Q4 2020 Novo Nordisk A/S Earnings Call (London-Based Investors)

Hello, and welcome to the Q4 2020 Novo Nordisk <unk> earnings presentation.

Operator: Throughout the call, all participants will be in a listen-only mode, and afterwards, there will be a question and answer session. Today, I'm pleased to present Lars Fruegel Jrgensen, CEO. Please go ahead with your meeting.

Throughout the call all participants will be in a listen only mode and afterwards, there will be a question answer session.

Today I'm pleased to present last four call Johnson CEO. Please go ahead with your meeting.

Lars Fruergaard Jorgensen: Thank you very much. And thank you to Bernstein for hosting us today. I'm Lars Jorgensen, the CEO of Novo Nordisk, and with me I have Chief Financial Officer Karsten Knudsen and Chief Science Officer Mads Krohsgrd. We'll do a very quick opening review of a few slides, and then we'll go to your questions.

Thank you very much and thank you to pressing for hosting us today.

I'm not sure I got your auction the CEO of Nordisk, Chief Financial Officer, Karsten, Munk Knudsen and <unk>.

<unk> Science Officer, Ms core cartoons.

Went through a very quick opening.

Lars Fruergaard Jorgensen: The first slide is our forward-looking statement. I have to remind you that we are talking about the future today, which obviously involves risks and uncertainties, and results could turn out to be different from what we preach here today. If you look at our strategic aspiration for 2025, we're very pleased with the progress we have made during the full year of 2020 on all four dimensions. We made significant progress on our sustainability front, both on affordability options put in place for the most vulnerable patients as well as how we have progressed on our environmental front, now operating fully on renewable power in manufacturing.

Revenue on a few slides and then we'll go to your questions.

The first slide is our forward looking statements.

To remind you that we won't be talking about the future today.

Obviously involves risks and uncertainties and.

Richard could turn out to be different from what we preach yesterday.

If you look at our strategic aspirations for 2025, we are very pleased with the progress we have made during the full year of 2020 on all four dimensions, we made significant progress on our sustainability fronts. Both on affordability options put in place for.

The most wonderful patients as well as how we have progressed on our financial Crunch now operating fully on renewable power in manufacturing.

Lars Fruergaard Jorgensen: Also, on therapeutic innovation focus, I think we've had a really, really great year with one of the strongest clinical readouts. Yes, I can recall, and Max will get back to some. On the commercial front, we have seen a significant step up in market share in diabetes.

Also on the future.

<unk>.

Focus I think we've had a really had a great year with one of the strongest clinical readouts.

Yes, I can recall and that's we'll get back to some of this.

On the commercial front, we have seen a significant step up in market share.

Lars Fruergaard Jorgensen: We're very pleased with that, and we have also made progress in obesity and biopharm. Although these are the areas where we have been somewhat impacted by COVID-19, on financials, strong top line and bottom line growth and continued strong growth contribution from IO. And then we're pleased to see that growth is picking up in our US business and continued strong cash flow and return to our shareholders. We turn to the next slide. We have also announced that all good things, unfortunately, come to an end.

We're pleased with that and we also made progress in obesity and biopharm. Although these are the areas, where we have been somewhat impacted by COVID-19.

And financially.

Strong topline and bottom line growth and continued strong growth confusion from Io and then were pleased to see that the growth is picking up in our U S business.

Our continued strong cash flow and returned to our shareholders.

Essentially the next slides, we have also announced that.

Lars Fruergaard Jorgensen: And that also accounts for Mads Krosgaard, our Chief Science Officer, for the past 20 years, an amazing contribution to Novo Nordisk. But a part of great leadership is also that you develop your successors. And I'm glad to announce that Marco Schindler will be stepping up as Executive Vice President and Chief Science Officer, reporting to myself, leading research and early development. And Martin Lange is promoted also to Executive Vice President and leading development.

All good things. Unfortunately comes to an end and that also accounts from escrow, Scott Our Chief Science Officer.

During the past 20 years, an amazing contribution to in Illinois.

But apart great leadership is also that you develop your successes and I'm glad to announce that.

My question will be stepping up.

As executive Vice President and Chief Science Officer reporting to myself.

Leading research and early development and marching along it.

Lars Fruergaard Jorgensen: This is a continuation of both strategy and, to some degree, also organization, as these are the two gentlemen who have run both a significant part of research and development in the past. So thank you, Thomas, and all the best of luck in his new job as CEO of the Nordic Foundation.

Is promoted also successfully executive vice President and leading development.

This is a continuation of both strategy and to some degree also organization.

These are the two general who has been running both significant.

Significant part of research and development.

In the past, yes. So thank you so much and all the best of luck in his new job as CEO of the new unless foundation.

Lars Fruergaard Jorgensen: If we turn to the next slide, here's a review of our sales growth, which, as I mentioned, was driven by international operations growing 10%. And when you look at the regions in international operations, you can see that all areas are contributing with either double-digit or very close to double-digit growth. So, very robust performance across the world.

If it turned to the next slides his review of our sales growth, which as I mentioned was driven by SaaS operations.

Growing 10% and when you look at the regions in International operations, you can see that all areas are contributing.

I had a double digit of alkalosis salvaged vehicles, so very robust performance across the world.

Lars Fruergaard Jorgensen: 3% growth in the US is an exploration of our growth level. And if you take in also the affordability options and the remaining impact from the COVID gap legislation, I think it's nice to see that the drag from growth coming from insurance is actually now declining in share, and we see a strong contribution from DLP1. If you look at the right-hand side, here is the growth across therapy.

3% growth in U S.

And exploration of outgrowth level.

And if you've taken also the affordability options and the remaining impact from the.

Oh, it's capped.

Because station.

I think it's nice to see that.

Drag from growth coming from insurance is actually declining.

Declining.

Sure and we see a strong contribution from <unk>.

If you look at the right hand side the growth across therapies.

Lars Fruergaard Jorgensen: Still a decline in insulin growth because of U.S. pricing, but strong growth coming from exacerbations 9%. Peter Welford, Simon Baker, Emmanuel Papadakis, Eric Berrigaud, Benjamin Yeoh, Rajesh Kumar, All, we're very pleased with how both regions and the therapy have worked. I'll just end with a perspective on Rebelsus' uptake. We are very pleased with the launch of Rebelsus. Globally, here we have a snapshot of the US new script development.

Still a climb in the instrument growth because of the U S pricing.

Strong growth coming from exacerbations and 9%.

<unk> growth just one business both from international operations, and North America, and then Youll see.

Continued growth in obesity in desperation sort of decline in the U S because of the pandemic.

We see also biopharm continued growth in the separation, but also some competitive pressure.

U S business.

All we are very pleased with how both regions and therapies.

I'll just end with a perspective on <unk> uptake, we are very pleased with the launch of the doses.

Globally, we have a snapshot on the U S.

Lars Fruergaard Jorgensen: And you can see that we are faring on par with the best performing. This was our objective, you can say initially, to do well in the oil category, and we're very pleased with the launch uptake. You can also see that being a newly launched product, it's impacted by the ability of us, face to face promotion. So there is an impact from COVID-19.

Your script development and you can see that we are sharing on par with <unk>.

Performing <unk>. This was our objective you can say honestly to do well in the other category and we are very pleased with advanced uptick you can also see that being a newly launched products. It's impacted by the ability of us to face to face promotion.

Mads Krohsgård: But overall, we're very pleased with both the access we have Novoselic, Peter Welford, Simon Baker, Emmanuel Papadakis, Eric Berrigaud, Daniel Novod, So with that, I'll hand over to Matt. Thank you very much, Lars, and I'll focus initially here on the next slide on the once-weekly insulin-EyeCodec, where essentially we were surprised by the positive phase 2 data, some of which are published in the New England Journal of Medicine and can be looked up via Googling, but there are six onward trials in the program as a consequence of us seeking to define a clinical differentiation of insulin-EyeCodec versus the world's most widely used insulin, Glargine U100.

So there is an impact from COVID-19, but all we are very pleased with those excess we have the approvals.

We wish we have globally and how we how are we able to.

Precision and gets attraction of the product.

So with that I will hand over to Mrs.

Thank you very much to us.

Ill focus initially here on the next slide on the once weekly instant I could take where essentially we were surprised by the positive phase II data some of which are published in the new England Journal of medicine that can be looked up via grouping.

But.

Six.

On whats trials in the program as a consequence of us seeking to define a clinical differentiation off I could take versus the worst most widely used initially in the clotting you were 105 of the <unk> type two diabetes and one of them has type one diabetes two of the trials obligation instinct lodging I actually targeting <unk>.

Mads Krohsgård: Five of the trials are type 2 diabetes, and one of them is type 1 diabetes. Two of the trials up against insulin-Glargine are actually targeting superiority, and that's why they are sized to approximately 1,000 people each of them. One of them is a pragmatic trial on WATS-5, which is in a pretty much real-world evidence-like setting, in that there are very few site visits by the clinical investigator, but it also adopts a newly-developed electronic patient interaction device that also allows for algorithmic dosing via the smartphone, enabling, hopefully, the patients to get very close to the target if not exactly on target.

Archie and that's why the size to approximately 1000 people each of them one of them is a pragmatic trial on what's five which actually is.

Pretty much real world evidence like setting.

In that there are very few site visits.

The clinical investigator, but it also adopt a newly developed electronic patient interaction device that also allows for algorithmic dosing via the smartphone, enabling hopefully the patients to get very close to the targets you've not at target. So we're excited that the <unk> program has kicked off and will my successor as well.

Mads Krohsgård: So we're excited that the onward program has kicked off and my successors will keep you updated as these trial programs start reporting, mostly in 2022. Then, if we, on the R&D milestone slide, look at what has happened in terms of regulatory milestones, well, we are excited that SEMA 2.4 for obesity, but also the Sustained Fortitude Trial, delineating the future role in intensification with 2 mg of osempic, have been submitted to the major regulatory agencies, and we actually expect a mid-year PDUFA action on SEMA 2.4, and in the second half of the year, action on the osemic high dose.

