Q2 2021 Novo Nordisk A/S Earnings Call (London-Based Investors)

Yeah.

Yeah.

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Hello, and welcome to the Q2, 2021 Novo Nordisk <unk> earnings presentation.

Operator: Hello and welcome to the Q2 2021 Novo Nordisk AS earnings presentation. For the first part of this call, all participants will be in listen-only mode, so there's no need to mute your individual lines.

For the first pump this call all participants will be in listen only mode. So there's no need to be trained to actual lines and I'll switch there'll be a question and answer session.

Operator: Sessions, and afterwards, there will be a question and answer session.

And I will now hand, the floor to loans theoretical hot yoga since CEO. Please begin your meeting.

Operator: and I will now hand the floor to Lars Joergensen, CEO. Please begin your meeting. Thank you very much.

Thank you very much I'm not sure I've got Jorgensen CEO of Illinois.

Lars Fruergaard Joergensen: I'm Lars Joergensen, the CEO of Novo Nordisk. I'd like to start by thanking the city of Copenhagen for hosting us on this call today. With me, I have Karsten Knudsen, our Chief Financial Officer, Camilla Sylvest, Head of Commercial Strategy and Corporate Affairs. We have Doug Lange on the line, and Doug is responsible for our North American operations. And we have Martin Lange, who is

City.

On this call today with me I have a customer in person our chief financial officer can be the serviced for commercial strategy and corporate affairs, we have Doug Langa underlying dog is responsible for our North American operations and we have much in Ghana was responsible for development.

We will do a quick 1 threw off the slides from our earnings release call and then we'll be ready to take your questions. So I have to start by reminding you that we'll be making forward looking statements today.

Lars Fruergaard Joergensen: We will do a quick run through of the slides from our earnings release call, and then we'll be ready to take your questions. So I have to start by reminding you that we'll be making forward-looking statements today, and that such statements are, of course, subject to risk and uncertainties, as the future might turn out to be different from what we indicate today. I'll start with a few highlights.

And that's such statements of course are subject to risks and uncertainties at this the future might turn out to be different from what we indicated today.

Yeah.

I'll start then by a few highlights.

You are probably well aware of our strategic aspiration for 'twenty to 'twenty 5 and we're very pleased that we have made strong progress on all 4 dimensions are through the first 6 months of 2021, both in the area of social responsibility.

Camilla Sylvest: You are probably well aware of our strategic aspirations for 2025, and we're very pleased that we have made strong progress on all four dimensions through the first six months of 2021, both in the area of social responsibility and being a sustainable business from an environmental point of view. We have achieved strong commercial success on all three parameters. You'll hear more about that in the presentation. We have also made good progress on innovation and therapeutic focus, not least with the recent approval of WeGoWe in the US, which I'm sure we'll be talking a lot about in the Q&A, and then we have upgraded our financial outlook based on strong performance for the first six months but also continued high expectations for continued momentum for the rest of the year. So, a very strong start to the year, and we are quite optimistic about the future. With that, I'll hand over to Camilla for some highlights on our commercial performance. Yeah, thank you, Lars.

And.

Being a sustainable business from environmental point of view.

We have made strong commercial success on all 3.

You'll hear more about that in the presentation. We have also made good progress on innovation into music focused not least with the recent approval or we go in the U S, which I'm sure we'll be talking a lot about in the Q&A.

And then we have upgraded our financial outlook based on strong performance for the first 6 months, but also continued high expectations for continued momentum momentum for the rest of the year.

So a very strong start to the year and we are quite optimistic about the future and with that I'll hand over to Camilla for some highlights on our commercial performance yeah. Thank you lasse.

Half of 2021 hour face increased 12% driven by both international operations and North America Operation and also all of happy area therapy areas contributed to growth.

Camilla Sylvest: Yeah, thank you Lars. So in the first half of 2021, our sales increased by 12%, driven by both international operations and North America operations, and also all therapy areas contributed to growth. And North America operations grew 11%, international operations by 13%, and our diabetes care franchise by 11%. But also, our obesity care franchise has reverted to its previous growth level and is now at 34% growth for the first half year, and BioPharm also at 7% growth for the first half.

North America operations grew 11% and international operations by 13% and our diabetes care franchise with 11%, but also our obesity franchise has it.

Read it to our previous growth levels and is now at 34% growth for the first half year and Biopharm also at a growth level of 7% for the first half.

Camilla Sylvest: And on this slide, the next slide here, you see our progression towards our strategic aspiration of 33% market share in the total diabetes market is improving, where we are adding 0.5 percentage points and are now at a market share of 29.6. This is driven by both international and domestic If we take a deeper dive into IO, we see solid diabetes sales growth across all regions in international operations and a total growth of 13%.

And on this slide the next slide here you see an alpha question to watch out strategic aspiration of 33% market share in the total diabetes market is improving.

We are adding.

I see your 0.5 percentage point and are now at a market share of $29..6 this is driven by both tier 1 and market share growth and also including lack of shekels.

We've now launched the <unk> 62 countries and we felt was in 18 countries.

If we take a deeper dive into Io you see solid the diabetes sales growth across all regions in international operations and a total growth of 13%.

On the right hand side, you see it all she have growth.

Camilla Sylvest: On the right-hand side, you can see our share of growth steadily improving in the diabetes care market and also our total diabetes market share improving by 1.4 percentage points versus 2020. So we are now at a total share of 23.9%. In our biofarm operations, our sales grew by 7%, driven by both North America operations and also international operations, and also driven by our legacy products, Nordic Tropin and Novo7, but also by our new launches in rare blood disorders, which grew by 11% due to the uptake of our products Espirot and Refixia. Now, over to Doug for an update on the U.S. market.

Natalie improving in the diabetes care market and also our total diabetes market share improving with 1.4 percentage points versus 2020. So we are now at a total of 23, 9%.

In our Biopharma.

Operations, our sales grew by 7% driven by both North America operations and also international operations and also driven by our legacy products already chosen and over 7 but also by our new launches in the rare blood disorders that grew by 11% due to the uptake of our products <unk>.

And we fix yet.

Now over to adopt an update on the U S market.

Thanks Camilo.

So as you saw in our announcement on what Camilo just spoke to was really an excellent first half of 2021 for the <unk> franchise, where sales grew 24% in North America, specifically in the U S. The volume market growth was 25% and that was driven by it was up again rebel says.

Douglas J. Langa: So, as you saw in our announcement and what Camilla just spoke about, it was really an excellent first half of 2021 for the GLP-1 franchise, where sales grew 24% in North America. Specifically, in the U.S., volume market growth was 25%, and that was driven by Ozempic and Robelson. Importantly, Novo Nordisk is maintaining the NBRX leadership with Ozempic being the leading brand, and in terms of total prescriptions, Novo Nordisk also maintains market leadership at over 50% market share. See Finger on the next slide.

Importantly, novo Nordisk is maintaining the MBR leadership with those epic being the leading brand and in terms of total prescriptions Novo Nordisk also maintain market leadership at over 50% market share.

You can go to the next slide.

So rebel continues its steady volume growth, which has been solid considering to COVID-19 related commercial lockdowns.

Douglas J. Langa: So Rebelsis continues its steady volume growth, which has been solid considering two COVID-related commercial lockdowns. The sales force returned in mid-May, and that did support continued increases in prescription uptake. We're confident in Rebelsys. We do believe it's the most efficacious OAD.

The sales force returned and Mad men.

And that did support continued increase in prescription uptake.

At least at its current pace.

We're confident in rebel says we do believe it's the most efficacious OED. So again, we're confident in its long term outlook.

Importantly, there is leading indicators such as breadth of prescribers awareness and source of business that reinforce our confidence as well as the continued strong market access.

