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

April 28, 2011


        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 2011 to 31 March 2011

28 April 2011

Novo Nordisk increased operating profit by 24% in the first quarter of 2011

Organic sales growth of 15% driven by Victoza®, NovoRapid® and Levemir®

  • Sales increased by 15% in Danish kroner and by 11% in local currencies.
  o   Sales of modern insulins increased by 14% (11% in local currencies).
  o   Victoza® sales of DKK 1,098 million (growth of 191% in local currencies).
  o   Sales of NovoSeven® increased by 6% (4% in local currencies).
  o   Sales in North America increased by 16% (14% in local currencies).
  o   Sales in Region China increased by 34% (28% in local currencies).

  • Gross margin improved by 0.3 percentage points in local currencies, reflecting a favourable product mix development, but due to a negative currency effect, the gross margin declined by 0.2 percentage points to 80.1% compared to the first quarter of 2010.

  • Reported operating profit increased by 24% to DKK 5,418 million. Measured in local currencies, operating profit increased by approximately 20%.

  • Net profit increased by 23% to DKK 4,073 million. Earnings per share (diluted) increased by 26% to DKK 7.06.

  • Novo Nordisk has completed a pre-specified meta-analysis based on the Degludec phase 3a trial programme. The meta-analysis confirmed that Degludec is associated with a lower risk of hypoglycaemia compared to insulin glargine, both on the total number of confirmed hypoglycaemic events, and on the number of confirmed nocturnal hypoglycaemic events. Both findings are statistically significant.

  • The 2011 outlook remains unchanged: sales growth of 8-10% and operating profit growth of around 15%, both measured in local currencies.

Lars Rebien Sørensen, president and CEO, says: “We are encouraged by the continued double-digit sales growth driven by Victoza® and modern insulins. It strengthens our confidence in the company’s long term growth prospects despite the near-term impact on sales growth from healthcare reforms in the US and other major markets, which is reflected in the 2011 outlook.”

 

Company Announcement no 25 / 2011
Page 1 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Consolidated financial statement for the first quarter of 2011
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 2010 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 2011. These IFRSs have not had any 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
 
         
Q1 2010
 
Profit and loss Q1 2011   Q1 2010   to Q1 2011  
             
Sales 15,693   13,674   15%  
             
Gross profit 12,576   10,984   14%  
Gross margin 80.1%   80.3%      
             
Sales and distribution costs 4,260   3,984   7%  
Percent of sales 27.1%   29.1%      
             
Research and development costs 2,290   2,131   7%  
Percent of sales 14.6%   15.6%      
             
Administrative expenses 756   711   6%  
Percent of sales 4.8%   5.2%      
             
Licence fees and other operating income 148   224   (34%)  
             
Operating profit 5,418   4,382   24%  
Operating margin 34.5%   32.0%      
             
Net financials (128)   (65)   97%  
Profit before income tax 5,290   4,317   23%  
             
Net profit 4,073   3,324   23%  
Net profit margin 26.0%   24.3%      
             
Other key numbers            
             
Depreciation, amortisation and impairment losses 605   581   4%  
Capital expenditure 549   668   (18%)  
             
Cash flow from operating activities 5,108   4,231   21%  
Free cash flow 4,503   3,409   32%  
             
Total assets 59,001   54,155   9%  
Equity 34,768   32,916   6%  
Equity ratio 58.9%   60.8%      
             
Average number of shares outstanding (million) – diluted 576.7   593.0   (3%)  
Diluted earnings per share / ADR (in DKK) 7.06   5.61   26%  
             
Full-time employees at the end of the period 30,867   29,154   6%  

 

Company Announcement no 25 / 2011
Page 2 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Sales development
Sales increased by 15% in Danish kroner and by 11% measured in local currencies. All regions contributed to growth measured in local currencies; North America was the main contributor with 45% share of growth measured in local currencies, followed by International Operations and Region China, contributing 20% and 18%, respectively. Sales growth was realised within both diabetes care and biopharmaceuticals, with the majority of growth originating from Victoza® and the modern insulins. Sales growth in the first quarter of 2011 was lowered by approximately three percentage points due to healthcare reforms in the US, major European markets and Turkey.

 
Sales
Q1 2011
DKK million
Growth
as
reported
Growth
in local
currencies
Share of
growth
in local
currencies
 
                 
The diabetes care segment                
Modern insulins 6,705   14%   11%   42%  
– NovoRapid® 2,955   13%   10%   17%  
– NovoMix® 1,975   14%   10%   11%  
– Levemir® 1,775   17%   14%   14%  
Human insulins 2,655   (4%)   (8%)   (14%)  
Protein-related products 639   27%   22%   7%  
Victoza® 1,098   197%   191%   45%  
Oral antidiabetic products 711   10%   9%   4%  
Diabetes care total 11,808   16%   13%   84%  
                 
The biopharmaceuticals segment                
NovoSeven® 2,032   6%   4%   5%  
Norditropin® 1,252   16%   11%   8%  
Other products 601   15%   11%   3%  
Biopharmaceuticals total 3,885   10%   7%   16%  
                 
Total sales 15,693   15%   11%   100%  

In the following sections, market shares are based on moving annual total (MAT) volume data (unless otherwise noted) from February 2011 by the independent third-party data provider IMS Health.

Diabetes care sales development
Sales of diabetes care products increased by 16% measured in Danish kroner to DKK 11,808 million and by 13% in local currencies compared to the first quarter of 2010. Novo Nordisk is the world leader in diabetes care and now holds a global value market share of 24% compared to 23% in the first quarter of 2010.