Keep you updated.

Do you see a trial programs stop reporting it.

In 'twenty two.

Then if we on the anti Moslem slide look at what has happened in terms of regulatory milestones.

Well, we are excited that semi to fall for <unk>, but also the sustained for the trial delay.

<unk> the future role in intensification with two milligrams. So Pacific has been submitted to the major regulatory agencies, and we actually expect a midyear.

For action on similar to fall and in the second half of the year action on the <unk> high twos in terms of clinical trial activity since I'd just like to highlight.

Mads Krohsgård: In terms of clinical trial activities, I would just like to highlight.., that quite a few phase 3 entries actually in each and every therapeutic area of the company will happen over the next 12 months or so. We've talked about iCodec in type 1 diabetes, in type 1 and 2 diabetes, in obesity it's the hope that Cagri-Sema will move towards and that was the former Amlin 833 and Sema program, now denominated Cagri-Sema will move towards phase 3 over the next year and in NASH it's Sema with one remaining pivotal trial since the existing trial from phase 2b was considered as one of the two pivotal trials, it's Siltivecumab in cardiovascular disease and not to forget the fact that we are also entering with two pivotal trials into the high-risk high-reward area of Alzheimer's disease with Ribelsis 14 milligram. So without further ado, over to you Karsten.

That's quite a few phase three entry is actually in each.

Every therapeutic area of the company.

Will happen over the next 12 months or so we've talked about I could take in the type one diabetes and type one diabetes and obesity, which they hope that <unk> will move towards and that was the former <unk> and Sema program now.

Okay, Chris Tamar will move towards phase three over the next year and in Nash at CMI with one remaining pivotal trials since the existing trial from phase <unk> was considered as one of the two pivotal trials. It seems he became Athena cardiovascular disease and not to forget. The fact that we are also entering with two pivotal trial.

<unk> into the high risk high reward area of Alzheimer's disease with <unk> 14 milligram. So without further Ado otsuka. Thank you Ms.

Karsten Munk Knudsen: Thank you, Mads. And when you look at the next slide on our financial results for 2020, then for the year, we reported 7% local currency sales growth, which in reality is the fastest sales growth that we've delivered as a company since 2015. So, very solid growth levels stepping up from prior years. Our Gross Margin is flat at 83.5.

And when you look at the next slide on our financial results for 2020.

For the year, we reported 7% local currency sales growth, which enriches the faster sales growth that we've delivered as a company since 2015, so so very solid growth stepping up from from prior years.

Karsten Munk Knudsen: That, in reality, also covers that we have a negative currency impact on our Gross Margin. So an improving Gross Margin at local currencies delivered through continued productivity improvements in manufacturing, as well as a positive product mix contribution from our GF1 franchise. We do continue to invest in our self-indistribution costs with the launch of Rebelsis and the global rollout of the Olympics as well as investment in our obesity, R&D is mass covered.

Gross margin is say it's flat.

In $83 five.

In Red you also costs that we have a negative cash impact on our gross margin, so and improving cross marching that local currencies.

<unk> delivered through continued productivity improvements in manufacturing as well as a positive product mix contribution from high margin <unk> franchise.

We do continue to invest in ourselves in distribution costs with the launch of rebel.

Rebel CIS and the global rollout of <unk> as well.

Karsten Munk Knudsen: We have a record high number of patients in clinical trials, so very high activity levels, as well as the expansion of our priority review voucher linked to stigma 2.4 and obesity submission to the, Net net, 7% operating profit growth.

Investment in <unk>.

D C business.

R&D is must cover we have a record high number of patients on clinical trials, so a very high activity level.

Well the expense and expansion.

Expanding our power products should review voucher.

Sure CMI to fall and it will be sufficient to with the FDA.

Karsten Munk Knudsen: And then going through the lines, then we have hedging, and all in all, resulting in a net profit growth of 8% and a diluted earnings per share growth of 7%. The resulting 42 billion DKK in net profit we delivered for the year is more than fully delivering to shareholders since we had a high cash conversion adjusted for our acquisitions of ImageSphere and Convita. So if we adjust for those two acquisitions, we have a 100% cash earnings conversion.

Net net 7% operating profit growth.

And then going through the line. Since then we have a hedging and <unk>.

All in all resulting in a net profit growth of 8% and diluted earnings per share growth of 10%.

The resulting 42 billion DKK net profits we delivered for the year.

More than 40 delivering to shareholders since we had to.

A high cash conversion adjusted for all acquisitions of imagery and Covid, yet so if we adjust for those two acquisitions, we had a 100% cash drawings.

Karsten Munk Knudsen: As to shareholder capital allocation, we're returning 37 billion DKK to shareholders through a share buyback of 17 billion and a dividend payout of 50% of net profit. Thus, a step up in dividend per share of 9%, which also marks the 25th consecutive year of increasing dividends per share. For 2021, we'll continue our current approach and intend to buy back up to 17 billion DTK in our share repurchase program. Outlook for 2021 is a continuation of the solid growth we saw in 2020, so a guidance range of 5% to 9% on the top line, continued investments in the business, as well as amortization of the MSP acquisition, resulting in an operating profit growth in local currencies of 4% to 8%. We do have currencies against us, most notably the US dollar, hence a 4%, respectively 6%, negative impact on sales and operating profits. However, this is partially offset by hedging gains.

<unk>.

As to shareholder capital allocation, we are returning 37 billion DKK tries to shareholders through share buyback of $17 billion and.

The dividend payout of 50% of net profit so a step up in dividend because she out of 9%, which also marks the 25th consecutive year of increasing dividends per share.

Portfolio, which one will continue.

Our current approach and intend to buy back up to 17 billion DKK with in our share repurchase program.

Yes.

Outlook for 2021 is a continuation of the solid growth we saw in 2020 so.

The guidance range of 5% to 9% on topline.

The investments in the business as well as amortization of up the misfit acquisition.

Resulting in operating profit growth.

Conscious of poultry makes sense we.

We do have conscious against us most.

Most notably the U S dollar, hence a four respectively, 6% negative impact on sales.

Lars Fruergaard Jorgensen: And all in all, we do expect a free cash flow between 36 and 41 billion DKK, and then back to you Lars to moderate the Q&A session. Thank you Karsten and thank you Mads. We are now ready to receive the first questions, and please state your name and give yourself some questions. Thank you. Thank you.

And operating profits.

This is partially offset by hedging gains.

And all in all we do expect that our free cash flow between 36 and $41 billion. Okay.

And then back to you with asset to moderate the <unk>.

You're in a session. Thank you Carsten. Thank you Ms. We are now ready to use.

The first question and please state your name and giving yourself some questions. Thank you.

Operator: Thank you. And if you do wish to ask a question, please press 01 on your telephone keypad. If you wish to withdraw your question, you may do so by pressing 02 to cancel. Our first question comes from the line of Vimal Kapadia from Bernstein.

Thank you and if you do wish to ask a question. Please press <unk> one on your telephone keypad. If you wish to withdraw your question you may do so by pressing <unk> to cancel them.

Vimal Kapadia: Please go ahead. Oh, great. Thank you very much.

Our first question comes from the line of <unk> from Bernstein. Please go ahead.

Vimal Kapadia: So just the first one from that, please. Mads, I've never made a decision on amylin monotherapy in obesity for phase 3. And the reason I ask is that the product will be Novo's first stand-alone obesity drug that is not tied to diabetes, you know, that has the potential to really demonstrate double-digit weight loss. Would this not be an opportunity for Novo to launch an effective obesity drug without a reference price for diabetes so that it can, you know, make it more accessible to the wider population? Is there anything in the data that gives you hesitation to move forward with monotherapy?

Great. Thank you very much my pleasure from Bernstein.

Just one please.

Have you made.

Make a decision on the eminent in monotherapy in obesity for phase III and the reason I'm asking is that the product will be snowball.

Malone obesity drug.

Tied to diabetes some of that has the potential to really demonstrate that.

Does your weight loss.

This might be an opportunity for novo to launch an effective obesity drug without reference price.

Diabetes, so that you can make it more accessible to a wider population is there anything in the data and it gives some hesitation to move forward in monotherapy.

Vimal Kapadia: and then just tied to that, can I ask about obesity pricing? And I know you cannot be specific, but given semaglutide is not priced per milligram, how should we think about the price of the two milligram dose for diabetes and the 2.4 milligram dose for obesity relative to the currently approved one milligram? Is it fair to assume similar pricing?

And then just tied to that Tom talked about the obesity pricing and I know you've kind of be specific.

But given some of the price per milligram, how should we think about the price of the two milligram dose in diabetes and the two four milligram dose of obesity relative to the economy approved Columbia grown is it fair to assume similar pricing.

Mads Krohsgård: And if not, how will Novo really determine the price points? Because wouldn't it be quite difficult to charge different prices for a two milligram and a 2.4 milligram dose? So your thoughts there would be great. Thank you, Vimal, and first, Mads, on amylin monotherapy. Yeah, and Vimal, thanks for the question.

If not how will novo already determined the price points, because it wouldn't be quite difficult to charge different prices for the two milligram and the two four milligram dose. So your thoughts there would be great.

Yeah.

Thank you remodel and first mess on MLR in monotherapy.