Douglas J. Langa: So again, we're confident it's a long-term outlook. Importantly, there are leading indicators such as breadth of prescribers, awareness, and source of business that reinforce our confidence, as well as continued strong market access. In terms of the rest of the world, as I mentioned on Wednesday, we've launched in 17 other countries, importantly, Japan, and as I noted, it was a point 7% of the modern OAD market value market share, but also noted that there are still continued lockdowns in Japan, which makes it difficult for patients and sales forces. So that should be noted. If you go to the next slide,

In terms of the rest of the world as I mentioned on Wednesday, We've launched <unk> 17, other countries importantly, Japan and as I noted it was a 0.7% modern OAD market value market share, but also noted that there is still continued lockdowns in Japan, which makes it difficult for patients and sales forces so that should be noted.

The next slide.

So obesity sales are back to a growth profile, 34% will go the <unk> that have contributed to a rebound both in novo sales growth ending AUM growth.

Douglas J. Langa: So obesity sales are back to a growth profile of 34%. Will Govy and Saxenda have contributed to a rebound both in Novo's sales growth and in AOM growth? Obviously, Mugovi has been particularly impressive, and with the same number of weekly scripts. It took Sex Center for four years before we saw Mugovi today. This overwhelming initial demand has put, as I mentioned the other day, pressure on the supply chain, leading to temporary shortages for the starting dose, which again is 0.25 milligrams. Now, as a company, Novo Nordisk, we are committed to ensuring that any patients who start on Wigovy can continue, and production plans are being adjusted to satisfy the current demand. So, Martin, it's over to you.

Obviously <unk> has been particularly impressive and the same number of weekly scripts chipset extended for 4 years that.

We saw him will go the to date.

This is overwhelming national demand has put as I mentioned, the other day a pressure on the supply chain, leading to a temporary shortages for the starting dose, which again is <unk> 2.5 milligram.

As a company Novo notice we are committed to ensuring that any patients who start on mobility can continue and production plans are being adjusted to satisfy the current demand so martin over to you.

Yeah.

Okay.

Thank you very much book and also in R&D, we see a very nice progress of our pipeline and in our portfolio, they're seeing across diabetes obesity, all biopharm franchise, but also in other serious chronic diseases.

Martin Holst Lange: Thank you very much, Doug. Also in R&D, we see a very nice progress of our pipeline and our portfolio, this being across diabetes, obesity, our biofarm franchise, but also in other serious chronic Specifically in other serious chronic diseases, I want to call out two things, first being our phase 3 initiation of our trials in Alzheimer's, As you obviously well know, there's a substantial unmet need in Alzheimer's, being a high impact for patients, their relatives, but also from a societal perspective.

Basically in other serious chronic diseases I want to call out 2 things first being our phase III initiation of trials in autonomous disease.

As you, obviously, well know there's a substantial unmet need in all the time of this.

Being a high impact for patients and their relatives, but also from a societal perspective.

We have good strong indications from both real world evidence, but also a post hoc analysis from all our cities, let's zoom on a GOP 1 analog potentially might have an impact on the outlook for <unk>.

Martin Holst Lange: We have good and strong indications from both real-world evidence and post-hoc analysis from our own that being on a GLP-1 analogue potentially might have an impact on the outlook for a dementia diagnosis, and we've seen decreases in dementia diagnosis to the tune of 25-50% in this setting. This has prompted us to initiate this phase 3 program totalling a total of 3700 patients, the majority of whom have a diagnosis of mild cognitive impairment or dementia of the. It should be called out that in the evoked class, we also had 20% of patients who have small vessel pathology, thus leaving us with a potential for a broader label if successful. Next slide, please.

Dementia diagnosis, and we've seen decreases in dementia diagnosis to the tune of 25% to 50% and in this setting. This has prompted us to initiate this phase III program totaling a total of 3.

3700 patients the majority of whom having a diagnosis of mild cognitive impairment all of it.

<unk> of the Alzheimers type.

It should be called out that enable class. We also had 20% of patients who have small vessel pathology.

Leaving us with a potential for a broader label if being successful.

Slightly.

And staying in other serious chronic diseases.

Cardiovascular space, we have a clear ambition of having a launch product.

Martin Holst Lange: In staying in other serious chronic diseases in the cardiovascular space, we have a clear ambition of having a launch product between 2024 and 28 with a novel mode of action and addressing a substantial unmet need. As you already know, we do have a robust cardiovascular pipeline, but expanding that and also fitting very nicely into that pipeline, we've done an exclusive worldwide collaboration and license agreement with HeartSeat. This is to address heart failure with stem cell-based therapies.

'twenty 'twenty 4 and 'twenty 8.

With a novel.

Mode of action and addressing a substantial unmet need.

As you already know, we do have a robust cardiovascular pipeline, but expanding that and also fitting very nicely into that pipeline. We've done an exclusive worldwide collaboration and license agreement with Hot seat. This is to address the address heart failure with stem cell based.

That'd be.

And we've done an acquisition of Pristina Hei amyloidosis program addressing.

Martin Holst Lange: And we have done an acquisition of Prathina's ATTR amyloidosis program addressing a somewhat rare disease, namely ATTR amyloidosis. This is a very, very severe cardiovascular disease leading to the build-up of amyloid plaques in the carotid muscle leading to heart failure and then subsequently a high risk of death.

It's somewhat rare disease.

The disease, namely a T T al Amyloidosis. This is a.

Very very severe cardiovascular disease, using true true true buildup of amyloid plaques in the cartoon Basel do you think to heart.

Heart failure, and then subsequently a high risk of death.

2 deals.

As I said, it very nicely fits into our cardiovascular aspiration.

Karsten Munk Knudsen: The two deals, as I said, very nicely fit into our cardiovascular aspirations. Supplementing our already clinical assets with silcivecumab starting phase three in this quarter and oral PCSK9, where we have started phase two trials actually last, It also supplements our activities in our ongoing major cardiovascular health trials, namely select, soul, flow, as well as focus. So across the board, both in the first half and continuing into the second half of this year, we see very nice progress in our pipeline with phase three activities in all of our therapy areas, including biopharmaceuticals, diabetes, obesity, and other serious chronic diseases. With that, over to you, Karsten.

Supplementing our already clinical assets with since American map, starting phase 3 in this quarter and or a P. C. S canine where we've started phase.

2 trials.

Actually last week.

It's also supplements all activities in our ongoing major cardiovascular outcome trials, namely select shown flow as well as focus next slide please.

So across the board both in the first half, but continuing into the second half of this year, we see a very nice progress.

All of our pipeline.

With the phase III activities in all of our therapy areas, including Biopharm diabetes obesity and other serious chronic diseases with that over to you guys.

Thank you Martin.

During the first 6 months, we delivered 12% sales growth and 9% operating profit growth.

Karsten Munk Knudsen: Thank you, Martin. During the first six months, we delivered 12% sales growth and 9% operating profit growth. This is the highest sales growth we've delivered as a company since the first half of 2013. So really strong momentum in the first half and even an acceleration during the second quarter compared to what we delivered in the first quarter.

This is a high sales growth as a company we delivered since the first half of 2013. So so really strong momentum in the first half and even an acceleration during second quarter compared to what we delivered in the first quarter.

Okay.

In terms of our tax rate than we had a change to our historic tax positions, which helped our tax rate in the quarter and now with 19 point to 0.8 ineffective tricks tax rates or.

Karsten Munk Knudsen: In terms of our tax rate, then we had a change to our historic tax positions, which helped our tax rate in the quarter, and now we're at 19.8% in effective tax rates. All in all, a net profit of 10% and earnings per share of 12% for the first six months. As you've seen in previous quarters and years, we are very disciplined in terms of, first of all, converting our earnings into free cash flow, and from there, allocating our free cash flow to shareholders through dividends and share buybacks.

And on a net profit of 10% and earnings per share of 12% for the first 6 months.

S as you've seen in previous quarters and yes, then we're very disciplined in terms of first of all converting our earnings into free cash flow and then from there educating all free cash flow to shareholders through dividends and share buybacks and in line with the with <unk>.

