Company Announcement

Interim financial report for the period 1 January 2010 to 30 June 2010

5 August 2010

Novo Nordisk increased operating profit by 19% in the first half of 2010
Sales growth of 14% driven by modern insulins and Victoza^®

•	Sales increased by 14% in Danish kroner and by 11% in local currencies.
	o	Sales of modern insulins increased by 22% (19% in local currencies).
	o	Sales of NovoSeven® increased by 11% (9% in local currencies).
	o	Sales of Norditropin® increased by 8% (6% in local currencies).
	o	Sales in North America increased by 21% (20% in local currencies).
	o	Sales in International Operations increased by 17% (12% in local currencies).
•	Gross margin improved by 0.6 percentage points in Danish kroner to 80.5% in the first six months of 2010, primarily reflecting a positive product mix development.
•	Reported operating profit increased by 19% to DKK 9,423 million. Adjusted for the impact from currencies, operating profit in local currencies increased by around 15%.
•	Net profit increased by 21% to DKK 6,872 million. Earnings per share (diluted) increased by 25% to DKK 11.63.
•	The global roll-out of Victoza® is progressing well. In the US, Victoza® has now achieved 27% GLP-1 market share of total weekly prescriptions for the week ending 23 July 2010, and the product has also been launched in Japan and Canada.
•	In June 2010, Novo Nordisk announced that the enrolment of patients into the global phase 3a programme for Degludec and DegludecPlus has been completed.
•	The first phase 3a results for DegludecPlus in type 1 diabetes substantiate that DegludecPlus lowers blood glucose long-term whilst at the same time reducing hypoglycaemic events.
•	The guidance for 2010 has been raised; sales growth measured in local currencies is now expected to be 9–10%, and operating profit growth measured in local currencies is now expected to be 12–15%

Lars Rebien Sørensen, president and CEO: “The underlying business growth is solid, driven by our portfolio of modern insulins and Victoza^®, and we therefore raise our guidance for 2010. We are also very encouraged by the continued progress within our pipeline including both new insulins, liraglutide for obesity and haemostasis projects.”

Company Announcement no 43 / 2010	Page 1 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

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Consolidated financial statement for the first half of 2010

The present unaudited interim financial report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and accounting policies set out in the Annual Report 2009 of Novo Nordisk. Furthermore, the interim financial report and Management’s review are prepared in accordance with additional Danish disclosure requirements for interim reports of listed companies. Novo Nordisk has adopted all new, amended or revised accounting standards and interpretations (‘IFRSs’) endorsed by the EU effective for the accounting period beginning on 1 January 2010. These IFRSs have not had a significant impact on the Group’s interim financial report.

Amounts in DKK million, except average number of shares outstanding, earnings per share and full-time employees.

					% change
					H1 2009
Profit and loss	H1 2010		H1 2009		to H1 2010
Sales	29,068		25,499		14%
Gross profit	23,409		20,381		15%
Gross margin	80.5%		79.9%
Sales and distribution costs	8,348		7,681		9%
Percent of sales	28.7%		30.1%
Research and development costs	4,565		3,593		27%
Percent of sales	15.7%		14.1%
Administrative expenses	1,456		1,372		6%
Percent of sales	5.0%		5.4%
Licence fees and other operating income	383		165		132%
Operating profit	9,423		7,900		19%
Operating margin	32.4%		31.0%
Net financials	(498)		(511)		(3%)
Profit before income tax	8,925		7,389		21%
Net profit	6,872		5,690		21%
Net profit margin	23.6%		22.3%
Other key numbers
Depreciation, amortisation and impairment losses	1,176		1,140		3%
Capital expenditure	1,412		970		46%
Cash flow from operating activities	8,456		6,756		25%
Free cash flow	6,853		5,688		20%
Total assets	57,048		51,246		11%
Equity	33,635		34,086		(1%)
Equity ratio	59.0%		66.5%
Average number of shares outstanding (million) – diluted	591.0		610.3		(3%)
Diluted earnings per share / ADR (in DKK)	11.63		9.32		25%
Full-time employees at the end of the period	29,364		27,998		5%

 

Company Announcement no 43 / 2010	Page 2 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

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Sales development by segments

Sales increased by 14% in Danish kroner and by 11% measured in local currencies. While growth was realised within both diabetes care and biopharmaceuticals, the primary growth contribution was derived from the modern insulins and Victoza^®.

	Sales		Growth		Growth		Share of
	H1 2010		as		in local		growth
	DKK		reported		currencies		in local
	million						currencies
The diabetes care segment
Modern insulins	12,654		22%		19%		68%
– NovoRapid®	5,659		19%		17%		28%
– NovoMix®	3,718		16%		13%		14%
– Levemir®	3,277		33%		30%		26%
Human insulins	5,872		0%		(3%)		(6%)
Victoza®	666		-		-		23%
Protein-related products	1,086		11%		7%		3%
Oral antidiabetic products	1,349		(1%)		(3%)		(2%)
Diabetes care total	21,627		16%		13%		86%
The biopharmaceuticals segment
NovoSeven®	4,069		11%		9%		11%
Norditropin®	2,328		8%		6%		4%
Other products	1,044		1%		(3%)		(1%)
Biopharmaceuticals total	7,441		8%		6%		14%
Total sales	29,068		14%		11%		100%

Sales development by regions
In the first half of 2010, all regions contributed to growth measured in local currencies. North America was the main contributor with 63% share of growth measured in local currencies, followed by International Operations and Europe contributing 22% and 13%, respectively.

Diabetes care
Sales of diabetes care products increased by 16% measured in Danish kroner to DKK 21,627 million and by 13% in local currencies compared to the first half of 2009.

Modern insulins, human insulins and protein-related products
In the first half of 2010, sales of modern insulins, human insulins and protein-related products increased by 14% in Danish kroner to DKK 19,612 million and by 11% measured in local currencies compared to the same period last year, with North America and International Operations having the highest growth rates. Novo Nordisk continues to be the global leader with 51% of the total insulin market and 46% of the modern insulin market, both measured in volume.