Mads Krohsgård: I mentioned yesterday that we are now, or two days ago, actually, that we are now receiving the name cagrilliontide, so all the amylin compounds in the future will be lintides, like pramilintide, cagrilliontide, and together with sema, we call it cagri-sema, and it is true that we see the biggest potential within the combination product in as much as it may be able to drive those with morbid obesity down to near normal BMI levels, if not normal BMI levels, so that's where we see the big potential, but since amylin or cagrilliontide does have significant weight loss potential in its own right, then the FDA guidelines will simply mandate that during the conduct of phase three, you have a matrix-like structure of your program, drug A, drug B, and drug A plus B, so we will be getting safety and, Let's say three levels of pharmaceutical needs within the area of BMI lowering. The mild level where things like Saxenta and the likes of it can do the job if you're up in the early 30s, Sema 2.4 if you're in the mid to late 30s, and then something like Cagri-Sema if you're class 3 obese, i.e. 40 or above, that will call for a 25 or even greater percent reduction.

And thanks for the question.

I mentioned yesterday that we are now or two days ago actually that we are now receiving the <unk> insight. So all the eminent compounds in the future will be leaned towards like Permian type equity inside.

And together with <unk>, we call. It tech, we see them and it is true that we see the biggest potential within the combination product in as much as it may be able to drive those with multiple BCC down to near normal PMI levels, if not normal BMI levels. So so that's why we see the big potential, but seems emmeline of Covid impact.

It does have significant weight loss potential in its own right. Then the FDA guidelines will simply mandate that during the conduct of phase III you have a matrix like structure of your program truck a truck and truck E plus P. So we will be getting safety and efficacy data on the <unk> monotherapy option, but that being said.

As a company, we see the future with.

Let's see three levels of pharmaceutical needs within the area of <unk> lowering.

The modest level, where things like <unk> and the likes of it can do the job if you're up in your early Thirty's CMI two four if you're in the mid to late thirties, and then something like <unk>, if you're a class III obese I E.

40, or above that's loopholes, where 25 or even greater.

Mads Krohsgård: So whether or not amylin or cagrilin type will play a role as a standalone monotherapy remains for future management to determine. Thank you, Mads. And, Emmanuel, as you say, it's difficult for us to be very specific on obesity pricing, but here are a few perspectives, nevertheless. First of all...

So whether or not Emily Okay, cool insight will play a role at the Standalone monotherapy.

Remains for the future management, two two to two <unk>.

Thank you Ms.

Let's just say it's it's.

It's difficult for us to be very specific on obesity pricing, but a few perspectives. Nevertheless.

Lars Fruergaard Jorgensen: When we look at it today, we do not actually see price as the major barrier for growing the obesity market. We even see in a number of markets where it's out-of-pocket pay that there's a willingness to pay for sex with the profile it has because it's a meaningful weight loss because there's basically nothing else that works. We see that it's really the understanding of obesity as a disease that requires medical intervention that's the biggest task for us at hand to build that.

First of all.

When we look at it today.

We actually not see price as a major barrier for.

Growing the PC market.

We even see in the number of August where it's out of pocket pay their willingness to pay for sex Center.

The profile it has because.

It's a meaningful meaningful weight loss.

Because it's basically nothing else that works.

And we see that it's really the understanding of obesity.

As a disease that requires medical intervention.

Lars Fruergaard Jorgensen: And when you get to that, you will see that the weight loss we can provide with SEMA 2.4 is actually very, very significant compared to the health challenge of living with obesity and also what is paid for bio-surgery etc. today.

The biggest.

Cost for us at Haynes to build that and when you get to that you will see is that the weight loss. We can provide with our cemetery portfolio is actually very very significant.

Compared to the.

Health challenges of living with obesity and also what is paid for by etcetera etcetera today.

Lars Fruergaard Jorgensen: It's clearly a big opportunity. It's one where we have to obviously consider pricing, but it's actually building the market and making the clinical profile understood in the market. That's essential for us. And then we think, with the formulations we have made, 2.0, 2.4, et cetera, that we have enough flexibility to pick price points and go-to-market approaches that make it possible for us to manage that. Thank you, Emmanuel. Next question, please.

So.

It's clearly a big opportunity, it's one where we have to obviously consider pricing, but it's actually building the market and making the clinical profile understood in the market. That's most essential for US and then good things with it.

With the formulations, we've made $2 to $2 four et cetera that we have enough flexibility to pick price points and go to market approaches that.

Makes it possible for us to tremendous debt.

Peter Verdult: And the next question comes from the line of Peter Vidal from Citi. Please go ahead.

Okay. Thank you Matt next question please.

And the next question comes from the line of Peter of Adult from Citi. Please go ahead.

Peter Verdult: Thank you, Peter Delcey. A few questions. A quick one on China.

Peter Verdult: Just Lars, the latest timelines you're working on to get Zempik and Rebelsis launched and on the NDRL? Sorry, it's a question of mine, but I would be interested in any update.

Thank you people don't see.

Two questions quick one on China, just lost the latest timelines you are working on getting them to convert belts is launched.

Peter Verdult: and then just secondly, on a BT again when you've got the products now...

So it's a question of mine, but.

Any updates.

Peter Verdult: You've got the products now that show meaningful, durable weight loss. You've got the doctors, generally excited, and probably poised to significantly increase their prescribing habits.

And then just secondly on <unk> yet.

Once you got the product now, but showed meaningful durable weight loss, you've got the docs generally excited.

Lars Fruergaard Jorgensen: However, our recent survey that worked with payers paints a different story. I mean, you show them the data you generated last year, you tell them that pricing might be a parity to succender, and it doesn't seem to make any difference as to their willingness to improve the current reimbursement or access that they afford patients. I'm not talking about prices; I just want to talk about how you approach this. [inaudible]

We are poised to significantly increase their prescribing habits.

A recent survey.

It's a different story shows the data generated last year.

The question might be a priority to succentor anecdotal things.

<unk> make any difference as to when it just improves the current reimbursement all access they afford.

So just a multiple approach I just want to talk about how you're approaching that.

Pay as or more broadly how.

Mads Krohsgård: Thank you, Pete. So, Mads, maybe the first perspective on the clinical development of osempic and repulsus in China. Yeah, so Pete, the Sustain China trial that was reported not two years ago but more than a year and a half ago and was really good. And so the problem is not about being able to launch Wasimping in China; it's about having the national reimbursement lifted. And nobody knows exactly when that happens. But you can do a launch before then, of course; it will be out of pocket.

Youll approaching culprits, Fedex GM, but the big banks to try and get employees on board.

<unk> spoken sensations triangle <unk> covered on their health care plans I'm, just looking to see how you're pushing on a couple of those leavers to develop RBC markets.

Thank you Pete So maybe first prospective on the clinical development of Olympics and proposals for China.

Yeah, So Pete.

<unk>, China trials that reported out.

Not two years ago, but more than a year and half ago.

Really good and so the problem is not about being able to launch. It was if we can try to it's about having the national reimbursement listing and nobody knows exactly when that happens, but you can do a launch before then of course, it will be out of pocket, but it does have a strong level in China and when we look at the pioneer program we are doing.

Lars Fruergaard Jorgensen: But it does have a strong label in China, and when we look at the Pioneer program, we are doing two different Chinese trials with a rebalanced 14 milligram dose, and they are, despite the COVID-19 situation, recruiting well and according to schedule. So that will take some time, but we are doing it as fast as we can. And China is a market that, like Japan, is rather strong on the OAD side. So we believe in the rebalances. Thank you, Mads. And then we go to the payer's willingness to reimburse or pay for obesity treatment. I'm actually optimistic.

Two different.

Chinese trials with.

With the <unk> 40 milligram and Dr. Despite the COVID-19 situation and recruiting well.

And according to schedule, so that will take some time, but we are doing it as fast as we can and China is a market that is also like Japan, rather strong on the OLED side. So we believe in the rebels as potential and we do have also as you know a patent protection for that one in China.

Thank you Ms and they're going to.

Pay us willingness to.

To reimburse at a pay or pay for beauty treatment.

Lars Fruergaard Jorgensen: When we see SACSENDA today, it is possible to get both, say, public healthcare systems and private companies to pay for SACSENDA at the price point it has and also the efficacy we all know, which is significantly below what we'll be bringing out later this year. So if you, if you look at one of the most, say, sophisticated public care systems, namely the UK, we have, with Accenture, made an agreement with NICE for, you know, the segment of patients having a high BMI and, you know, comorbidities.

I am actually optimistic.

When we see six isn't there today.

It is possible to get both say public health care systems and private.

One is to pay for success with the price point. It has and also the efficacy we all know.

Significant below what would be bringing out later this year. So if you if you look at.

One of the most sophisticated public payer systems, namely the U K, we have with extended amazed and agreement with a nice fall.

Segment of patients having a beer.

Lars Fruergaard Jorgensen: So there is a willingness to pay for that. In the US, we see that public, sorry, private, payers opt in, because they can see that if you are a large company, you are self-insured, you have long tenure for your employees, that's actually an attractive case in actually having anti-obesity medicine as an option for your employees. With the profile we bring out, hopefully second half this year, I'm actually very enthusiastic about us being able to articulate the value story for payers, and that's one of the tactics we are pushing which has to go hand in hand with the physicians, increased willingness to prescribe obesity medicines and patients willingness to seek treatment, and so there are a number of tactical strategies we need to move forward in parallel but my view is that we can indeed lift the challenge of getting the payer story right with the profile we bring here.

And.

Comorbidities.

So so there is a willingness to pay for that in the U S. We see that uptick.

Private.

Pay us up in.

Because they can see that if you're a large company you are self insured.

Have long tenure.

What are your employees, that's actually an attractive case in actually having.

And to be some medicine, that's an option for your employees.

So.

With the profile, we bring out hopefully second half this year I'm actually very.

She asked about us being able to.

Articulate.

The value story for payers.

And that's one of the tactics, we are pushing which has to go hand in hand with the physicians increased willingness to prescribe these medicines and patients willingness to seek treatment.

And so that number of technical.

As we need to move forward in parallel.

But my view is that we can indeed lift.

The challenge of getting the past already rights with the profile if we bring here.

Michael Leuchten: The next question comes from the line of Michael Leuchten from UBS. Please go ahead.

