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Novo Annual Review 2016
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a/s is a global healthcare company with more than 90 years of innovation and leadership in diabetes care. this heritage has given the experience and capabilities that make it possible to help people defeat other serious chronic conditions: haemophilia, growth disorders and obesity. the company?s values-based management framework is described in the novo
nordisk way. it spells out that the company?s key contribution is to discover and develop innovative biological medicines and make them available to patients throughout the world. it also describes the behaviours that are expected of all employees. decision-making is guided by the triple bottom line principle, anchored in the company?s articles of association, of always striving to be financially, environmentally and socially responsible. financial performance novo nordisk?s 2016
performance for sales and adjusted operating profit growth were both in line with the guidance provided in february 2016, although in the lower end of the ranges reflecting a more challenging competitive situation in the usa. the free cash flow exceeded the outlook provided in february 2016, explained by a positive effect from settlement of tax cases related to prior years. capital expenditure and other results were in line with the latest guidance provided in october 2016. sales increased by 6% measured in local currencies and by 4% in danish kroner. sales growth was realised within both diabetes care and biopharmaceuticals, with the majority of growth originating from tresiba ® , victoza ® , saxenda ® and norditropin ® while sales of modern insulin and novoseven ® declined. sales of diabetes and obesity care products increased by 6% measured in local currencies and by 4% in danish kroner to dkk 88,949 million. novo nordisk is the world leader in diabetes care with a global value market share of 27%. sales of haemophilia products were unchanged in local currencies and decreased by 2% in danish kroner to dkk 10,472 million. all regions contributed to sales growth; however, the usa was the largest contributor with 37% share of growth measured in local currencies, followed by international operations and region china contributing 32% and 19%, respectively. r&d progress 2016 was a year in which novo nordisk made significant progress in its research and development pipeline and reached several milestones. in novo nordisk?s annual report, a pipeline overview shows all the compounds in clinical development, and further details on clinical trials can be found in the company announcements and press releases published by novo nordisk during 2016. updated r&d strategy in october 2016, novo nordisk updated its r&d strategy and priorities to reflect the increasingly challenging payer environment, particularly in the us market, by applying an even higher innovation threshold for progressing r&d projects. novo nordisk will further intensify exploration of current assets in adjacent disease areas of high unmet need as well as identify new assets using our existing technology platform. in addition to the other areas, nash (non-alcoholic steatohepatitis), diabetic kidney disease and cardiovascular disease are new areas to be pursued, both in research and development. as a result of the updated r&d strategy and priorities, novo nordisk decided not to progress its current development projects within oral insulin and combinations involving oral insulin. in addition, a number of changes to the portfolio of early-stage projects were also implemented. furthermore, novo nordisk intends to strengthen its activities for in- licensing of early- and mid-stage projects as well as external academic collaborations. novo nordisk?s current late-stage development portfolio was not affected by the changes. the patient target: 40by20 novo nordisk?s strategy for global access to diabetes care addresses a huge unmet need. the company?s long-term target is to reach 40 million people with its diabetes care products by 2020 ? double the 2010 base-line number. novo nordisk provided medical treatments to an estimated 28 million people with diabetes worldwide in 2016, compared with 26.8 million in 2015. current projections show that it will not be possible to reach this target. this is due to a more challenging market environment than anticipated in 2013 when the long-term target was set. novo nordisk remains committed to continuing its efforts to reach more patients and improve diabetes care. for more information, please visit novo nordisk?s annual report 2016 at www.novonordisk.com/annualreport 58 novo a/s 2016
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