Novo Nordisk A/S

Good day and thank you for standing by. Welcome to the Q4 2022 Novo Nordisk AS Earnings Conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one, one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Lars Furgaard-Jorgensen, CEO. Please go ahead.

Thank you, operator. Welcome to this Novo Nordisk earnings call for the full year of 2022 and the outlook for 2023. My name is Lars Furgaard-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 Holtz Lange, and finally, Chief Financial Officer, Carsten Munch-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, nornoise.com. Please note that the call is being webcasted live and a recording will be made available on our website as well. This call is scheduled to last 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. 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 maturely from expectations. For further information on the risk factors, please see the full announcement for the full year of 2022 and the slides prepared for this presentation. Please turn to the next slide. In 2022, we deliver double-digit sales growth and operating profit growth, and we continue to make progress on our strategic aspirations. I'd like to go through the highlights 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 29% compared to pre-pandemic levels in 2019. And we continue to reach even more patients and patients living with diabetes compared to last year. In line with our aspiration of being a sustainable employer, we expanded the number of women in leadership positions to 39% compared to 36% in 2021. Within R&D, we are pleased that we now have initiated the first two phase one trials based on the Dacerna interference RNA technology platform that we acquired in 2021. Looking back at 2022, we have seen exciting trial readouts across all our therapy areas, and in 2023, we look forward to having an equally exciting year. Martin will come back to this and our overall R&D milestones later. In 2022, we delivered double-digit sales growth, reflecting strong commercial execution across geographies and our therapy areas. While both operating units contributed to sales growth, we saw particular strong sales growth in North America driven by accelerated demand for our GLV-1 treatments for both diabetes and obesity. Camille and Doug will go through the details per therapy area later. Carson will go through the financials, but I'm very pleased with the sales growth of 16% and operating profit growth of 15% in 2022. Lastly, I have a brief update on our strategic aspirations within financials. We have achieved the U.S. aspiration of converting 70% of sales to products launched since 2018, and I.O. sales growth has in the last couple of years surpassed the aspiration of 6% to 10% growth. Consequently, we have decided to remove these regional aspirations. Going forward, we'll be focused on and committed to delivering solid sales and operating profit growth. With that, I'll give the word to Camille for an update on execution.

Thank you, Lars, and please turn to the next slide. As last mentioned, our 16% sales growth for the full year of 2022 was driven by both operating units with North America operations growing by 21% and international operations growing 13%. The strong sales growth has unfortunately resulted in periodic supply constraints and related job shortage notifications across a number of products and geographies. Our GLP-1 sales decreased by 42% driven by North America growing 36% and international operations growing 57%. Insulin sales decreased by 11% driven by a 7% decline in international operations and a 21% sales decline in North America operations. The U.S. insulin sales declined by 22%. This was driven by lower realized prices as well as a decline in volume. Compared to 2021, the U.S. insulin volume market declined by 3%. Furthermore, insulin sales in international operations were impacted by the implementation of volume-based procurement in China starting in May 2022 and lower sales in EMEA. Obesity care sales grew by 84% overall. In international operations, sales grew by 82%. And in North America operations, obesity care sales grew 85%. in the U.S. obesity care sales grew by 90 percent. Rare disease sales grew 1 percent, driven by a 5 percent sales increase in international operations, offset by a 5 percent decline in North America operations. Please turn to slide six. Our 14 percent sales growth within diabetes care continues to be higher than the overall diabetes market. That means we have improved our market share by 1.8 percentage points to 31.9 percent. 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. Please turn to the next slide. International operations diabetes care sales increased by 10 percent in 2022, driven by GLP-1 sales growing by 57%. Novo Nordisk remains the market leader in international operations with a GLP-1 value market share of 64%. This is driven by share gains across geographies. Resemplic continues to expand its GLP-1 market share leadership in international operations with around 43% market share. While the GLP-1 class growth is more than 50%, GLP-1 penetration remains low at around 5% of total diabetes groups globally. Rebelsus sales more than doubled compared to 2021. The growth was mainly driven by new launches and increasing volumes, making Rebelsus the second largest growth contributor in 2022 after Osempic. The increased momentum in international operation is driven by launches in key markets such as Japan, Italy, and Spain. And with that, I will hand over the word to Doug.