Thank you Pete.

Keith.

The next question comes from the line of Michael <unk> from UBS. Please go ahead.

Michael Leuchten: Thank you. Thank you. This is Michael Leuchter from UBS.

Michael Leuchten: Firstly, as Matt was echoing from Wednesday, really sorry to see you go. All the best and your enthusiasm really will be missed. Question for you, just going back to the 2.4 milligram weight loss curves. They do look a lot better than what we've seen in the past.

Thank you. Thank you, it's Michael <unk> from UBS.

Steve This is Matt echoing from Wednesday.

Sorry to see you go.

Burst and you enthusiasm really will be missed.

Question for you just going back to the $2 four milligram weightless curves.

Michael Leuchten: The obesity trials these days are a little bit different than a few years ago in terms of patient monitoring, in terms of titration, and in terms of counseling. So if you look at that continuous weight loss, is it possible to assess how much of that is coming from the longer titration, how much it is coming from titer counseling, and how much is the pharmacology behind it? Or is it a point of exercise to think about?

They do look a lot better than what we've seen in the past basically trials. These days are a little bit different than a few years ago in terms of the patient monitoring in terms of the titration.

Counseling. So if you look at that continuous waste laws is it possible to.

How much of that is coming from the longer titration and how much of it is coming from type of counseling and how much is the pharmacology behind it is it is at a point that exercise to think about it and the reason why I'm asking is I'm wondering if with pizza sauce with the.

Michael Leuchten: And the reason why I'm asking is I wonder if, as Pete just asked, payers are just able to wiggle out of reimbursement decisions because they can claim, well, it's not an apples to apples comparison.

The payers that is able to wiggle out of reimbursement decisions because they can claim while it's not an apples to apples comparison.

Michael Leuchten: And then a question for Karsten. On your Capex spend, you mentioned on Wednesday that the big machines of your Clayton plant are slightly delayed. I thought that might have happened a little bit earlier. And why are you spending more Capex in Denmark and not in and around Clayton, where the active ingredients are being produced for rebels within future generations? I would have thought that'd be a natural home for that Capex in the US as opposed to

And then a question for Carsten on your Capex spend you mentioned on Wednesday that the big machinery of Yoplait coupons.

Is that plant slightly delayed us not that might have happened a little bit earlier and why are you spending more capex in Denmark and not in in and around placement, where the active ingredients are being produced for <unk> into future generations I would've thought that would be a natural home for that capex in the U S as opposed to.

Michael Leuchten: The U.S. as opposed to Denmark. Thank you.

Mads Krohsgård: Thank you, Michael. Mass first on.

In Denmark. Thank you.

Mads Krohsgård: Thanks for the kind words, Michael, and they are reciprocated. When we look at the 2.4 milligram SEMA trials, they are designed pretty much as we have done all the time. And the interesting thing is to watch the placebo response. And we actually have three kinds of placebo responses. But before I go to those, so that you can estimate the actual treatment effect, the weight loss curves in step 1, 3, and 4, which are the three obesity trials, were achieved over the same time course perspective of 68 weeks, i.e.

Thank you Michael mess first on.

Victor trial assignment.

Four.

Thanks for the kind words Michael.

Reciprocated, when we look at the $2 four milligram sema trials.

<unk> pretty much as we have done all the time and the interesting thing is to watch the placebo response, and we actually had three kinds of placebo responses.

Before I go to those so that you can estimate the actual treatment effect the weight loss curves in step one three and four which are the three obesity trials.

Actually even over the same time cost perspective of six to eight weeks I E 52 weeks at the steady state dose. After two four milligrams exactly the same shape and magnitude leading to a 16% to 18% response at the end of trial. The only trial that encompassed a classic placebo group.

Mads Krohsgård: 52 weeks at the steady state dose of 2.4 milligrams, exactly the same shape and magnitude, leading to a 16 to 18% response at the end of trial. The only trial that included a classic placebo group was step 1.

Mads Krohsgård: And in step 1, the placebo response, as I recall, it was 2.3 or 2.4%. And since the actual response to SEMA 2.4 was 17, it was a 15% placebo corrected response. So when you do the dietary counseling to the level we do in these trials, that's what you see, 2% placebo response, that's the other one called step three where we actually go in and measure obligate intensified behavioral therapy where people get a low calorie diet they get systematic dietician counseling etc very expensive to do the fact of the matter is that it only accommodated weight loss of around five percent and in the group that received stemma 2.4 they also got, So the titration is longer than it was, for instance, for sex center, but that's not a bad thing because it gives you, on the one hand, very good tolerability, and it gives you, the patient, the experience of an ongoing weight loss for more than a full year, basically boding well for adherence due to efficacy, but also stay time driven by the continuous weight loss observed on the weight scale by the patient favoring adherence therapy.

Well step one and in step one the placebo response as I recall it was to two 4% and since the actual response to stay on the $2. Four was 17. It was at 15% placebo corrected response. So when you do the dietary counseling to the level. We're doing these trials. That's what you see 2% placebo response then.

That's the other one call step three where we actually go in and Michelle obligate intensified people therapy, where people get a low calorie diet to get systematic dietitian counseling et cetera, very expensive to do the fact of the matter is that it only accommodated weight loss of around 5% and in the group that received similar to fall. They also cut.

IPG expensive as it is but the weight loss was 18% similar to other trials. So IPG per se as nothing more open up off just administering September to fall rather similar to what keeps you more than three times.

<unk> people therapy.

We had a cost that is a very justifiable.

When it comes to step Paul It's actually also interesting to see it we have a real world setting where people stop therapy. After four to five months what happens when you just continue without therapy versus if you do with therapy and you do recall that that one should also a 5% response, so people do regain weight or the subsequent 40 weeks of randomization to proceed.

As compared to those who stay on <unk> and we retained 17% weight loss. So we haven't filled.

That round with the neither the inclusion criteria, nor the counseling et cetera, as evidenced by the placebo response in terms of the titration schedule. It's correct Michael that would go from a quarter to a half to one to $1 72 portable. So the titration is longer than it was four 6% well that's not a bad thing because it keeps you on the one.

Mads Krohsgård: Thank you, Max. Karsten, on CapEx, Denmark versus North Carolina? Yeah. So, Michael, on our Clayton API project that we initiated a few years ago, in short, we are completely following the plan we laid out when we got the project planned and approved by our board of directors. So we are on track with the plan, no deviations there. And where we are now is that we have pretty much finalized the pure construction part of it, with a lot of workers on site, etc.

Had very good tolerability and it gives you the patient experienced ongoing weight loss for more than a full year.

Basically boding well for adherent due to efficacy, but also stay time driven by the continuous weakness observed on the weight scale by the patient favoring adherence to therapy.

Thank you Ms costs on Capex.

North Carolina, Yeah, So Michael.

Clayton.

API project that we initiated a few years back.

In short we are completely following the plan we laid out when we.

When we got to protect a plant and approved by our board of directors. So so where we are on track with the plan I don't know deviation Sir.

Mads Krohsgård: So now we are into getting the factory approved by the health authorities. So there is a lot of documentation and quality systems that we're finalizing now for submissions to health authorities and, subsequently, approvals. So that's the story on Clayton.

And where we are now is that we have pretty much finalized.

The pure construction construction part of it.

A lot of workers on site et cetera.

So now we're into getting the factory approved by by the health authorities. So it's a lot of documentation.

And quality systems that we're finalizing now for submission.

<unk> and <unk>.

Subsequently approvals.

Karsten Munk Knudsen: Then the step up in CapEx, Denmark versus Clayton, I think it's important to remember that for our GLP-1 API manufacturing with Clayton, now we have a dual supply chain. So we're both manufacturing GLP-1 API in Denmark as well as in Clayton. So the U.S. launch of Rebelsys is sourced from API manufactured in Kallenborg in Denmark. So the step up in capacity in Denmark is based on the fact that now we have a new plant in the U.S. that we are to ramp up with significant capacity.

So that's the story on <unk>, then the step up in Capex in Denmark, which is great and I think it's important to remember that.

That for our tier one API manufacturing.

With Clayton now we have dual supply chain. So we're both manufacturing.

One API in Denmark, as well as in Clayton.

The U S launch of rebel is sourced from API manufactured in <unk> in Denmark. So.

Step up in capacity in Denmark is based on the fact that now we have a new plant in the U S.

Karsten Munk Knudsen: So to ensure that we have a focus on that in the U.S., then we have the opportunity to ramp up capacity in Denmark in our dual supply chain at the same time. So then we're kind of prioritizing our focus at the two different sites accordingly. Thank you, Karsten. And, Mads, did you have a follow-up? Yeah, and the follow-up question is to the preceding question. I got ahead of myself. It is absolutely correct that to launch a Sempik, you do need approval, even in China.

That we ought to have to ramp up with.

The significant capacity so so to ensure that we have focused on that in the U. S. Then that then we have the opportunity to ramp up the capacity in Denmark in our towards supply chain at the same time. So so then were kind of prioritizing our focus in the two different sites accordingly.

Thank you Kirsten and mess you had a follow up yeah, and a follow up to the preceding question I got ahead of myself.

Mads Krohsgård: And if we assume that the rise takes approval time, which was around 14 months, that would mean approval a couple of months from now. But we are heading in that direction, and then all the things that I mentioned can take place. Thank you, Max. Thank you, Karsten. And thank you, Michael, for the questions. Next set of questions, please.

Absolutely correct that two launches have you do need an approval also in China, and if we assume rise to take approval time, which was around 14 months that would mean approval a couple of months from now, but we are heading in that direction and then all the things that I mentioned can take place.

Thank you Beth Thank you Kirsten and thank you Michael for the questions next question. Please.

The next question comes from the line of John Young from Credit Suisse. Please go ahead.

Karsten Munk Knudsen: The next question comes from the line of...