The sales growth is driven by the portfolio of modern insulins exhibiting steady sales growth globally. Sales of modern insulins increased by 22% in Danish kroner to DKK 12,654 million and by 19% in local currencies compared to the first half of 2009. All regions realised solid growth rates, with North America accounting for more than half of the growth, followed by

Company Announcement no 43 / 2010	Page 3 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

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International Operations and Europe. Sales of modern insulins now constitute close to 70% of Novo Nordisk’s sales of insulin.

North America
Sales in North America increased by 21% in Danish kroner and by 19% in local currencies in the first six months of 2010, reflecting a continued solid market penetration of the modern insulins Levemir^®, NovoLog^® and NovoLog^® Mix 70/30. Novo Nordisk maintains its leadership position in the US insulin market with 42% of the total insulin market and 36% of the modern insulin market, both measured in volume. Currently, around 41% of Novo Nordisk’s modern insulin volume in the US is being sold in the prefilled device FlexPen^®.

Europe
Sales in Europe increased by 6% measured in Danish kroner and by 4% in local currencies in the first six months of 2010, reflecting continued progress for the portfolio of modern insulins and declining human insulin sales. Novo Nordisk holds 54% of the total insulin market and 51% of the modern insulin market, both measured in volume. The device penetration in Europe remains high with more than 95% of Novo Nordisk’s insulin volume being sold in devices, primarily NovoPen^® and FlexPen^®.

International Operations
Sales within International Operations increased by 20% in Danish kroner and by 15% in local currencies in the first six months of 2010. The main contributor to growth was sales of modern insulins, primarily in China. Sales of human insulins continue to add to overall growth in the region, also driven by China, although an unexpected delay in obtaining an insulin import licence in Russia reduced the growth of the region.

Japan & Korea
Sales in Japan & Korea increased by 3% measured in Danish kroner and decreased by 2% in local currencies in the first six months of 2010. The sales development reflects sales growth for all three modern insulins, NovoRapid^®, NovoRapid Mix^® 30 and Levemir^®, countered by a decline in human insulin sales. In the challenging competitive environment, Novo Nordisk now holds 65% of the total insulin market in Japan and 57% of the modern insulin market, both measured in volume. The device penetration in Japan remains high with more than 95% of Novo Nordisk’s insulin volume being sold in devices, primarily NovoPen^® and FlexPen^®.

Victoza^® (GLP-1 therapy for type 2 diabetes)
Victoza^® sales reached DKK 666 million during the first half of 2010 reflecting solid market performance in Europe, the initial launch-related pipeline fill in the US, and re-ordering during the second quarter of 2010 in the US. The global launch progresses, and the product has now been made commercially available in 14 European countries as well as the US, Canada, Japan and three countries in International Operations.

NovoNorm^®/Prandin^® (oral antidiabetic products)
In the first half of 2010, sales of oral antidiabetic products decreased by 1% in Danish kroner to DKK 1,349 million and by 3% in local currencies compared to the same period in 2009. The sales development primarily reflects lower sales in Europe due to generic competition in Germany.

Company Announcement no 43 / 2010	Page 4 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

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Biopharmaceuticals
In the first half of 2010, sales of biopharmaceutical products increased by 8% measured in Danish kroner to DKK 7,441 million and by 6% measured in local currencies compared to the first half of 2009.

NovoSeven^® (bleeding disorders therapy)
Sales of NovoSeven^® increased by 11% in Danish kroner to DKK 4,069 million and by 9% in local currencies compared to the first half of 2009. Sales growth for NovoSeven^® was primarily realised in North America, secondarily in Japan & Korea. The sales growth for NovoSeven^® is however impacted by the loss of the predominant part of the federal tender for recombinant FVIIa in Russia.

Norditropin^® (growth hormone therapy)
Sales of Norditropin^® increased by 8% measured in Danish kroner to DKK 2,328 million and by 6% measured in local currencies compared to the first half of 2009. Growth in local currencies was realised in all regions with International Operations having the highest growth rate. Novo Nordisk remains the second-largest company in the global growth hormone market with a 25% market share measured in volume.

Other products
Sales of other products within biopharmaceuticals, which predominantly consist of hormone replacement therapy (HRT)-related products, increased by 1% in Danish kroner to DKK 1,044 million and decreased by 3% in local currencies. This development primarily reflects continued sales progress for the low-dose version of Vagifem^®, a topical oestrogen product, countered by generic competition to Activelle^®, Novo Nordisk’s continuous-combined HRT product.

Development in costs
The cost of goods sold was DKK 5,659 million in the first half of 2010 representing a gross margin of 80.5% compared to 79.9% in the same period of 2009. This primarily reflects a favourable product mix impact due to increased sales of modern insulins and Victoza^®.

In the first half of 2010, total non-production-related costs increased by 14% to DKK 14,369 million compared to the same period last year.

Sales and distribution costs increased by 9% to DKK 8,348 million primarily reflecting the launch costs of Victoza^® in Europe and in the US, as well as a continued expansion of the global sales force.

Research and development costs increased by 27% to DKK 4,565 million primarily reflecting the ongoing phase 3 programme for the new generation of insulins, Degludec and DegludecPlus.

Licence fees and other operating income constituted DKK 383 million in the first half of 2010 compared to DKK 165 million in the same period of 2009. The development reflects a sustainable higher level of licence fees as well as a non-recurring income of approximately DKK 100 million related to a patent settlement during the first quarter of 2010.

Company Announcement no 43 / 2010	Page 5 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

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Net financials
Net financials showed a net expense of DKK 498 million in the first half of 2010 compared to a net expense of DKK 511 million in the same period of 2009.

For the first half of 2010, the foreign exchange result was an expense of DKK 460 million compared to an expense of DKK 501 million in the first half of 2009. This development reflects losses on foreign exchange hedging of especially US dollars due to the appreciation versus the Danish krone. In accordance with Novo Nordisk’s accounting practices, foreign exchange hedging losses of around DKK 2,400 million have, as per 30 June 2010, been deferred for future income recognition in the second half of 2010 and in 2011 as the hedged operating cash flows are materialising.