Karsten Munk Knudsen: And, in line with previous years, we are also issuing an interim dividend this year. And this year, it will be 3.50 kroner, which will be paid out in August of 2021. And then, as a side note, you may have noticed that we issued a Eurobond program, an EMTM program of 5 billion, of which we have utilized 1.3 billion, mainly funding the MSVA acquisition which took place last year. As to the financial outlook for 2021, based on the strong momentum in the first half, driven by the obesity business, our diabetes care business, which was growing 11%, and biopharm, we are now expecting 10 to 13% top line growth and 9 to 12% operating profit growth.

Previous yes, we're also issuing an interim dividend this year.

And this year it'll be treat krona, 50, which would be paid out in August of 2021 and then as a side note you may have noticed that the debt we issued a eurobond program.

And Jim program of 5 billion of which we have lost $1.3 billion.

Mainly funding the MSP acquisition.

Took place last year.

As to the financial outlook for 2021 based on the on the strong momentum in the first half driven by obese business, our diabetes care business, which is growing 11% and 5.

We are now.

<unk> tensor, 13% topline growth and in 9% to 12% operating profit growth.

Based on the adjustment and tax position, our effective tax rate is now 19% to 21% all in all.

Lars Fruergaard Joergensen: In the tax position, our effective tax rate is now 19-21%, all in all, a free cash flow expectation of between 39 and 44 billion DKK. With that, all to you, Lars. Thank you, Karsten. So we are well on track to achieving our strategic aspirations for 2025. We, as you can hear, are very pleased with our performance in the first six months of the year and the outlook, which has been upgraded.

A free cash flow expectation of between 39, and 44 billion DKK would.

Would that or would you launch.

Thank you Carsten so we are well on track on achieving our strategic aspirations for 'twenty to 'twenty 5 we as you can hear I'm very pleased with our performance in Columbus in the first 6 months of the year and your outlook, which has been upgraded so with that we'd like to start the Q&A session and we'd like to limit.

Lars Fruergaard Joergensen: So with that, we'd like to start the Q&A session. And we'd like to limit each asker to one or, at most, two questions to ensure we can get as many participants through with their questions as possible. So operator, we're now ready for the first question. Thank you.

Each.

Oscar for 1 or maximum 2 questions to ensure we can get as many participants through with their questions as possible. So operator, we're now ready for the first question. Please. Thank you just as a reminder, if you do wish to ask a question. Please doll's here 1 on your telephone keypad smelter in the queue. Once you're named minutes is announced you can also request.

Operator: Please dial 01 on your telephone keypad now to enter the queue. Once your name is announced, you can ask your question.

And if you find this answer before it sort of sounds speak you can see right through to counsel.

unknown: [inaudible]

Our first question comes from the line of Pizza Adult of Citi. Please go ahead do you monetize them.

Operator: Our first question comes from the line of Peter Adult of City. Please go ahead.

Thank you Peter <unk> Citi.

Quick question on the JV.

Peter Welford: Thank you, Peter Welford. Just a quick question on where we go with this.

Alright. Thanks.

Do you have any ballpark indication as to the cause.

Peter Welford: Dynamics. Can you give us any thoughts?

U S sales teams mobilized.

Any sort of data on the prescriber base dynamics I think historically when you talked about.

Peter Welford: for the launch and any sort of data on the prescriber-based dynamics. I think historically, when you talk about succender, you said only 5,000 US doctors were prescribing. I realize we're very early in the launch, but any data update there would be appreciated. Thank you.

Please go ahead.

<unk> thousand DSL to describing I realize it's very early in the launch but any update there would be appreciated. Thank you.

Thank you Pete and a.

unknown: We appreciate it. Thank you.

Doug if you stay on the line.

Douglas J. Langa: Thank you, Pete. And Doug, if you're still on the line, could you talk a bit about the sales force and what we see from the initial prescriptions?

Yeah, I can talk a bit through the portion of the sales force and what we see from the initial prescriptions. Please.

Absolutely. Thanks, Peter for the question. So we have a dedicated sales force for obesity and its roughly 350 individuals and we have also a special marketing team a dedicated marketing team I guess I should say.

Douglas J. Langa: Absolutely, thanks Pete for the question. So we have a dedicated sales force for obesity, and it's, you know, roughly 350 individuals, and we have a special marketing team, a dedicated marketing team, I guess I should say, and they're all 100% full-time on the obesity franchise, and specifically right now, Wegovy. So I think that would answer your question there. The second question you had about the dynamics, you know, we are seeing a mix of PCPs, nurse practitioners, and IMs, but in the end, the primary bulk of our prescriptions, if we follow what we've seen with Saxenda, will be through PCPs. So I think that answers both questions.

And they're all 100% full time on the obesity franchise and specifically right now.

So I think that would answer your question there.

Second question you had around the dynamics, we are seeing a mix of PCP nurse practitioner.

<unk>, but but in the end the primary bulk of our prescriptions. If we follow what we've seen with <unk> will be a majority through pcp's. So I think that answers both.

Thank you. Thank you Derek Thank you Pete next question. Please.

That comes from the line of local party with Bernstein. Please go ahead. Your line is open Oh.

Lars Fruergaard Joergensen: Thank you, Doug. Thank you, Pete. Next question, please.

Operator: Thank you. That comes from the line by William Alcapardia of Bernstein. Please go ahead.

Oh, great. Thanks, so much for taking my questions are were not quite as advanced.

Just sticking with wood go V, but can I, specifically ask about international operations. So firstly is it fair to assume a similar pricing, but we'll go to the.

William Alcapardia: Well, great. Thanks so much for taking my questions.

William Alcapardia: We're not quite at Bernstein. I was just sticking with Govee, but can I specifically ask about international operations? Firstly, is it fair to assume a similar price for Wigovi to Saksenda, so around $8 to $10 in the developed I.O. markets and slightly less elsewhere? And then the second part of the question is, the split prior to COVID for Saksenda was around 60% U.S. and 40% I.O., and in 1H21, we are close to 50-50. So I'm just curious how you think about the Wigovi split at steady state. I know it's still early; you haven't launched in I.O. yet, but is it possible that I.O.

2.6 and so around 8 to $10 in the developed markets and slightly less elsewhere and then the second part of the question is.

Split prior to Covid.

Second it was around 60% and use them.

40%, Idaho, and then 1 H 'twenty 1 we are close to 50.50. So I'm just curious how you think about it we'll go be split at steady state I know, it's still early you haven't launched it yet but is it possible that <unk> could.

Could be a bigger region for the product in the U S.

Yeah.

Thank you very much community can you talk a bit through.

Although it's early days since we haven't approved outside the U S. A conservation is around pricing and also what to expect in terms of split of business between the true operational units. Yes. So in Atlassian mentioned, it's still early days and it's difficult to comment on pricing at this point in time, but of course you.

Camilla Sylvest: Could be a bigger region for the product than the U.S.? Thanks. Thank you, Emmanuel. Camilla, can you talk a bit about... Although it's early days since we have an approval outside the U.S., considerations around pricing and also what to expect in terms of the split of business between the two operational units.

Camilla Sylvest: Yeah, so as Lars mentioned, it's still early days, and it's difficult for us to comment on pricing at this point in time, but, of course, you've seen how we priced Vigovi in the US three times the efficacy at a price that is similar to Sexenda. So I think that's what we have for now. And then we are, of course, waiting for approval in Europe, and then we will get into pricing in I.O. after that.

<unk> seen how we have priced the V go over in the U S and 3.

3 times see efficacy at a at a price that is similar to some extent that so I think back that they used and that's what we have for now and then we of course waiting for the approval in in in Europe, and then we will get into the pricing in Io after that in terms of the split. It's a it's of course is based on population sizes and in all that develop.

