Investor Presentation Full Year 2017
Investor Presentation
Full year 2017
Slide 36
Key assumptions supporting the long-term financial target
of an average of 5% operating profit growth¹
Expected future sales drivers
•
Insulin
•
GLP-1
.
Continued underlying 3-4% volume growth
of the global insulin market
Market share gains and value upgrades driven
by the new-generation franchise
Continued expansion of the GLP-1 market
with underlying volume growth of >10%
annually
• Solid market leadership with Victoza® and
OzempicⓇ
GM
S&D
Obesity
Continued expansion of the obesity market
with SaxendaⓇ in the US
R&D
• Successful launches in new markets
Biopharm
Limited growth of the biopharm franchise
mainly due to increased competition in the
haemophilia space
Admin
•
•
Expected future cost drivers
Expected to decline with approximately 1-3%-
points over the next 3-4 years
Lower realised prices and new product launches
expected to negatively impact gross margin partly
offset by product mix and manufacturing efficiency
To be streamlined leading to savings of 1-2%-
points over the next 3-4 years
Expected to remain unchanged around 13%, but
flexible should external opportunities arise
• Refocused research efforts free up resources for
investment in other serious chronic disease areas
Continued focus on administration costs leading to
savings and an administration cost to sales ratio
approaching 3%
Potential for bolt-on activity to support growth
1 New long term financial target established in connection with the Q3 2016 report. The target of 5%
operating profit growth is an average for the period of 4-5 years, with 2015 as the base year.
Note: Guidance provided at the Capital Markets Day, 21 November, 2017
GM: Gross margin; S&D: Sales and distribution cost
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