Also included in net financials is the result from associated companies with an income of DKK 61 million primarily related to an accounting gain in relation to the public offering by ZymoGenetics, Inc. in January 2010. In the same period of 2009, the result from associated companies was an expense of DKK 46 million.

Key developments in the second quarter of 2010
Please refer to appendix 1 for an overview of the quarterly numbers in DKK.

The sales in the second quarter of 2010 increased by 18% to DKK 15,394 million and by 11% in local currencies compared to the same period in 2009. The growth is driven by the modern insulins, Victoza^® and NovoSeven^® whereas North America and International Operations represented the majority of the growth in a geographic perspective. Victoza^® sales in the second quarter of 2010 were primarily driven by sales in Europe supported by re-ordering in the US.

The gross margin increased to 80.7% in the second quarter of 2010 compared to 79.9% in the same period last year. The increase is primarily driven by a favourable product mix.

Sales and distribution costs increased by 14% for the second quarter of 2010 compared to the same period last year, primarily driven by Victoza^® launch costs and sales force expansions in Japan, Europe and International Operations.

Research and development costs increased by 32% in the second quarter of 2010 compared to the same period last year, primarily driven by the phase 3 development programme for Degludec and DegludecPlus.

Licence fees and other operating income increased by 104% to DKK 159 million driven by recurring licence fee income related to intellectual property rights.

Reported operating profit increased by 23% in the second quarter of 2010 compared to the same period last year, and by 11% in local currencies. This primarily reflects the sales growth and the improvement in gross margin countered by the increase in research and development costs.

The free cash flow increased by 67% in the second quarter of 2010 compared to the same period last year driven by a higher net profit level. The cash to earnings ratio was 97% in the second quarter of 2010.

Company Announcement no 43 / 2010	Page 6 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

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Outlook for 2010

The current expectations for 2010 are summarised and compared to the previous expectations in the table below (changes highlighted in bold and italics):

Expectations are as reported, if not	Current expectations		Previous expectations
otherwise stated	5 August 2010		27 April 2010
Sales growth
- in local currencies	9–10%		7–10%
- as reported	Around 6 percentage points		Around 3 percentage points
	higher		higher
Operating profit growth
- underlying	12–15%		More than 10%
- as reported	Around 11 percentage		Around 6 percentage points
	points higher		higher
Net financial expense	Around DKK 1,750 million		Around DKK 700 million
Effective tax rate	Approximately 23%		Approximately 23%
Capital expenditure	Around DKK 3.5 billion		Around DKK 3.5 billion
Depreciation, amortisation and
impairment losses	Around DKK 2.7 billion		Around DKK 2.7 billion
Free cash flow	Close to DKK 13 billion		More than DKK 12 billion

Novo Nordisk now expects sales growth in 2010 of 9–10% measured in local currencies. This is based on expectations of continued market penetration for Novo Nordisk’s key strategic products within diabetes care, including continued global roll-out of Victoza^®, and biopharmaceuticals as well as expectations of continued intense competition, potential generic competition to NovoNorm^®/Prandin^® and an impact from the implementation of healthcare reforms primarily in the US and Europe. Given the current level of exchange rates versus the Danish krone, the reported sales growth is now expected to be around 6 percentage points higher than measured in local currencies.

For 2010, growth in operating profit is now expected to be 12–15% measured in local currencies, primarily driven by the increase in sales growth expectations. Given the current level of exchange rates versus the Danish krone, the reported operating profit growth is now expected to be 11 percentage points higher than measured in local currencies.

For 2010, Novo Nordisk now expects a net financial expense of around DKK 1,750 million. The current expectation primarily reflects losses on foreign exchange hedging contracts. Foreign exchange hedging losses of approximately DKK 550 million are currently expected to be deferred for future income recognition in 2011 when the hedged operating cash flows will be realised.

The effective tax rate for 2010 is still expected to be maintained around 23%.

Capital expenditure is still expected to be around DKK 3.5 billion in 2010, primarily related to investments in the new insulin formulation and filling plant in China and a new disposable device capacity in Denmark. Expectations for depreciations, amortisation and impairment losses are still around DKK 2.7 billion whereas free cash flow is now expected to be close to DKK 13 billion.

Company Announcement no 43 / 2010	Page 7 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

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All of the above expectations are based on the assumption that the global economic environment will not significantly change business conditions for Novo Nordisk during 2010 and that currency exchange rates, especially the US dollar, remain at the current level versus the Danish krone during 2010. Please refer to appendix 7 for key currency assumptions.

Novo Nordisk has hedged expected net cash flows in a number of invoicing currencies and, all other things being equal, movements in key invoicing currencies will impact Novo Nordisk’s operating profit as outlined in the table below.

Key invoicing	Annual impact on Novo Nordisk’s	Hedging period
currencies	operating profit of a 5%	(months)
	movement in currency
USD	DKK 580 million	14
JPY	DKK 150 million	14
CNY	DKK 100 million	14*
GBP	DKK 80 million	11
CAD	DKK 40 million	6

*USD used as proxy when hedging Novo Nordisk’s CNY currency exposure

The financial impact from foreign exchange hedging is included in ‘Net financials’.

Research and development update

Diabetes care
At the annual meeting of the American Diabetes Association (ADA) held in Orlando, Florida in June this year, Novo Nordisk presented phase 2 data demonstrating the efficacy, tolerability and safety profiles of Degludec and DegludecPlus.

During the ADA, Novo Nordisk also announced that patient recruitment in the global phase 3a programme for Degludec and DegludecPlus had been completed. The programme, intended to enable regulatory filing in the US, EU and Japan, involves more than 9,000 patients in 17 clinical trials.

