Novo Nordisk's operating profit decreased by 6% in Danish kroner and increased by 2% in local currencies in the first nine months of 2018

Adjusting for severance costs related to lay-offs in the third quarter of 2018, operating profit increased by 4% in local currencies.

Sales decreased by 2% in Danish kroner and increased by 4% in local currencies to DKK 82.1 billion.

• Sales of Victoza^® increased by 6% to DKK 17.8 billion (12% in local currencies).
• Sales of Ozempic^® were DKK 804 million and the total GLP-1 franchise increased 10% (18% in local currencies).
• Sales of Saxenda^® increased by 42% to DKK 2.6 billion (53% in local currencies).
• Sales of Tresiba^® increased by 8% to DKK 5.9 billion (15% in local currencies).
• Sales in International Operations increased by 2% (8% in local currencies).
• Sales in North America Operations decreased by 6% (increased 1% in local currencies).
• Sales within diabetes care and obesity decreased by 1% to DKK 69.0 billion (increased by 5% in local currencies). Sales within biopharmaceuticals decreased by 6% to DKK 13.1 billion (1% in local currencies).

Operating profit decreased by 6% in Danish kroner and increased by 2% in local currencies to DKK 36.5 billion, impacted by the significant depreciation of the US dollar and related currencies versus the Danish krone in first half of 2018 compared with the same period in 2017. Adjusting for severance costs related to lay-offs in the third quarter of 2018, operating profit increased by 4% in local currencies.

Net profit increased by 1% to DKK 30.1 billion. Diluted earnings per share increased by 3% to DKK 12.40.

In February 2018, Novo Nordisk launched Ozempic^® in the USA, a new once-weekly GLP-1, and the weekly new-to-brand prescription market share for Ozempic^® has now reached 19% strengthening the total Novo Nordisk GLP-1 market share. Ozempic^® has now been launched in seven countries in Europe and in North America.

Since August 2018, Novo Nordisk has announced phase 3a results from additional three of the 10 clinical trials in the PIONEER programme for oral semaglutide, a new once-daily GLP-1 tablet for people with type 2 diabetes. The trials confirmed statistically significant reductions in both HbA_1c and weight for oral semaglutide compared to placebo in people with renal impairment, add-on treatment to insulin and dulaglutide in Japanese people.

Novo Nordisk has communicated plans to restructure the R&D organisation to accelerate the expansion and diversification of its pipeline and to enable increased investment in transformational biological and technological innovation. A number of additional restructuring initiatives across functions and geographies have been initiated to support the commercial activities for the portfolio of innovative products. As a consequence, the total workforce is expected to be reduced by approximately 1,300 employees before the end of 2018 and the majority of these reductions have been implemented as of 1 November 2018.

For 2018, sales growth is now expected to be 4-5% and operating profit growth is still expected to be 2-5%, both measured in local currencies. Sales growth reported in Danish kroner is now expected to be 4 percentage points lower than in local currencies while operating profit growth is still expected to be 7 percentage points lower than in local currencies.

Based on the increased expectations for cash flow generation in 2018, the Board of Directors has approved an expansion of the 2018 share repurchase programme with DKK 1.0 billion to DKK 15 billion.

Lars Fruergaard Jørgensen, president and CEO: "We are off to a very good start with Ozempic^® which is strengthening our leadership position in the expanding GLP-1 market. Our other key innovative products Victoza^®, Saxenda^®, Tresiba^® and Xultophy^® continue the solid contribution to sales growth in the first nine months of 2018. With our ambition to bring innovative treatments to patients, we have made some important changes aimed at boosting our R&D innovation as well as redirecting resources in other parts of the organisation to focus on our future growth drivers."

Further information

Company announcement No 83 / 2018