Hi, guys. Thanks for taking my questions just two for me.

Operator: Hi guys, thanks for taking my questions, just two for me, so uh both around the kind of performance of ribelsis and obesity during COVID, so they both seem to be quite sensitive to COVID. You showed a really good chart of ribelsis where

So both around the kind of performance of Wright Bellsystem obesity during COVID-19.

They seem to be quite sensitive to COVID-19 showed a really good charter bright dialysis, where if you drop off your promotion you saw this drop in prescriptions and similarly for IPC.

Unknown Attendee: My question is, do you expect the same kind of depressed trend for both these products as the pandemic?

Have a lack of new patient starts here.

My question is do you expect the same kind of depressed trends that makes these products as the pandemic and lockdown continues or is there anything that gives you sort of increased confidence that you won't see these dips as you saw in the initial lockdown.

Unknown Attendee: and simply, and I might have missed it on the call, is when is your assumption in your guidance when things get back to normal?

And.

Unknown Attendee: [inaudible]...

Simply and I might have missed it on the call is when is your assumption in your guidance when things get back to normal thanks very much.

Lars Fruergaard Jorgensen: So John, it's clear that when you launch a new product, FaceTime with a physician is important. So in the case of Repelsus, anything else equal will have an impact when we now have our reps out of the territory again since sometime in November.

Sure John.

It is clear that when you when you're launching new products.

Face time with this decision is important so in the case of proposals.

Yeah.

Everything else equal there will be an impact when we now have our reps out of the territory again since sometime in November.

Lars Fruergaard Jorgensen: Obviously, what we have learned since the first lockdown is how to leverage our digital infrastructure. So we have more we have, you know, sometimes up in terms of digital interaction with decision makers. This lockdown compared to the first lockdown, so we have more activity levels going, but face-to-face time is still tough. When you look at obesity, it's slightly different because the sex center is somewhat better established in the market. So there is a flow of patients going to the physician.

What we have known since the first lockdown is how to leverage our digital infrastructure. So we have more.

Sometimes up in terms of digital.

Interactions with physicians this locked down compared to the first lockdown. So we have more activity in different color going.

But our face to face time is still tough.

<unk>.

When you look at it.

Slightly different because <unk> is.

Somewhat better established in the market. So that's the flow of patients going through the physicians and you know what the stay time is relative short some months.

Lars Fruergaard Jorgensen: And you know, the stay time is relatively short, some months on taxenda, which means that, The inflow of patients is less, you could you could you could hope potentially that as it has been speculated that COVID-19 leads to a lifestyle leading to more obesity is that that there will be some extra say patients to serve coming out of this so that that will help but it is to be expected that there'll be a continued lower obesity flow of new patients as long as the lockdown lasts, and Karsten, maybe some comments on what we have assumed in terms of reopening and getting back to normal business. Yeah.

<unk>, Sendai, which means that the inflow of patients.

Yes.

You could.

Could you could hope potentially that.

As it has been speculated that COVID-19 needs too.

Our lifestyle needs.

Leading from obesity that there'll be some extra say patients two to serve coming out of this so that will help.

But it is to be expected that there'll be a continued low obesity flow of new patients as long as the lockdown lifts and.

Cost and maybe some comments on what we have assumed in terms of.

Karsten Munk Knudsen: Clearly, COVID-19 and its impact on our outlook is something we evaluate, evaluate as part of our planning. And I think the key starting point is to look at our performance during 2020. And as a company, and you've seen that in our quarterly results, especially for the second half of the year, we have basically a very resilient business when you look at our diabetes business. So our diabetes care business grew 8% last year in a year of COVID.

Reopening and getting back to normal business.

Clearly COVID-19 and impact on our outlook is something.

We evaluated evaluated as part of our planning and I think the key starting point is to look at our performance during 2020 and and as a company and you've seen that in our quarterly results, especially for the second half of the year.

We have <unk>.

Basically a very resilient business when you look at our diabetes business. So our diabetes care business grew 8% last year and a year of Covid. So so far the big parts of our business we are very.

Karsten Munk Knudsen: So for the big parts of our business, we are very resilient vis-a-vis COVID. And then we have the impacts, as you know, on rebalances and obesity, and perhaps some impact also on our on-demand hemophilia franchise. So we have not been out guiding on a specific date or specific set of assumptions.

Our resilient vis vis COVID-19.

And then we have the impacts as you know on <unk> and perhaps.

Some impact also on the on.

Our on demand.

Feeder franchise. So so we have not been our guiding on a specific date or specific set of assumptions you read the same in the media around the.

Karsten Munk Knudsen: You read the same in the media around the vaccines and the different waves of COVID. But we have more guidance based on the trends we've seen during the second half and the resilience of our business. That, of course, also entails that the guidance we issue can be better and it can be worse. And that's why we have a guidance range.

The vaccines and the different waves of.

Covid, but perhaps with more guided pace based.

Based on the trends we've seen during the second half and the resilience of our business that of course also entail set there.

The guidance, we issued it can be better and it can't be worse and that's why we have a guidance range. So so of course, if COVID-19 changed significantly more solid and what we what we're seeing then it could be a negative and the opposite.

Karsten Munk Knudsen: So, of course, if COVID turns significantly more sour than what we're seeing, then it could be a negative. And on the opposite, if vaccines are having a big impact early on, then there could be a slight positive for parts of our business. And of course, with the rollout of the vaccines, the benefit we see first is in the healthcare systems, and that's where we need time and capacity. So I think the first part of society that will ease up is the burden on the healthcare systems, and that's a positive for us. Thank you, Karsten. Thank you, John. Next set of questions.

Vaccines are having a big impact earlier, and then then there could be a slight positive to parts of our business.

And of course with the rollout of the vaccines the benefit we see the first is in the health care systems, and that's where we need time and capacity. So I think the first part of society that will ease up as.

As a burden on the health care systems and Thats a positive.

First.

Keogh Parikh: The next question comes from the line of Keogh Parikh from Goldman Sachs. Please go ahead.

Thank you John.

The next question comes from the line of <unk> Parikh from Goldman Sachs. Please go ahead.

Keogh Parikh: Good afternoon. Thank you for taking my question, Mads, again echoing what everybody has said more broadly. Thank you very much for all the wonderful memories over the years.

Good afternoon, and thank you for taking my question again, echoing what everybody has said more broadly. Thank you very much for all the wonderful memories.

Keogh Parikh: Three questions, please. First, if we look at your illustrative slide on R&D success rates, kind of historically, what you've achieved, and where you think the direction of travel is, what's quite noticeable there is that you don't expect the direction of travel to change in phase three studies. And so I'm just wondering if that is exactly what you're trying to say, and if so, given some of the riskier studies you are embarking on today, how we should think about the risk parameter around that.

Three questions. Please first if we look at.

Your illustrative slide on R&D success rates kind of historically, what you've achieved.

By using the direction of travel is.

Whats quite noticeable is you don't expect the direction of travel to change on phase <unk>.

I'm just wondering if that is exactly what youre going to see and if so given this on the riskier studies youre embarking on today.

Keogh Parikh: Secondly, obviously, a lot of investment focus and investor focus on expectations around surpassing two, so we'd love to hear your thoughts on how you would interpret any data coming out of that study. And then lastly, Karsten, I think previously the company said that if you had to spend more on GLP-1 production, that would be a very, very bullish outcome. So given you are increasing your CapEx range around for 2021, wondering if you would want to categorize this as a single year increase? Or should we think of it as a two, three year increase? And correspondingly, how should we interpret that in terms of your strategic expirations for 2025?

Think about the risks around that.

Secondly, obviously lot of investment and focus on just a focus on expectations around surplus do so we'd love to get your thoughts on how you would interpret any data coming out of that study.

And then lastly constant.

Previously the company said that if you had to spend more on DLP, one production that could be a very very bullish outcome. So given that you are increasing your capex range around for 2021 wondering if you would want to categorize it should we think of this single year increase.

We think of it two three year increase and correspondingly what does how should we interpret that to you our strategic exploration for 2025 shouldn't they be adjusted Couldnt currently thank you.

Keogh Parikh: Thank you.

Keogh Parikh: Thank you, and first, I'm going to ask you a couple of questions on R&D success rates, historical versus today, and you can say you contributed to the historical rate, and you can feel free to talk about the future one without being here, and surpass two, and then Karsten, a few comments on Andy, sorry, Capex, a link to GLP-1, and how to see this in the context of 2025. Thanks, Kerry Holford, for your kind words.

Yeah.

First I missed a couple of questions from you on.

Success rates historical versus today.

You can say you contributed with the historical rate and you can feel free to talk about the future one without tripping being here.

So first two.

And then.

A few comments on R&D capex.

And linked to just the one and how do you see this in context of two instruments.

Mads Krohsgård: In terms of the illustrative industry success rates we've had, it is true that we've been very high. We've topped our peer group in terms of success rates. And the strategy we have going forward is to use much more biomarker-based readouts much earlier in the clinical development phase, implying that you should expect to see phase one and potentially phase two success rates to come down somewhat because we're, And if you look at the ongoing phase 3 trial programs, ICODEC, NASH soon to come, I would consider these as ones where we have a really high likelihood of success, more or less in line what you have witnessed historically with Novo Nordisk.

Thanks.

In terms of the illustrative industry success rates we've had.

It is true that we've been very high we've topped our peer group in terms of success rates and the strategy. We have going forward is to use much more biomarker based readouts much earlier in the clinical development phase.

Thing that you should expect to see phase, one and potentially phase two success rates to come down somewhat because we're going to have so many shots on goal and we want to make sure that we invest in the when we invest in our pivotal trial program. We are very likely to succeed and if you look at the ongoing phase III trial programs iconic Nash assumed to come.

