company
`announcement
`
`~ novo nordisk"'
`
`Financia l report for the period 1 January 2021 to 31 March 2021
`
`5 May 2021
`
`Novo Nordisk's net profit increased by 6% in the first three months of 2021
`
`Operating profit decreased by 8% in Dan ish kroner and increased by 3% at constant exchange rates (CER).
`
`Sales remained unchanged in Dan ish kroner and increased by 7% at CER to DKK 33.8 billion. Sales in International
`Operations increased by 2% in Danish kroner (9% at CER), and sales in North America Operations decreased by 3% in
`Danish kroner (increased 6% at CER). Sales growth is negatively impacted by COVJD-19-related stocking in 2020, partially
`offset by inventory changes and timing of shipments in 2021 .
`
`Sales within Diabetes and Obesity care increased by 1 % in Danish kroner to DKK 28.8 bi ll ion (9% at CER), driven by GLP-1
`growth of 13% in Danish kroner (23% at CER) reflecting the uptake of Ozempic® and Rybelsus®. Biopharm sa les
`decreased by 6% in Danish kroner (increased by 1 % at CER).
`
`Within R&D, Novo Nordisk decided to initiate phase 3a development with 50 mg oral semaglutide in obesity. Fol lowing
`the Refusal to File letter in the US covering the label expansion application for once-weekly semaglutide 2.0 mg for the
`treatment of type 2 diabetes, Novo Nordisk is working towards resubmission in the second quarter of 2021 .
`
`For the 2021 outlook, sales growth is now expected to be 6-10% at CER, and operating profit growth is now expected to
`be 5-9% at CER. The ongoing share buyback programme will be expanded to DKK 18 bill ion.
`
`PROFIT AND LOSS
`
`DKK million
`Net sales
`
`Operating profit
`
`Net profit
`
`Diluted earnings per share (in DKK)
`
`* CER: Constant exchange rates (average 2020).
`
`- - - -
`
`Q1 2021
`
`Q1 2020
`
`Growth
`as reported
`
`Growth
`at CER*
`
`33,804
`
`14,982
`
`12,623
`
`5.4S
`
`33,875
`
`16,302
`
`11 ,897
`
`5.05
`
`0%
`
`(8%)
`
`6%
`
`8%
`
`7%
`
`3%
`
`N/A
`
`N/A
`
`Lars Fruergaard J0rgensen, presi dent and CEO: "We are very encouraged with the sa les growth in the first three months of
`2021 . Sales growth was driven by all thera py areas and across geograph ical areas within International Operations as well
`as North America Operations where growth has accelerated in the US. We were also pleased to announce plans to develop
`ora l semaglutide as a convenient and effective treatment option for people with obesity, complementing our injectable
`obesity medications. The solid fi nancia l performance in the first three months of 202 1 has enabled us to raise our outlook
`range for the ful l year."
`
`On 5 May 2021 at 13.00 CEST, corresponding to 7.00 am EDT, an earnings 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/5
`Investor Relations
`
`Novo Alie
`2880 Bagsv~rd
`Denmark
`
`Telephone:
`+45 4444 8888
`www.novonordisk.com
`
`CVR Number:
`24 25 67 90
`
`Company announcement No 30 I 2021
`
`Novo Nordisk Exhibit 2506
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00001
`
`