Camilla Sylvest: In terms of the split, it's, of course, based on population sizes and general development and rollout of launches expected that for most of our products, in general, I.O., over time, will become bigger than the US simply as we roll out. And that is what you've seen for our general franchises and for our total sales also. And over time, of course, we also expect that in obesity, that could be a similar approach, mainly due to the number of people and the number of launches, of course.

And the rollout of launches expected that for most of our products in general Io over time will become bigger than the U S and simply as we rollout and game and that is what you've seen for all of general and franchises and volatile exchange also and over time of course, we also expected in obesity that could be a similar approach.

Mainly due to the the number of people in a number of launches of course.

Thank you Camilla thank Ramon.

Next question please.

Camilla Sylvest: Thank you, Camilla, thank you, Emmanuel. Next question, please.

That's from the line of Michael <unk> of UBS. Please go ahead. Your line is open.

Operator: That's from the line of Michael Lorigton of UPS. Please go ahead; your line's over.

Oh, Thank you very much Michael <unk> from UBS 2 questions. Please 1.

Michael Leuchten: Thank you very much. Michael Leucht from UBS.

So carsten given that a fairly significant part of the volume for the Covid is commercial this year, how is that going to show up in the P&L given the co pay by down worse as the.

The free drug that's going into the market as well, so which lines of the P&L do we need to keep an eye on as the year progresses.

And then a question on China, you said yesterday, you are adding sales reps to your to your footprint. There as we are going into V. B P. Next year is it.

Is that.

Going to accelerators are going to decelerate to will you be able to reallocate resources in China, if and when special EVP happens, though is that the decision that's independent of whatever happens to special GBP.

Thank you Michael first Karsten on on how we go we will show Chevron.

Michael Leuchten: Two questions, please. One to Karsten: given that a fairly significant part of the volume for Vekobi is commercial this year, how is that going to show up in the P&L given the co-pay buy-down versus the free drug that's going into the market as well? So which lines of the P&L do we need to keep an eye on as the year progresses? And then a question on China.

Considering the co pay and the buy down and then I'll address the V P.

Michael Leuchten: You said yesterday you are adding sales reps to your footprint there. As we are going into VBP next year, is that going to accelerate? Is it going to decelerate? Will you be able to reallocate resources in China if and when special VBP happens? Or is that a decision that's independent of whatever happens to special VBP? Thank you.

Yeah, Michael So all our all of our co pay program said they are being treated as the accounting wise are safe production. So it will all be in the same time.

Karsten Munk Knudsen: Thank you, Michael. First, Karsten, on how we go.

So that was maybe for you so on China EVP.

Firstly, we look at China as a strategically important market is going to warn notice. It's 1 where we have been for historical reasons relative late and launch of our new portfolio of products, which is now happening.

Karsten Munk Knudsen: We will show up in PNL considering the co-pay and the buy-down, and then I'll address the VBP. Yeah Michael, so all our co-pay programs are being treated accounting-wise as sales deductions, so it will all be in the sales line. So that was very clear.

Lars Fruergaard Joergensen: So on China BPP, you know, firstly, we look at China as a strategically important market for Novo Nordisk. It's one where we have been, for historical reasons, relatively late in the launch of our new portfolio of products, which is now happening. Then you can say in parallel with that, the Chinese authorities are looking into how they can develop a more, say, from a cost perspective, sustainable healthcare system. I think that is one way old products, where there is competition, you know, generic or similar products, you drive down prices so you can, you know, have the capacity to embark on new, innovative treatments.

When you say in parallel with that the Chinese authorities.

Looking into how can they develop and mostly from a cost perspective sustainable health care system.

1 where the old products, where there is competition.

Generic or Biosimilar products, you would drive down price. So you can have.

We have capacity to to embark on new innovative treatments, so as such China's strategic for us and our base case is that even despite of.

Lars Fruergaard Joergensen: So as such, China is strategic for us, and our base case is that even despite potential GDP in 2022, we still see growth opportunities in China. And we are expanding our commercial capabilities in China to make sure we get the full value out of, say, rolling out the GFP1 portfolio and also conducting clinical development of our latest innovations like weekly insulin in China. So, of course, we need to see what will happen and how they will approach the VVP, potentially. But we believe there's still room for us to make sure our innovation hits the ground and commands a nice growth trajectory based on the footprint we have in China. Thank you, Michael. Next question, please.

Potential Pvp in 2022.

Still see growth opportunities in China, and we are expanding our commercial capabilities in China to make sure we get the full value out of say rolling out tier 1 portfolio.

And also conducting a clinical development of our latest innovations.

Like a weekly insulin in China. So of course, we need to see what will happen and how they will approach.

The Pvp potentially but we believe there's still room for us to make sure our innovation hits the ground and commence.

A nice growth trajectory based on the footprint print we have in China.

Thank you Michael next question please.

That's from the line of Sachin Jain of Bank of America. Please go ahead. Your line is open.

Operator: That's from the line of Sgt. Jane of Bank of America. Please go ahead.

Alright, Thanks for your question, especially on supply chain and there was a question on the timeframe of resolution yesterday and you didn't really want to answer it is that because you don't know where you don't view as a material.

Sgt. Jane: Hi there, thanks. Firstly on supply chain, there was a question on a time frame of resolution yesterday, and you didn't really want to answer it. Is that because you don't know or you don't view it as material?

Unrelated just to sort of extend that supply chain question, a little bit further do you think you can sell all you can make across 'twenty, 1 and 'twenty 2.

And then the second question is on the right also stuck appreciate the answers.

On Covid being the likely explanation for slowdown in scripts, but do you have a change in the last 12 to 18 months has been the broadening of labels for S. G. L. T twos to acute heart failure and potentially CK D.

What percentage of diabetes, Humphries, Comorbidities, where the chief of S. G. L. T T may be preferred.

Lars you want me to take the rebels. This question first.

Sorry, I had to and approach the microphone so sorry, I'll start by addressing the supply chain question and then.

Sgt. Jane: And related, just to sort of extend the supply chain question a little bit further, do you think you can sell all you can make across 21 and 22? And then the second question is on ripelsis. Doug, I appreciate the answers or thoughts on COVID being the likely explanation for the slowdown in Scripps. But the other change in the last 12 to 18 months has been the broadening of labels for SGLT2s.

Doug.

Hmm.

You can imagine can address the other doses issued 2 type of a question too on supply chain.

We have all seen the development of scripts are hidden initial launch phase and.

We have had a strong hopes for probably go away, but to be honest, we had not anticipated here in the initial launch phase and uptake like what we've seen so we have a temporary.

Shortage.

While we continuously ramp up and build the needed capacity.

So we have some some churches in the U S, where we are out of the list out of those and our product is available.

It's not as easily as physical as we would have wished. So of course, we are ramping that up.

So right now we can sell what we have.

I think we can ramp up so this should not be a problem is as we look good monsoon.

Months into the future so.

We need to see how the pool develops.

So there is a balance between supply and demand obviously, but we are confident we can handle this because this is ramp ups like we've done before and it's known technology Fund 1 nordisk.

Then to the second question.

Doug would you start out please.

I can start off maybe you can milliken also an answer session. Thanks for the question.

Unequivocally the impacts of Lockdowns 2 times 2 major Lockdowns had an impact on a promotional responsive product and when we entered in an essence. The third time, there was a label update heart failure chronic kidney disease and increased.

Sgt. Jane: to include heart failure and potentially CKD. So the question is, what percentage of diabetes have those comorbidities where is a cheaper SGI?

Increased brand awareness for the whole entire SD OTT category. So.

Sgt. Jane: The question is what percentage of diabetes patients have those comorbidities where a cheaper SGLT2 may be preferred. Thank you.

What I would like to say as you know we're still growing share. If you look at our current <unk>, 13% and GOP, 1 space, 10% <unk> in the modern OAD space and when you look at as I mentioned, the other day, leading indicators, whether it's prescriber breadth and depth.

We're adding prescribers per week were building and continuing to build brand awareness.

