`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Financial report for the period 1 January 2020 to 31 December 2020
`
`3 February 2021
`
`Novo Nordisk's net profit increased by 8% in 2020
`
`• Sales increased by 4% in Danish kroner and by 7% at CER to DKK 126.9 billion. Sales in International Operations
`increased by 7% in Danish kroner (10% at CER), and sales in North America Operations increased by 1% in Danish
`kroner (3% at CER). Sales growth was negatively impacted by COVID-19, driven by fewer patients initiating treatment.
`
`• Sales within Diabetes and Obesity care increased by 5% to DKK 108.0 billion (8% at CER), driven by GLP-1 growth of
`26% in Danish kroner (29% at CER) reflecting the uptake of Ozempic® and Rybelsus®. Biopharm sales decreased by 1%
`in Danish kroner (increased by 1% at CER).
`
`• The R&D pipeline progressed with the submissions of new drug applications for semaglutide 2.4 mg in obesity in the
`US and the EU. Furthermore, the phase 3b trial with semaglutide 2.0 mg in people with type 2 diabetes was
`successfully completed.
`
`• As per end of February 2021, Mads Krogsgaard Thomsen, executive vice president (EVP) and chief scientific officer
`(CSO) will retire from Novo Nordisk and be succeeded by Marcus Schindler, who is promoted to CSO and EVP for
`Research & Early Development and Martin Holst Lange, who is promoted to EVP for Development.
`
`• For the 2021 outlook, sales growth is expected to be 5-9% at CER, and operating profit growth is expected to be 4-8%
`at CER. Growth reported in DKK is expected to be around 4 and 6 percentage points lower than at CER for sales and
`operating profit, respectively.
`
`• At the Annual General Meeting on 25 March 2021, the Board of Directors will propose a final dividend of DKK 5.85 for
`2020 per share of DKK 0.20. The expected total dividend for 2020 is DKK 9.10 per share, of which DKK 3.25 was paid as
`interim dividend in August 2020. The Board of Directors intends to initiate a new 12-month share repurchase
`programme of up to DKK 17 billion.
`
`PROFIT AND LOSS
`
`DKK million
`Net sales
`Operating profit
`
`Net profit
`Diluted earnings per share (in DKK)
`
`* CER: Constant exchange rates (average 2019).
`
`2020
`
`2019
`
`Growth
`as reported
`
`Growth
`at CER*
`
`
`
`
`
`
`
`126,946
`54,126
`
`42,138
`18.01
`
`
`
`
`
`
`
`122,021
`52,483
`
`38,951
`16.38
`
` 4%
` 3%
`
` 8%
` 10%
`
` 7%
` 7%
`
`N/A
`N/A
`
`Lars Fruergaard Jørgensen, president and CEO: "We are very satisfied with the progress on our Strategic Aspirations in
`2020 despite the challenges of COVID-19. This was only possible due to the commitment from all our employees. The
`financial results reflect sales growth in both International Operations and North America Operations driven by more
`patients using our GLP-1 treatments. Within R&D, key milestones in the fourth quarter were the regulatory submissions
`of semaglutide 2.4 mg which has the potential to redefine the treatment of obesity. In 2021, we will continue our focus
`on commercial execution while conducting more late-stage clinical trial programmes than ever to meet the unmet needs
`of people living with diabetes and other serious chronic diseases."
`
`On 3 February 2021 at 13.00 CET, corresponding to 7.00 am EST, 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’.
`
`Novo Nordisk A/S
`Investor Relations
`
`Novo Allé
`2880 Bagsværd
`Denmark
`
`Telephone:
`+45 4444 8888
`www.novonordisk.com
`
`CVR Number:
`24 25 67 90
`
` Company announcement No 6 / 2021
`
`Novo Nordisk Exhibit 2505
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00001
`
`