The first phase 3a study, out of five studies with DegludecPlus, has now been completed. In the study, a randomised, controlled trial conducted globally, people with type 1 diabetes were either treated with DegludecPlus once daily and NovoRapid^® twice daily or Levemir^® in accordance with the label and NovoRapid^® three times daily. The primary objective of confirming HbA_1c non-inferiority in this treat-to-target study was accomplished, with HbA_1c

decreasing from 8.3% to 7.6% in both treatment arms while reducing the number of daily injections when using DegludecPlus. Importantly, the rate of confirmed hypoglycaemia, defined as the need for third-party assistance or plasma glucose level below 3.1 mmol/l, was reduced overall and by more than a third during the night for the DegludecPlus group. People treated with DegludecPlus and NovoRapid^® gained on average slightly more weight than those in the comparator group. The safety profile of DegludecPlus was confirmed and DegludecPlus was generally well tolerated.

Novo Nordisk expects to announce the key results of the remaining 16 phase 3a trials during 2010 and 2011 when trials have been completed and analysed.

Novo Nordisk has reviewed six-month data from a 1,000 patient-sized phase 3b study investigating the effect of adding Levemir^® to metformin plus Victoza^® treatment in people

Company Announcement no 43 / 2010	Page 8 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

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with type 2 diabetes. Patients were randomised to continued Victoza^® treatment or to Victoza^® plus Levemir^® treatment if their HbA_1c level was not below 7% after 12 weeks of treatment with Victoza^® plus metformin. The trial revealed a significant improvement in glycaemic control in the metformin plus Victoza^® plus Levemir^® treatment group with 43.1% of previously inadequately treated subjects reaching HbA_1c less than 7%. Furthermore, the initial mean body weight loss of 3.5 kg achieved during metformin plus Victoza^® combination treatment was maintained with an observed additional mean weight loss of 0.2kg over the following six months with Levemir^® added. The majority of patients who were not randomised to treatment because they reached HbA_1c target on metformin plus Victoza® alone experienced a mean weight loss of 4.8kg from run-in to end of the study period. No major hypoglycaemic events were observed, and the overall rate of minor hypoglycaemia amongst patients treated with metformin plus Victoza^® plus Levemir^® was very low. The study demonstrated that the profile of Victoza^® plus Levemir^® combined is safe, generally well tolerated and clinically efficacious. The trial data are intended for label update purposes.

Novo Nordisk has initiated a phase 1 study in healthy people with an ultra-fast-acting insulin analogue, intended to provide faster onset of action than the currently available fast-acting insulin analogues.

Biopharmaceuticals
A phase 2 trial evaluating the safety, pharmacokinetics and efficacy of NN1731, an ultra-fast-acting recombinant factor VIIa analogue, in treatment of joint bleeds in haemophilia A or B patients with inhibitors has been completed. The trial found that NN1731 has a safe profile for all doses investigated, the ultra-fast-acting profile was confirmed, and NN1731 was efficacious in stopping joint bleeds. Further, all efficacy parameters tested trended favourably for the highest dose of NN1731 compared to NovoSeven^®. The control arm confirmed the efficacy and safety profile of NovoSeven^® as observed in previous clinical studies. Based on the positive phase 2 trial results, the pivotal phase 3 trial programme for NN1731 is currently being designed.

A pivotal phase 3 trial in factor XIII congenital deficiency, investigating a recombinant FXIII compound, has been finalised. Factor XIII congenital deficiency is a rare bleeding disorder with about 600 diagnosed patients worldwide. This genetic disorder affects both genders and all ethnic backgrounds, and is usually diagnosed at birth. The phase 3 trial enrolled 41 patients for a one-year treatment regimen. The trial proved that recombinant FXIII has a safe profile when administered as prophylactic, monthly replacement therapy to patients with congenital factor XIII deficiency. Compared to a historic control group of individuals who did not receive prophylactic infusions, treatment with monthly injections with recombinant FXIII significantly decreased the annual number of bleeding episodes requiring treatment. Novo Nordisk expects to file for marketing authorisation with the regulatory authorities in the US and EU in the first half of 2011.

Equity
Total equity was DKK 33,635 million at the end of the first half of 2010, equal to 59.0% of total assets, compared to 65.3% at the end of 2009. The equity at 30 June 2010 was negatively impacted by DKK 1.8 billion related to the value of currency hedging contracts net of tax accrued for future income recognition. Please refer to appendix 5 for further elaboration of changes in equity in the first half of 2010.

Company Announcement no 43 / 2010	Page 9 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

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Reduction of share capital
The Annual General Meeting of Novo Nordisk A/S, which was held on 24 March 2010, approved a 3.2% reduction in the total share capital by cancellation of 20,000,000 treasury B shares of DKK 1 at a nominal value of DKK 20,000,000. The reduction was executed on 28 June 2010, and Novo Nordisk’s share capital now amounts to DKK 600,000,000 divided into an A share capital of DKK 107,487,200 and a B share capital of DKK 492,512,800.

Treasury shares and share repurchase programme
On 27 April 2010, Novo Nordisk initiated a share repurchase programme in accordance with the provisions of the European Commission’s regulation no 2273/2003 of 22 December 2003 (The Safe Harbour Regulation), with J.P. Morgan Securities Ltd. as lead manager. The purpose of the programme was a reduction of the company’s share capital. Under the programme Novo Nordisk has repurchased B shares for an amount of DKK 2.5 billion in the period from 27 April 2010 to 3 August 2010. The programme was concluded on 3 August 2010.

As per 3 August 2010, Novo Nordisk A/S and its wholly-owned affiliates owned 19,932,082 of its own B shares, corresponding to 3.3% of the total share capital.

Based on the improved outlook for free cash flow generation in 2010, the Board of Directors has approved a DKK 1 billion expansion of the 2010 share repurchase programme to DKK 8.5 billion. Novo Nordisk has in 2010 repurchased shares under the Safe Harbour rules for an amount of DKK 4.5 billion.

Sustainability update

People
During the first half of 2010, Novo Nordisk hired 555 full-time equivalent employees compared to 1,423 in the same period last year. Novo Nordisk had 29,364 full-time equivalent employees on 30 June 2010 compared to 27,998 on 30 June 2009.