Modern insulins, human insulins and protein-related products
In the first quarter of 2011, sales of modern insulins, human insulins and protein-related products increased by 9% in Danish kroner to DKK 9,999 million and by 6% measured in local currencies compared to the first quarter of 2010, with North America and Region China having the highest growth rates. Sales growth for the global insulin franchise in the first quarter of 2011 was negatively impacted by approximately three percentage points due to healthcare reforms.

 

Company Announcement no 25 / 2011
Page 3 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Sales of modern insulins increased by 14% in Danish kroner to DKK 6,705 million and by 11% in local currencies compared to the first quarter of 2010, reflecting steady organic sales growth. North America accounted for more than half of the growth, followed by International Operations and Region China. Sales of modern insulin now constitute close to 72% of Novo Nordisk’s sales of insulin. The decline in human insulin sales reflects a continued conversion of the insulin market from human insulin to modern insulin.

Insulin market shares Novo Nordisk’s share of   Novo Nordisk’s share of  
(volume, MAT)
total insulin market
 
modern insulin
 
                 
Geography Feb 2011   Feb 2010   Feb 2011   Feb 2010  
Global 51%   51%   46%   46%  
USA 42%   42%   37%   35%  
Europe 53%   54%   50%   51%  
International Operations 59%   58%   56%   56%  
Japan 62%   66%   56%   58%  
China 63%   62%   69%   70%  
Source: IMS, February data                

North America
Sales of modern insulins, human insulins and protein-related products in North America increased by 10% in Danish kroner and by 8% in local currencies in the first quarter of 2011, reflecting a continued solid sales performance of especially Levemir® and NovoLog® offset by a decline in human insulin sales and the impact of the healthcare reform adopted in March 2010. Currently, around 43% of Novo Nordisk’s modern insulin volume in the US is being sold in the prefilled device FlexPen®.

Europe
Sales in Europe decreased by 1% measured in Danish kroner and by 3% in local currencies in the first quarter of 2011. Sales are negatively impacted by health care reforms that were implemented during 2010, especially in Germany and Spain. The penetration of the modern insulin portfolio continues, and consequently human insulin sales are declining.
Currently, around 96% of Novo Nordisk’s insulin volume in Europe is being sold in devices.

International Operations
Sales in International Operations increased by 14% in Danish kroner and by 11% in local currencies in the first quarter of 2011. The main contributor to growth was sales of modern insulin, primarily in Russia, Argentina and Australia. In the first quarter of 2010, the sales to Russia were negatively impacted by a delay in renewing Novo Nordisk’s import license. Currently, around 88% of Novo Nordisk’s modern insulin volume in International Operations is being sold in the prefilled device FlexPen®.

Region China
Sales in Region China increased by 26% in Danish kroner and by 20% in local currencies in the first quarter of 2011. The main contributor to growth was sales of modern insulin – especially NovoMix® - while sales of human insulin continue to add to overall growth in the region. Currently, around 96% of Novo Nordisk’s insulin volume in China is being sold in devices.

Japan & Korea
Sales in Japan & Korea increased by 20% measured in Danish kroner and by 7% in local currencies in the first quarter of 2011. The sales development reflects sales growth for all three modern insulins, Levemir®, NovoRapid® and NovoRapid Mix® 30, being offset by a decline in human insulin sales. The device penetration in Japan remains high with approximately 98% of Novo Nordisk’s insulin volume being used in devices, primarily

 

Company Announcement no 25 / 2011
Page 4 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

NovoPen® and FlexPen®. Following the earthquake on 11 March 2011 in Japan, focus has been on ensuring access to Novo Nordisk products for patients in the affected areas and ensuring uninterrupted product supplies. Operations in Japan, including production at the Koriyama factory, resumed to normal within a few weeks. Additional stocking of Novo Nordisk diabetes products has taken place in March throughout the supply chain adding to Novo Nordisk sales growth in Japan in the first quarter of 2011.

Victoza® (GLP-1 therapy for type 2 diabetes)
Victoza® sales reached DKK 1,098 million during the first quarter of 2011 reflecting solid market performance in both Europe and the US. Victoza® has now reached a global value market share of 39% in the GLP-1 segment (source: IMS, February MAT value data). As announced on 15 March 2011, Novo Nordisk has received approval of Victoza® for the treatment of type 2 diabetes by the State Food and Drug Administration in China and expects to launch the product in China in the second half of 2011.

NovoNorm®/Prandin®/PrandiMet® (oral antidiabetic products)
In the first quarter of 2011, sales of oral antidiabetic products increased by 10% in Danish kroner to DKK 711 million and by 9% measured in local currencies compared to the first quarter of 2010. The sales development primarily reflects continued sales growth in China being offset by lower sales in Europe due to generic competition in several European markets.

Biopharmaceuticals sales development
In the first quarter of 2011, sales of biopharmaceutical products increased by 10% measured in Danish kroner to DKK 3,885 million and by 7% measured in local currencies compared to the first quarter of 2010.

NovoSeven® (bleeding disorders therapy)
Sales of NovoSeven® increased by 6% in Danish kroner to DKK 2,032 million and by 4% in local currencies compared to the first quarter of 2010. Sales growth for NovoSeven® was primarily driven by International Operations, but also Japan & Korea, Europe and Region China contributed to the growth. Sales in North America were unchanged compared to the first quarter of 2010, primarily due to negative impact from patients transferring to an alternative treatment regimen of immune tolerance therapy.

