Novo Nordisk A/S

Good day and thank you for standing by. Welcome to the Q1 2025 Novo Nordisk AS Earnings Conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to have the comments of your first speaker today, Jakob Rode, Head of Investor Relations. Please go ahead, sir.

Thank you. And welcome to this Novo Nordisk earnings call for the first three months of 2025. My name is Jakob Rode, and I'm the Head of Investor Relations at Novo Nordisk. And with me today I have CEO of Novo Nordisk, Lars Brugger Jørgensen, Executive Vice President, U.S. Operations, Dave Moore, Executive Vice President, International Operations, Mike Duster, Executive Vice President and Head of Development, Martin Holtz-Lange, and finally, Chief Financial Officer, Carsten von Klosen. All speakers will be available for the Q&A session. Today's announcement and the slides for this call are available on our website, nominoids.com. Please note that the call is being webcasted live, and a recording will be made available on our website as well. The call is scheduled to last one hour. Next slide, please. 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 the next slide. We 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 announcements for the first three months of 2025, as well as the slides prepared for this presentation. With that, over to you, Lars, for an update on our strategic aspirations.

Thank you, Jakob. Next slide, please. In the first three months of 2025, we delivered 18% sales growth and 20% operating profit growth. I'd like to start this call by going through the performance highlights across our strategic aspirations before handing over the word to my colleagues. Starting with our focus on purpose and sustainability, we are now serving nearly 46 million patients with our diabetes and obesity treatments. This is an increase of almost 4 million patients compared to the first three months of 2024. Our total carbon emissions rose by 37% compared to the first three months of 2024. This was mainly driven by the acquisition of new production sites and capital expenditure activities related to expansion of manufacturing sites. These are also efforts to meet the high demand for our innovative treatments. To uphold our commitment to being a sustainable employer, we expanded the number of women in senior leadership positions to 42% compared to around 41% last year. In R&D, we completed the second and final pivotal trial, Redefine2, with our next-generation obesity treatment, Teclisema. We remain on track for submission in the first quarter of 2026. Recently, our application for Wegovi 2.4 mg for the treatment of metabolic dysfunctional associated sterile hepatitis, or MASH in short, was accepted by the U.S. FDA and granted priority review. In addition, the new drug application for weight management for all semaglutide, 25 milligram, or as our person will call it, with Gobi in a pill, has been submitted to the U.S. FDA. If approved, this will be the first all-GLP-1 treatment for obesity in the U.S. Lastly, we are in license two early stage assets that show promise in addressing obesity and other cardiometabolic diseases. Martin will come back to this and our overall R&D milestones later. The quarterly sales growth is driven by both operating units. Dave and Mike will go through the details later. In terms of financial details, we delivered sales growth of 18% in the first three months of 2025. However, we have reduced our full-year outlook due to lower-than-planned branded GLP-1 penetration impacted by the rapid expansion of compounding in the U.S. NorNoise is actively focused on preventing unlawful compounding as well as the efforts to expand patient access on our GP1 treatments. Carson will come back to this later. We will continue to drive attractive growth and expand patient access to our innovative treatments. In the U.S., this includes recent initiatives with Novocare Pharmacy, Taylor Health Collaborations, and the CVS formulary decision. In international relations, there remains a large unmet need for patients, and we're excited to continue focused commercial efforts in existing and future markets in 2025. Furthermore, we realize the significance of our global footprint, including those activities based in the U.S. Illinois has a strong presence in the U.S. with over 10,000 full-time employees across the value chain. This includes research and development and substantial manufacturing footprint. We have invested over 24 billion U.S. dollars in the U.S. over the past 10 years, including ongoing expansions and improvements to our manufacturing site in Bloomington, Indiana, and Clayton, North Carolina. The existing U.S. tariffs does not materially change our financial outlook for 2025. That being said, we are closely following potential tariffs on pharmaceutical products in the U.S. Before we move on to the particulars of the first quarter performance, I would like to update you on changes to executive management. Please turn to the next slide. After nearly 30 years with Novo Nordisk, Camilla Silvest decided to step down. Camilla played a pivotal role in establishing our GF1 and obesity franchises and spearheaded the development of our long-term social and environmental goals. I would like to thank Camilla for her meaningful contributions to Novo Nordisk and wish her all the best for the future. This development has triggered several organizational changes effective 3rd of April, aimed at enhancing the speed of decision-making and strengthening the execution focus within our operating units. Ludovic Hofgott, formerly Executive Vice President Rare Disease, now heads up Product and Portfolio Strategy. This is a newly established area designed to forge a closer connection between commercial strategy, medical affairs, and business development across all of therapy areas. Tilda Hommel-Böger becomes the newest member of Executive Management as Executive Vice President of Quality IT and Environmental Affairs. The restructure will also enable Daymore to focus exclusively on the U.S. operations, as well as Henrik Wolff, on CMC and product supply. I'd now like to give an update on our commercial execution in the first three months of 2025. Please turn to the next slide. As of January, North America operations and international operations were reorganized, and financial reporting has been divided into U.S. operations and international operations. More deal sales on the regions can be found in the company announcement. In the first three months of 2025, our sales increased by 18%. The sales growth was driven by both operating units, with U.S. operations growing 17% and international operations growing 19%. OGF-1 sales and diabetes increased by 11%, driven by U.S. operations growing 10% and international operations growing 13%. Infant sales increased by 3%, driven by U.S. operations growing 13%. The sales increase was driven by phasing rebates as well as channel and payer mix, partly counted by a decline in volume. Incidental operation sales increased 1%, obesity care sales increased 65%, driven by U.S. operations growing 40%, partly impacted by compounded GL1s, and incidental operations growing 137%. In both geographies, growth was driven by Wigobi, partly offset by declining Saxena sales, as the obesity care market is growing towards once-weekly treatments. Rare disease sales increased by 3%, driven by a 5% sales increase in international operations. Rare disease sales in U.S. operations grew 1% compared to last year. Please turn to the next slide. Today, NoNoise remains the global GLV-1 volume market leader, serving nearly two-thirds of all patients on GLV-1 treatments across diabetes and obesity. Our ongoing scaling efforts have supported close to a tripling of of GLP-1 patients reached over the past three years. We are dedicated to serving patients who need our medicines and increasing our capacity to meet their needs. By integrating the three required fill finish sites and expanding our existing capacities, we are ready to reach more patients with serious chronic diseases. With that, I'll hand over to Dave.