Haemophilia study documents unmet needs of patients
Novo Nordisk presented the preliminary findings of HERO (Haemophilia Experiences, Results and Opportunities), an international survey into the psychological and social effects of haemophilia, at the World Federation of Hemophilia Congress in Buenos Aires, Argentina, on 11 July 2010. The first phase of the study includes interviews with 150 people with haemophilia, caregivers and healthcare professionals in seven countries. When completed in 2011, the full inquiry will include responses from over 1,300 people from 12 countries, and will be the largest international study ever into the social and psychological aspects of life with haemophilia. Novo Nordisk intends to use these findings to address unmet patient needs.

Legal update
As of 4 August 2010, Novo Nordisk Inc., along with a majority of the hormone therapy product manufacturers in the US, is a defendant in product liability lawsuits related to hormone therapy products. These lawsuits currently involve a total of 50 individuals who allege use of a Novo Nordisk hormone therapy product. The products (Activella^® and Vagifem^®) have been sold and marketed in the US since 2000. Until July 2003, the products were sold and marketed exclusively in the US by Pharmacia & Upjohn Company (now Pfizer Inc.). Furthermore, 64 individuals currently allege, in relation to similar lawsuits against Pfizer Inc., that they have also used a Novo Nordisk hormone therapy product. Currently, Novo Nordisk does not have

Company Announcement no 43 / 2010	Page 10 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

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any trials scheduled in 2010. Novo Nordisk does not expect the pending claims to have a material impact on Novo Nordisk’s financial position.

As previously announced, Novo Nordisk is involved in an ongoing patent infringement dispute with Caraco Pharmaceutical Laboratories, Ltd. (Caraco) regarding Caraco’s application to market a generic version of Prandin^® (repaglinide) in the US. On 14 April 2010, the Court of Appeals for the Federal Circuit in Washington D.C., US, decided in favour of Novo Nordisk, allowing Novo Nordisk to retain its current Use Code describing the therapeutic use for Prandin^®. Subsequently, Caraco filed a petition with the Federal Circuit on 14 May 2010 requesting a rehearing and reconsideration, which the Federal Circuit denied on 29 July 2010. Caraco will, as a consequence of the Use Code, be required by the FDA to amend its label to include the repaglinide–metformin combination. Pursuant to an earlier stipulation between the parties, Caraco has conceded infringement if the combined use is included in its label. The validity trial regarding Novo Nordisk’s U.S. Patent No. 6,677,358 (‘358 patent), which is directed toward the Prandin^®/metformin combination, is now scheduled to resume in August 2010.

Financial calendar

27 October 2010	Financial results for the first nine months of 2010
2 February 2011	Financial results for 2010

Conference call details
At 13.00 CET today, corresponding to 7.00 am EDT, a conference call will be held. Investors will be able to listen in via a link on novonordisk.com, which can be found under ‘Investors – Download centre’. Presentation material for the conference call will be made available approximately one hour before on the same page.

Forward-looking statement
Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company’s Annual Report 2009 and Form 20-F, both filed with the SEC in February 2010, and written information released, or oral statements made, to the public in the future by or on behalf of Novo Nordisk, may contain forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Examples of such forward-looking statements include, but are not limited to:

-	statements of plans, objectives or goals for future operations, including those related to Novo Nordisk’s products, product research, product development, product introductions and product approvals as well as cooperation in relation thereto
-	statements containing projections of or targets for revenues, income (or loss), earnings per share, capital expenditures, dividends, capital structure or other net financials
-	statements of future economic performance, future actions and outcome of contingencies such as legal proceedings
-	statements of the assumptions underlying or relating to such statements.

Company Announcement no 43 / 2010	Page 11 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

---

In this document, examples of forward-looking statements can be found under the headings ‘Outlook for 2010’, ‘Research and development update’, ‘Equity’ and ‘Legal update’.

These statements are based on current plans, estimates and projections. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific. Novo Nordisk cautions that a number of important factors, including those described in this document, could cause actual results to differ materially from those contemplated in any forward-looking statements.

Factors that may affect future results include, but are not limited to, global as well as local political and economic conditions, including interest rate and currency exchange rate fluctuations, delay or failure of projects related to research and/or development, unplanned loss of patents, interruptions of supplies and production, product recall, unexpected contract breaches or terminations, government-mandated or market-driven price decreases for Novo Nordisk’s products, introduction of competing products, reliance on information technology, Novo Nordisk’s ability to successfully market current and new products, exposure to product liability and legal proceedings and investigations, changes in governmental laws and related interpretation thereof, including on reimbursement, intellectual property protection and regulatory controls on testing, approval, manufacturing and marketing, perceived or actual failure to adhere to ethical marketing practices, investments in and divestitures of domestic and foreign companies, unexpected growth in costs and expenses, failure to recruit and retain the right employees and failure to maintain a culture of compliance.

Please also refer to the overview of risk factors in ‘Risk Management’ on pp 40–42 of the Annual Report 2009 available on the company’s website (novonordisk.com).

Unless required by law, Novo Nordisk is under no duty and undertakes no obligation to update or revise any forward-looking statement after the distribution of this document, whether as a result of new information, future events or otherwise.

Company Announcement no 43 / 2010	Page 12 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

---

Management statement

Today, the Board of Directors and Executive Management reviewed and approved the interim financial report of Novo Nordisk A/S for the first half of 2010. The interim financial report has not been audited or reviewed by the company’s independent auditors.

The interim financial report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ and accounting policies set out in the Annual Report 2009 of Novo Nordisk. Furthermore, the interim financial report and Management’s Review are prepared in accordance with additional Danish disclosure requirements for interim reports of listed companies.

In our opinion, the accounting policies used are appropriate and the overall presentation of the interim financial report is adequate. Furthermore, in our opinion, Management’s Review includes a true and fair account of the development in the operations and financial circumstances, of the results for the period and of the financial position of the Group as well as a description of the most significant risks and elements of uncertainty facing the Group in accordance with Danish disclosure requirements for listed companies.