Norditropin® (growth hormone therapy)
Sales of Norditropin® increased by 16% measured in Danish kroner to DKK 1,252 million and by 11% measured in local currencies compared to the first quarter of 2010. The sales growth is driven by International Operations, partly due to tenders being realised earlier in the year compared to 2010, and by Japan & Korea and North America. Novo Nordisk is the second-largest company in the global growth hormone market with a 24% 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 15% in Danish kroner to DKK 601 million and by 11% measured in local currencies. This development primarily reflects continued sales progress for Vagifem® being offset by the impact from generic competition to Activella®
in the US.

 

Company Announcement no 25 / 2011
Page 5 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Development in costs
The cost of goods sold grew 16% to DKK 3,117 million in the first quarter of 2011, and thereby providing a gross margin of 80.1% compared to 80.3% in the first quarter of 2010. This primarily reflects a favourable product mix impact due to increased sales of modern insulins and Victoza®, and a negative currency impact of 0.5 percentage points. The negative currency effect arises from first quarter 2011 sales of finished goods in Novo Nordisk affiliates’ inventories at the end of 2010. The cost of goods related to these inventories reflects the higher level of exchange rates prevailing per 31 December 2010.

In the first quarter of 2011, total non-production-related costs increased by 7% to DKK 7,306 million and by 5% in local currencies compared to the first quarter of 2010.

Sales and distribution costs increased by 7% to DKK 4,260 million, primarily reflecting the promotion costs for Victoza® in Europe and the US, as well as a the expanded field sales forces primarily in China and the US. Novo Nordisk currently expects to increase the Chinese field sales force by approximately 300 additional FTEs during 2011.

Research and development costs increased by 7% to DKK 2,290 million in the first quarter of 2011, primarily reflecting expanding activities in China and early-stage Biopharmaceuticals development activities countered by a lower development activity level for Degludec and DegludecPlus, compared to the first quarter of 2010.

Licence fees and other operating income constituted DKK 148 million in the first quarter of 2011 compared to DKK 224 million in the first quarter of 2010. This development is primarily due to 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 128 million in the first quarter of 2011 compared to a net expense of DKK 65 million in the first quarter of 2010.

For the first quarter of 2011, the foreign exchange result was an expense of DKK 104 million compared to an expense of DKK 137 million in the first quarter of 2010. The foreign exchange result in the first quarter of 2011 reflects losses on foreign exchange hedging contracts, primarily on US dollars, entered into during the fourth quarter of 2009. Foreign exchange hedging gains of around DKK 700 million have been deferred for future income recognition in 2011 and 2012.

In the first quarter of 2010, the result from associated companies was included in net financials with an income of DKK 65 million. After the divestment of shares in ZymoGenetics Inc. and transfer of Innate Pharma S.A. to ‘Other non-current financial assets’ in the fourth quarter of 2010, the result from investments in associated companies has declined to DKK 0.

 

Company Announcement no 25 / 2011
Page 6 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Outlook 2011
The current expectations for 2011 are summarised in the table below:

Expectations are as reported, if not Current expectations   Previous expectations  
otherwise stated 28 April 2011   2 February 2011  




 
Sales growth        
   - in local currencies
8–10%
 
8–10%
 
   - as reported Around 4 percentage points  
Around 1.5 percentage points
 
  lower  
lower
 




 
Operating profit growth
Around 15%
 
Around 15%
 
   - in local currencies
Around 7.5 percentage points
 
Around 2.5 percentage points
 
   - as reported
lower
 
lower
 




 
  Income of around DKK 500  
Expense of around DKK 100
 
Net financials
million
 
million
 




 
Effective tax rate Around 23%  
Around 23%
 




 
Capital expenditure Around DKK 3.5 billion  
Around DKK 3.5 billion
 




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




 
Free cash flow More than DKK 16 billion  
More than DKK 16 billion
 




 

Novo Nordisk still expects sales growth in 2011 of 8-10% measured in local currencies. This is based on expectations of continued market penetration for Novo Nordisk’s key products, as well as expectations of continued intense competition, generic competition to oral antidiabetic products, and an impact from the implementation of healthcare reforms primarily in the US and Europe. Given the current level of exchange rates versus Danish kroner, the reported sales growth is now expected to be around 4 percentage points lower than growth measured in local currencies.

For 2011, growth in operating profit is still expected to be around 15% measured in local currencies. Given the current level of exchange rates versus Danish kroner, the reported operating profit growth is now expected to be 7.5 percentage points lower than growth measured in local currencies.

For 2011, Novo Nordisk now expects a net financial income of around DKK 500 million. The current expectation reflects currency hedging contract gains, primarily related to the US dollar.

The effective tax rate for 2011 is still expected to be around 23%.

Capital expenditure is still expected to be around DKK 3.5 billion in 2011, 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 impairment losses are still around DKK 2.7 billion and free cash flow is still expected to be more than DKK 16 billion.

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 2011 and that exchange rates, especially the US dollar, will remain at the current level versus the Danish krone during the remainder of 2011. Please refer to appendix 7 for key currency assumptions.