`

`Financial report for the period 1 January 2020 to 31 December 2020
`
`Page 2 of 36
`
`UPDATE ON COVID-19
`
`During the COVID-19 pandemic, Novo Nordisk's key priorities are to safeguard employees, continue the supply of
`lifesaving medicines and support societies around the world.
`
`Production
`Novo Nordisk's manufacturing sites continue to operate and products are still distributed and made available to patients
`worldwide.
`
`R&D
`Novo Nordisk continues conduct of all clinical trials already initiated. For ongoing trials, recruitment of new patients is still
`below pre-COVID-19 levels. Some new trials have been initiated.
`
`Commercial
`Most Novo Nordisk medicines are mainly used for chronic treatment. However, during the period of social distancing
`implemented in many markets, fewer new patients are initiating treatment. This is especially impacting launch products
`and products with a short stay time. A gradual recovery of patient initiations took place in the fourth quarter. In the
`beginning of the pandemic, stocking mainly at patient level was seen particularly in the US and Europe and a gradual
`destocking at patient level has taken place in the following quarters.
`
`The COVID-19 pandemic continues to evolve differently across geographies and operations are running accordingly. In
`many markets, sales representatives are working from home using virtual promotion tools.
`
`Support to society
`Novo Nordisk supports societies and local healthcare systems during the COVID-19 pandemic with contributions in
`countries across the world, including patient support, emergency relief donations as well as protection equipment for
`medical staff and hospitals.
`
`COVID-19
`
`Strategic
`aspirations
`
`Financial
`Performance
`
`Equity and
`capital allocation
`
`Outlook
`
`R&D
`
`Sustainability
`
`Corporate
`governance
`
`Financial
`Information
`
` Company announcement No 6 / 2021
`
`Novo Nordisk Exhibit 2505
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00002
`
`

`

`Financial report for the period 1 January 2020 to 31 December 2020
`
`Page 3 of 36
`
`STRATEGIC ASPIRATIONS
`
`STRATEGIC ASPIRATIONS 2025
`To reflect the broad aspects of Novo Nordisk across therapy areas and geographies, Novo Nordisk introduced in 2019 a
`comprehensive approach describing the future growth aspirations of the company under the headline Strategic
`Aspirations 2025.
`
`The strategic aspirations are objectives that Novo Nordisk intends to work towards and are not a projection of Novo
`Nordisk's financial outlook or expected growth. Novo Nordisk intends to describe how its activities develop in relation to
`each of the four dimensions on an ongoing basis.
`
`Performance highlights for 2020:
`
`Purpose and sustainability
`Adding value to society:
`•
`Launch of social strategy 'Defeat Diabetes'
`•
`Expansion of US affordability options
`•
`Societal contributions during COVID-19 pandemic
`•
`Lowered ceiling pricing of human insulin as part of Access
`to Insulin Commitment in 76 countries
`
`Progress towards zero environmental impact:
`•
`Sourcing of renewable power for all US operations and
`100% renewable power across all production sites
`Launch of supplier target aiming at 100% renewable power
`across all suppliers by 2030
`
`•
`
`
`rog Ensure distinct core capabilities and evolve culture:
`•
`Progress on diversity and inclusion agenda as well as
`digitalisation capabilities
`
`Commercial execution
`stre Strengthen diabetes leadership:
`• Diabetes value market share increased by 0.7 percentage
`point to 29.3%
`
`Sgd Strengthen obesity leadership and double sales
`• Obesity care sales increased by 3% (CER) to DKK 5.6 billion
`
`Stre
`Sec Secure a sustained growth outlook for Biopharm
`•
`Biopharm sales increased by 1% (CER)
`
`Innovation and therapeutic focus
`Further raise innovation bar for diabetes treatment:
`•
`Semaglutide high-dose phase 3b trial successfully
`completed and submitted in the EU and the US
`Phase 3a trial with once-weekly insulin icodec initiated
`Rybelsus® approved in the EU and Japan
`
`•
`•
`
`Develop superior treatment solutions for obesity:
`•
`Semaglutide 2.4 mg in obesity phase 3a programme
`successfully completed and submitted in the US and the EU
`Phase 2 monotherapy trial with AM833 phase 1 combination
`trial of AM833 and semaglutide 2.4 mg successfully
`completed
`
`•
`
`Dev Strengthen and progress Biopharm pipeline:
`• Mim8 phase 1/2 trials initiated
`•
`Concizumab phase 3 trial reinitiated
`
`Establish presence in Other serious chronic diseases:
`•
`Ziltivekimab phase 2b trial in cardiovascular disease
`successfully completed
`Semaglutide in NASH phase 2 trial successfully completed
`
`•
`
`Financials
`Deliver solid sales and operating profit growth:
`•
`Sales and operating profit growth at 7% (CER)
`Sales in International Operations grew by 10% (CER)
`•
`•
`In the US, 48% of sales came from products launched since
`2015
`
` Drive operational efficiencies:
`• Gross margin improvement (CER) driven by productivity
`gains in Product Supply
`
`Enable attractive capital allocation to shareholders:
`•
`Free cash flow of DKK 28.6 billion reflecting acquisitions in
`2020
`• DKK 37.0 billion returned to shareholders through share
`buybacks and dividends
`
`COVID-19
`
`Strategic
`aspirations
`
`Financial
`Performance
`
`Equity and
`capital allocation
`
`Outlook
`
`R&D
`
`Sustainability
`
`Corporate
`governance
`
`Financial
`Information
`
` Company announcement No 6 / 2021
`
`Novo Nordisk Exhibit 2505
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00003
`
`