I would consider these as ones, where we haven't really high likelihood of success more or less in line. What you witnessed historically when we also have to acknowledge that when we go into a high risk high reward area of huge unmet need like Alzheimer's disease, then by definition, that's a much higher risk arbitration, but that the market is already aware of on the other hand, if we succeed.

Mads Krohsgård: We also have to acknowledge that when we go into a high-risk, high-reward area of huge unmet need like Alzheimer's disease, then by definition, there is a much higher risk of attrition, but the market is already aware of. On the other hand, if we succeed, we have a mechanism that is totally complementary to and additive with the, you can say, amyloid plaque blockers from Lillian Biogen. So overall, expect that we will put attrition early on in development and try to avoid attrition later on in development where the going gets very costly. In terms of the Surpass two trial, I think a fair statement is that we don't know.

We have a mechanism that is totally complementary to and editing will you.

You can see amyloid plaque blockers from Biogen.

Overall expect that we put attrition early on in development and try to avoid Attritional later on in development, where the going gets very costly in terms of the supply chain.

Mads Krohsgård: We'll have to wait and see the data and if that's correctly stated. I'll be watching that from my CEO job at the foundation, so I'm not really the one to make too many forward-looking statements right now. I would suggest that trisepatite probably has a fixed level somewhat in the tune of what we see for 72 milligrams, but I also do believe that we might be lucky that our tolerability profile, being a pure plate GLP-1 agonist, might be on the positive side.

I think a fast statement is that we don't know.

Have to wait and see the data correctly, Steve I'll be watching that from my my CEO dropping the foundation. So I'm not really don't want to make too. Many forward looking statements right now I would suggest that it looks as if just appetite probably has at least somewhat in the tune of what we see for say with two milligrams, but I also do believe that that we might be.

Lucky that our Tolerability profile being a pure play GP goodness might be on the positive side, but let's see the data when they come in the second quarter.

Mads Krohsgård: But let's see the data when they come in the second quarter. Thank you, Mesh. Karsten?

Karsten Munk Knudsen: Yeah, so on CapEx, yes, that is exactly what we said, and that is also what is playing out. So the reason why we step up our CapEx from the 6 billion level or so to 8 billion is that we have confidence in our pipeline, and you saw us go into Alzheimer's phase 3 based on rebalances, and you saw the Alzheimer's high-dose trials going into phase 3, and of course, even if Mesh stops, then we still have other good ideas in the pipeline based on our oil platform.

Thank you Ms. Kirsten yeah, so so on Capex.

Yes that is exactly what we set in and that's also what is playing out. So so the reason why we step up our capex from the 6 billion level also.

Two 8 billion that is a function of our confidence in our pipeline and your thoughts going into into Alzheimer's phase III based on Rhopressa and you saw there.

<unk> on Sema.

Hi, dose Triassic going into phase III and <unk>.

Of course, even if that stops and then we still have other good ideas in the pipeline based on our all platform. So so so this is a pure capacity play through to deliver on our pipeline success our pipeline progression. So so that is positive in terms of how long you should anticipate it.

Karsten Munk Knudsen: So this is a pure capacity play to deliver on pipeline success or pipeline progression. So that is the positive. In terms of how long you should anticipate it, I would say it's not a one-year play; it's perhaps more so a two- to three-year play, and the step-up is... mainly related to our overall platform progression. And then I didn't understand the last part of your question. Okay, you are around 2025 and patent pending. No, Karsten Knudsen, basically, obviously, you are investing more, given the increased confidence. So how should we lead you to your strategic aspirations?

I would say, it's not it's not a one year play it's perhaps more so.

Two to three year play and.

The step up is.

Lets.

Mainly related to our all platform progression.

And then I didn't get the last part of your question around 2025 and patents.

So customers are particularly.

Yeah.

Given the increased confidence so how should we view.

Gross do a strategic aspirations for 2025 I E.

Sales kind of gambling should we now think of it.

Karsten Munk Knudsen: [inaudible] so, the way you should look at this, and then just or

Quadrupling kind of being more realistic strategy aspiration, what's doing just doubling.

Karsten Munk Knudsen: So the way you should look at this and also given the timeline of getting this capacity online, getting the design in place, and the construction going, and the capacity approved by the health authorities, you should see this as a pipeline success which will cater for a growth period more in the 25 to 30 range, more so than towards 2025.

So so the way you should look at this and then just to also give it given the timeline of.

Getting this capacity online getting design in place and the construction going in and the capacity approved by probably the health authorities.

Should see this essay SA pipeline success, which will cater for for a growth period more than 25% to 30 range more so than that and towards 2025.

Thank you Luca.

Any investment opportunities. So that's good thank.

Karsten Munk Knudsen: The next question comes from the line of Naresh Chouhan from Intron Health. Please go ahead.

Thank you.

Next set of questions. Please.

Next question comes from the line of Matt is drawn from Intron Health. Please go ahead.

Naresh Chouhan: Hi there, thanks for taking my questions. Two on rubelsis and zempically. So on rubelsis, have we seen some slowdown in the uptake with patients first starting on rubelsis, or is it the kind of

Hi, there thanks for taking my questions.

Two on rebel Sis and <unk>.

And particularly on with.

With doses of <unk>.

Are you seeing anything.

Naresh Chouhan: Unknown Attendee, Jo Walton, Daniel Bohsen, Matthew Weston, Daniel Bohsen, Novo Nordisk

Some slowdown in the uptake.

Patients starting over at doses or is that kind of slight softness due to COVID-19 or can you distinguish between the two and then secondly can you give us some sense of how many rebels as makes sense from an instrument to and how many.

Naresh Chouhan: and then secondly, can you give us some sense of how many Rubella suspicions there are...

Naresh Chouhan: I would like a sense of how many rubella suspects have come from an SGT2 and how many have come from other orals. And then, on the Zympic 2MIG, do you expect any of the GLP-1 skippers to use the 2MIG dose, or are most of these not eligible for GLP-1 due to either lack of reimbursement or insufficient beta cell function or some other reason why they just wouldn't use GLP-1?

Have come from other oral.

And then on the <unk> and <unk>.

Do you expect any of the GOP line skip as they use.

To make those.

These non eligible for GOP ones due to either black reimbursement or insufficient beta cell function or some other reason why they just wouldn't use GOP one thank you.

Lars Fruergaard Jorgensen: Thank you. So if I start on the first question, when it comes to uptake, I think I touched on it a bit earlier that we see that it's a new brand, so it takes some face-to-face promotion to really drive it to the max. I don't know if you're referring to the latest NDPIX scripts in the U.S., where we see a bit of a change. This is normal at the beginning of the year where you see that there's a change in plan and some change between the doctoral plans, et cetera. So that impacts script development at the beginning of the year. In terms of sort of business, do you have the details on that, Karsten?

Thank you so.

If I.

That on the first question. So if you look at the uptake.

I think I touched a bit upon it that.

We see that.

It's a new brand so it takes some face to face promotion.

To really drive it to the next.

I don't know if you're referring to the latest NPA.

<unk> in the U S, where we see a bit of a change.

As normal at the beginning of the year, where youll see that this change in plan and some of the change between Dr. <unk> fans et cetera, so that impacts.

With development in the beginning of the year.

In terms of sort of business.

Karsten Munk Knudsen: Yeah, and I'll just add to Lars' comment on the launch experience with the product. So all, we're very happy with the Rebelsys launch, and it went on exactly as planned and expected. As to stay time, we don't have good longitudinal data at this point in time. And do bear in mind that we have not been in the market for a very long time. And generally speaking, stay time on GLP-1 is three plus years, so we haven't seen any negative signals in that respect. It's exactly as we expected.

Do you have the details on that Carsten Yep Yep and.

Just to add to your last comment on that.

The launch experience with the product. So so all we are very happy with the with the rebels just launched and it's persistent exactly.

And expect it.

So stay time, we don't we don't have.

Good longitudinal data at this point in time and to bear in mind with.

We've not been in the market for a very long time and generally speaking stay time on a huge one as three plus years. So.

So we haven't seen any negative signals in that respect.

Exactly as we expected.

Lars Fruergaard Jorgensen: Then in terms of source of business, what we are seeing is that we see mainly earlier stage business compared to that of Osempic. So more treatment, Naive, and Metformin, and some DP4s, and I would say less sourcing from SGLT2s. And maybe I can just add to what Karsten is saying, the feedback from the market, or at least the feedback we're getting in terms of what the A1C reductions are, i.e.

In terms of.

Social business, what we are seeing is that we see mainly so we've seen earlier, it's also a business compared to that of <unk>. So some more treatment naive.

And that for them and in some deep before and I'll say less sourcing from HTM to choose.

And maybe I can just add to what <unk>, saying.

Feedback from the market at least the feedback were getting in terms of what are the reductions and I E. The efficacy of the drug we have repeatedly said that the more evidence we get the more it is clear that we have at least the same real world efficacy. That's injectable <unk>, if anything normally slightly better so there's nothing to suggest.

Lars Fruergaard Jorgensen: The efficacy of the drug, we have repeatedly said that the more evidence we get, the more it is clear that we have at least the same real-world efficacy as injectable GLP-1s, if anything, normally slightly better. So there's nothing to suggest that Ribelsis is not performing as well as in the Pioneer Program in the real world. So, in our view, we're succeeding with the positioning of the two products and the so-called stemmer synergy strategy where there's a clear segment for the oil version, and there's a clear segment for the injector. Then, could I please ask you to repeat your second question? Sure, on the, on the Zempik 2.

That rebuilt is not performing.

As well as in the pioneer program in the real world setting.

So all of you it's a research heating with the positioning of the two products and the so called <unk> synergy strategy, where there's a clear second quarter. The old version and that's the clear second Injectables I think could I. Please ask you to repeat your second question.

Naresh Chouhan: On the Azempic 2MIG, do you expect patients who just completely skip GLP-1s will use the 2MIG dose given the higher efficacy, or do you consider most of those patients not to be eligible for GLP-1s either because they haven't got reimbursement or they have insufficient beta cell function?

