Novo Nordisk A/S : increased operating profit in local currencies by 13% in 2014

Sales growth of 8% in local currencies driven by growth in sales of
Levemir® and Victoza®

Sales increased by 8% in local currencies and by 6% in Danish kroner to 88.8 billion.

• Sales of modern and new-generation insulin increased by 12% (10% in Danish kroner).
• Sales of Victoza® increased by 16% (15% in Danish kroner).
• Sales in North America increased by 11% (11% in Danish kroner).
• Sales in International Operations increased by 14% (4% in Danish kroner).
• Sales in Region China increased by 13% (13% in Danish kroner).

Gross margin improved by 0.5 percentage point in Danish kroner to 83.6% driven by a favourable price development and a positive impact from product mix.

Operating profit increased by 13% in local currencies and by 10% in Danish kroner to DKK 34.5 billion.

Net profit increased by 5% to DKK 26.5 billion. Diluted earnings per share increased by 8% to DKK 10.07.

The roll-out of Tresiba® continues. In Japan, Tresiba® has now captured 26% of the basal insulin market measured in monthly value market share since its launch in March 2013.

In December 2014, the US Food and Drug Administration (FDA) approved Saxenda® (liraglutide 3 mg), the first once-daily human glucagon-like peptide-1 (GLP-1) analogue for the treatment of obesity.

For 2015, sales growth is expected to be 6-9% and operating profit growth is expected at around 10%, both measured in local currencies. Reflecting the appreciation of key invoicing currencies and the related currency hedging effects, operating profit as reported is expected to grow by around 29%, whereas pre-tax profit is expected to grow approximately 16%.

At the Annual General Meeting on 19 March 2015, the Board of Directors will propose an 11% increase in dividend to DKK 5.00 per share of DKK 0.20. The Board of Directors has furthermore decided to initiate a new 12-months share repurchase programme of up to DKK 15 billion.

Lars Rebien Sørensen, president and CEO: "We are pleased with Novo Nordisk's financial performance in 2014; a more challenging year than usual. Levemir® and Victoza® drove most of our sales growth, and our new long-acting insulin Tresiba® continues to perform well. 2015 will be an important year for us with the first launches of Saxenda® and Xultophy® as well as significant results from our late-stage development portfolio."

Further information

Company announcement No 7 / 2015