`

`Financial report for the period 1 January 2020 to 31 December 2020
`
`Page 4 of 36
`
`FINANCIAL PERFORMANCE
`CONSOLIDATED FINANCIAL STATEMENT FOR 2020
`
`PROFIT AND LOSS
`(Amounts are in DKK million, except for earnings per
`share, dividend per share and employees)
`
`Net sales
`
`Gross profit
`Gross margin
`Sales and distribution costs
`Percentage of sales
`Research and development costs
`Percentage of sales
`Administrative costs
`Percentage of sales
`Other operating income, net
`
`2020
`
`2019
`
`2018
`
`2017
`
`2016
`
` % change
`2020 to 2019
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`126,946
`
`106,014
` 83.5%
`32,928
` 25.9%
`15,462
` 12.2%
`3,958
` 3.1%
`460
`
`54,126
` 42.6%
`(996)
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`122,021
`
`101,933
` 83.5%
`31,823
` 26.1%
`14,220
` 11.7%
`4,007
` 3.3%
`600
`
`52,483
` 43.0%
`(3,930)
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`111,831
`
`94,214
` 84.2%
`29,397
` 26.3%
`14,805
` 13.2%
`3,916
` 3.5%
`1,152
`
`47,248
` 42.2%
`367
`
`111,696
`
`94,064
` 84.2%
`28,340
` 25.4%
`14,014
` 12.5%
`3,784
` 3.4%
`1,041
`
`48,967
` 43.8%
`(287)
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`111,780
`
`94,597
` 84.6%
`28,377
` 25.4%
`14,563
` 13.0%
`3,962
` 3.5%
`737
`
`48,432
` 43.3%
`(634)
`
` 4%
`
` 4%
`
` 3%
`
` 9%
`
` (1%)
`
` (23%)
`
` 3%
`
` (75%)
`
`Operating profit
`Operating margin
`Financial items (net)
`
`Profit before income taxes
`Income taxes
`Effective tax rate
`Net profit
`Net profit margin
`
`OTHER KEY NUMBERS
`Depreciation, amortisation and
`impairment losses
`Purchase of intangible assets
`Capital expenditure1
`
`Net cash generated from operating
`activities
`Free cash flow
`Total assets
`Equity
`Equity ratio
`Diluted earnings per share / ADR (in
`DKK)
`Total dividend per share 2)
`Payout ratio 3)
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`53,130
`10,992
` 20.7%
`42,138
` 33.2%
`
`5,753
`16,256
`5,825
`
`51,951
`28,565
`144,922
`63,325
` 43.7%
`
`18.01
`9.10
` 50.0%
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`48,553
`9,602
` 19.8%
`38,951
` 31.9%
`
`5,661
`2,299
`8,932
`
`46,782
`34,451
`125,612
`57,593
` 45.8%
`
`16.38
`8.35
` 50.5%
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`47,615
`8,987
` 18.9%
`38,628
` 34.5%
`
`3,925
`2,774
`9,636
`
`44,616
`32,536
`110,769
`51,839
` 46.8%
`
`15.93
`8.15
` 50.6%
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`48,680
`10,550
` 21.7%
`38,130
` 34.1%
`
`3,182
`1,022
`7,626
`
`41,168
`32,588
`102,355
`49,815
` 48.7%
`
`15.39
`7.85
` 50.4%
`
`47,798
`9,873
` 20.7%
`37,925
` 33.9%
`
`3,193
`1,199
`7,068
`
`48,314
`39,991
`97,539
`45,269
` 46.4%
`
`14.96
`7.6
` 50.2%
`
` 9%
` 14%
`
` 8%
`
` 2%
` 607%
` (35%)
`
` 11%
` (17%)
` 15%
` 10%
`
` 10%
` 9%
`
`1) Cash-based capital expenditure (purchase of property, plant and equipment) and intangible assets.
`2) Total dividend for the financial year 2020 including proposed final dividend of DKK 5.85 per share and interim dividend paid in August 2020 of DKK 3.25 per share.
`3) Total dividend for the year as a percentage of net profit.
`
`The Board of Directors and Executive Management have approved the Annual Report 2020 of Novo Nordisk A/S
`including the audited consolidated financial statements. The Board of Directors and Executive Management also
`approved this unaudited financial statement containing condensed financial information for 2020. This financial
`statement is prepared in accordance with the recognition and measurement requirements of the International
`Financial Reporting Standards (IFRS) as issued by IASB and IFRS as endorsed by the EU.
`
`COVID-19
`
`Strategic
`aspirations
`
`Financial
`Performance
`
`Equity and
`capital allocation
`
`Outlook
`
`R&D
`
`Sustainability
`
`Corporate
`governance
`
`Financial
`Information
`
` Company announcement No 6 / 2021
`
`Novo Nordisk Exhibit 2505
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00004
`
`