Above most SDLP twos and the source of business is still remaining mostly outside of tier 1 class. So all of those I think are positive.

I don't know if you have any other context.

No I think that's clear yeah, and we're very encouraged that the death. So the number of scripts per physician that prescribed for thousands he's actually and it's slightly higher than jogging januvia frenzy I actually so far that's a positive sign.

Thank you.

Thank you Doug.

Thank you Sachin next question. Please thank.

Thank you. The next question comes from the line of Mark Purcell of Morgan Stanley. Please go ahead. Your line is open.

Douglas J. Langa: Lars, do you want me to take the rebels' question first?

Thank you for taking my question.

How would you estimate so early in the launch the 50% of prescriptions are going to be reimbursed and what is your level of confidence. This will be maintained I'm. Just wondering whether physicians are more willing to push through private or somewhat compared to the second center given its superior efficacy profile and if you could help us understand that.

Lars Fruergaard Joergensen: Sorry, I had not pressed the microphone yet, so, sorry, I'll start by addressing the supply chain question, and then, you know, Doug or Camilla Martin can address the other rebellious HLG2 type questions. So on the supply chain... you know, we have all seen the development of Scripps here in the initial launch phase, and you know we have had strong hopes for Wigowi, but to be honest, we had not anticipated an uptake like what we have seen.

Related when you compare on Cvs and express scripts, how is what Caribbean 6 centers reimbursement at this point are different from each other or are they or should they be considered to be pretty much the same.

Yeah.

Thank you Mark Doug can you comment on that please.

Yeah, So I'd start by saying, it's still early days in terms of us diagnosing exactly with the coming from roughly we know it's 50.50, and I think that as we said our ambition is to build access at least along the lines of <unk>, if not better than that and the early indication with 2 major pbms ESI and Cvs on blocking the product I think that's a good early indication.

Lars Fruergaard Joergensen: So we have a temporary shortage, and while we continuously ramp up and build the needed capacity, we have some territories in the U.S. where we are out of the start of those, you know; product is available, but it's not as easily accessible as we would have wished.

<unk> of our.

Our market access success.

Yeah.

Thank you Dr. Thank you Mark next question. Please.

That comes from the line of where it should also ask J P. Morgan. Please go ahead to them on assignment.

Alright, thanks for taking my questions.

Just on weekdays.

It is 1 thing but from your market intelligence, how much patient warehousing do things taking place that ahead of you afterwards, maybe linked Oh.

In general.

Post pandemic the market.

On la.

Who might be rushing out the U K.

How much sort of Friday.

Do you think that means for them for some time.

Pandemic effects and then second question just on the Delta there in terms of the impact on the drive to increase our balance sheet.

Okay.

Some delta getting into the U S. So just your thoughts on how that can impact yeah.

You'll need to have face to face time with it.

Drawing about taken in connection.

Thank you very much.

Thank you Richard So so talk first on auto.

I don't know we have much insight into patient warehousing.

Lars Fruergaard Joergensen: So, of course, we are ramping that up. So right now, we can sell what we have. I think we can ramp up, so this should not be a problem as we look, you know, months into the future. But again, we need to see how the pool develops. So there is a balance between supply and demand, obviously, but we're confident we can handle this because this is a ramp-up like we've done before, and it's known technology for Novo Nordisk. Then to the second question, Doug, would you start out, please? Yeah.

And the voters, but I don't know what you hear from the market and then a perspective on what a tentative everyone could means in terms of impact on rebel launch in face to face and maybe community you can talk to to Japan, what we see you see there.

Douglas J. Langa: Yeah, I can start off. Maybe Camilla can also add in.

So to your first part.

Yes. Thank you for the question and I think and again I'd go back to it's still early days, but what we do see in the early days is over 60% are naive patients to the category to the island categories. So that would suggest that list.

Douglas J. Langa: So, Sachin, thanks for the question. Unambiguously, the impact of lockdowns, two times, two major lockdowns, had an impact on a promotionally responsive product. And when we entered in, in essence, the third time, there were label updates, heart failure, chronic kidney disease, and increased brand awareness for the whole entire SGLT2 category. So, what I would like to say is, you know, we're still growing share. If you look at current MBRX, 13% in the GLP-1 space, and 10% in the modern OAD space.

Douglas J. Langa: And when you look at, as I mentioned the other day, leading indicators, whether it's prescriber breadth and depth, you know, we're adding prescribers per week. We're building and continuing to build brand awareness, really, above most SGLT2s. And the source of business is still remaining mostly outside of the GLP-1 class. So, all of those, I think, are positive. Camilla, I don't know if you have any other contexts.

Camilla Sylvest: No, I think, Doug, that's clear. We are very encouraged that the death rate, so the number of Scripps per physician that prescribes it for Bell's disease is actually slightly higher than Giardia and Januvia for NBIXs. So for us, that's a positive sign. Thank you.

Listen Theres been a lot of patients we have over 100 million patients in the U S that have been waiting for a step change in waiting for something this is a societal and a health issue in the U S and I think that we have to assume that some of those have been waiting for the product I think we need to wait and see over time.

How this continues but certainly we're encouraged by the amount of patients that we're seeing and we see again as I mentioned over 60% being naive, but it's still too early to call. How much of that was a bolus and I don't know that I can actually give any specificity around the warehousing component. The only thing I'd say on rebel Sis in the face to face certainly we're watching the Delta variant certainly we know that in.

And we've shown you a direct correlation with being able to get out in the field and our promotional responsive product as we build awareness.

Face to face interactions with physicians are incredibly important we still have a large footprint of representatives in the field route there in full.

You know and all of US today, 100% of out in the field. So for US it's critically important and we know that that will continue to be as we move forward. So.

How the Delta variant plays out I'm not sure I can't predict that but certainly with this product we know the face to face is important and will continue to be.

Hey, Bill.

Yes, Thank you, Doug and Dave for Japan in exactly the same for launch product that face to face is very important and in Japan. We are.

Tracking very nicely on the underlying parameters and although we've been impacted significantly by COVID-19.

Which has impacted our ability to see a doctor from the sales force, but the underlying parameters such as that.

It's a source of business and launch uptake, which is on par with their CNC tools and also our share of voice and you said looking at a very very positive.

But we are currently being slightly restricted and accuracy to talk us about it.

Underlying seeking exactly yep. Thank you commit to think a dark and thank you. Richard So we have 1 more question lined up so I'd like to remind you. All that you can you can ask those questions today. So a piece of good luck.

Lars Fruergaard Joergensen: Thank you. Thank you, Sachin. Next question, please.

Operator: Thank you. The next question comes from the line of Mark Purcell of Morgan Stanley. Please go ahead; your line is open.

Line. If you have more questions. So are we ready for the next question. Please. Thank Heath just to remind you. It's a zero 1 on your telephone keypad, if he wants to join the queue.

Mark Purcell: Thank you for taking my question.

She comes from the line of care Panic of Goldman Sachs. Please go ahead your line is.

Mark Purcell: On Wagovi, how do you estimate early in the Wagovi launch that 50% of prescriptions are going to be reimbursed? And what is your level of confidence that this will be maintained? I'm just wondering whether physicians are more willing to push through prior authorizations on Wagovi compared to Sexender given its superior efficacy profile. And, if you could help us understand something related, when you compare Wagovi and Sexender's reimbursement on CVS and Express Scripts, how is their reimbursement at this point different from each other? Or should they be considered to be pretty much the same?

Okay.

Thank you for taking my questions. Please if I may last.

Douglas J. Langa: Thank you, Mark. Doug, can you comment on that, please? Yes, I

1 kind of a strategic question for you on that.

1 specifically on B b.

This prompted you bought.

Do you kind of see I think most of us can see already good kind of a runway to growth for novo over the course of the next kind of 6 to 10.

Here's laws. So it would be keen to understand kind of what are your kind of objectives over the next over the course of the next couple of yours and what are some of the conversations that youre, having with your board relative to kind of grow and sustain that it'd be kind of beyond the 'twenty 'twenty 5 'twenty totally timeframe.