 

Company Announcement no 25 / 2011
Page 7 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

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
Annual impact on Novo Nordisk’s
operating profit of a 5%
movement in currency
Hedging period
(months)
 
USD
DKK 620 million
15
 
JPY
DKK 155 million
15
 
CNY
DKK 120 million
  12*
 
GBP
DKK 85 million
10
 

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

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

 

Company Announcement no 25 / 2011
Page 8 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Research and development update

Diabetes care: Insulin and GLP-1
Degludec meta-analysis of hypoglycaemia
Novo Nordisk has completed a pre-specified meta-analysis, investigating the risk of hypoglycaemia observed in the large patient population studied in the Degludec phase 3a trial programme. The meta-analysis confirmed the findings from the individual studies: Degludec administered once daily is superior to insulin glargine administered once daily in terms of both a lower rate of overall confirmed hypoglycaemic events and a lower rate of nocturnal confirmed hypoglycaemic events – both findings in the meta-analysis being statistically significant. A review of the meta-analysis will be provided in connection with Novo Nordisk’s capital markets day on 5 May 2011 in Copenhagen. All sessions of the capital markets day will be webcast live and a replay will be available on novonordisk.com/investors.

Levemir® as add-on to Victoza® phase 3b 12-month data
Novo Nordisk has reviewed 12-month data from a phase 3b study with 988 people with type 2 diabetes. The study investigated the effect of adding Levemir® to the patients’ current treatment with metformin and Victoza®. The primary endpoints of the study were reached:

  • There was a statistically significant improvement in glycaemic control in the Levemir® plus metformin plus Victoza® treatment group compared to the group receiving only metformin plus Victoza®.
  • The initial mean body weight loss of ~3-4 kg, achieved during the 12 week run-in period with Victoza®, was sustained in all treatment groups.
  • No events of major hypoglycaemia and a very low rate of hypoglycaemia (~0.23 events/patient year) were observed in the group receiving Levemir® plus metformin plus Victoza®.

The study furthermore demonstrated that the profile of Victoza® plus Levemir® co-administered is safe, generally well tolerated and clinically efficacious. Six-month data from the study were communicated on 5 August 2010 and all trial data are intended for label update purposes.

Oral insulin update, NN1952 and NN1953
Novo Nordisk has completed a phase 1 study with a rapid-acting insulin analogue, NN1952, designed for oral administration. Due to significant influence of food-intake on the predictability of the rapid-acting insulin analogue in current formulation, Novo Nordisk has decided to focus activities within insulin for oral administration on long-acting insulin. In April 2011 Novo Nordisk progressed a long-acting insulin for oral administration, NN1953, into phase 1 clinical testing.

Biopharmaceuticals: Haemostasis
Recombinant FXIII, NN1841, BLA submission in the US for FXIII congenital deficiency
As communicated on 23 February 2011, Novo Nordisk has submitted an application for marketing authorisation in the US for NN1841, the first recombinant factor XIII compound, for patients with congenital factor XIII deficiency – a very rare inherited bleeding disorder. Furthermore, Novo Nordisk expects to file for marketing authorisation in Europe in the second quarter of 2011.

 

Company Announcement no 25 / 2011
Page 9 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Phase II results for GlycoPegylated rFVIIa, NN7128
The safety and efficacy of GlycoPegylated rFVIIa was tested for prophylactic effect in a clinical phase 2 trial including 24 haemophilia patients with inhibitors. Patients were randomised to three dose levels and treated for three months following a three months observation period. No safety concerns or immunogenicity were observed. The pharmacokinetic properties of GlycoPegylated rFVIIa were similar to those observed during phase 1.

In all three dose groups a significant reduction in annualised bleeding rate was observed compared to the observation period. However, a clear dose-response relationship could not be established and further data analyses are planned.

Phase II results for recombinant FXIII in cardiac surgery, NN1810
The safety and efficacy of recombinant FXIII in avoidance of transfusion during cardiac surgery was tested in a phase 2 clinical trial including 409 patients. The results show that for the selected group of patients there was no effect on transfusion avoidance in any of the dose arms compared to placebo and no effect on other efficacy endpoints. The trial did not give rise to any safety concerns. Based on these results, no further investigations of recombinant FXIII in cardiac surgery will be pursued; however, other indications currently in nonclinical development are being investigated.

Biopharmaceuticals: Inflammation
Anti-IL-20, NN8226, for rheumatoid arthritis progresses to phase 2a
Novo Nordisk has completed a phase 1 rheumatoid arthritis study for anti-IL-20, a recombinant fully human monoclonal antibody. Anti-IL-20 appeared to have a safe and well- tolerated profile, and no anti-drug antibodies were observed. Based on the findings, a phase 2a trial in rheumatoid arthritis has been initiated.

Anti-NKG2D, NN8555, for Crohn’s Disease progresses to phase 2a
Novo Nordisk has initiated a phase 2a clinical trial with a recombinant fully human monoclonal antibody, Anti-NKG2D, in Crohn’s Disease.

Sustainability update
The total number of full-time employees was 30,867 as of 31 March 2011 compared to 29,154 as of 31 March 2010. New hiring was led by expansion in China, the US and countries in the International Operations region.

During the first quarter of 2011, Novo Nordisk introduced a shortened and simplified version of the Novo Nordisk Way, presenting the company’s ambitions and values. As Novo Nordisk adds several thousand employees each year, emphasis is on ensuring that the company values are understood and lived by the employees.

Equity
Total equity was DKK 34,768 million at the end of the first quarter of 2011, equivalent to 58.9% of total assets, compared to 60.8% at the end of the first quarter of 2010. Please refer to appendix 5 for further elaboration of changes in equity during the first quarter of 2011.