`

`Financial report for the period 1 January 2020 to 31 December 2020
`
`Page 5 of 36
`
`GEOGRAPHIC SALES DEVELOPMENT
`Sales increased by 4% measured in Danish kroner and by 7% at CER to DKK 126,946 million in 2020. Sales growth was
`negatively impacted by COVID-19, driven by fewer patients initiating treatment. Sales in International Operations increased
`by 7% measured in Danish kroner and by 10% at CER. Sales in North America Operations increased by 1% measured in
`Danish kroner and by 3% at CER.
`
`As of April 2020, International Operations was reorganised and financial reporting has been divided into: EMEA (covering
`Europe, the Middle East and Africa), Region China (covering Mainland China, Hong Kong and Taiwan) and Rest of World
`(covering all other countries except for North America). North America Operations was not impacted by the reorganisation
`and still includes the US and Canada. Please see appendix 8 for a breakdown of sales per area in 2019.
`
`
`Sales split per geographical area
`
`International Operations
` - EMEA
` - Region China
` - Rest of World
`North America Operations
` - The US
`
`Total sales
`
` Sales 2020
`DKK million
`
`Growth
`as reported
`
`Growth
`at CER
`
`Share of growth
`at CER
`
`
`
`
`
`
`
`
`
`
`65,829
`34,297
`14,084
`17,448
`61,117
`57,824
`
`126,946
`
` 7%
` 6%
` 10%
` 6%
` 1%
` 1%
`
` 4%
`
` 10%
` 9%
` 11%
` 12%
` 3%
` 3%
`
` 7%
`
` 77%
` 34%
` 18%
` 25%
` 23%
` 18%
`
` 100%
`
`International Operations
`Sales in International Operations increased by 7% measured in Danish kroner and by 10% at CER. Sales growth was driven
`by all geographical areas, with EMEA growing by 9% (CER), Rest of World growing by 12% (CER) and Region China growing
`by 11% (CER). Sales growth was driven by all therapy areas. Sales growth was negatively impacted by COVID-19, driven by
`fewer patients initiating treatment
`
`EMEA
`Sales in EMEA increased by 6% measured in Danish kroner and by 9% at CER. Sales growth was driven by Diabetes care
`growing by 10% (CER) driven by increased GLP-1 and insulin sales. Biopharm sales increased by 4% (CER) and Obesity care
`increased by 18% (CER).
`
`Region China
`Sales in Region China increased by 10% measured in Danish kroner and by 11% at CER. Sales growth was driven by
`Diabetes care growth of 11% (CER) due to increased modern and new-generation insulin sales and Biopharm growing by
`33% (CER).
`
`Rest of World
`Sales in Rest of World increased by 6% measured in Danish kroner and by 12% at CER. Sales growth was driven by
`Diabetes care growing by 16% (CER) reflecting increased insulin and GLP-1 sales, Biopharm growing by 5% (CER) and
`Obesity care growing by 4% (CER).
`
`North America Operations
`Sales in North America Operations increased by 1% measured in Danish kroner and by 3% at CER. Sales growth was
`negatively impacted by COVID-19 due to fewer patients initiating treatment and increased unemployment in the US,
`partially offset by COVID-19-related stocking in the first quarter.
`
`The sales development reflects Diabetes care GLP-1 sales growing by 28% (CER). This was partially offset by insulin sales
`declining by 20% (CER) due to lower realised prices in the US following unfavourable channel mix, rebate enhancements,
`affordability programmes and changes in the coverage gap legislation as well as Biopharm sales declining by 6% (CER) and
`Obesity care declining by 1% (CER).
`
`COVID-19
`
`Strategic
`aspirations
`
`Financial
`Performance
`
`Equity and
`capital allocation
`
`Outlook
`
`R&D
`
`Sustainability
`
`Corporate
`governance
`
`Financial
`Information
`
` Company announcement No 6 / 2021
`
`Novo Nordisk Exhibit 2505
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00005
`
`