Bagsværd 5 August 2010

Executive Management:

Lars Rebien Sørensen	Jesper Brandgaard
President and CEO	CFO
Lise Kingo	Kåre Schultz	Mads Krogsgaard Thomsen
CoS	COO	CSO

Board of Directors:

Sten Scheibye	Göran A Ando
Chairman	Vice chairman
Henrik Gürtler	Ulrik Hjulmand-Lassen	Pamela J Kirby
Anne Marie Kverneland	Kurt Anker Nielsen	Søren Thuesen Pedersen
Hannu Ryöppönen	Stig Strøbæk	Jørgen Wedel

 

Company Announcement no 43 / 2010	Page 13 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

---

Contacts for further information

Media:	Investors:
Mike Rulis	Klaus Bülow Davidsen
Tel: (+45) 4442 3573	Tel: (+45) 4442 3176
mike@novonordisk.com	klda@novonordisk.com
	Kasper Roseeuw Poulsen
	Tel: (+45) 4442 4471
	krop@novonordisk.com
	Jannick Lindegaard
	Tel: (+45) 4442 4765
	jlis@novonordisk.com
In North America:	In North America
Sean Clements	Hans Rommer
Tel: (+1) 609 514 8316	Tel: (+1) 609 919 7937
secl@novonordisk.com	hrmm@novonordisk.com

Further information about Novo Nordisk is available on the company’s website novonordisk.com

Company Announcement no 43 / 2010	Page 14 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

---

Appendix 1: Quarterly numbers in DKK

(Amounts in DKK million, except number of employees, earnings per share and number of shares outstanding).

													% change
	2010				2009								Q2 2010 vs
	Q2		Q1		Q4		Q3		Q2		Q1		Q2 2009
Sales	15,394		13,674		13,062		12,517		13,001		12,498		18%
Gross profit	12,425		10,984		10,427		9,832		10,391		9,990		20%
Gross margin	80.7%		80.3%		79.8%		78.5%		79.9%		79.9%
Sales and distribution costs	4,364		3,984		4,237		3,502		3,837		3,844		14%
Percent of sales	28.3%		29.1%		32.4%		28.0%		29.5%		30.8%
Research and development costs	2,434		2,131		2,387		1,884		1,849		1,744		32%
Percent of sales	15.8%		15.6%		18.3%		15.1%		14.2%		14.0%
Administrative expenses	745		711		726		666		693		679		8%
Percent of sales	4.8%		5.2%		5.6%		5.3%		5.3%		5.4%
Licence fees and other operating income (net)	159		224		142		34		78		87		104%
Operating profit	5,041		4,382		3,219		3,814		4,090		3,810		23%
Operating margin	32.7%		32.0%		24.6%		30.5%		31.5%		30.5%
Share of profit/(loss) in associated companies	(4)		65		(2)		(7)		(11)		(35)		(64%)
Financial income	146		65		58		9		166		142		(12%)
Financial expenses	575		195		283		209		361		412		59%
Profit before income taxes	4,608		4,317		2,992		3,607		3,884		3,505		19%
Net profit	3,548		3,324		2,323		2,755		2,991		2,699		19%
Depreciation, amortisation and impairment losses	595		581		754		657		533		607		12%
Capital expenditure	744		668		935		726		557		413		34%
Cash flow from operating activities	4,225		4,231		3,583		5,039		2,608		4,148		62%
Free cash flow	3,444		3,409		2,402		4,242		2,062		3,626		67%
Total assets	57,048		54,155		54,742		52,589		51,246		50,205		11%
Total equity	33,635		32,916		35,734		34,874		34,086		31,345		(1%)
Equity ratio	59.0%		60.8%		65.3%		66.3%		66.5%		62.4%
Full-time employees at the end of the period	29,364		29,154		28,809		28,497		27,998		27,429		5%
Basic earnings per share (in DKK)	6.07		5.66		3.95		4.62		4.96		4.44		22%
Diluted earnings per share (in DKK)	6.02		5.61		3.92		4.58		4.91		4.41		23%
Average number of shares outstanding (million)	584.0		587.6		589.9		596.4		603.1		607.4		(3%)
Average number of shares outstanding incl
dilutive effect of options 'in the money' (million)	588.9		593.0		595.2		601.4		607.9		612.7		(3%)
Sales by business segments:
Modern insulins (insulin analogues)	6,792		5,862		5,655		5,325		5,414		4,990		25%
Human insulins	3,099		2,773		2,685		2,747		2,879		3,004		8%
Victoza®	296		370		59		28		-		-		-
Protein-related products	583		503		569		519		492		484		18%
Oral antidiabetic products (OAD)	704		645		636		650		675		691		4%
Diabetes care total	11,474		10,153		9,604		9,269		9,460		9,169		21%
NovoSeven®	2,155		1,914		1,742		1,651		1,874		1,805		15%
Norditropin®	1,245		1,083		1,171		1,074		1,122		1,034		11%
Hormone replacement therapy	450		443		460		440		435		409		3%
Other products	70		81		85		83		110		81		(36%)
Biopharmaceuticals total	3,920		3,521		3,458		3,248		3,541		3,329		11%
Sales by geographic regions:
North America	5,988		5,221		4,510		4,527		4,710		4,532		27%
Europe	4,671		4,432		4,594		4,376		4,375		4,195		7%
International Operations	3,296		2,865		2,656		2,447		2,661		2,607		24%
Japan & Korea	1,439		1,156		1,302		1,167		1,255		1,164		15%
Segment operating profit:
Diabetes care	3,033		2,554		1,720		2,286		2,333		2,171		30%
Biopharmaceuticals	2,008		1,828		1,499		1,528		1,757		1,639		14%

 

Company Announcement no 43 / 2010	Page 15 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