Reduction of share capital
The Annual General Meeting of Novo Nordisk A/S, which was held on 23 March 2011, approved a 3.3% reduction in the total share capital by cancellation of 20,000,000 treasury B shares of DKK 1 at a nominal value of DKK 20,000,000. After the legal implementation of the share capital reduction, which is expected to take place in the beginning of May 2011 after expiry of

 

Company Announcement no 25 / 2011
Page 10 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

the legal notice period, Novo Nordisk’s share capital will amount to DKK 580,000,000 divided into an A share capital of DKK 107,487,200 and a B share capital of DKK 472,512,800.

Treasury shares and 2011 share repurchase programme
On 2 February 2011, Novo Nordisk announced a DKK 2 billion share repurchase programme as part of an overall DKK 10 billion share repurchase programme for 2011. The purpose of the programme is a reduction of the company’s share capital. Under the programme Novo Nordisk repurchased B shares for an amount of DKK 2.0 billion in the period from 2 February 2011 to 26 April 2011. The programme was concluded on 26 April 2011.

As per 26 April 2011, Novo Nordisk A/S and its wholly-owned affiliates owned 30,310,347 of its own B shares, corresponding to 5.1% of the total share capital.

As part of the execution of Novo Nordisk A/S’ overall DKK 10 billion share repurchase programme for 2011, a new share repurchase programme has now been initiated in accordance with the provisions of the European Commission’s regulation no 2273/2003 of 22 December 2003 (The Safe Harbour Regulation). 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 2 billion during the trading period from 28 April 2011 to 2 August 2011. A maximum of 152,011 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 March 2011, and a maximum of 10,032,726 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.

Legal update
As of 26 April 2011, 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, 72 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 trials scheduled in 2011. 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 and the use of repaglinide in combination with metformin. In January 2011, a US District Court ruled that Novo Nordisk’s US Patent No. 6,677,358, which covers the combination use of repaglinide and metformin for the treatment of type 2 diabetes, was invalid and unenforceable. Novo Nordisk appealed that ruling on 26 January 2011, which is now pending before the Federal Circuit Court of Appeals (CAFC). Furthermore, Caraco has petitioned the Supreme Court for a writ of certiorari after the CAFC allowed Novo Nordisk to retain its current Use Code and then denied Caraco’s request for a rehearing. If Novo Nordisk’s current Use Code stands and its patent is held valid and enforceable on appeal, Caraco would be required by the FDA to amend its label to include the repaglinide-metformin combination. Caraco has conceded infringement if the combined use is included in its label pursuant to a stipulation between the parties. On 28 March 2011, the Supreme Court requested the US Solicitor General to provide the view of the United States on

 

Company Announcement no 25 / 2011
Page 11 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

the Use Code issue. The Supreme Court will then decide on whether it will review the CAFC Use Code decision by the end of June 2011.

As announced in February 2011, Novo Nordisk was served with a criminal subpoena by the US Attorney in Massachusetts requesting a broad range of documents relating to marketing and promotion practices for NovoLog®, Levemir® and Victoza®. The matter has now been reassigned to the US Attorney in Washington DC and Novo Nordisk is cooperating with the US Attorney in this investigation. Novo Nordisk cannot predict the outcome of this investigation or when the company will be able to provide additional information given the unpredictable nature of these investigations.

 

Company Announcement no 25 / 2011
Page 12 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

 

Financial calendar
5 May 2011 Capital Markets Day in Copenhagen, Denmark
4 August 2011 Financial statement for the first six months of 2011
27 October 2011 Financial statement for the first nine months of 2011
2 February 2012 Financial statement for 2011

Conference call details
On 28 April 2011 at 13.00 CET, 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 statements
Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company’s Annual Report 2010 and Form 20-F, both filed with the SEC in February 2011, 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 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 2011’, ‘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 liability and legal proceedings and investigations, changes in governmental laws and related

 

Company Announcement no 25 / 2011
Page 13 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

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 43-45 of the Annual Report 2010 available as of 4 February 2011 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 25 / 2011
Page 14 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Management statement

The Board of Directors and Executive Management have reviewed and approved the interim financial report of Novo Nordisk A/S for the first quarter of 2011. 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 2010 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, 28 April 2011

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
Bruno Angelici
   Chairman Vice chairman  
     
   Henrik Gürtler Ulrik Hjulmand-Lassen Thomas Paul Koestler
     
   Anne Marie Kverneland Kurt Anker Nielsen Søren Thuesen Pedersen
     
   Hannu Ryöppönen Stig Strøbæk Jørgen Wedel

 

Company Announcement no 25 / 2011
Page 15 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4444 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
   
  Jannick Lindegaard
  Tel: (+45) 4442 4765
  jlis@novonordisk.com
   
  Frank Daniel Mersebach
  Tel: (+45) 4442 0604
  fdni@novonordisk.com
   
In North America In North America
Ken Inchausti Hans Rommer
Tel: (+1) 609 786 8316 Tel: (+1) 609 216 4834
kiau@novonordisk.com hrmm@novonordisk.com
   

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

 

Company Announcement no 25 / 2011
Page 16 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Appendix 1: Quarterly numbers in DKK

(Amounts in DKK million, except number of employees, earnings per share and number of shares outstanding).