`

`Financial report for the period 1 January 2020 to 31 December 2020
`
`Page 6 of 36
`
`SALES DEVELOPMENT ACROSS THERAPEUTIC AREAS
`Sales growth in 2020 was 4% measured in Danish kroner and 7% at CER driven by growth across all therapy areas with
`Diabetes care sales growth of 8% (CER), Obesity care sales growth of 3% (CER) and Biopharm sales growth of 1% (CER).
`Sales growth was negatively impacted by COVID-19, driven by fewer patients initiating treatment.
`
`Sales split per therapy
`Diabetes and Obesity care segment
`
` Sales 2020
`DKK million
`
` Sales 2019
`DKK million
`
`Growth
`as reported
`
`Growth
`at CER
`
`Share of growth
`at CER
`
`Long-acting insulin
` -   Tresiba®
` -   Xultophy®
` -   Levemir®
`Premix insulin
` -   Ryzodeg®
` -   NovoMix®
`Fast-acting insulin
` -   Fiasp®
` -   NovoRapid®
`Human insulin
`Total insulin
`Victoza®
`Ozempic®
`Rybelsus®
`Total GLP-1
`Other Diabetes care1
`Total Diabetes care
`Obesity care (Saxenda®)
`
`Diabetes and Obesity care total
`
`Biopharm segment
`Haemophilia2
` -   NovoSeven®
` -   NovoEight®
`Growth disorders (Norditropin®)
`Other Biopharm3
`Biopharm total
`
`Total sales
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`18,439
`8,968
`2,444
`7,027
`10,925
`1,291
`9,634
`18,313
`1,385
`16,928
`8,873
`56,550
`18,747
`21,211
`1,873
`41,831
`4,031
`102,412
`5,608
`
`108,020
`
`9,662
`7,203
`1,462
`7,704
`1,560
`18,926
`
`20,776
`9,259
`2,210
`9,307
`10,578
`993
`9,585
`19,303
`1,243
`18,060
`9,036
`59,693
`21,934
`11,237
`50
`33,221
`4,247
`97,161
`5,679
`
`102,840
`
`10,281
`8,119
`1,525
`7,275
`1,625
`19,181
`
`126,946
`
`122,021
`
`1) Primarily NovoNorm®, needles and GlucaGen® HypoKit®.
`2) Comprises NovoSeven®, NovoEight®, Refixia®, NovoThirteen® and Esperoct®.
`3) Primarily Vagifem® and Activelle®.
`
` (11%)
` (3%)
` 11%
` (24%)
` 3%
` 30%
` 1%
` (5%)
` 11%
` (6%)
` (2%)
` (5%)
` (15%)
` 89%
`—
` 26%
` (5%)
` 5%
` (1%)
`
` 5%
`
` (6%)
` (11%)
` (4%)
` 6%
` (4%)
` (1%)
`
` 4%
`
`
`
` (9%)
` (1%)
` 13%
` (22%)
` 6%
` 35%
` 3%
` (3%)
` 13%
` (4%)
` 2%
` (3%)
` (13%)
` 93%
`—
` 29%
` (3%)
` 8%
` 3%
`
` 8%
`
` (4%)
` (9%)
` (1%)
` 8%
` (2%)
` 1%
`
` 7%
`
` (23%)
` (1%)
` 3%
` (25%)
` 8%
` 4%
` 4%
` (6%)
` 2%
` (8%)
` 2%
` (19%)
` (34%)
` 128%
` 23%
` 117%
` (2%)
` 96%
` 2%
`
` 98%
`
` (5%)
` (9%)
` 0%
` 7%
` 0%
` 2%
`
` 100%
`
`COVID-19
`
`Strategic
`aspirations
`
`Financial
`Performance
`
`Equity and
`capital allocation
`
`Outlook
`
`R&D
`
`Sustainability
`
`Corporate
`governance
`
`Financial
`Information
`
` Company announcement No 6 / 2021
`
`Novo Nordisk Exhibit 2505
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00006
`
`