And then secondly on <unk> could be I'm, just wondering if you have any kind of early feedback.

On the patient experience and how we should think about the speed time on the drug clearly kind of you're not gonna have a numerical answer to that but just based on the early feedback and compared to the 6 endoscopy diagnose kind of 4 to 5 months.

Okay. Thank you.

Good thank you.

So first on the strategic question, it's a it's clear that in.

Douglas J. Langa: Yeah, so I'd start by saying it's still early days in terms of us diagnosing exactly where they're coming from. Roughly, we know it's 50-50. And I think that, as we said, our aim and ambition is to build access, at least along the lines of Sexenda, if not better than that. And the early indication with two major PBMs, ESI and CVS, on blocking the product, I think that's a good early indication of our market access success.

With the portfolio we have.

Both of monitored products, but also a pipeline products that we have an opportunity to to have a quite attractive growth profile for for the coming years.

It's also clear that.

A lot is riding on <unk>. So that's a that's a very positive situation to be in obviously to have a product. That's no derisked from a safety point of view and has shown to have massive improvement broadly speaking on cardiovascular diseases. So there's a great opportunity for us in parallel.

With that from a position of strength, we are half the time needed to build our growth options for you can say if you are interested in new tight timeframe. So you have seen us.

Operate on 2 strategic dimensions, 1 of broadening the technology platforms. We operate based on so in 1 of those classic is protein engineering, we're now expanding that to you know.

I'll also cover all of the administration.

We're building a number of technology platforms.

It'll based technology platform, we have.

Interference on a in a collaboration with Diana we have gene editing et cetera. So we tried to built technology exposure, where we can be among the best in the world within those technologies and then with leverage them on the second strategic I mentioned, which is what it is and we pick a number of outages where we.

Either I lead us today or they are adjacent to areas. We I'm sure you can say you go from diabetes to obesity Nash.

Vascular disease, and you can say I don't know how much is maybe another 1 out there, but it's such an obvious.

Area to explore with what we have.

And you can say based on on our stem cell technology, we actually get exposure to COVID-19 as we might not understand but it's actually the technology that crazy opportunity and the go to market is different from from what we know and we think that technology can compel through there and then Biopharma. We're also looking for exposure across a number of rare.

Beating disorders.

Brian disorder. So I think this is a very say robust strategic perspective, where we move along 2 dimensions and built that capability strongholds, where we believe we can compete against our peers.

P S in an attractive way and in the industry and thereby build options for growth also in the coming decades.

And those discussions we have on regular basis with the board and there is strong alignment between management and board how we go about this.

In terms of.

<unk> patient experience.

Douglas J. Langa: Thank you, Doug. Thank you, Mark. Next question, please.

Maybe you can talk and talk a bit to that but stay time I'd just like to offer my perspective, we know from sex center that patients stay on treatment for as long as as they see our weight loss and then some drop out.

Operator: Thank you. That comes from the line from Richard Vosser at J.P. Morgan. Please go ahead.

And the weight loss you see as.

You can say compared to what we can offer now which is a modest weight loss.

And when you live with obesity, you have probably gone through life and put on weight loss weight put on weight. So so what you what you get with 6 into as you know.

Operator: Please go ahead; your line is open.

A modest weight loss, but its not in the range where it is redefining you are you are you are you.

Your health and living up to your expectation. When you then move on with Obi you have an opportunity for probably the first time in your life to really lose the weight you had been aspiring to lose and you lose that over a period of you know in.

In the clinical trial.

A bit more than a year and we have shown in the clinical program that are in the sector sustained over 2 years, which is quite unique because often you you start regaining weight even being on medicine.

And we've also shown that if you drop out of treatment you put the weight on.

So so I think there's a significant longer stay time and also with the redefined.

Wait to get to I think the Christmas or stay on treatment is completely different than it is when you have been on <unk>. So I'm quite bold on the stay time, we will eventually see for a product like we go away.

So that's my view.

Doug can you I know, it's early days and there's a lot of media out there, but what can you say about say the real feedback from the market on patients.

Richard Vosser: Hi, thanks for taking my questions. Just on Wecovia, I know it's early, as everyone's saying, but from your market intelligence, how much patient warehousing do you think has taken place ahead of the US launch, and maybe linked to obesity in general? You know, we're post-pandemic, the market's unlocked, and people may be rushing out to get obesity treatments.

Yes, Thanks, Laurence and so Karen Thanks for the question and we're getting lots of feedback. We're getting is from representatives from different means that we have mechanisms to get this but again I'll put it into context. It's early days, but it's really really encouraging we're having words that are being used like wow in parentheses. This is a game changer, where getting information.

Douglas J. Langa: Thank you, Richard. So, Doug, first of all, we have much insight into patient warehousing and the bonus, but I don't know what you hear from the market, and then a perspective on what a Delta variant could mean in terms of impact on rebels who launch and face-to-face, and maybe Camilla, you can talk to Japan about what we see there. So, over to you first, Doug.

For the first time ever physicians are keeping spreadsheets in their offices.

For patients and tracking them we're.

We're hearing details that I'll give you 1 quote that Ah patients that was the first time in their life ever in their life that they didn't finish their plate.

Douglas J. Langa: Yeah, thank you for the question. And I think, and again, I'd go back to it's still early days. But what we do see in the early days is that over 60% are naive patients to the category, to the AOM category. So that would suggest that Listen, there are a lot of patients. We have over 100 million patients in the US that have been waiting for a step change and waiting for something. This is both a societal and a health issue in the US.

Douglas J. Langa: And I think that we have to assume that some of those have been waiting for the product. I think we need to wait and see over time. You know how this continues, but certainly we're encouraged by the number of patients that we're seeing. And we see again, as I mentioned, over 60% being naive, but it's still too early to call how much of that was bolus. And I don't know that I can actually give any specificity on the warehousing component.

Douglas J. Langa: The only thing I'd say on Rubellsis and face-to-face is that certainly we're watching the Delta variant. Certainly we know that, and we've shown you a direct correlation with being able to get out in the field and a promotionally responsive product as we build awareness. Face-to-face interactions with physicians are incredibly important. We still have a large footprint of representatives in the field. We're out there in full force. All of us today are 100% out in the field, so for us, that's critically important, and we know that it will continue to be as we move forward. How the Delta variant plays out, I'm not sure; I can't predict that, but certainly, with this product, we know that face-to-face is important and will continue to be.

Which is really when you think about it.

As important and then we had 1 patient that are that wrote in that are lost over 22 pounds already on the products. So I think we're getting great receptivity from health care providers and what we're seeing it's actually opening up doors for conversation with our representatives.

And the patient feedback has been overwhelming so just some anecdotal feedback that we've gotten so far again early days, but all very encouraging.

Thank you Doug and thank you for you.

Perhaps.

Camilla Sylvest: Yeah, thank you, Doug. And for Japan, exactly the same for the launch product; face to face is very important. And in Japan, we are tracking very nicely on the underlying parameters. Although we've been impacted significantly by COVID-19, which has impacted our ability to see doctors from the sales force, the underlying parameters, such as the source of business, and the launch uptake, which is on par with STLC2. And also, our share voice is looking very, very positive. But we are currently being slightly restricted in seeing the doctors, but the underlying signals are good. Yeah,

If you're going to be and given there's nobody else on the queue I'm just interested in your thoughts on your willingness to participate with kind of the public health agencies, especially ex U S.

Camilla Sylvest: Thank you, Camilla, thank you Doug, and thank you Richard. We have one more question lined up, so I would like to remind you all that you can ask us questions today, so please get in line if you have more questions. So are we ready for the next question, please?

Ryan good kind of a population level access to the product kind of ahead or that's in sync with the launch.

Is that something no 1 was kind of interested in doing is that something kind of from a reality perspective may be expected over the course of the next.

