Novo Nordisk A/S

Welcome to this Nordisk earnings call for the first six months of 2022 and the outlook for the year. This call follows the early announcement and race guidance published today. Due to Danish securities regulation, we advanced the release that was originally scheduled for tomorrow morning. My name is Lars Hrugard Jorgensen and I'm the CEO of Nordisk. With me today, I have Executive Vice President and Head of Commercial Strategy and Corporate Affairs, Camilla Silvestre. Executive Vice President and Head of North America Operations, Dr. Lange. Executive Vice President and Head of Development, Martin Holst Lange. And finally, Chief Financial Officer, Carsten von Knudsen. All of us will be available for the Q&A session. Today's announcement and the slides for this call are available on our website, noenordis.com. Please note that this call is being webcasted live and the recording will be made available on our website as well. This call is scheduled to last for one hour. Please turn to the next slide. The presentation is structured as outlined on slide two. Please note that all sales and operating profit growth statements will be at constant exchange rates unless otherwise specified. The Q&A session will begin in about 25 minutes. Please turn to slide three. As always, I need to advise you that this call will contain forward-looking statements. such are subject to risk and uncertainty that could cause actual results to differ materially from expectations. For further information on the risk factors, please see the company announcement for the first six months of 2022, as well as the slides prepared for this presentation. Please turn to the next slide. In the first six months of 2022, we delivered double-digit sales and operating profit growth, which has enabled us to raise our outlook for the full year. I'd like to start this call by going through the performance highlights across our strategic aspirations before handing over the work to my colleagues. Within Purpose and Sustainability, we continue to make progress across all dimensions. Under our Defeat Diabetes strategy, we reached even more diabetes patients compared to the same period last year. In line with our aspiration to be a sustainable employer, we expanded the number of women in senior leadership positions to 38% compared to 35% by the end of the second quarter of 2021. Concerning Russia's invasion of Ukraine, our priorities remain to safeguard employees and continue the supply of essential medicines. Monozoic medicines are available in more than 90% of Ukraine, and we are collaborating with humanitarian organizations to make products available in the remaining areas. Within R&D, we are encouraged by the completion of five of the six phase three trials with once-weekly insulin ICODEC. The on-watch trial has shown that ICODEC has the potential to improve glycemic control with greater convenience and reduce treatment burden for people needing insulin treatment. The full on-watch program is an important step in support of our aspiration of further raising the innovation bar for diabetes treatment and our commitment to insulin innovation. Martin will come back to this and our overall RD milestones later in this call. In the first six months of 2022, we delivered double-digit sales growth, reflecting solid commercial execution across geographies and our therapy areas. While both operating units contributed to sales growth, we saw particularly strong sales growth in North America. driven by accelerated demand for our GP1 treatments, which has enabled us to increase the outlook for the year. Camilla and Doug will go through the details of the therapy area later. Last, Carson will go through the financial details, but I'm very pleased with the sales growth of 16% and operating profit growth of 14% in the first six months of 2022. With that, I give the word to Camilla for an update on commercial execution.

Thank you, Lance, and please turn to the next slide. In the first six months of 2022, our total sales increased by 16%. The sales increase was driven by both operating units with international operations growing 10% and North America operations growing by 24%. Our GFP1 sales increased 45%, driven by North America growing 41%, and international operations growing 53%. Insulin sales decreased by 8% driven by a 5% decline in international operations and an 18% sales decline in North American operations. The U.S. insulin sales declined by 19% driven by lower realized prices and a decline in volume. In line with expectations, insulin sales in international operations were impacted by the implementation of volume-based procurement in China as of May 22nd. Obesity care sales grew 84 percent overall. In international operations, Saxenda sales grew 60 percent, and in North America operations, obesity care sales grew 102 percent. In the U.S., obesity care sales grew 110 percent driven by Vigobi. Total rare disease sales were flat, driven by a 1 percent sales increase in international operations, offset by a 1 percent decline in North America operations. Please turn to slide six. Our 15% sales growth within diabetes care is faster than the overall diabetes market. That means we have improved our market share by 1.5 percentage points to now 31%, and that we continue to be on track to reach one-third of the diabetes value market by 2025. The increase reflects GFP1 growth of 45% and market share gains in both operating units. Please turn to the next slide. In international operations, diabetes care sales increased by 10% in the first six months of 2022, driven by GLP-1 sales that grew by 53%, and especially by Ocempic. Novo Nordisk remains the market leader in international operations with a GLP-1 value market share of 61.3%. This is driven by share gains across geographies, and I'm happy to share that Ocempic has become the GLP-1 market leader in international operations, with a 39% market share. In region China, the 83% sales growth of the tier 1 products was driven by the update of OCEMPIC following the launch in June 2021 and the inclusion on the national reimbursement list as of January 1st, 2022. And with that, I will hand over the word to Doug.

Thank you for that update, Camilla. Please turn to the next slide. The U.S. GLP-1 market volume grew by more than 35%, comparing Q2 of 2022 to Q2 of 2021, with once-weekly injectable GLP-1s and ribelsis as the main drivers. From an NBRX perspective, we have seen a step up in volume growth in 2021 that has accelerated further since the beginning of 2022. Measured on total prescriptions, Nova Nordic has expanded its market leadership to 56.4% market share. In other words, we continue to take share in a fast-growing market. Additionally, we are thrilled that Ozempic has now surpassed Dual Advertise, taking the lead in the TRX market with a 40.7% market share. The global rollout of Rebelsys is progressing, having now been launched in 39 countries. It remains one of the key contributors to growth in Novo Nordisk. Please go to the next slide. Obesity care sales increased by 84%, with 102% growth in North America operations and 60% growth in international operations. Furthermore, the obesity market expansion continues with a volume growth of the global branded obesity market of more than 60%. We are encouraged by the performance of Sexenda in international operations that was especially driven by the EMEA region that grew 78% in the first half of 2022. The growth was especially strong in countries that had some level of reimbursement, such as the UK and Norway. In the US alone, obesity care sales grew 110%. Following the previously announced will go be supply issues in the US, our focus remains to ensure continuity of care in the patients that have already initiated treatment. In line with expectations, this has negatively impacted Lugovia prescription trends. Positively, Saxenda trends have picked up and are now at all-time high levels. Regarding Lugovia supply, commercial production at the CMO was reinitiated in the second quarter of 2022 and inventory building is ongoing. We expect to make all doses of Volgovia available in the U.S. toward the end of the year. Now, Camilla, back over to you for an update on rare disease.