
271
393
47
35,734
                             
Total comprehensive income for the period 10,457
172
(873 )
295
10,051
                             
Dividends (4,400 )
(4,400 )
Share-based payment 200
200
Reduction of the B share capital (20 ) 20
-
Purchase of treasury shares (16 ) (7,640 )
(7,656 )
Sale of treasury shares 2 333
335














Balance at the end of the period 600 (26 ) 33,385
443
(480 )
342
34,264














At the end of the period proposed dividends (declared in 2010) of DKK 4,400 million (7.50 DKK per share) are included in Retained earnings. No dividend is declared on treasury shares.

Other reserves

Exchange
Deferred gain/
Tax and
Share
Treasury
Retained
rate adjust
loss on cash flow
other
DKK million
capital
shares
earnings
ments
hedges
adjustments
Total














9M 2009
Balance at the beginning of the period 634 (26 ) 33,433 (256 ) (859 ) 53 32,979
                             
Total comprehensive income for the period 8,445 430 1,374 (25 ) 10,224
                             
Dividends (3,650 ) (3,650 )
Share-based payment 186 186
Reduction of the B share capital (14 ) 14 -
Purchase of treasury shares (17 ) (4,948 ) (4,965 )
Sale of treasury shares 1 99 100














Balance at the end of the period 620 (28 ) 33,565 174 515 28 34,874














At the end of the period proposed dividends (declared in 2009) of DKK 3,650 million (6.00 DKK per share) are included in Retained earnings. No dividend is declared on treasury shares.

Company Announcement no 60 / 2010
Page 20 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Appendix 6: Quarterly numbers in EUR / supplementary information

(Amounts in EUR million, except number of employees, earnings per share and number of shares outstanding). Key figures are translated into EUR as supplementary information - the translation is based on average exchange rate for income statement and exchange rate at the balance sheet date for balance sheet items.
The specified percent changes are based on the changes in the 'Quarterly numbers in DKK', see appendix 1.

% change
2010 2009 Q3 2010 vs
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q3 2009













Sales 2,092 2,069 1,837 1,756 1,681 1,746 1,677 25%
                                 
Gross profit 1,698 1,669 1,476 1,401 1,321 1,395 1,341 29%
Gross margin 81.2% 80.7% 80.3% 79.8% 78.5% 79.9% 79.9%
                                 
Sales and distribution costs 614 587 535 570 471 515 516 31%
Percent of sales 29.3% 28.3% 29.1% 32.4% 28.0% 29.5% 30.8%
Research and development costs 309 327 286 321 253 248 234 22%
Percent of sales 14.8% 15.8% 15.6% 18.3% 15.1% 14.2% 14.0%
Administrative expenses 103 99 96 97 90 93 91 14%
Percent of sales 4.9% 4.8% 5.2% 5.6% 5.3% 5.3% 5.4%
Licence fees and other operating income (net) 16 21 30 19 5 10 12 224%
                                 
Operating profit 688 677 589 432 512 549 512 34%
Operating margin 32.9% 32.7% 32.0% 24.6% 30.5% 31.5% 30.5%
                                 
Share of profit/(loss) in associated companies (3 ) (1 ) 9 - (1 ) (1 ) (5 ) 214%
Financial income 5 19 9 8 2 22 19 244%
Financial expenses 64 76 27 38 28 49 55 128%
Profit before income taxes 626 619 580 402 485 521 471 29%
                                 
Net profit 482 476 447 312 370 402 362 30%
                                 
Depreciation, amortisation and impairment losses 81 80 78 102 88 72 81 (8% )
Capital expenditure 101 100 90 125 98 75 55 4%
Cash flow from operating activities 848 568 568 481 677 350 557 25%
Free cash flow 732 463 458 323 569 277 487 29%
Total assets 7,671 7,659 7,274 7,356 7,064 6,881 6,741 9%
Total equity 4,598 4,515 4,421 4,802 4,685 4,577 4,208 (2% )
Equity ratio 59.9% 59.0% 60.8% 65.3% 66.3% 66.5% 62.4%
                                 
Full-time employees at the end of the period 29,515 29,364 29,154 28,809 28,497 27,998 27,429 4%
                                 
Basic earnings per share (in EUR) 0.83 0.82 0.76 0.53 0.62 0.66 0.60 34%
Diluted earnings per share (in EUR) 0.83 0.81 0.75 0.52 0.62 0.66 0.59 34%
Average number of shares outstanding (million) 577.6 584.0 587.6 589.9 596.4 603.1 607.4 (3% )
Average number of shares outstanding incl
dilutive effect of options 'in the money' (million) 582.3 588.9 593.0 595.2 601.4 607.9 612.7 (3% )
                                 
Sales by business segments:
   Modern insulins (insulin analogues) 917 913 787 767 719 727 670 27%
   Human insulins 398 418 372 361 369 387 403 8%
   Victoza® 94 39 50 8 4 - - 2400%
   Protein-related products 76 78 68 68 66 66 65 15%
   Oral antidiabetic products (OAD) 98 94 87 86 87 90 93 13%
   Diabetes care total 1,583 1,542 1,364 1,290 1,245 1,270 1,231 27%
                                 
   NovoSeven® 264 290 257 234 222 252 242 19%
   Norditropin® 165 168 145 158 144 150 139 15%
   Hormone replacement therapy 69 60 60 62 59 58 55 18%
   Other products 11 9 11 12 11 16 10 0%
   Biopharmaceuticals total 509 527 473 466 436 476 446 17%
                                 
Sales by geographic regions:
   North America 821 804 702 606 607 633 608 35%
   Europe 628 628 595 618 588 587 563 7%
   International Operations 448 443 385 357 329 357 350 37%
   Japan & Korea 195 194 155 175 157 169 156 25%
                                 
Segment operating profit:
   Diabetes care 459 408 343 230 307 314 291 50%
   Biopharmaceuticals 229 269 246 202 205 235 221 12%

 

Company Announcement no 60 / 2010
Page 21 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 


Appendix 7: Key currencies assumptions / supplementary information

DKK per 100
2009 average
Exchange rates as
YTD 2010 average
Current exchange
 
exchange rates
of 30 September
exchange rates as
rate as of 22 October
 
2010
of 22 October 2010
2010
 








 
USD
536
546
565
535
 
JPY
5.73
6.56
6.36
6.59
 
GBP
836
867
868
840
 
CNY
78
82
83
80
 
CAD
470
530
546
522
 

 

Company Announcement no 60 / 2010
Page 22 of 22
Interim financial report for the period 1 January to 30 September 2010  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4443 6626
Internet:
novonordisk.com
CVR number:
24256790
 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf of the undersigned, thereunto duly authorized.

Date: OCTOBER 27, 2010

NOVO NORDISK A/S


Lars Rebien Sørensen, President and Chief Executive Officer