Sure.

The S&P.

<unk> do you expect the patients who are just completely skipped GOP ones.

They might be might use at scenic days, because given the higher efficacy or those patients.

Or do you consider maintenance basis, and also be eligible to GOP ones, because they haven't got reimbursement school Devin insufficient beta cell function.

Naresh Chouhan: Okay, thank you. Naresh?

Because that's quite a few of the patients that mis <unk> and timing of straight to ensign say potentially to make my I hope you can open up some of that market.

Mads Krohsgård: Yeah, well, actually not because, as you know, GLP-1 is only being used globally by a single-digit percent of the patient population. And the reason for 90 plus percent not being on GLP-1 is more that it is a molecular class that is still undergoing, you can say, volume and market share expansion in the total diabetes market for many years to come. So it is not as if a patient who skips GLP-1 does so because he or she is afraid of not getting the benefits.

Okay. Thank you yeah.

Actually not because.

As you know GOP line is only being used globally by single digit percentage of the patient population and the reason for 90 plus percent not being until Q1 is more of that it is.

Melissa class that is still undergoing you can see volume and market share expansion in diabetes and many years to come.

It is not as if a patient who is <unk>.

Mads Krohsgård: It's well acknowledged by physicians who have ever prescribed GLP-1 that it is the most efficacious non-insulin product available. So we see the two milligram dose essentially as an ability to escalate above and beyond simply one milligram in those patients who, after a stay time of maybe four years or whatever the standard stay time is nowadays, will have the ability to stay at the guideline level of control with an A1C below seven for even longer by going from one milligram to two milligrams, pretty much as we're also doing with the rebels by developing doses Thank you very much. Next set of questions, please.

<unk> does so because he or she is afraid of not getting the efficacy.

Knowledge by by physicians, who have ever prescribed you'll pick one that it is the most efficacious non interesting product available. So we see the two milligram dose essentially as an ability to escalate above and beyond simply one milligram in those patients who after a steep time of maybe four years or whatever the standards. The time is now.

<unk> will have the ability to stay at the guideline level of control when they once you blow seven put even longer like going from one milligram two milligrams a week pretty much as we were also doing with the rebels by developing doses.

Of the 40 milligram that we have today.

Sachin Jain: The next question comes from the line of Sachin Jain from Bank of America. Please go ahead.

Thank you Ms next set of questions. Please.

Sachin Jain: Hi there, thanks for my questions. A few, please.

The next question comes from the line of Sachin Jain from Bank of America. Please go ahead.

Sachin Jain: Firstly, back to obesity. You obviously talked about a lot of the factors that play into the launch, but I want you to just comment on how you think the SEMR obesity launch curve will fare versus SACSENDER and how we think about it as being additive versus some cannibalization. The reason for the question is very simply that consensus assumes a very similar launch curve for SEMR obesity to SACSENDER and is additive at a sort of 4 to 5 billion Danish Kroner in year 2.

Hi, guys. Thanks, taking my questions a few pleased.

Please especially back to obesity and you've obviously talked about a lot of factors that play into the launch but wonder if you just comment on how you think <unk> launch curve will fare versus <unk> and how do we think about it as being attitudes versus some cannibalization and the reason for the question is very simply that consensus assumes very similar launch curve for <unk>.

<unk> sanctioned and being additive and sort of $4 5 billion Danish kroner need to so any thoughts there obviously going after peak sales in south explanations, but just any directional commentary and.

Sachin Jain: So any thoughts there, obviously not after peak sales or sales expectations, but just any directional commentary. Secondly, on Ribelsis and the Japanese launch, you obviously highlighted that on the call a couple of days ago. Perhaps one of you could just go into a bit more detail there.

Secondly, on <unk> and the Japanese launch you, obviously highlighted that on the call a couple of days here I Wonder if you can just go into a bit more detail.

Lars Fruergaard Jorgensen: Bigger OAD market, but if you could frame the size of that market in absolute terms versus the US, and if you achieved matching the SGLT2 type launch metrics, what does that just mean from a financial perspective? And then last one for MADS on the next phase 3 data set, I guess, IGADEC. With placebo, there was a lot of back and forth with the FDA on labelling and hyper definitions, etc., so I just wanted to drill this down from a phase 3 perspective.

Bigger market, but if you could frame the size of that market in absolute terms versus the U S. And if you achieved matching <unk> launch metrics, what does that just mean from a financial perspective.

And then last one on the next phase III data I guess I get that and what you see but there was a lot of backwards and forwards with the FDA on labeling and hyper definitions et cetera. So I just wanted to just drill is down from our phase III perspective in a best case scenario what type of label you're gunning for.

Lars Fruergaard Jorgensen: In the best case scenario, what type of label are you gunning for, for IGADEC? And if you get that, what's the ambition regarding this asset? The question was asked, but just to go back over it, do you think this can return insulin to an attractive growth rate? Or is this about gaining share in a declining market? Thank you.

And if you get that.

Once the ambition regarding this asset the question was asked but just to go back over it do you think this can return insulin to attractive growth rates or is this about gaining share in a declining market.

Lars Fruergaard Jorgensen: Thank you, Sachin. So if I start out on semi-obesity and perspectives on the market, additive cannibalization, vis-a-vis our current product. So it's clear that today we have a situation where we are, most people fall short of the real expectation in terms of weight loss, which when you ask physicians or patients, they are looking to get to above 10%. Some do at the sex center, but not all

Thank you Sachin so if I start out on the on.

Same obesity and perspectives on the market additive kind of conversation vis vis.

Our current product so it's.

It's clear that today, we have a situation where we are.

Most people fall short on the real expectation in terms of weight loss, which when you ask physicians or patients theyre looking to get to above 10%. Some two once extender, but but not all.

Lars Fruergaard Jorgensen: And it's clear that from a response rate point of view, we have a challenge with sex centers, and you know the stay time is some months. So when we come with a product like semaglutide 2.4, and you get patients to, you know, clearly above the 10% expectation level, you have that most respond to it, you have the long stay time mass alluded to before because you have continued weight loss throughout the phase three trial program We see that relatively fast, we should be able to, you know, move patients to more efficacious products.

It's clear that this from a say a response rate point of view, we have a challenge with extender.

And and you know the stay time is.

Some months.

So when we come with our products like <unk> to fall.

And you get patients too.

Clearly above the 10% expectation level you have that most respond to it.

You have the long stay time mess alluded to before because you have a continued weight loss.

Throughout.

Phase III trial program.

Yeah.

We see that.

Relative fast we should be able to.

Lars Fruergaard Jorgensen: But of course, you also get an additive effect, both from the experience, physicians will have the product and move more patients on it. But also, just the stay time, the longer stay time will mean that you soon move to a higher level than what you have today.

Move patients to cause that.

More efficacious product.

But of course that you also get an additive effect.

Both from the expense.

Patients will have for the product in more patients on it but also just the stay time the longer stay time would mean that youre soon move to a higher.

Lars Fruergaard Jorgensen: So I think there'll be both; there'll be cannibalization, but clearly also additive sales. And I cannot guide you to what that leads to, but for sure, in my view, a step change in how that should look. In terms of Rebels' launch in Japan, which is taking place now, actually, we know that 80% of the Japanese diabetes market is actually OAD. I don't know, I don't have a sizing for that off the top of my head compared to the U.S. Margo, if any of my colleagues have that.

Level than what you have today.

So.

Think there'll be there'll be both they're both the cannibalization.

He also additive sales.

Not guide you to what that leads to but the but for sure my view a step change in how that should look.

In terms of rebel.

Launch.

<unk>, which is taking place now.

They actually.

We know that 80% of the Japanese.

And secondly, OLED.

I don't know I don't have from top of my head sizing of that compared to the U S. Not only thing and my colleagues at that customer look like.

Karsten Munk Knudsen: Karsten looks like he has some data. No, but I would say when you look at our whole business, then in Japan, Japan is about 5% of our global business. So I think we have to put it in that context that Japan is more of an oil market, as Lars was just covering, but still in magnitude. Japan, with some 120 million inhabitants, then in magnitude, then perhaps you're looking at the potential of perhaps to the tune of 10% of our oil rebalancing potential overall.

Some data.

But I would say when you look at our all business.

And then in Japan, Japan is some 5% of our global business.

So I think we have to put it in that context.

Japan is more of a.

All market all his life with just covering so but.

But dealing magnitude, Japan with some 120 million inhabitants.

In magnitude than perhaps you are looking at the potential for perhaps to the tune of.

Karsten Munk Knudsen: Thank you, Karsten. Mesh on iCodec. Yep. Yep, so very briefly, the target product profile we have for Igodec is that it should be the first and preferred once weekly insulin for basal insulin initiation, in particular in type 2 diabetes. And by being simpler to use and more convenient with the target product profile, also delineating efficacy superiority versus today's once-daily-instinct CLAR gene, this should not only enable people to get back to a normal life, but also to a happier life, because with the added adherence and potentially added efficacy that we have seen signs of in phase two, that should differentiate not only in terms of convenience and compliance, but also in terms of outcomes.

10%.

Group houses potential all globally.

Thank you Carsten mesh on Iclusig.

Yes.

Yeah, So very briefly.

<unk> product profile, we have for Iclusig is that it should be the first and preferred once weekly insulin for basal insulin initiation in particular in type two diabetes and by being simpler to use and more convenient with the target product profile also delineating.

You superiority versus today's once they had interesting clotting. This should not only enable people to get back to a normal life, but also to a happy life because with the added adherence and potentially added efficacy that we have seen signs of in phase two that should differentiate it not only in terms of convenience and compliance but also in.