`

`Financial report fo r the period 1 January 2021 to 31 March 2021
`
`Page 2 of 26
`
`STRATEGIC ASPIRATIONS
`
`STRATEGIC ASPIRATIONS 2025
`
`The strateg ic 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 the first three months of 2021:
`
`Purpose and sustainability
`Adding value to society:
`Progress on 'Defeat Diabetes' strategy:
`Collaboration with the University ofToronto focusing on
`prevention
`Initiation of 'Diabetes Compass' by the World Diabetes
`Foundation to improve access to diabetes care in low(cid:173)
`and middle-income countries
`
`Progress towards zero environmental impact:
`Progress on supplier target aiming at 100% renewable
`power across all suppliers by 2030 with around 15%
`reduction in supplier CO2 emissions
`48% reduction in CO2 emissions compared to the first three
`months 2019
`
`Innovation and therapeutic focus
`Further raise innovation bar for diabetes treatment:
`Ozempic® approved in China for the treatment of type 2
`diabetes
`Refusal to File letter received for semaglutide 2.0 mg
`
`Develop superior treatment solutions for obesity:
`Phase 3a clinical trial initiated with once-weekly semaglutide
`2.4 mg in people with heart failure with preserved ejection
`fraction (HFpEF)
`Decision to initiate phase 3a development with 50 mg oral
`semaglutide in obesity
`
`Strengthen and progress Biopharm pipeline:
`• SogroyaG!> approved in the EU for adults with growth
`hormone deficiency
`
`Establish presence in Other serious chronic diseases:
`Phase 3a development initiated with once-weekly
`semaglutide 2.4 mg for treatment of NASH
`Gilead Sciences and Novo Nordisk expanded NASH clinical
`collaboration
`
`Commercial execution
`
`Financials
`
`Strengthen diabetes leadership:
`Diabetes value market share increased by 0.6 percentage
`point to 29.3% (MAT)
`
`Strengthen obesity leadership and double sales:
`• Obesity care sales increased by 9% (CER) to DKK 1.6 billion
`
`Secure a sustained growth outlook for Biopharm:
`Biopharm sales increased by 1 % (CER)
`
`Deliver solid sales and operating profit growth:
`Sales growth at 7% (CER)
`International Operations sales growth at 9% (CER)
`In the US, sales grew 5% and 52% of sales came from
`products launched since 2015
`Operating profit growth of 3% (CER)
`
`Drive operational efficiencies:
`Gross margin positively impacted by productivity gains in
`Product Supply
`
`Enable attractive capital allocation to shareholders:
`Free cash flow of DKK 9.5 billion and DKK 16.5 billion
`returned to shareholders
`
`Strategic
`aspirations
`
`Financial
`Statement
`
`Commercial
`execution
`
`Financials I Cash flow and I
`
`capital allocation
`
`Purpose and I
`Outlook I Innovation and I
`
`therapeutic focus
`
`sustainability
`
`Legal
`
`Financial
`Information
`
`Company announcement No 30 / 2021
`
`Novo Nordisk Exhibit 2506
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00002
`
`

`

`Financial report for the period 1 January 2021 to 31 March 2021
`
`Page 3 of 26
`
`FINANCIAL STATEMENT
`CONSOLIDATED FINANCIAL STATEMENT FOR THE FIRST THREE MONTHS OF 2021
`
`PROFIT AND LOSS
`
`(Amounts are in DKK million, except for earnings per share, d1v1dend per share and employees)
`
`Q1 2021
`
`Q1 2020
`
`% change Q1
`2021 to Q1 2020
`
`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
`
`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
`Capital expenditure
`Net cash generated from operating activities
`Free cash flow
`
`Total assets
`Equity
`Equity ratio
`
`Average number of diluted shares outstanding {million)
`
`Diluted earnings per share/ ADR (in DKK)
`
`Full-time equivalent employees end of period
`
`33,804
`
`27,993
`82.896
`
`8,256
`24.4%
`
`3,944
`11 .7%
`
`932
`2.8%
`
`121
`
`14,982
`44.396
`
`956
`
`15,938
`
`3,315
`20.8%
`
`12,623
`37.3%
`
`1,377
`1.402
`11,255
`9,532
`
`141,387
`58,496
`41.4%
`
`2,315.6
`
`5.45
`
`45,157
`
`33,875
`
`28,489
`84.196
`
`7,590
`22.4%
`
`3,777
`11.1%
`
`927
`2.7%
`
`107
`
`16,302
`48.196
`
`{1,281)
`
`15,021
`
`3,124
`20.8%
`
`11,897
`35.1%
`
`1,086
`1,667
`10,012
`7,669
`
`126,256
`54,399
`43.1%
`
`2,354.8
`
`5.05
`
`43,158
`
`0%
`
`(2%)
`
`9%
`
`4%
`
`1%
`
`13%
`
`(8%)
`
`(175%)
`
`6%
`
`6%
`
`6%
`
`27%
`{16%)
`12%
`24%
`
`12%
`8%
`
`(2%)
`
`8%
`
`5%
`
`These unaudited consolidated financial statements for the first three months of 2021 have been prepared in accordance
`with !AS 34 'Interim Financial Reporting' and additional Danish disclosure requirements for listed companies. The
`accounting policies adopted in the preparation are consistent with those applied in the Annual Report 2020 of Novo
`Nordisk.
`
`Strategic
`aspirations
`
`Financial
`Statement
`
`Commercial
`execution
`
`Finanoals I Cash now and I
`
`capital allocation
`
`Outlook I Innovation and I
`Purpose and I
`
`therapeutic focus
`
`sustainability
`
`Legal
`
`Financial
`Information
`
`Company announcement No 30 / 2021
`
`Novo Nordisk Exhibit 2506
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00003
`
`