---

Appendix 2: Statement of comprehensive income

	H1		H1		Q2		Q2
DKK million	2010		2009		2010		2009
Income statement
Sales	29,068		25,499		15,394		13,001
Cost of goods sold	5,659		5,118		2,969		2,610
Gross profit	23,409		20,381		12,425		10,391
Sales and distribution costs	8,348		7,681		4,364		3,837
Research and development costs	4,565		3,593		2,434		1,849
Administrative expenses	1,456		1,372		745		693
Licence fees and other operating income (net)	383		165		159		78
Operating profit	9,423		7,900		5,041		4,090
Share of profit or loss of associated companies, net of tax	61		(46)		(4)		(11)
Financial income	211		308		146		166
Financial expenses	770		773		575		361
Profit before income taxes	8,925		7,389		4,608		3,884
Income taxes	2,053		1,699		1,060		893
NET PROFIT	6,872		5,690		3,548		2,991
Basic earnings per share (DKK)	11.73		9.40		6.07		4.96
Diluted earnings per share (DKK)	11.63		9.32		6.02		4.91
Segment Information
Segment sales:
Diabetes care	21,627		18,629		11,474		9,460
Biopharmaceuticals	7,441		6,870		3,920		3,541
Segment operating profit:
Diabetes care	5,587		4,504		3,033		2,333
Operating margin	25.8%		24.2%		26.4%		24.7%
Biopharmaceuticals	3,836		3,396		2,008		1,757
Operating margin	51.6%		49.4%		51.2%		49.6%
Total segment operating profit	9,423		7,900		5,041		4,090
Statement of comprehensive income
Net profit for the period	6,872		5,690		3,548		2,991
Other comprehensive income:
Gains and losses arising from translating the financial statement of
foreign operations and re-measuring available-for-sale financial assets	413		328		277		165
Adjustment of cash flow hedges for the year	(2,810)		887		(1,716)		955
Share of other comprehensive income of associated companies	8		9		6		1
Other	(7)		(15)		(35)		(1)
Income taxes relating to other comprehensive income	851		(30)		582		(51)
Other comprehensive income for the period, net of tax	(1,545)		1,179		(886)		1,069
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	5,327		6,869		2,662		4,060

 

Company Announcement no 43 / 2010	Page 16 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

---

Appendix 3: Balance sheet

DKK million	30 Jun 2010		31 Dec 2009
ASSETS
Intangible assets	1,190		1,037
Property, plant and equipment	20,060		19,226
Investments in associated companies	283		176
Deferred income tax assets	1,592		1,455
Other non-current financial assets	143		182
TOTAL NON-CURRENT ASSETS	23,268		22,076
Inventories	10,046		10,016
Trade receivables	8,660		7,063
Tax receivables	652		799
Other current assets	2,440		1,962
Marketable securities and financial derivatives	591		1,530
Cash at bank and in hand	11,391		11,296
TOTAL CURRENT ASSETS	33,780		32,666
TOTAL ASSETS	57,048		54,742
EQUITY AND LIABILITIES
Share capital	600		620
Treasury shares	(18)		(32)
Retained earnings	33,887		34,435
Other reserves	(834)		711
TOTAL EQUITY	33,635		35,734
Non-current debt	1,018		970
Deferred income tax liabilities	2,322		3,010
Retirement benefit obligations	557		456
Provisions for other liabilities	1,228		1,157
Total non-current liabilities	5,125		5,593
Current debt and financial instruments	3,268		418
Trade payables	2,355		2,242
Tax payables	613		701
Other current liabilities	7,428		6,813
Provisions for other liabilities	4,624		3,241
Total current liabilities	18,288		13,415
TOTAL LIABILITIES	23,413		19,008
TOTAL EQUITY AND LIABILITIES	57,048		54,742

 

Company Announcement no 43 / 2010	Page 17 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

---

Appendix 4: Statement of cash flow

DKK million	H1 2010		H1 2009
Net profit	6,872		5,690
Adjustment for non-cash items:
Income taxes	2,053		1,699
Depreciation, amortisation and impairment losses	1,176		1,140
Interest income and interest expenses	76		(73)
Other adjustment	1,416		19
Income taxes paid	(1,782)		(1,025)
Interest received	142		212
Interest paid	(199)		(59)
Cash flow before change in working capital	9,754		7,603
(Increase)/decrease in trade receivables and other current assets	(2,075)		(871)
(Increase)/decrease in inventories	(30)		(289)
Increase/(decrease) in trade payables and other current liabilities	728		249
Exchange rate adjustment	79		64
Cash flow from operating activities	8,456		6,756
Purchase of intangible assets and non-current financial assets	(191)		(116)
Proceeds from sale of property, plant and equipment	2		2
Purchase of property, plant and equipment	(1,414)		(972)
Net change in marketable securities (maturity exceeding three months)	500		-
Dividend received	-		18
Cash flow from investing activities	(1,103)		(1,068)
Repayment of non-current debt	-		-
Purchase of treasury shares	(3,464)		(2,289)
Proceeds from sale of treasury shares	314		73
Dividends paid to the Company´s owners	(4,400)		(3,650)
Cash flow from financing activities	(7,550)		(5,866)
NET CASH FLOW	(197)		(178)
Unrealised gain/(loss) on exchange rates and marketable securities
included in cash and cash equivalents	80		23
Net change in cash and cash equivalents	(117)		(155)
Cash and cash equivalents at the beginning of the period	11,034		8,726
Cash and cash equivalents at the end of the period	10,917		8,571
Additional information:
Cash and cash equivalents at the end of the period	10,917		8,571
Bonds with original term to maturity exceeding three months	522		1,016
Undrawn committed credit facilities	4,469		7,447
FINANCIAL RESOURCES AT THE END OF THE PERIOD	15,908		17,034
Cash flow from operating activities	8,456		6,756
+ Cash flow from investing activities	(1,103)		(1,068)
- Net change in marketable securities (maturity exceeding three months)	500		-
FREE CASH FLOW	6,853		5,688

 

Company Announcement no 43 / 2010	Page 18 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

---

Appendix 5: Statement of changes in equity

							Other reserves
											Tax and
							Exchange		Deferred gain/		other
	Share		Treasury		Retained		rate adjust		loss on cash flow		adjust-
DKK million	capital		shares		earnings		ments		hedges		ments		Total
H1 2010
Balance at the beginning of the period	620		(32)		34,435		271		393		47		35,734
Total comprehensive income for the period					6,872		413		(2,810)		852		5,327
Dividends					(4,400)								(4,400)
Share-based payment					124								124
Reduction of the B share capital	(20)		20										-
Purchase of treasury shares			(8)		(3,456)								(3,464)
Sale of treasury shares			2		312								314
Balance at the end of the period	600		(18)		33,887		684		(2,417)		899		33,635

At the end of the year proposed dividends (declared in 2010) of DKK 4,400 million (7.50 DKK per share) are included in Retained earnings. No dividend is declared on treasury shares.