`

`Financial report for the period 1 January 2020 to 31 December 2020
`
`Page 7 of 36
`
`DIABETES AND OBESITY CARE
`Diabetes care, sales development
`Sales in Diabetes care increased by 5% measured in Danish kroner and by 8% at CER to DKK 102,412 million driven by
`GLP-1 growth. Novo Nordisk has improved the global diabetes value market share over the last 12 months from 28.6% to
`29.3%, driven by market share gains in both International Operations and North America Operations.
`
`In the following sections, unless otherwise noted, market data are based on moving annual total (MAT) from November
`2020 and November 2019 provided by the independent data provider IQVIA.
`
`Diabetes care, development per area
`
`Novo Nordisk’s share of the total
`diabetes market (value, MAT)
`
`Diabetes care, sales development
`
`Global
`International Operations
` - EMEA *
` - Region China **
` - Rest of World ***
`North America Operations
` - The US
`
`November
`2020
` 29.3%
` 23.0%
` 27.6%
` 29.7%
` 13.4%
` 31.5%
` 31.6%
`
`November
`2019
` 28.6%
` 22.0%
` 26.9%
` 27.4%
` 12.8%
` 31.1%
` 31.3%
`
` Sales 2020
`DKK million
`102,412
`52,063
`26,488
`13,642
`11,933
`50,349
`47,857
`
`Growth
`at CER
` 8%
` 11%
` 10%
` 11%
` 16%
` 5%
` 4%
`
`Source: IQVIA, November 2020 data. *Data for EMEA available for European markets and seven markets outside Europe representing approximately 90% of Novo Nordisk Diabetes care
`sales in the area. **Data for mainland China, excluding Hong Kong and Taiwan. *** Data for Rest of World available for seven markets representing approximately 70% of total Novo
`Nordisk’s Diabetes care sales in the area.
`
`Insulin
`Sales of insulin decreased by 5% measured in Danish kroner and by 3% at CER to DKK 56,550 million. The sales decrease
`was driven by declining sales in the US, partly offset by increased sales in International Operations.
`
`Sales of long-acting insulin decreased by 11% measured in Danish kroner and by 9% at CER to DKK 18,439 million. Novo
`Nordisk has increased its global volume market share in the long-acting insulin segment from 32.4% to 32.8% in the last
`12 months. The sales decline measured at CER was driven by declining Levemir® and Tresiba® sales, partially offset by
`increased sales of Xultophy®. Tresiba® has been launched in 91 countries, while Xultophy® has been launched in 42
`countries.
`
`Sales of premix insulin increased by 3% measured in Danish kroner and by 6% at CER to DKK 10,925 million. Novo Nordisk
`is the market leader in the premix insulin segment with a global volume market share of 65.2% compared to 64.2% 12
`months ago. The sales increase was driven by increased sales of both Ryzodeg® and NovoMix®. Ryzodeg® has now been
`launched in 37 countries.
`
`Sales of fast-acting insulin decreased by 5% measured in Danish kroner and by 3% at CER to DKK 18,313 million. Novo
`Nordisk is the market leader in the fast-acting insulin segment and has increased its global volume market share to 51.7%
`from 50.7% in the last 12 months. The sales decrease was driven by NovoRapid®, partly offset by increased Fiasp® sales.
`Fiasp® has now been launched in 41 countries.
`
`Sales of human insulin decreased by 2% measured in Danish kroner and increased by 2% at CER to DKK 8,873 million.
`
`COVID-19
`
`Strategic
`aspirations
`
`Financial
`Performance
`
`Equity and
`capital allocation
`
`Outlook
`
`R&D
`
`Sustainability
`
`Corporate
`governance
`
`Financial
`Information
`
` Company announcement No 6 / 2021
`
`Novo Nordisk Exhibit 2505
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00007
`
`

`

`Financial report for the period 1 January 2020 to 31 December 2020
`
`Page 8 of 36
`
`Insulin, development per geographical area
`
`Novo Nordisk’s share of the total
`insulin market (volume, MAT)
`
`Insulin, sales development
`
`Global
`International Operations
` - EMEA *
` - Region China **
` - Rest of World ***
`North America Operations
` - The US
`
`November
`2020
` 47.2%
` 50.1%
` 47.5%
` 50.4%
` 57.2%
` 39.5%
` 39.4%
`
`November
`2019
` 46.5%
` 49.2%
` 46.5%
` 50.5%
` 56.3%
` 39.9%
` 40.0%
`
` Sales 2020
`DKK million
`56,550
`38,352
`18,364
`11,053
`8,935
`18,198
`17,146
`
`Growth
`at CER
` (3%)
` 9%
` 5%
` 13%
` 12%
` (20%)
` (22%)
`
`Source: IQVIA, November 2020 data. *Data for EMEA available for European markets and seven markets outside Europe representing approximately 90% of Novo Nordisk Diabetes care
`sales in the area. **Data for mainland China, excluding Hong Kong and Taiwan. *** Data for Rest of World available for seven markets representing approximately 70% of total Novo
`Nordisk’s Diabetes care sales in the area.
`International Operations
`Sales of insulin in International Operations increased by 5% measured in Danish kroner and by 9% at CER. Sales growth at
`CER was driven by all insulin segments.
`
`EMEA
`Sales of insulin in EMEA increased by 2% measured in Danish kroner and by 5% at CER. Sales growth was driven by long-
`acting and fast-acting insulin, partially offset by premix insulin and human insulin.
`
`Region China
`Sales of insulin in Region China increased by 11% measured in Danish kroner and by 13% at CER. The sales growth was
`driven by all insulin products except for human insulin. Tresiba® was included on the National Reimbursement Drug List in
`January 2020 and hospital listings have progressed.
`
`Rest of World
`Sales of insulin in Rest of World increased by 6% measured in Danish kroner and by 12% at CER. The sales growth was
`driven by human insulin and the portfolio of modern and new-generation insulin .
`
`North America Operations
`Sales of insulin in North America Operations decreased by 22% measured in Danish kroner and by 20% at CER. The sales
`decline in the US was driven by lower realised prices following rebate enhancements, unfavourable channel mix, changes
`in the coverage gap legislation and launch of affordability programmes. Novo Nordisk has a volume market share of 39.5%
`of the total insulin market.
`
`COVID-19
`
`Strategic
`aspirations
`
`Financial
`Performance
`
`Equity and
`capital allocation
`
`Outlook
`
`R&D
`
`Sustainability
`
`Corporate
`governance
`
`Financial
`Information
`
` Company announcement No 6 / 2021
`
`Novo Nordisk Exhibit 2505
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00008
`
`