`

`Financial report for t he period 1 Janua ry 202 1 to 31 March 2021
`
`Page 4 of 26
`
`COMMERCIAL EXECUTION
`SALES DEVELOPMENT ACROSS THERAPEUTIC AREAS
`
`Sales remained unchanged measured in Danish kroner and grew by 7% at CER the first three months of 2021 , driven by
`growth across all therapy areas with Diabetes care sales growth of 9% (CER}, Obesity care sales growth of 9% (CER) and
`Biopharm sales growth of 1 % (CER). Sales growth is negatively impacted by COVID-19-related stocking in the first three
`months of 2020, partially offset by inventory changes and tim ing of shipments in 2021 .
`
`Sales split per therapy
`
`Diabetes and Obesity ca re segment
`
`Sales Q1 2021
`DKKm illion
`
`Sales Q1 2020
`DKK million
`
`Growth
`as reported
`
`Growth
`at CER
`
`Share of growth
`at CER
`
`Rybelsus®
`Ozempic®
`Victoza®
`Total GLP-1
`
`Long-acting insulin
`Tresiba®
`- Xultaphy®
`- Levemir®
`
`Prem ix insulin
`- Ryzodeg®
`- NovoMix®
`
`Fast-acti ng insulin
`- Fiasp®
`- NovoRapid®
`
`Human insul in
`
`Total insulin
`
`Other Di abetes ca re'
`
`Total Diabetes ca re
`
`Obesity ca re (Sa xenda®)
`
`Diabetes and Obesity care total
`
`Biopharm segment
`Rare blood disorders2
`- Haemophilia A
`- Haemophilia B
`- NovoSeven®
`Ra re endocri ne disord ers3
`Other Bi opharm 4
`Biopharm total
`
`729
`6,662
`3,909
`11,300
`
`4,822
`2,365
`681
`1,776
`
`2,953
`420
`2,533
`
`4,556
`402
`4,154
`
`2,535
`
`14,866
`
`1,110
`
`27,276
`
`1,551
`
`28,827
`
`2,678
`497
`147
`1,980
`1,920
`379
`4,977
`
`229
`4,755
`4,991
`9,975
`
`5,158
`2,460
`662
`2,036
`
`2,955
`337
`2,618
`
`5,1 14
`390
`4,724
`
`2,687
`
`15,914
`
`1,1 25
`
`27,014
`
`1,577
`
`28,591
`
`2,8 10
`452
`130
`2, 181
`2,031
`443
`5,284
`
`Total sales
`
`33,804
`
`33,875
`
`11 Pnmarily NovoNorm.,, needles and GlucaGene HypoKite_
`21 Comprises NovoSeven•, NovoE1ght*, Esperoct•, Reftxia131 and Nov0Th1rteeni»
`3
`> Pnmarily Norditropin•.
`"' Pnmarily Vagifemc, and Acttvellee.
`
`21 8%
`40%
`(22%)
`13%
`
`(7%)
`(4%)
`3%
`(13%)
`
`0%
`25%
`(3%)
`
`(1 1%)
`3%
`(12%)
`
`(6%)
`
`(7%)
`
`(1%)
`
`1%
`
`(2%)
`
`1%
`
`(5%)
`10%
`13%
`(9%)
`(5%)
`(1 4%)
`(6%)
`
`0%
`
`247%
`52%
`(16%)
`23%
`
`0%
`3%
`8%
`(696)
`
`6%
`34%
`296
`
`(4%)
`996
`(5%)
`
`2%
`
`0%
`
`4%
`
`9%
`
`9%
`
`9%
`
`2%
`1696
`18%
`(2%)
`2%
`(12%)
`1%
`
`7%
`
`22%
`99%
`(31 %)
`90%
`
`0%
`3%
`2%
`(5%)
`
`7%
`5%
`2%
`
`(9%)
`196
`(1096)
`
`3%
`
`1%
`
`1%
`
`92%
`
`6%
`
`98%
`
`3%
`396
`1%
`(2%)
`1%
`(2%)
`2%
`
`100%
`
`Strategic
`aspirations
`
`Financial
`Statement
`
`Com mercial
`execution
`
`Financials I Cash flow and I
`
`capital allocation
`
`Out look
`
`Purpose and I
`I Innovation and I
`
`therapeutic focus
`
`sustainability
`
`Legal
`
`Financial
`Information
`
`Company an nouncement No 30 / 2021
`
`Novo Nordisk Exhibit 2506
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00004
`
`