6 months or so or is that too far ahead. Thank you.

Thank you.

It's a very very good topic as you can say, obviously, we need to product approval before we can go into detailed discussion that involves the product but we.

Operator: Thank you. Just to remind you, it says 01 on your telephone keypads if you want to join the queue. The next question comes from the line of Cleo Paddock of Goldman Sachs. Please go ahead; your line is open.

Cleo Paddock: Thank you for taking my questions, please. Two, if I may. Lars, one kind of a strategic question for you, and then one specifically on VW. The first on the strategic part, as you kind of see, I think most of us can see a very good kind of runway for growth for Novo over the course of the next kind of six to 10 years.

Cleo Paddock: So we'll be keen to understand kind of what they are.

Cleo Paddock: What are your objectives over the course of the next couple of years? And what are some of the key conversations that you are having with your board relative to growth and sustainability, kind of beyond the 20, 25, 20, 30 time frame? And then secondly, on WCABI, just wondering if you have any kind of early feedback on the patient experience and how we should think about the stay time on the drug. Clearly, kind of, you're not going to have a numerical answer to that, but just based on early feedback and compared to the succinct stay time of kind of four to five months, think about WCABI stay time. Thank you. Good. Thank you, Keyur.

Lars Fruergaard Joergensen: So first on the strategic question, it's clear that with the portfolio we have both off-market products but also pipeline products that we have an opportunity to have a quite attractive growth profile for the coming years, but it's also clear that a lot is riding on semi-glutide, so that's a very positive situation to be in, obviously, to have a product that has been, you know, de-risked from a safety point So it's a great opportunity for us.

Lars Fruergaard Joergensen: In parallel with that, from a position of strength, we have the time needed to build growth options for, you can say, beyond the semi-glutide timeframe. So you have seen us operate on two strategic dimensions, one of broadening the technology platforms we operate on. So a Novo Nordisk classic is protein engineering. We're now expanding that to, you know, also cover all administration. We're building a number of technology platforms, such as the stem cell-based technology platform. We have the interference RNA in a collaboration with Dasurna.

Lars Fruergaard Joergensen: We have gene editing, et cetera. So we try to build technology exposure where we can be among the best in the world within those technologies. And then we leverage them on the second strategic dimension, which is biologies, and we pick a number of biologies where we either are a leader today or they are adjacent to areas we are in. So we can say we go from diabetes to obesity, NASH, cardiovascular disease, and you can say Alzheimer's is maybe another one out there, but it's such an obvious thing to explore with what we have.

Lars Fruergaard Joergensen: And you can say based on stem cell technology, we actually get exposure to biology we might not understand, but it's actually the technology that creates the opportunity. And the go-to market is, is different from what we know, and we think the technology can plow through there.

We have ongoing discussions with more than 1.

National Health care system in Europe around what does it take to fraud to build a broad.

Hey.

<unk> approach to obesity.

And of course.

When you're dealing with a beta you also have to consider prevention you have to consider.

Lars Fruergaard Joergensen: And in biopharma, we're also looking for exposure across a number of rare bleeding disorders and rare endocrine disorders. And those discussions we have on a regular basis with the board, and there is strong alignment between management and the board on how we go about that. In terms of the GoWePatient experience, maybe Doug can talk a bit about that, but on stay time, I would just like to offer my perspective. We know from Saxenda that patients stay on treatment for as long as they see a weight loss, and then some drop out, and and the weight loss you see is, you can say, compared to what we can offer now with us, it is a modest weight loss. And when you live with obesity, you have probably gone through life and put on weight, lost weight, put on weight.

Lars Fruergaard Joergensen: So, what you get with Secsenda is, you know, a modest weight loss, but it's not in the range where it's redefining your health and living up to the expectations. When you then move on with Gobi, you have an opportunity, for probably the first time in your life, to really lose the weight you've been aspiring to lose. And you lose that over a period of, you know, in the clinical trial, a bit more than a year.

Lars Fruergaard Joergensen: And we have shown in the clinical program that it is actually sustained over two years, and we've also shown that if you drop out of treatment, you put the weight on. So I think there's a significantly longer stay time. And also, with the redefined wait you get to, I think the encouragement to stay on treatment is completely different than it is when you have been at a sex center. So I'm quite bold on the stay time.

Physical activity.

<unk>.

Psychological support.

But all of our SEC notice that for many it's too late to to to address this based on prevention is about medical treatment. So so my short answer is.

Yes, we are interested in and we're already engaged in some of those conversations it's still early days as we cannot discuss our medicines.

Lars Fruergaard Joergensen: We will eventually see for a product like WeGo. So that's my view. Doug, can you, I know it's early days, and there's a lot of media out there, but what can you say about, say, the real feedback from the market and patients?

Douglas J. Langa: Yeah, thanks, Lars. And so, Kara, thanks for the question. And we're getting lots of feedback. So we get this from representatives from different means that we have mechanisms to get this. But again, I'll put it in context.

And many of these health care systems they.

Douglas J. Langa: It's early days, but it's really, really encouraging. We have words that are being used like, you know, wow, in parentheses. This is a game changer. We're getting information that for the first time ever, physicians are keeping spreadsheets in their offices for patients and tracking them. We're hearing details that I'll give you one quote that a patient said was the first time in their life, ever, that they didn't finish their plate, which is, you know, really important.

Douglas J. Langa: And then we have one patient that wrote in that lost over 22 pounds already on the product. So I think we're getting great receptivity from healthcare providers. And what we're seeing is that it's actually opening up doors for conversation with our representatives. And the patient feedback has been overwhelming. So just some anecdotal feedback that we've gotten so far, again, early days, but all very encouraging.

They are struggling and in 1 hand, they can see that there's a huge need. They can also see that from a from a health technology assessment that it's worthwhile treating but they then on the other hand sit with in many cases that a third of the population is actually obese and how do you get going on this without getting in.

Cleo Paddock: Thank you, Doug, and thank you to you. Lars, perhaps, if you can hear me, and given there's nobody else on the queue, just interested in your thoughts on your willingness to participate with kind of the public health agencies, especially in the US, to try and get kind of population level access to the product.

Cleo Paddock: kind of ahead or doesn't sync with the launch.

Lars Fruergaard Joergensen: Is that something Novo is kind of interested in doing? Is that something, from a reality perspective, that can be expected over the course of the next six months or so? Or is that too far ahead? Thank you.

Lars Fruergaard Joergensen: It's a very, very good topic, and you could say, obviously, we need product approval before we can go into a detailed discussion that involves the product. But we have ongoing discussions with more than one, say, national healthcare system in Europe around what it takes to build a broad, say, approach to obesity. And, of course, when you deal with obesity, you also have to consider prevention; you have to consider, you know, physical activity, you know, psychological support.

Lars Fruergaard Joergensen: But also acknowledge that for many, it's too late to address this based on prevention. It is about medical treatment. So my short answer is yes, we are interested in, and we're already engaged in some of those conversations.

Lars Fruergaard Joergensen: It's still early days, and we cannot discuss our medicine yet. And many of these healthcare systems, they, you know, they are struggling on the one hand, but they can see that there's a huge need. They can also see that from a health technology assessment that it's worthwhile treating. But they then, on the other hand, sit with the fact that, in many cases, a third of the population is actually obese. And how do you get going on this without getting into, say, a Cervaldi-type situation where you lose a bit of control of it?

Interest a survival type situation, where you lost a bit control of it.

So I think a good example is what we've done with nice in the UK, where Youre segment. The population you start with a BMI of 35.

Lars Fruergaard Joergensen: So I think a good example is what we have done with NICE in the UK, where you segment the population. You start with a BMI of 35 and are at risk of developing cardiovascular disease, and clearly you have a tremendous return on addressing that population, and then you can, you know, expand from there. So, that's just one example of a dialogue we have had, and there are more like that ongoing, and we're clearly committed to doing that, and I think we can.