							Other reserves
											Tax and
							Exchange		Deferred gain/		other
	Share		Treasury		Retained		rate adjust		loss on cash flow		adjust-
DKK million	capital		shares		earnings		ments		hedges		ments		Total
H1 2009
Balance at the beginning of the period	634		(26)		33,433		(256)		(859)		53		32,979
Total comprehensive income for the period					5,690		328		888		(37)		6,869
Dividends					(3,650)								(3,650)
Share-based payment					104								104
Reduction of the B share capital	(14)		14										-
Purchase of treasury shares			(9)		(2,280)								(2,289)
Sale of treasury shares			1		72								73
Balance at the end of the period	620		(20)		33,369		72		29		16		34,086

At the end of the year proposed dividends (declared in 2009) of DKK 3,650 million (6.00 DKK per share) are included in Retained earnings. No dividend is declared on treasury shares.

Company Announcement no 43 / 2010	Page 19 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

---

Appendix 6: Quarterly numbers in EUR /
Supplementary information

(Amounts in EUR million, except number of employees, earnings per share and number of shares outstanding). Key figures are translated into EUR as supplementary information - the translation is based on average exchange rate for income statement and exchange rate at the balance sheet date for balance sheet items.

The specified percent changes are based on the changes in the 'Quarterly numbers in DKK', see appendix 1.

													% change
	2010				2009								Q2 2010 vs
	Q2		Q1		Q4		Q3		Q2		Q1		Q2 2009
Sales	2,069		1,837		1,756		1,681		1,746		1,677		18%
Gross profit	1,669		1,476		1,401		1,321		1,395		1,341		20%
Gross margin	80.7%		80.3%		79.8%		78.5%		79.9%		79.9%
Sales and distribution costs	587		535		570		471		515		516		14%
Percent of sales	28.3%		29.1%		32.4%		28.0%		29.5%		30.8%
Research and development costs	327		286		321		253		248		234		32%
Percent of sales	15.8%		15.6%		18.3%		15.1%		14.2%		14.0%
Administrative expenses	99		96		97		90		93		91		8%
Percent of sales	4.8%		5.2%		5.6%		5.3%		5.3%		5.4%
Licence fees and other operating income (net)	21		30		19		5		10		12		104%
Operating profit	677		589		432		512		549		512		23%
Operating margin	32.7%		32.0%		24.6%		30.5%		31.5%		30.5%
Share of profit/(loss) in associated companies	(1)		9		-		(1)		(1)		(5)		(64%)
Financial income	19		9		8		2		22		19		(12%)
Financial expenses	76		27		38		28		49		55		59%
Profit before income taxes	619		580		402		485		521		471		19%
Net profit	476		447		312		370		402		362		19%
Depreciation, amortisation and impairment losses	80		78		102		88		72		81		12%
Capital expenditure	100		90		125		98		75		55		34%
Cash flow from operating activities	568		568		481		677		350		557		62%
Free cash flow	463		458		323		569		277		487		67%
Total assets	7,659		7,274		7,356		7,064		6,881		6,741		11%
Total equity	4,515		4,421		4,802		4,685		4,577		4,208		(1%)
Equity ratio	59.0%		60.8%		65.3%		66.3%		66.5%		62.4%
Full-time employees at the end of the period	29,364		29,154		28,809		28,497		27,998		27,429		5%
Basic earnings per share (in EUR)	0.82		0.76		0.53		0.62		0.66		0.60		22%
Diluted earnings per share (in EUR)	0.81		0.75		0.52		0.62		0.66		0.59		23%
Average number of shares outstanding (million)	584.0		587.6		589.9		596.4		603.1		607.4		(3%)
Average number of shares outstanding incl
dilutive effect of options 'in the money' (million)	588.9		593.0		595.2		601.4		607.9		612.7		(3%)
Sales by business segments:
Modern insulins (insulin analogues)	913		787		759		715		727		670		25%
Human insulins	418		372		361		369		387		403		8%
Victoza®	39		50		8		4		-		-		-
Protein-related products	78		68		76		70		66		65		18%
Oral antidiabetic products (OAD)	94		87		86		87		90		93		4%
Diabetes care total	1,542		1,364		1,290		1,245		1,270		1,231		21%
NovoSeven®	290		257		234		222		252		242		15%
Norditropin®	168		145		158		144		150		139		11%
Hormone replacement therapy	60		60		62		59		58		55		3%
Other products	9		11		12		11		16		10		(36%)
Biopharmaceuticals total	527		473		466		436		476		446		11%
Sales by geographic regions:
North America	804		702		606		607		633		608		27%
Europe	628		595		618		588		587		563		7%
International Operations	443		385		357		329		357		350		24%
Japan & Korea	194		155		175		157		169		156		15%
Segment operating profit:
Diabetes care	408		343		230		307		314		291		30%
Biopharmaceuticals	269		246		202		205		235		221		14%

 

Company Announcement no 43 / 2010	Page 20 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790

---

Appendix 7: Key currencies assumptions /
Supplementary information

DKK per 100	2009 average		Exchange rates as		YTD 2010 average		Current exchange
	exchange rates		of 30 June 2010		exchange rates as		rate as of 2 August
					of 2 August 2010		2010
USD	536		607		565		570
JPY	5.73		6.85		6.22		6.58
GBP	836		911		861		902
CNY	78		90		83		84
CAD	470		578		546		557

 

Company Announcement no 43 / 2010	Page 21 of 21
Interim financial report for the period 1 January 2010 to 30 June 2010

 

Novo Nordisk A/S Investor Relations

Novo Allé 2880 Bagsværd Denmark

Telephone: +45 4444 8888 Telefax: +45 4444 6626

Internet: novonordisk.com

CVR number: 24256790