`

`Financia l report for the period 1 January 2021 to 31 March 2021
`
`Page 5 of 26
`
`DIABETES AND OBESITY CARE
`
`Diabetes care, sales and market share development
`
`Sales in Diabetes care increased by 1 % measu red in Danish kroner and by 9% at CER to DKK 27,276 million driven by GLP-1
`growth. Novo Nordisk has improved the global diabetes value market share over the last 12 months from 28.8% to 29.3%
`in line with the aspiration of strengthening the diabetes care leadership, aiming at reaching a global value market share of
`more than one third in 2025. The market share increase was 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 (MAD from February 2021
`and February 2020 provided by the independent data provider IQVIA. EMEA covers Europe, the Middle East and Africa,
`Region China covers mainland China, Hong Kong and Ta iwan, and Rest of World covers all other countries except for North
`America .
`
`Diabetes care, development per geographical area
`
`February
`2021
`
`Novo Nord is k's share of the total
`diabetes market (value, MAn
`Diabetes care, sales development
`- - - - - -
`February
`2020
`
`Sales Q1 2021
`DKKmillion
`
`Growth
`at CER
`
`Global
`International Operations
`- EMEA *
`- Region China **
`- Rest of World ***
`North Ame rica Operation s
`- The US
`
`29.3%
`23.6%
`27.9%
`31.5%
`13.7%
`31.5%
`31.5%
`
`28.8%
`22.2%
`27.0%
`27.3%
`13.1%
`31 .2%
`31.4%
`- - -
`
`27,276
`14,898
`7,270
`4,270
`3,3S8
`12,378
`11,702
`
`9%
`10%
`2%
`21%
`18%
`7%
`6%
`- - - - - -
`
`Source: IQVIA February 2021 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 Chma, excluding Hong Kong and Taiwan. ~* Data for Rest of World available for seven markets representing approximately 70% oftotal Novo
`Nordisl<s Diabetes care sales 1n the area
`
`GLP-1 therapy for type 2 diabetes
`
`Sales of GLP-1 products for type 2 diabetes (Rybelsus®, Ozempic® and Victoza®) increased by 13% measured in Danish
`kroner and by 23% at CER to DKK 11,300 mill ion. The GLP-1 segment's value share of the tota l diabetes market has
`increased to 22.8% compared with 18.9% 12 months ago. Novo Nordisk continues to be the global market leader in the
`GLP-1 segment with a 50.8% value market share, an increase of 2.5 percentage points compared to 12 months ago.
`
`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 Ame ri ca Operations
`- The US
`
`February
`2021
`
`February
`2020
`
`Sa les Q1 2021
`DKKmill ion
`
`50.8%
`54.8%
`56.0%
`88.6%
`45.3%
`50.2%
`49.5%
`
`48.3%
`51 .2%
`530%
`93.3%
`40.2%
`47.8%
`47.3%
`
`11,300
`3,537
`2,320
`403
`814
`7,763
`7,372
`
`Growth
`at CER
`
`23%
`31%
`18%
`86%
`54%
`19%
`18%
`- - - - -
`
`Source: IQVIA. February 2021 data *Data for EMEA available for European markets and seven markets outside Europe representing approximately 90% of Novo Nordisk GLP~ 1 sales in
`the area **Data for mainland China, excluding Hong Kong and Taiwan . H* Data for Rest of World available for seven markets representing approximately 70% of total Novo Nordisk
`Diabetes care sales 1n the area
`
`Rybelsus® sales increased by 218% measured in Danish kroner and by 247% at CER to DKK 729 million. Sales growth was
`driven by North America Operations as well as EMEA and Rest of World . Rybelsus® has now been launched in 15 countries.
`
`Ozempic® sales increased by 40% measured in Danish kroner and by 52% at CER to DKK 6,662 million. Sales growth was
`driven by North America Operations and International Operations. Ozempic® has now been launched in 58 countries.
`Inventory changes in the US positively impacted sales growth.
`
`Strateg,c
`aspirations
`
`Financial
`Statement
`
`Commercial
`execution
`
`Financials I Cash now and I
`
`capital allocation
`
`Outlook I Innovation and I
`Purpose and I
`
`therapeutic focus
`
`sustainability
`
`Legal
`
`Financial
`Information
`
`Company announcement No 30 / 2021
`
`Novo Nordisk Exhibit 2506
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00005
`
`