`

`Financial report for the period 1 January 2020 to 31 December 2020
`
`Page 9 of 36
`
`GLP-1 therapy for type 2 diabetes
`Sales of GLP-1 products for type 2 diabetes (Ozempic®, Victoza® and Rybelsus®) increased by 26% measured in Danish
`kroner and by 29% at CER to DKK 41,831 million. Ozempic® has now been launched in 52 countries with sales of DKK
`21,211 million, and Rybelsus® has been launched in nine countries with sales of DKK 1,873 million. The GLP-1 segment’s
`value share of the total diabetes market has increased to 22.0% compared with 18.0% 12 months ago. Novo Nordisk
`continues to be the global market leader in the GLP-1 segment with a 50.4% value market share, an increase of 2.9
`percentage points compared to 12 months ago. Sales growth was negatively impacted by COVID-19.
`
`GLP-1, development per geographical area
`
`Novo Nordisk's share of the
`diabetes GLP-1 market (value, MAT)
`
`GLP-1, sales development
`
`Global
`International Operations
` - EMEA *
` - Region China **
` - Rest of World ***
`North America Operations
` - The US
`
`November
`2020
` 50.4%
` 53.6%
` 55.1%
` 90.5%
` 43.6%
` 49.9%
` 49.3%
`
`November
`2019
` 47.5%
` 50.6%
` 52.9%
` 92.8%
` 38.8%
` 47.0%
` 46.5%
`
` Sales 2020
`DKK million
`41,831
`10,765
`7,399
`1,043
`2,323
`31,066
`29,768
`
`Growth
`at CER
` 29%
` 32%
` 31%
` 18%
` 41%
` 28%
` 27%
`
`Source: IQVIA, November 2020 data. *Data for EMEA available for European markets and seven markets outside Europe representing approximately 90% of Novo Nordisk Diabetes care
`sales in the area. **Data for mainland China, excluding Hong Kong and Taiwan. *** Data for Rest of World available for seven markets representing approximately 70% of total Novo
`Nordisk Diabetes care sales in the area.
`International Operations
`Sales of GLP-1 diabetes products in International Operations increased by 28% measured in Danish kroner and by 32% at
`CER. Sales growth is driven by all geographical areas. The value share of the GLP-1 class of the total diabetes market has
`increased to 10.8% from 9.1% 12 months ago. Novo Nordisk is the market leader with a value market share of 53.6%.
`
`EMEA
`Sales in EMEA increased by 30% measured in Danish kroner and by 31% at CER. The sales growth reflects the uptake of
`Ozempic®, partially offset by lower sales of Victoza®. Rybelsus® has now been launched in seven countries in EMEA. Novo
`Nordisk remains the market leader in EMEA with a value market share of 55.1%.
`
`Region China
`Sales in Region China increased by 16% measured in Danish kroner and by 18% at CER. The increased sales reflect volume
`growth, partly offset by lower realised prices. The GLP-1 class' share of the overall diabetes market value increased to 3.0%
`from 2.1% 12 months ago. Victoza® has a market share of 90.5%.
`
`Rest of World
`Sales in Rest of World increased by 28% measured in Danish kroner and by 41% at CER. The sales growth reflects
`increased sales of Ozempic® and Victoza®. Novo Nordisk remains the market leader with a value market share of 43.6%.
`
`North America Operations
`Sales of GLP-1 diabetes products in North America Operations increased by 25% measured in Danish kroner and by 28%
`at CER. Novo Nordisk is the market leader with a 49.9% value market share compared to 47.0% 12 months ago. The value
`market share of the GLP-1 class of the total North American diabetes market has increased to 26.0% compared to 21.3%
`12 months ago.
`
`Sales growth in the US is driven by a prescription volume growth of the GLP-1 class of around 30%. Rybelsus® has around
`90% market access across commercial and Medicare plans and the weekly new-to-brand market share is 11.5%. The
`combined Novo Nordisk GLP-1 new-to-brand prescription market share is now 57.1%. Novo Nordisk is the market leader
`measured on total monthly prescriptions for the combined GLP-1 portfolio.
`
`COVID-19
`
`Strategic
`aspirations
`
`Financial
`Performance
`
`Equity and
`capital allocation
`
`Outlook
`
`R&D
`
`Sustainability
`
`Corporate
`governance
`
`Financial
`Information
`
` Company announcement No 6 / 2021
`
`Novo Nordisk Exhibit 2505
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00009
`
`

