Novo Nordisk A/S

Welcome to this Novo Nordisk earnings call for the first nine months of 2022 and the outlook for the year. My name is Lars Fugard Jorgensen and I'm the CEO of Novo 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, Doug Lange, Executive Vice President and Head of Development, Martin Holst Lange, and finally Chief Financial Officer, Carl Nussbaum. 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, newandnourish.com. Please note that the call will be webcasted live and a recording will be made available on our website as well. The 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 operator control 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. These 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 for the first nine months of 2022 and the slides prepared for this presentation. Please turn to the next slide. In the first nine 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 operations, before handing over the word to my colleagues. We continue to make progress across all dimensions of purpose and sustainability. Our carbon emissions decreased by 18% compared to the first nine months of 2019, and we continue to reach even more patients compared to the same period last year. Within our aspiration of being a sustainable employer, we expanded the number of women in senior leadership positions to 38%, compared to 36% by the end of September 2021. Within R&D, we are pleased with the encouraging Phase II data with CACS-Sema in Type II diabetes, as well as the successful completion of the pivotal Phase III program for once-weekly insulin IQR-DEC. Both support our aspiration of further raising the innovation bar for diabetes treatments. Martin will come back to this and our overall R&D milestones later in this call. In the first nine 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 GL1 treatments. This has enabled us to increase the output for the year. Camilla and Doug will go through the details per therapy area later. Lastly, Carsten will go through the financial details but I'm very pleased with a sales growth of 16% and operating profit growth of 14% in the first nine months of 2022. With that, I'll now give the word to Camilla for an update on commercial execution.

Thank you, Lars, and please turn to the next slide. As Lars mentioned, our 16% sales growth in the first nine months of 2022 was driven by both operating units with North America operations growing by 22% and international operations growing by 11%. Our GLP-1 sales increased 4% by North America, growing 39%, and international operations growing 55%. Insulin sales decreased by 11%, driven by a 7% decline in international operations, and a 20% sales decline in North America operations. The U.S. insulin sales declined by 22%, driven by lower realized prices and a decline in volume. Incident sales in international operations were impacted by implementation of volume-based procurement in China from May 22, as well as lower sales in EMEA. Obesity care sales grew 75% overall. In international operations, extended sales grew 73%, and in North America operations, obesity care sales grew 77%. In the U.S., obesity care sales grew 81%. where disease sales grew 2% driven by a 4% sales increase in international operations, offset by a 3% decline in North America operations. Please turn to slide 6. Our 14% sales growth within diabetes care is faster than all diabetes markets. That means we have improved our market share by 1.7 percentage points to 31.6%. We continue to be on track to reach one-third of the diabetes value market by 2025. This increase primarily reflects GLP-1 market growth as well as share gains in both operating units. And please turn to the next slide. In international operations, diabetes care sales increased by 9% in the first nine months of 2022, driven by GLP-1 sales that grew by 55%. Novo Nordisk remains the market leader in international operations with a GLP-1 value market share of 6.26%. This is driven by share gains across geographies. Outhampe continues to expand its GLP-1 market share leadership in international operations with a 41.3% market share. While the GLP-1 class is growing more than 40%, GLP-1 penetration remains low at around 4% of total diabetes groups globally. 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 40%, comparing the third quarter of 2022 to the third quarter of 2021, with once-weekly injectable GLP-1s and Rebelsys as the main drivers. The recent competitor launch in GLP-1 has supported the continued acceleration in market growth, from an MBRX perspective, as well as all-time high levels for our portfolio of GLP-1 products during Q3. Measured on total prescriptions, Novo Nordisk has maintained its market leadership with a 52.4% market share. Additionally, Osempa continues to be the market leader with a 38.7% TRX market share. Rebelsys continues to grow and has now been launched in 43 countries. In the first nine months of 2022, It was the second largest contributor to growth in Novo Nordisk after Ozempic. Please go to the next slide. Obesity care sales increased by 75%, with 77% growth in North American operations and 73% in international operations. Furthermore, the global obesity market expansion continues, with a volume growth of the global branded obesity market of more than 60%. We continue to be encouraged by the performance of Saxenda in international operations. Region EMEA is a key growth driver, with 96% growth in the first nine months of 2022. Specifically, the growth continues to be particularly strong in countries that have some level of reimbursement, such as the UK, Norway, and Israel. In the US, obesity care sales grew by 81%, with both Wegovy and Saxenda contributing to growth. Following the previously announced Vagobi supply issues in the U.S., our focus remains to continue continuity of care to the patients that have already initiated treatment. In line with expectations, this has negatively impacted Vagobi prescription trends. Positively, sex and the prescription trends have accelerated and continue to be at all-time high levels. Regarding Vagobi supply, we expect to make all doses of Vagobi available in the U.S. in December. We plan to initiate broad commercial activities in the beginning of 2023. Now back over to Camilla for an update on rare disease.