`

`Financial report for the period 1 January 2021 to 31 March 2021
`
`Page 6 of 26
`
`Victoza® sales decreased by 22% measured in Danish kroner and by 16% at CER to DKK 3,909 million. The sales decline
`was driven by North America Operations, EMEA and Rest of World, partially offset by higher sales in Reg ion China .
`
`International Operations
`
`Sales of GLP-1 diabetes products in International Operations increased by 25% measured in Danish kroner and by 31 % at
`CER. Sa les growth is driven by all geographical areas. The value share of the GLP-1 class of the total diabetes market has
`increased to 11.2% from 9.4% 12 months ago. Novo Nordisk is the market leader with a value market share of 54.8%.
`
`EMEA
`
`Sales in EMEA increased by 16% measured in Danish kroner and by 18% at CER. The sales growth reflects the uptake of
`Ozempic®, partially offset by lower sales of Victoza®. Rybelsus® has now been launched in 14 coun tries in EMEA. Novo
`Nordisk remains the market leader in EMEA with a value market share of 56.0%.
`
`Region China
`Sales in Region China increased by 82% measured in Danish kroner and by 86% at CER. The sales growth reflects the
`upt ake of Victoza® in main land Ch ina and the launch of Ozempic® in Taiwan®. The GLP-1 class' sha re of the overall diabetes
`market value in Region China increased to 3.4% from 2.2% 12 months ago with a Victoza® market share of 88.6%.
`
`Rest of World
`Sales in Rest of World increased by 33% measured in Danish kroner and by 54% at CER. The sales growth reflects
`increased sales of Ozempic® and the launch of Rybelsus in Japan®, partially offset by lower sales of Victoza®. Novo Nordisk
`remains the market leader with a va lue market share of 45 .3%.
`
`North America Operations
`
`Sales of GLP-1 diabetes products in North America Operations increased by 9% measured in Danish kroner and by 19% at
`CER. Novo Nordisk is the market leader with a 50.2% value market share compared to 47.8% 12 mont hs ago. The value
`market share of the GLP-1 class of the total North American diabetes market has increased to 27.3% compared to 22.8%
`12 months ago.
`
`Sales growth in the US is driven by a prescription volume growth of the GLP-1 class of around 20% in the quarter.
`Rybelsus® weekly new-to-brand market share is 12.5%. The combined Novo Nordisk GLP-1 new-to-brand prescription
`market share is now 58.0%. Novo Nordisk is the market leader measured on total monthly prescriptions for the combined
`GLP-1 portfolio.
`
`Sales of GLP-1 in the US increased by 18% at CER. The sales increase was driven by continued uptake of Ozempic® and
`Rybelsus®, partially offset by decl inin g Victoza® sales. GLP-1 sales growth was negatively impacted by rebate
`enhancements as well as unfavourable channel and payer mix, partially countered by inventory changes.
`
`Strategic
`aspirations
`
`Financial
`Statement
`
`Com mercial
`execution
`
`Financials I Cash flow and I
`
`capital allocation
`
`Outlook I Innovation and I
`Purpose and I
`
`therapeutic focus
`
`sustainability
`
`Legal
`
`Financial
`Information
`
`Company announcement No 30 / 2021
`
`Novo Nordisk Exhibit 2506
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00006
`
`

