Novo-Nordisk-AR-2012-en

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Many markets – one model Novo Nordisk sells its products in more than 180 countries. Among them are the richest and poorest countries in the world, with healthcare systems ranging from well-developed to nonexistent. And yet, Novo Nordisk’s basic business model and strategy is the same in all countries, says Kåre Schultz, Novo Nordisk’s chief operating officer. Novo Nordisk has its own wholly owned country organisations – affiliates as they are called internally – in 75 countries, organised in five regions, each reporting to a senior vice president: Europe, North America, International Operations, Region China and Japan & Korea. The reporting lines meet at Kåre Schultz’s desk. Novo Nordisk’s business model and strategy is basically the same in all regions, NOVO NORDISK ANNUAL REPORT 2012 and based on a common ambition, which is to be the leading diabetes care company, both in commercial terms and when it comes to making a positive change for people with diabetes. “Our core offering to people with diabetes all over the world is sophisticated proteins – biologic pharmaceuticals such as modern insulins – to which our scientists have been able to give some distinct properties that can help better control the disease,” says Kåre Schultz. “We market and sell the products the same way globally, which is by sharing the clinical knowledge about our products with doctors, so they can make an informed choice about whether they are right for their patients. At the same time, we present the payers – whether these are public health systems or private insurance companies – with evidence about the cost-efficiency of our products so they can make informed decisions about pricing and reimbursement. This is in essence our business model all over the world.” In many countries Novo Nordisk also engages in activities aimed at improving awareness about diabetes and training doctors in managing the disease. This work is much appreciated, especially in developing countries where diabetes has only recently become a serious problem and where there is not the knowledge or capacity to deal with the disease. “I see this as a long-term investment,” says Kåre Schultz. “It can take many years to create a sustainable business in these countries, but once the economy allows for proper diabetes care for the population, doctors and health authorities will remember that
we were there for them when the going was tough. That’s our experience.” Competitors In the insulin market, Novo Nordisk’s main competitors are the same all over the world, Eli Lilly and Sanofi. In addition, there are local competitors in some countries such as China and India, but they primarily offer older-generation products and have not been able to gain significant market shares. In the biopharmaceuticals business, Novo Nordisk faces competition in some markets from producers of biosimilar medicines (products that are similar, but not identical to an original medicine), for example human growth hormone. But so far it has not had a dramatic impact on the business. CONTINuED Diabetes care Value market share by geographic region North America Europe International Operations Japan & Korea Region China % 50 40 30 20 10 0 2008 2009 2010 2011 2012 Modern insulins Value market share by product NovoMix ® NovoRapid ® Levemir ® % 100 80 60 40 20 0 2008 2009 2010 2011 2012 33 Chief Operating Officer Kåre Schultz (far left) travels to meet management teams in key markets several times a year. NOVO NORDISK ANNUAL REPORT 2012
Page 1 and 2: novo nordisk annual report 2012 Str
Page 3 and 4: Chairman of the Board of Directors
Page 5 and 6: From a regional perspective, North
Page 7 and 8: ACCOMPLISHMENTS ACCOMPLISHMENTS AND
Page 9 and 10: Operations increased by 19% in Dani
Page 11 and 12: Outlook 2013 The current expectatio
Page 13 and 14: Research and development progress D
Page 15 and 16: values-based management system and
Page 17 and 18: Strategy is all about choice Novo N
Page 19 and 20: • Levemir ® is a soluble, long-a
Page 21 and 22: performance on three dimensions: fi
Page 23 and 24: How is diabetes treated? For type 1
Page 25 and 26: The protein powerhouse Novo Nordisk
Page 27 and 28: Reducing the risk of hypoglycaemia
Page 29 and 30: Many people ask why insulin and GLP
Page 31 and 32: Prevent bleedings When we talk abou
Page 33: Phase 1 Studies in a small group (u
Page 37 and 38: worrying thing is that if nobody wa
Page 39 and 40: Sales in Region China 10 8 6 4 2 0
Page 41 and 42: Novo Nordisk’s largest production
Page 43 and 44: In the current economic landscape,
Page 45 and 46: Risk overview Listed below are the
Page 47 and 48: Meeting, the Board of Directors wil
Page 49 and 50: attached to A shares include pre-em
Page 51 and 52: Remuneration Novo Nordisk aims to a
Page 53 and 54: In addition, executives may partici
Page 55 and 56: of the Scientific Advisory Board of
Page 57 and 58: Consolidated financial, social and
Page 59 and 60: Balance sheet at 31 December CONSOL
Page 61 and 62: Statement of changes in equity at 3
Page 63 and 64: Section 1 Basis of preparation of t
Page 65 and 66: Section 2 Results for the year CONS
Page 67 and 68: 2.2 Segment information (continued)
Page 69 and 70: 2.3 Employee costs Accounting polic
Page 71 and 72: Section 3 Operating assets and liab
Page 73 and 74: 3.2 Property, plant and equipment (
Page 75 and 76: 3.6 Provisions (continued) 3.7 Reti
Page 77 and 78: Section 4 Capital structure and fi
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4.7 Financial assets and liabilitie
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Section 5 Other disclosures CONSOLI
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5.1 Share-based payment schemes (co
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5.4 Commitments and contingencies C
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5.5 Related party transactions Novo
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5.9 Financial defi nitions ADRs An
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Supplementary information CONSOLIDA
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Balance sheet at 31 December FINANC
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7 Intangible assets FINANCIAL STATE
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Management statement CONSOLIDATED F
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Independent Assurance Report on the
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Product overview ADDITIONAL INFORMA
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