Novo Nordisk increased operating profit by 32% in 2012

Novo Nordisk increased operating profit by 32% in 2012

31 January 2013

Sales growth of 18% driven by Victoza®, NovoRapid® and Levemir®

Sales increased by 18% to 78.0 billion in Danish kroner and by 12% in local currencies.

    Sales of modern insulins increased by 21% (15% in local currencies).

    Sales of Victoza® increased by 58% (50% in local currencies).

    Sales in North America increased by 29% (19% in local currencies).

    Sales in International Operations increased by 18% (16% in local currencies).

Reported operating profit increased by 32% to DKK 29.5 billion including a 1.7 percentage points improvement in the gross margin. Measured in local currencies, operating profit increased by 20%.

Net profit increased by 25% to DKK 21.4 billion. Earnings per share (diluted) increased by 30% to DKK 38.85.

Novo Nordisk has in December 2012 received, and submitted its response to, a Warning Letter from the US Food and Drug Administration (FDA) in relation to an inspection of an aseptic filling facility in Denmark. Novo Nordisk does not expect the letter to have an impact on products currently marketed in the US.

The regulatory process for the new-generation insulins, Tresiba® and Ryzodeg®, continues to progress in the major markets. In Japan and Europe both products have now been approved. In November 2012, an FDA Advisory Committee voted eight to four in favour of approving the products with a post-approval outcomes trial commitment.

In 2012, Novo Nordisk reached its four long-term financial targets. Consequently, two of the four targets have been increased. The core target of 15% annual operating profit growth on average is maintained.

For 2013, sales growth measured in local currencies is expected to be 8-11%, and operating profit growth measured in local currencies is expected to be around 10%.

Effective 31 January 2013, Novo Nordisk's Executive Management is expanded with two new members who will be responsible for Marketing & Medical Affairs and IT, Quality & Corporate Development respectively.

At the Annual General Meeting on 20 March 2013, the Board of Directors will propose a 29% increase in dividend to DKK 18 per share. The Board of Directors has furthermore decided to initiate a new 12 months share repurchase programme of up to DKK 14 billion.

Lars Rebien Sørensen, president and CEO: "2012 has been another year with strong results for Novo Nordisk driven by the sales growth of Victoza® and the two modern insulins NovoRapid® and Levemir®. We are pleased that Tresiba® and Ryzodeg® have been approved in key markets like Japan and the EU and look forward to launching Tresiba® in several markets in 2013."

Contacts for further information:
Mike Rulis     +45 4442 3573     [email protected]
Ken Inchausti (US)     +1 609 514 8316     [email protected]
Kasper Roseeuw Poulsen     +45 4442 4303     [email protected]
Frank Daniel Mersebach     +45 4442 0604     [email protected]
Lars Borup Jacobsen     +45 3075 3479     [email protected]
Jannick Lindegaard (US)     +1 609 786 4575     [email protected]

 Company announcement No 8 / 2013