`

`Financial report for the period 1 January 2021 to 31 March 2021
`
`Page 7 of 26
`
`Insulin
`Sales of insulin decreased by 7% measured in Dan ish kroner, and remained unchanged at CER to DKK 14,866 million. The
`unchanged sales at CER were driven by declini ng sales in t he US, offset by increased sa les in International Operations.
`
`I nsulin, development per geographical area
`
`Novo Nordisk's share of the total
`insulin market (volume, MAD
`
`Insulin, sales development
`
`- - - -
`Global
`International Operations
`• EMEA *
`• Reg ion China **
`• Rest of World ***
`North America Operations
`• The US
`
`February
`2021
`
`February
`2020
`
`Sales Q1 2021
`DKKmillion
`
`Growth
`at CER
`
`47.3%
`50.2%
`47.5%
`50.7%
`57.4%
`39.3%
`39.1%
`
`46.7%
`49.4%
`46.6%
`50.5%
`56.6%
`39.7%
`39.7%
`
`14,866
`10,520
`4,775
`3,322
`2,423
`4,346
`4,097
`
`0%
`5%
`(4%)
`16%
`12%
`(10%)
`(1 0%)
`
`Source. IQVIA February 2021 data. *Data for EMEA avadable for European markets and seven markets outside Europe representing approximately 90% of Novo Nordisk msuhn sales in
`the area. **Data for mainland China, exdudmg Hong Kong and Taiwan. * ** Data for Rest of World available for seven markets representing approximately 70% of total Novo Nord1sk's
`Diabetes care sales in the area.
`
`International Operations
`
`Sa les of insulin in International Operations decreased by 1 % measured in Danish kroner and increased by 5% at CER. Sales
`growth at CER was driven by long-acting and prem ix insu lin.
`
`EMEA
`Sales of insulin in EMEA decreased by 9% measured in Dani sh kroner and by 4% at CER. The sales decline was driven by
`fast-acting insulin, human insu lin and premix insulin, partially offset by long-acting insulin.
`
`Region China
`Sales of insulin in Region China increased by 13% measured in Dan ish kroner and by 16% at CER. The sa les growth was
`driven by all insul in products except for human insu lin.
`
`Rest of World
`Sales of insulin in Rest of World remained unchanged in Danish kroner and increased by 12% at CER. The sales growth was
`driven by human insulin, long-acting and fast-acting insulin.
`
`North America Operations
`
`Sales of insulin in North America Operations decreased by 18% measured in Danish kroner and by 1 0% at CER. The sales
`decrease in the US was driven by a decline in volume and rebate enhancements, partially offset by channel mix. Novo
`Nordisk has a volume market share of 39.1 % of the total insulin market.
`
`Strategic
`aspirations
`
`Financial
`Statement
`
`Commercial
`execution
`
`Financials I Cash flow and I
`
`capital allocation
`
`Purpose and I
`Outlook I Innovation and I
`
`therapeutic focus
`
`sustainability
`
`Legal
`
`Financial
`Information
`
`Company announcement No 30 / 2021
`
`Novo Nordisk Exhibit 2506
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00007
`
`

`

`Financia l report for the period 1 January 2021 to 31 March 2021
`
`Page 8 of 26
`
`Obesity care, sales development
`
`Sales of Saxenda® decreased by 2% measured in Danish kroner and increased by 9% at CER to DKK 1,551 million.
`Saxenda® sa les growth at CER was driven by International Operations and North America Operations. Saxenda® has now
`been launched in 58 countries. Novo Nordisk currently has a va lue market share of 66.1 % of the globa l obesity prescription
`drug market. The strategic aspiration for Obesity care is to more than double reported sales from the base in 2019 of DKK
`5,679 mi ll ion by 2025.
`
`Obesity care, development per geographical area
`
`Global
`International Operations
`- EMEA
`- Region Ch ina
`- Rest of World
`North America Operations
`- The US
`
`International Operations
`
`Obesity care, sales development
`
`Sales Q1 2021
`DKK million
`
`Growth
`at CER
`
`1,551
`715
`371
`7
`337
`836
`759
`
`9%
`18%
`18%
`
`17%
`2%
`0%
`
`Sales of Saxenda® in International Operations increased by 5% measured in Danish kroner and by 18% at CER, driven by
`increased sales in EMEA and Rest of World . Novo Nordisk currently has a va lue ma rket share of 41 .4% in the obesity
`prescription drug market.
`
`EMEA
`
`Sa les of Saxenda® in EMEA increased by 10% measured in Danish kroner and by 18% at CER. Novo Nordisk currently has a
`value market share of 67.0% in the obesity prescription drug market.
`
`Rest of World
`
`Sales of Saxenda® in Rest of World decreased by 1 % measured in Dan ish kroner and increased by 17% at CER. Saxenda®
`has been launched in 19 countries in Rest of World. Novo Nordisk currently has a va lue market share of 32.2% in the
`obesity prescription drug market.
`
`North America Operations
`
`Sales of Saxenda® in North America Operations decreased by 7% measured in Danish kroner and increased by 2% at CER.
`Saxenda® continues to grow in volume and Novo Nordisk now has a va lue market share of 82 .2% in the obesity
`prescri ption drug market in North America . Sa les were negatively impacted by unfavourable channel mix development.
`
`St rate gic
`aspirations
`
`Financial
`Statement
`
`Commercial
`execution
`
`Financials I Cash flow and I
`
`capital allocation
`
`Outlook I Innovation and I
`Purpose and I
`
`thera peutic focus
`
`sustainability
`
`Legal
`
`Financial
`Information
`
`Company announcem ent No 30 / 202 1
`
`Novo Nordisk Exhibit 2506
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00008
`
`