Karsten Munk Knudsen: And to add further to that, we've come to realize that people who don't titrate on a daily basis but only get an injection per week might need further help to get into the habit of titration. So we've even developed and will be seeking approval for a very smart electronic titration tool that will make it easy for people to, using their smart devices, actually get closer to target, if not at target, with a very simple algorithm that is dictated to them via their smartphones.

Terms of outcomes and to add further to that we've come to realize that people, who don't titrate on a daily basis, but only get any injections per week they might be further help to get into the habit of titration. So we've even developed and will be seeking approval for a very smart electronic titration tool that will make it easy.

For people to using their smart devices actually get closer to talk to you if not at target with a very simple algorithm that is dictated to them.

Karsten Munk Knudsen: So we will try to get a strong label for IQODEC. We have had really good dialogues with FDA and other agencies, and we're not doing open label extensions like the ones we did in the old days for placebo.

Smartphones. So we will try to get a strongly for <unk>. We have had really good dialogues with FDA and other agencies and we are not doing open label extensions like the ones. We did in the old days for placebo. So don't worry about the paper a 13 situations.

Mads Krohsgård: So don't worry about the February 13th situation. Thanks very much. Thank you, Sachin. Next question, please.

You bet.

Simon Baker: And just as a final reminder, if you do wish to ask a question, please press 01 on your telephone keypad now. Our next question comes from the line of Simon Mather from Exxon. Please go ahead.

Thanks very much.

Thank you next question please.

And just as a final reminder, if you do wish to ask a question. Please press zero one on your telephone keypad now.

Simon Baker: Thank you for taking my question.

Our next question comes from the line of Simon Baker from Exane. Please go ahead.

Simon Baker: Thank you for your questions and congratulations once again, Mads, on a great career. Maybe I could just start off to kind of elaborate, or rather continue on from Sachin's question. Obviously, good clinical differentiation.

Thank you for taking my questions and congratulations once again mobs on the Greg Korea, maybe maybe if I could just start off to kind of elaborate.

Simon Baker: I'm just wondering if you could maybe share with us your...

Continue on from <unk> question.

Obviously, a good clinical differentiation hoped for ichor deck.

Simon Baker: , Peter Welford, Simon Baker, Emmanuel Papadakis, Eric Berrigaud, Benjamin Yeoh, Rajesh Kumar

Wondering if you could maybe share with your enthusiasm that payers are willing to pay for this level of innovation.

Simon Baker: with Josie Berry, didn't we?

A multi multi touch point do you think this can invigorate growth.

Simon Baker: to see, but we didn't really get where we wanted to. So that's the first question. And then, secondly, just further on to the appetite.

In the insulin space, because we saw with a placebo didn't really get what we wanted to.

Simon Baker: I know we need to wait for the data.

That's the first question and then secondly, just further on.

Simon Baker: You've resurrected your program in phase one through a GIP clip.

Is that the site.

I know, we need to wait for the data.

Simon Baker: You could maybe talk to a profile of that drug or your aspirations because I noted your comments, Mads, on tolerability.

Resurrected your program in phase one.

Glenn you may be talk to profile of that drug.

Simon Baker: The reason for the question is really, do you think you need to?

Yet your aspiration.

Could you comment much on Tolerability.

Simon Baker: Differentiate your product offerings in the GLP-1 space. I'm just thinking about this. Maybe it's a bit unfair, but ahead of the expiration of Trulicity in 2026. And then, finally, a question for Mads. Obviously, you've overseen a huge amount of innovation in your career. Just wondering if you could potentially share anything that you may be seeing in early stage research development that excites you that we should be maybe focusing on for the next five years. Thank you. Thank you, Simon. First, Karsten, some perspectives on payers' willingness to...

And the reason for the question is really do you think you'd need to further differentiate your product offerings in the <unk> one space.

Just thinking about this maybe it's a bit unfair but.

Ahead of the.

Thanks, Brian of truly could see in 2026.

And then finally, a question for Matt, obviously, you've ever seen a huge amounts of innovation.

And your career I was wondering if you potentially could share with us anything that you may be seeing in early stage research development.

ICU that we should be maybe focusing on for the next five years.

Karsten Munk Knudsen: Yeah, so, one should be careful when we look at ICODEC. And, and I think the markets have focused a lot on insulin price development in the US. But I'm just like, again, to point your attention to our insulin business in international operations, which grew 9% last year. So, so clearly, a big opportunity there.

Thank you Simon first cost and some perspective on payers' willingness to.

Recruit approach.

Yes so.

So one should be careful when we look at <unk> and I think the markets over the past couple of years focused a lot on an insulin price development in the U S. But.

Just like again to point your attention to two insulin business in international operations, which grew 9% last year. So so clearly a big opportunity there. So the way we look at it I could I guess.

Karsten Munk Knudsen: So the way we look at at ICODEC is when the opportunity for patients. So first of all, as Matt was covering before where what we're pursuing is to look for superiority and look for a once weekly insulin compared to a once daily insulin, and and and the segment we're targeting since it's both type 1 and type 2 then we're talking around to the tune of 20 million patients on basal insulin therapy today or perhaps even more and the market segment which in magnitude today based on on company reported numbers is perhaps in the 10 billion dollar magnitude so it's a big market it's a lot of patients that can benefit both convenience and efficiency wise and then you can say from a shareholder and company point of view then of course we have the added benefit from patent and regulatory data exclusivity that will be moving into the mid-30s on protection on our patents and our data. Thank you, Karsten.

When.

The opportunity for patients. So first of all as mass was covering before with what we are pursuing.

Low cost superiority and look for once weekly insulin <unk> compared to a once daily insulin <unk> and <unk>.

The segment, we are targeting since it's both type one and type. Two then we're talking around to the tune of 20 million patients on basal insulin therapy today are perhaps even more and the market segment, which in magnitude today.

Just on the continent reported numbers as perhaps in the 10 billion dollar magnitude. So it's a big market. It's a lot of patients that can benefit both convenience and efficacy wise and then you can say from a shareholder shareholder company point of view then of course, we have the added benefit from it.

From patent and regulatory data exclusivity.

<unk> be moving into the mid <unk>.

Mads Krohsgård: Indeed, very exciting. Mads, I know this is not a Leelie Conference call, but we have many questions about your subtitles, and I guess what we can talk about is our products, and then there was also a question on the way out here, what's the exciting early stuff? I'll take the last one first.

Protection on our patents and our data.

Thank you Carsten, indeed, very exciting Les I know there.

There is not another conference call.

We had many questions on sort of appetite and I guess, what we can talk to us our products vis vis what subtype and there was also a question on <unk>.

On the <unk>.

<unk> out here.

Mads Krohsgård: And I won't be specific because we are never at the early stages, but I think there are three new technology platforms that are emerging almost as I leave through the front door. And one of them is the oral pipeline that is unfolding as we speak. And my successors will speak a lot more about that. And then the other one is the stem cell technology platform, where we have actually promised you and yourselves, by the way, to open up one new ID in a new disease area per year, starting with this year, with Parkinson's disease, by the way, being the first. So the stem cells look out for that as well.

Yourself.

Yes, so I'll.

I'll take the last one first and I won't be specific because we never at the early stages, but I think there are three new technology platforms that are emerging.

As I I leave through the front door and one of them is the oil pipeline that is unfolding as we speak and my successor will speak a lot more to that and then the other one is the stem cell technology platform. What we have actually promised you and ourselves by the way to open up one new IP in a new disease area per year, starting with this year.

Mads Krohsgård: And we're really happy about a strategic alliance with Dyserna. We have picked the first two clinical development candidates together with our alliance partner Dyserna, as small interfering RNAs in totally new first-in-class targets. and all more efficacious offerings available, both within the GLP-1 semispace per se, but also, for instance, if the GIP-GLP combo gives promising data, we could progress the most attractive ratio of our GIP-GLP combo now in phase one development, if we so decide.

<unk> by the way being the first so the stem cells to look out for that as well and then we're really happy about our strategic alliance with China. We have picked the first true clinical development candidates together with our alliance partner by Serena as small interfering RNA in totally new first in class targets. Please follow that one closely because we can pick up to 30.

Projects that align so a lot of things are happening above and beyond the classical injectables technical most catch thrives on for about a century.

I won't put many more words on <unk>, but rather see that novo nordisk is firing on all cylinders. So on full batteries what have you seen nowadays in that when we look at <unk> one franchise going forward, we will both try to make even more convenient and more efficacious and almost efficacious offerings available.

Mads Krohsgård: So, we actually think we have quite a few offerings, both in the clinical pipeline, like cagrostema, but also in the future emerging pipeline, where we can build molecular constructs on the basis of the semaglutide skeleton, and you will hear more about that, I guess, going forward.

Both within the <unk>, but also for instance, if they keep clip combo gifts promising data we could progress the most attractive ratio of I'll keep flip combo now in phase one development. If we show decided all we could say that the optimal partner for <unk>.

C Metro type might not necessarily be CIP compound, which which adds maybe modest benefit but also if you decided if it potentially whereas something like tequila entitled The Emlen Clos at quite a big benefit in terms of further weight loss and might have also potential of Eddie TVT with some macro side when it comes to type two.

Mads Krohsgård: Thank you, Mads. Thank you, Simon. With that, we'll close today's conference call. Thank you all for your interest in Novo Nordisk, and have a great day. Thank you. Transcription by ESO. Translation by —

You can see remission or treatment as well as Nash for that matter. So we actually think we have quite a few offerings. Both in the clinical pipeline like heck with Siemens, but also in the future emerging pipeline, where we can build medical cost structure on the basis of the macro side skeleton and Youll hear more about that I guess going forward.

Operator: This concludes the conference call. Thank you all for attending. You may now disconnect your lines.

Thank you Ms. Thank you Simon would that we'll close today's conference call. Thank you all for your interest in Illinois and have a great day. Thank you.

Operator: Thank you for watching!

This concludes the conference call. Thank you all for attending you may now disconnect your lines.

Okay.

[music].