                     
% change
 
 
2011
 
2010
  Q1 2011 vs  
 
Q1
 
Q4
 
Q3
 
Q2
  Q1   Q1 2010  
 
 






 
 
Sales 15,693   16,124   15,584   15,394   13,674   15%  
Gross profit 12,576   13,039   12,648   12,425   10,984   14%  
Gross margin 80.1%   80.9%   81.2%   80.7%   80.3%      
Sales and distribution costs 4,260   5,274   4,573   4,364   3,984   7%  
Percent of sales 27.1%   32.7%   29.3%   28.3%   29.1%      
Research and development costs 2,290   2,735   2,302   2,434   2,131   7%  
Percent of sales 14.6%   17.0%   14.8%   15.8%   15.6%      
Administrative expenses 756   850   759   745   711   6%  
Percent of sales 4.8%   5.3%   4.9%   4.8%   5.2%      
Licence fees and other operating income (net) 148   164   110   159   224   (34%)  
                         
Operating profit 5,418   4,344   5,124   5,041   4,382   24%  
Operating margin 34.5%   26.9%   32.9%   32.7%   32.0%      
                         
Share of profit/(loss) in associated companies 0   1,031   (22)   (4)   65   (100%)  
Financial income 84   140   31   146   65   29%  
Financial expenses 212   810   477   575   195   9%  
                         
Profit before income taxes 5,290   4,705   4,656   4,608   4,317   23%  
                         
Net profit 4,073   3,946   3,585   3,548   3,324   23%  
                         
Depreciation, amortisation and impairment losses 605   684   607   595   581   4%  
Capital expenditure 549   1,141   755   744   668   (18%)  
Cash flow from operating activities 5,108   4,905   6,318   4,225   4,231   21%  
Free cash flow 4,503   4,707   5,453   3,444   3,409   32%  
Total assets 59,001   61,402   57,162   57,048   54,155   9%  
Total equity 34,768   36,965   34,264   33,635   32,916   6%  
Equity ratio 58.9%   60.2%   59.9%   59.0%   60.8%      
                         
Full-time employees at the end of the period 30,867   30,014   29,515   29,364   29,154   6%  
                         
Basic earnings per share (in DKK) 7.13   6.87   6.21   6.07   5.66   26%  
Diluted earnings per share (in DKK) 7.06   6.82   6.15   6.02   5.61   26%  
Average number of shares outstanding (million) 571.6   572.7   577.6   584.0   587.6   (3%)  
Average number of shares outstanding incl                        
dilutive effect of options 'in the money' (million) 576.7   577.5   582.3   588.9   593.0   (3%)  
                         
Sales by business segments:                        
   Modern insulins (insulin analogues) 6,705   7,127   6,820   6,792   5,862   14%  
   Human insulins 2,655   2,992   2,963   3,099   2,773   (4%)  
   Victoza® 1,098   951   700   296   370   197%  
   Protein-related products 639   561   567   583   503   27%  
   Oral antidiabetic products (OAD) 711   666   736   704   645   10%  
   Diabetes care total 11,808   12,297   11,786   11,474   10,153   16%  
                         
   NovoSeven® 2,032   1,996   1,965   2,155   1,914   6%  
   Norditropin® 1,252   1,242   1,233   1,245   1,083   16%  
   Hormone replacement therapy 492   482   517   450   443   11%  
   Other products 109   107   83   70   81   35%  
   Biopharmaceuticals total 3,885   3,827   3,798   3,920   3,521   10%  
                         
Sales by geographic regions:                        
   North America 6,035   6,286   6,114   5,988   5,221   16%  
   Europe 4,595   4,886   4,675   4,671   4,432   4%  
   International Operations 2,203   2,160   2,127   2,213   1,835   20%  
   China 1,376   1,181   1,214   1,083   1,030   34%  
   Japan & Korea 1,484   1,611   1,454   1,439   1,156   28%  
                         
Segment operating profit:                        
   Diabetes care 3,115   3,096   3,419   3,033   2,554   22%  
   Biopharmaceuticals 2,303   1,248   1,705   2,008   1,828   26%  

 

Company Announcement no 25 / 2011
Page 17 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Appendix 2: Income statement and Statement of comprehensive income

 
Q1
 
Q1
 
DKK million 2011   2010  


 
 
         
Income statement        
Sales 15,693   13,674  
Cost of goods sold 3,117   2,690  


 
 
Gross profit 12,576   10,984  
         
Sales and distribution costs 4,260   3,984  
Research and development costs 2,290   2,131  
Administrative expenses 756   711  
Licence fees and other operating income, net 148   224  


 
 
Operating profit 5,418   4,382  
         
Share of profit/(loss) of associated companies, net of tax -   65  
Financial income 84   65  
Financial expenses 212   195  


 
 
Profit before income taxes 5,290   4,317  
         
Income taxes 1,217   993  


 
 
NET PROFIT 4,073   3,324  
         
Basic earnings per share (DKK) 7.13   5.66  
Diluted earnings per share (DKK) 7.06   5.61  
         
Segment Information        
         
Segment sales:        
   Diabetes care 11,808   10,153  
   Biopharmaceuticals 3,885   3,521  
         
Segment operating profit:        
   Diabetes care 3,115   2,554  
   Operating margin 26.4%   25.2%  
   Biopharmaceuticals 2,303   1,828  
   Operating margin 59.3%   51.9%  
         