`

`Financia l report for the period 1 January 2021 to 31 March 2021
`
`Page 9 of 26
`
`BIOPHARM
`Biopharm, sales development
`
`Sales of biopharm products decreased by 6% measured in Dan ish kroner and increased by 1 % at CER to DKK 4,977 million
`in line with the strategic aspiration of sustained growth in Biopharm. The sales growth at CER was driven by North America
`Operations, partially offset by International Operations. Sales growth was driven by both rare blood disorders and rare
`endocrine disorders. Sales growth was negatively impacted by COVID-19-related stocking in 2020.
`
`Biopharm, development per geographical area
`
`Global
`International Operations
`- EMEA
`- Region China
`- Rest of World
`North Ame rica Opera tions
`- The US
`
`Rare blood disorders
`
`Biopharm, sales development
`
`Sales Q1 2021
`DKKmillion
`
`Growth
`at CER
`
`4,977
`3,134
`1,889
`53
`1,192
`1,843
`1,711
`
`1%
`0%
`6%
`(74%)
`2%
`3%
`3%
`
`- - -
`
`Sales of rare blood disorder products decreased by 5% measured in Danish kroner and increased by 2% at CER to DKK
`2,678 million. The increasing sa les at CER were driven by the launch products Esperoct® and Refixia®, partia lly offset by
`declining NovoSeven® sa les.
`
`Sales of haemophilia A products increased by 10% measured in Danish kroner and by 16% at CER to DKK 497 million. The
`sales increase was driven by International Operations and North America Operations. Esperoct® has been launched in 20
`countries.
`
`Haemophilia B products increased by 13% measured in Danish kroner and by 18% at CER to DKK 147 mi llion. The sales
`increase was driven by International Operations and North America Operations. Refixia® has been launched in 19
`countries.
`
`Sales of NovoSeven® decreased by 9% measured in Danish kroner and by 2% at CER to DKK 1,980 million. The sales
`development was driven by declin ing sales in Region China and Rest of World, partially offset by increasing sales in EM EA.
`The sales decline in Region China reflects increased distributor stock levels in 2020. Sa les in North America Operations
`were unchanged at CER.
`
`Rare endocrine disorders
`
`Sales of rare endocrine disorder products decreased by 5% measured in Danish kroner and increased by 2% at CER to DKK
`1,920 million driven by Norditropin®. The sales growth at CER was driven by North America Operations increasing by 2%
`and International Operations increasing by 1 % at CER. Novo Nordisk is the leading company in the global human growth
`disorder market with a value market share of 35.5% compared to 33 .1 % a year ago, driven by new indications and the
`global roll-out of the next-generation device.
`
`Strategic
`aspirations
`
`Rnancial
`Statement
`
`Commercial
`execution
`
`Financials I Cash now and I
`
`capital allocation
`
`Outlook I Innovation and I
`Purpose and I
`
`therapeutic focus
`
`sustainability
`
`Legal
`
`Financial
`Information
`
`Company announcement No 30 / 2021
`
`Novo Nordisk Exhibit 2506
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00009
`
`