`

`Financial report for the period 1 January 2020 to 31 December 2020
`
`Page 10 of 36
`
`Sales of GLP-1 in the US increased by 27% at CER. The sales increase was driven by continued uptake of Ozempic® and
`Rybelsus®, partially offset by declining Victoza® sales. GLP-1 sales growth was negatively impacted by rebate
`enhancements, unfavourable channel and payer mix as well as changes in coverage gap legislation.
`
`Obesity care, sales development
`Sales of Saxenda® decreased by 1% measured in Danish kroner and increased by 3% at CER to DKK 5,608 million.
`Saxenda® sales growth at CER was driven by International Operations, partially offset by North America Operations. Sales
`growth was negatively impacted by COVID-19 as fewer patients initiated treatment. Saxenda® has now been launched in
`55 countries. Novo Nordisk currently has a value market share of 64.7% of the global obesity prescription drug market.
`
`Obesity care, development per geographical area
`
`Obesity care, sales development
`
`Global
`International Operations
` - EMEA
` - Region China
` - Rest of World
`North America Operations
` - The US
`
` Sales 2020
`DKK million
`5,608
`2,118
`1,124
`10
`984
`3,490
`3,230
`
`
`
`
`
`
`
`
`
`Growth
`at CER
` 3%
` 11%
` 18%
` 11%
` 4%
` (1%)
` (2%)
`
`International Operations
`Sales of Saxenda® in International Operations increased by 2% measured in Danish kroner and by 11% at CER driven by
`increased sales in EMEA and Rest of World. Novo Nordisk currently has a value market share of 40.4% in the obesity
`prescription drug market. Sales growth was negatively impacted by fewer patients initiating treatment due to COVID-19.
`
`EMEA
`Sales of Saxenda® in EMEA increased by 15% measured in Danish kroner and by 18% at CER. Novo Nordisk currently has a
`value market share of 67.3% in the obesity prescription drug market.
`
`Rest of World
`Sales of Saxenda® in Rest of World decreased by 10% measured in Danish kroner and increased by 4% at CER. Saxenda®
`has been launched in 17 countries in Rest of World. Novo Nordisk currently has a value market share of 31.5% in the
`obesity prescription drug market.
`
`North America Operations
`Sales of Saxenda® in North America Operations decreased by 3% measured in Danish kroner and by 1% at CER. Saxenda®
`continues to grow volume and Novo Nordisk now has a value market share of 80.2% in the obesity prescription drug
`market in North America Operations. Sales were negatively impacted by fewer patients initiating treatment due to
`COVID-19 as well as unfavourable channel mix development.
`
`COVID-19
`
`Strategic
`aspirations
`
`Financial
`Performance
`
`Equity and
`capital allocation
`
`Outlook
`
`R&D
`
`Sustainability
`
`Corporate
`governance
`
`Financial
`Information
`
` Company announcement No 6 / 2021
`
`Novo Nordisk Exhibit 2505
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00010
`
`

`

`Financial report for the period 1 January 2020 to 31 December 2020
`
`Page 11 of 36
`
`BIOPHARM
`Biopharm, sales development
`Sales of biopharm products decreased by 1% measured in Danish kroner and increased by 1% at CER to DKK 18,926
`million. The sales growth at CER was driven by International Operations. Sales growth was driven by Growth Disorders and
`the launches of new haemophilia products, offset by declining sales of NovoSeven®. Sales growth was negatively impacted
`by lower demand due to COVID-19.
`
`Biopharm, development per geographical area
`
`Biopharm, sales development
`
`Global
`International Operations
` - EMEA
` - Region China
` - Rest of World
`North America Operation