Total segment operating profit 5,418   4,382  
         
         
Statement of comprehensive income        
         
Net profit for the period 4,073   3,324  
      Other comprehensive income:        
      Deferred gains/(losses) on cash flow hedges arising during the period 1,002   (847)  
      Transfer of deferred gains/(losses) from previous year of cash flow        
      hedges recognised in the Income statement as part of financial        
      income/(expenses) 352   (247)  
      Exchange rate adjustment of investments in subsidiaries (235)   136  
      Share of other comprehensive income of associated comp., net of tax -   2  
      Gains/(losses) on available-for-sale financial assets (equity investments) 5   5  
      Other (65)   21  
      Tax on other comprehensive income, income/(expense) (416)   271  


 
 
      Other comprehensive income for the period, net of tax 643   (659)  


 
 
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 4,716   2,665  

 

Company Announcement no 25 / 2011
Page 18 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Appendix 3: Balance sheet

DKK million
31 Mar 2011
31 Dec 2010
 


 
 
         
ASSETS        
Intangible assets 1,484   1,458  
Property, plant and equipment 20,217   20,507  
Investments in associated companies 43   43  
Deferred income tax assets 1,532   1,847  
Other non-current financial assets 258   254  


 
 
TOTAL NON-CURRENT ASSETS 23,534   24,109  
         
Inventories 8,959   9,689  
Trade receivables 9,128   8,500  
Tax receivables 557   650  
Other current assets 2,222   2,403  
Marketable securities and financial derivatives 4,304   4,034  
Cash at bank and in hand 10,297   12,017  


 
 
TOTAL CURRENT ASSETS 35,467   37,293  
         


 
 
TOTAL ASSETS 59,001   61,402  


 
 
         
EQUITY AND LIABILITIES        
         
Share capital 600   600  
Treasury shares (29)   (28)  
Retained earnings 33,258   36,097  
Other reserves 939   296  


 
 
TOTAL EQUITY 34,768   36,965  
         
Non-current debt 504   504  
Deferred income tax liabilities 2,981   2,865  
Retirement benefit obligations 562   569  
Provisions for other liabilities 1,933   2,023  


 
 
Total non-current liabilities 5,980   5,961  
         
Current debt and financial instruments 1,008   1,720  
Trade payables 2,822   2,906  
Tax payables 1,498   1,252  
Other current liabilities 7,810   7,954  
Provisions for other liabilities 5,115   4,644  


 
 
Total current liabilities 18,253   18,476  
         
TOTAL LIABILITIES 24,233   24,437  
         


 
 
TOTAL EQUITY AND LIABILITIES 59,001   61,402  


 
 

 

Company Announcement no 25 / 2011
Page 19 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Appendix 4: Statement of cash flows

DKK million
Q1 2011
Q1 2010
 




 
         
Net profit 4,073   3,324  
         
Adjustment for non-cash items:        
   Income taxes 1,217   993  
   Depreciation, amortisation and impairment losses 605   581  
   Interest income and interest expenses (29)   (7)  
   Other adjustment 131   680  
Income taxes paid (956)   (806)  
Interest received 79   108  
Interest paid (6)   (5)  




 
Cash flow before change in working capital 5,114   4,868  
         
(Increase)/decrease in trade receivables and other current assets (447)   (1,187)  
(Increase)/decrease in inventories 730   (257)  
Increase/(decrease) in trade payables and other current liabilities (228)   798  
Exchange rate adjustment (61)   9  




 
Cash flow from operating activities 5,108   4,231  
         
Purchase of intangible assets and non-current financial assets (56)   (154)  
Proceeds from sale of property, plant and equipment 3   2  
Purchase of property, plant and equipment (552)   (670)  
Net change in marketable securities 500   500  
Dividend received -   -  




 
Cash flow from investing activities (105)   (322)  
         
Repayment of non-current debt -   -  
Purchase of treasury shares (1,335)   (1,392)  
Proceeds from sale of treasury shares 47   252  
Dividends paid to the Company´s owners (5,700)   (4,400)  




 
Cash flow from financing activities (6,988)   (5,540)  
         
NET CASH FLOW (1,985)   (1,631)  
         
Unrealised gain/(loss) on exchange rates and marketable securities included in cash and cash equivalents (67)   (80)  




 
Net change in cash and cash equivalents (2,052)   (1,711)  
         
Cash and cash equivalents at the beginning of the period 11,960   11,034  




 
Cash and cash equivalents at the end of the period 9,908   9,323  
         
Additional information:        
Cash and cash equivalents at the end of the period 9,908   9,323  
Marketable securities 3,451   530  
Undrawn committed credit facilities 4,474   4,467  




 
FINANCIAL RESOURCES AT THE END OF THE PERIOD 17,833   14,320  
         
Cash flow from operating activities 5,108   4,231  
Cash flow from investing activities (105)   (322)  
Net change in marketable securities (500)   (500)  




 
FREE CASH FLOW 4,503   3,409  




 

 

Company Announcement no 25 / 2011
Page 20 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Appendix 5: Statement of changes in equity

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
















   
Q1 2011                                  
                                   
Balance at the beginning of the period
600
  (28)   36,097   571   (672)   397   296   36,965    
Profit for the period         4,073                   4,073    
Other comprehensive income for the period, net of tax             (235)   1,354   (476)   643   643    
















   
Total comprehensive income for the period         4,073   (235)   1,354   (476)   643   4,716    
                                   
Transactions with owners, recognised directly in equity:                                  
Dividends         (5,700)                   (5,700)    
Share-based payment         75                   75    
Purchase of treasury shares     (2)   (1,333)                   (1,335)    
Sale of treasury shares     1   46                   47    
