`

`Financial report for the period 1 January 2021 to 31 March 2021
`
`Page 10 of 26
`
`FINANCIALS
`GEOGRAPHIC SALES DEVELOPMENT
`
`Sa les remained unchanged in Dan ish kroner and increased by 7% at CER to DKK 33,804 million in the first three months of
`2021. Sales in International Operations increased by 2% measured in Danish kroner and by 9% at CER in line with the
`strategic aspiration of sales growth between 6-10%. Sa les in North America Operations decreased by 3% measured in
`Danish kroner and increased by 6% at CER. The strategic aspiration of transforming 70% of sa les in the US has progressed,
`and 52% of sales are now derived from products launched since 2015.
`
`Sales split per geographical area
`
`Sales Q1 2021
`DKKmillion
`
`Growth
`as reported
`
`Growth Share of growth
`at CER
`at CER
`
`Internation al Operations
`-EMEA
`- Region China
`- Rest of World
`North America Operations
`-The US
`
`Total sales
`
`International Operations
`
`18,747
`9, 530
`4,330
`4,887
`15,057
`14,172
`
`33,804
`
`2%
`(1%)
`14%
`2%
`(3%)
`(4%)
`
`0%
`
`9%
`3%
`16%
`14%
`6%
`5%
`
`7%
`
`64%
`13%
`24%
`27%
`36%
`32%
`
`100%
`
`Sa les in International Operations increased by 2% measured in Danish kroner and by 9% at CER. Sa les growth was driven
`by all geographical areas, with Rest of World growing by 14% (CER), Region China growing by 16% (CER) and EMEA growing
`by 3% (CER). Sa les growth was drive n by all therapy areas except for Biopharm. Sa les growth was negatively impacted by
`COVID-19-related stocking in 2020, partially offset by tim ing of shipments.
`
`EMEA
`Sa les in EMEA decreased by 1 % measu red in Dan ish kroner and increased by 3% at CER. Sa les growth was driven by
`Diabetes care growing by 2% (CER) driven by increased GLP-1 sa les. Biopharm sales increased by 6% (CER) and Obesity
`care increased by 18% (CER).
`
`Region China
`Sa les in Reg ion China increased by 14% measured in Danish kroner and by 16% at CER. Sales growth was driven by
`Diabetes care growth of 21 % (CER) refl ecting increased insu lin and GLP-1 sa les, partially offset by Biopharm decl ining by
`74% (CER) refl ecting increased distributor stock levels in t he first three months of 2020.
`
`Rest of World
`Sales in Rest of World increased by 2% measured in Danish kroner and by 14% at CER. Sales growth was driven by
`Diabetes care growing by 18% (CER) reflecting increased GLP-1 and insu lin sales, Obesity care growing by 17% (CER) and
`Biopharm growing by 2% (CER).
`
`North America Operations
`
`Sa les in North Am erica Operations decreased by 3% measured in Danish kroner and increased by 6% at CER. Sales growth
`was negatively impacted by COVID-19-related stocking in 2020, partially offset by inventory changes in 2021.
`
`The sales development at CER reflects GLP-1 sa les growing by 19% (CER}, Biopharm sa les growing by 3% (CER) and Obesity
`care growing by 2% (CER). Th is was partially offset by insulin sales decreasing by 10% (CER) driven by a decline in volume
`and rebate enhancements, partially offset by channel m ix.
`
`Strateg ic
`aspirati ons
`
`Financial
`Statement
`
`Commercial
`execution
`
`. . I Cash flow and I
`
`capital allocation
`
`Financials
`
`Purpose and I
`I Innovation and I
`
`therapeutic focus
`
`sustainability
`
`Outlook
`
`Legal
`
`Rnancial
`Inform ation
`
`Company an no uncem ent No 30 / 202 1
`
`Novo Nordisk Exhibit 2506
`Mylan Pharms. Inc. v. Novo Nordisk A/S
`IPR2023-00724
`Page 00010
`
`

`

`Financia l report for the period 1 January 2021 to 31 March 2021
`
`Page 11 of 26
`
`DEVELOPMENT IN COSTS AND OPERATING PROFIT
`
`The cost of goods sold increased by 8% measured in Danish kroner and by 11 % at CER to DKK 5,811 million, resulting in a
`gross margin of 82.8% measured in Danish kroner compared with 84.1 % in 2020. The decline in gross margin reflects
`lower realised prices in the US, a negative currency impact of 0.8% percentage point and amortisation of intangible assets
`related to the acquisition of Emisphere Techno logies in 2020. This is countered by a positive product mix driven by
`increased GLP-1 sales and productivity improvements in line with the strategic aspiration of driving operational efficiencies.
`
`Sales and distribution costs increased by 9% measured in Danish kroner and by 16% at CER to DKK 8,256 million. The
`increase in costs is driven by both International Operations and North America Operations. In International Operations,
`promotiona l spend is related to launch activities for Rybelsus® and Ozempic®, fie ld force expansion in China as well as
`obesity market development activities. In North America Operations, the cost increase is driven by promotional activities
`for Rybelsus® and Ozempic®, partially offset by lower promotional spend related to insulin and Biopharm.
`
`Research and development costs increased by 4% measured in Danish kroner and by 7% at CER to DKK 3,944 mill ion.
`Increased activities within Other serious chronic diseases are driving the cost increase reflecting the progression of the
`early pipeline with in cardiovascular disease and NASH as well as increased costs within obesity driven by the ongoing
`card iovascular outcomes trials, SOUL and SELECT.
`
`Administration costs increased by 1 % measured in Danish kroner and by 3% at CER to DKK 932 million, reflecting broadly
`unchanged spend across administrative areas.
`
`Other operating income (net) was DKK 121 mi ll ion compared with DKK 107 million in 2020.
`
`Operating profit decreased by 8% measured in Danish kroner and increased by 3% at CER to DKK 14,982 mill ion.
`
`FINANCIAL ITEMS (NET) AND TAX
`
`Financial items (net) showed a net gain of DKK 956 million compared with a net loss of DKK 1,281 million in 2020.
`
`In line with Novo Nordisk's treasury po