   
Balance at the end of the period
600
  (29)   33,258   336   682   (79)   939   34,768    
















   
 

 

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


 
 
 
 
 
 
 
 
Q1 2010                                
                                 
Balance at the beginning of the period
620
(32)
  34,435   271   393   47   711   35,734  
Profit for the period
  3,324                   3,324  
Other comprehensive income for the period, net of tax
      136   (1,094)   299   (659)   (659)  
















 
Total comprehensive income for the period
  3,324   136   (1,094)   299   (659)   2,665  
 
                         
Transactions with owners, recognised directly in equity:
                         
Dividends
  (4,400)                   (4,400)  
Share-based payment
  57                   57  
Purchase of treasury shares
(4)
  (1,388)                   (1,392)  
Sale of treasury shares
2
  250                   252  
















 
Balance at the end of the period
620
(34)
  32,278   407   (701)   346   52   32,916  
















 

 

Company Announcement no 25 / 2011
Page 21 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4444 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 the average exchange rate for income statement and the exchange rate at the balance sheet date for balance sheet items.

The specified percent changes are based on the changes in the 'Quarterly numbers in DKK', see appendix 1.

  2011   2010  
% change
Q1 2011 vs
   
 
Q1
  Q4   Q3   Q2   Q1   Q1 2010    
 
 






 
   
Sales 2,105   2,163   2,092   2,069   1,837   15%    
Gross profit 1,687   1,750   1,698   1,669   1,476   14%    
Gross margin 80.1%   80.9%   81.2%   80.7%   80.3%        
Sales and distribution costs 572   707   614   587   535   7%    
Percent of sales 27.1%   32.7%   29.3%   28.3%   29.1%        
Research and development costs 307   367   309   327   286   7%    
Percent of sales 14.6%   17.0%   14.8%   15.8%   15.6%        
Administrative expenses 101   114   103   99   96   6%    
Percent of sales 4.8%   5.3%   4.9%   4.8%   5.2%        
Licence fees and other operating income (net) 20   21   16   21   30   (34%)    
Operating profit 727   583   688   677   589   24%    
Operating margin 34.5%   26.9%   32.9%   32.7%   32.0%        
                           
Share of profit/(loss) in associated companies 0   139   (3)   (1)   9   (100%)    
Financial income 11   17   5   19   9   29%    
Financial expenses 28   109   64   76   27   9%    
Profit before income taxes 710   630   626   619   580   23%    
                           
Net profit 546   529   482   476   447   23%    
Depreciation, amortisation and impairment losses 81   92   81   80   78   4%    
Capital expenditure 74   153   101   100   90   (18%)    
Cash flow from operating activities 685   658   848   568   568   21%    
Free cash flow 604   631   732   463   458   32%    
Total assets 7,912   8,237   7,671   7,659   7,274   9%    
Total equity 4,663   4,959   4,598   4,515   4,421   6%    
Equity ratio 58.9%   60.2%   59.9%   59.0%   60.8%        
                           
Full-time employees at the end of the period 30,867   30,014   29,515   29,364   29,154   6%    
Basic earnings per share (in EUR) 0.96   0.92   0.83   0.82   0.76   26%    
Diluted earnings per share (in EUR) 0.95   0.91   0.83   0.81   0.75   26%    
Average number of shares outstanding (million) 571.6   572.7   577.6   584.0   587.6   (3%)    
Average number of shares outstanding incl                          
dilutive effect of options 'in the money' (million) 576.7   577.5   582.3   588.9   593.0   (3%)    
Sales by business segments:                          
   Modern insulins (insulin analogues) 899   955   917   913   787   14%    
   Human insulins 356   400   398   418   372   (4%)    
   Victoza® 147   128   94   39   50   197%    
   Protein-related products 86   75   76   78   68   27%    
   Oral antidiabetic products (OAD) 95   90   98   94   87   10%    
   Diabetes care total 1,583   1,648   1,583   1,542   1,364   16%    
   NovoSeven® 273   267   264   290   257   6%    
   Norditropin® 168   167   165   168   145   16%    
   Hormone replacement therapy 66   65   69   60   60   11%    
   Other products 15   16   11   9   11   35%    
   Biopharmaceuticals total 522   515   509   527   473   10%    
Sales by geographic regions:                          
   North America 809   843   821   804   702   16%    
   Europe 616   655   628   628   595   4%    
   International Operations 296   290   285   297   247   20%    
   China 185   159   163   146   138   34%    
   Japan & Korea 199   216   195   194   155   28%    
Segment operating profit:                          
   Diabetes care 418   415   459   408   343   22%    
   Biopharmaceuticals 309   168   229   269   246   26%    

 

Company Announcement no 25 / 2011
Page 22 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

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

 


 

Appendix 7: Key currencies assumptions / supplementary information

DKK per 100 2010 average exchange
rates
  YTD 2011 average exchange
rates as of 20 April 2011
  Current exchange rate as of
20 April 2011
 






 
USD 562   541   514  
JPY 6.42   6.55   6.21  
CNY 83   82   79  
GBP 869   868   841  

 

Company Announcement no 25 / 2011
Page 23 of 23
Interim financial report for the period 1 January 2011 to 31 March 2011  

Novo Nordisk A/S

Investor Relations
Novo Allé
2880 Bagsværd
Denmark
Telephone:
+45 4444 8888
Telefax:
+45 4444 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: April 28, 2011

NOVO NORDISK A/S


Lars Rebien Sørensen, President and Chief Executive Officer