And risk of developing cardiovascular disease.

And clearly you have a tremendous return on on addressing that population and the.

And then you can expand from there. So that's just 1 example of.

A dialogue.

We have hedge and more like that ongoing and we are clearly committed to doing that and I think we can.

We can.

No.

Based on our profile and our experience and also driving change.

We have programs like <unk> and diabetes, we have we have much has been experiencing and what it means to address population health and and engaged in private public partnerships and I think obesity provides a unique opportunity for us to get a seat at the table and actually become a partner with many of the school systems and bringing this knowledge.

Lars Fruergaard Joergensen: Based on our profile and our experience in also driving change, we have programs like Celia's Changing Diabetes, and we have a lot of experience in what it means to address population health and engage in private-public partnerships. And I think obesity provides a unique opportunity for us to get a seat at the table and actually become a partner with many health care systems and bring this knowledge to the table, and you can say, thereby, we are also preventing diabetes and the World Leading Diabetes Company is engaging in actually eliminating the disease we live from. I think that, in itself, is building legitimacy vis-a-vis these stakeholders. Thank you. Are there any new questions on the line? Yet, there are a few more.

The table not only aiming for for Scripps.

I mean, that's really driving real outcomes in large populations.

And you can say that IV also preventing diabetes.

The worst thing diabetes company engaging actually eliminating the disease with live from I think in itself.

The agency vis vis these stakeholders.

Thank you <unk>.

Any new.

Questions on the line, yes, there were a few more questions come from the next is from the line of Simon Baker at Redburn. Please go ahead. Your line is open.

Operator: There are a few more questions coming through. The next is from the line of Simon Baker at Redburn. Please go ahead; your line is open.

Thank you for taking my questions and apologies. If these have already been asked because I was running cool sounds a little bit late joining but I'm just continuing with a Z.

Simon Baker: Thank you for taking my questions and apologies if these have already been asked because I had an overrunning call so I was a little bit late joining but just continuing with Wegovy. A slightly odd question which I wouldn't normally ask, but I wondered if you could give us any color on the regional breakdown of where those early adopters are coming from. The reason I ask is there's quite a disparity by state in terms of search engine activity for Wegovy, the most active being Alabama, Arkansas, Delaware, and South Dakota, so I was just wondering if that's being mirrored in the prescribing activity that you're seeing.

Sorry odd question.

I wouldn't normally ask but I wonder if you could give us any color on the regional breakdown of where those early adopters are coming from the region warehouse.

This quarter, despite what you point states in terms of.

Search engine activities.

The most active being Alabama, Arkansas, Delaware in South Dakota. So I was just wondering if that's being mirrored in.

In the prescribing activity, you'll see them.

And then secondly, moving on to <unk> in Alzheimers.

Simon Baker: And then secondly, moving on to semaglutide in Alzheimer's. Since the Q1 call, there has clearly been an enormous development in the regulatory pathway for Alzheimer's drugs. I just wondered what your perspectives were on that from the standpoint of semirin in Alzheimer's, the flexibility it potentially gives you, and the flexibility you have within the clinical trials to change any plans in light of those recent changes at the FDA. Thanks so much.

Since the Q1 call there has clearly been an enormous.

<unk> in the regulatory pathway for outside the strokes.

Wondering what your perspective on that from the standpoint of assembling in Alzheimer's.

The flexibility potentially keeps you on the flexibility you have between.

Between the clinical trials.

Change any plans in light of recent changes at the FDA. Thanks, so much.

Thank you Simon.

Can.

Confirm that your questions have not been asked before so so Doug can you start by giving any.

Martin Holst Lange: Thank you, Simon, and I can confirm that your questions have not been asked before. So, Doug, can you start by giving any perspective on the regional breakdown in the initial Wicovi launch phase?

Prospective on a regional breakdown in the initial we'd go we launched phase where scripts coming from.

Yeah. Thanks Simon.

Douglas J. Langa: Where are the scripts coming from?

So we do see early days some regional differences I wouldn't want to get into a lot of specifics now, but I would say that some of the southern states are showing some promise North Carolina as well. So there are regional differences, we do break out.

Douglas J. Langa: Yeah, thanks, Simon. So we do see early days, some regional differences. I wouldn't want to get into a lot of specifics now. But I would say that some of the southern states are showing some promise, North Carolina as well. So there are regional differences, you know; we do break out in all the MSAs and do a lot of analysis. It is early days, but we are seeing some regional differences, but we are seeing prescriptions across the country. I think it's also important to note that

All the Msas and do a lot of analysis. So early days, but we are seeing some regional differences, but we are seeing prescriptions across the country. I think it's also important to note.

Great. Thank you, Doug and then a margin a lot.

This happened in Alzheimer's after yes.

Martin Holst Lange: Thank you, Doug. And then, Martin, a lot has happened in Alzheimer's after years of disappointments. And obviously, we have some activity in the space. So how do you see the recent regulatory developments vis-à-vis our program? So in terms of the approval of aducanumab, maybe that comes as a little bit of a surprise, given the data that Biogen had presented to the FDA. However, from our perspective, this is all positive. This very clearly shows that the FDA has a proactive, supportive approach to bringing therapies to this very high-unmet need market.

Disappointments and obviously, we have some activity in this space. So how do you see the recent regulatory developments vis vis our program. So so in terms of the approval of educating them that maybe there is a little bit of a.

<unk> given the data that the biogen and send it to the FDA however from our perspective.

This is all positive at very clearly shows that the FDA has a proactive supportive approach to bringing therapies.

There's very high unmet need market. This is also what we experience it.

In this space, we had a very very good and productive dialogue with both the FDA and EMA on this and we've been allowed to shoot.

Martin Holst Lange: This is also what we experienced in this space. We had a very, very good and productive dialogue with both the FDA and EMA on this, and we've been allowed to... to design some very smooth and agile programs. Obviously, having had a demand, which is very, very fair to showing this in a prospective randomized manner. So we see this from a regulatory perspective as a clear positive, very good proactive support from the regulators, but also from a clinical development perspective.

To design some very soon.

Smooth and agile programs are obviously, having head of demand, which is very very fat off showing this in a prospective randomized manner.

So so so we see this from a regulatory perspective as a clear positive very good proactive.

Support from the regulators, but also from a clinical development perspective.

This is a slightly different population.

We have an earlier broader population that what what biogen does for them to kind of map and what really amesville with it with that's it.

Martin Holst Lange: This is a slightly different population. We have an earlier, broader population than what Biogen does for aducanumab and what Lily aims for with their acid. And we have an offering that has, as Lars also alluded to, an extremely well-established safety profile across several indications and the potential for similar or even slightly better efficacy. So again, across the board, from our perspective, very, very promising. Thanks, Martin. Thanks, Simon.

And and we have an offering that has as Lars also alluded to and extremely well established safety profile across server samples in.

Vacations and the potential of similar or even slightly better efficacy. So so again across the board from our perspective very very close to.

Thanks, Martin Thanks Simon.

Next question please.

That comes from the line of Simon Mesa Exxon BNP Paribas. Please go ahead your own monocytes.

Operator: That comes from the line of Simon Mazur at Exxon BNP Paribas. Please go ahead; your line is open. Thank you, afternoon. I was late joining the call as well.

Thank you.

Proposal <unk>.

Joining the call as well so if these questions have been absolutely I do apologize.

Simon Baker: Also, if these questions have been asked already, I do apologize.

I'll get him to Adobe would just firstly just didn't come in the second quarter was there any.

Simon Baker: I'll get on to it, but firstly, just in the second quarter, was there any?

Any impact that you could potentially talk about with respect to stocking our shipments because remember in the first quarter.

Simon Baker: , Peter Welford, Simon Baker, Emmanuel Papadakis, Eric Berrigaud, Emmanuel Papadakis, Harry

Quality of stocking of Olympic and the U S news early shipments.

Of Insulins, just wondering if you could potentially even it out we've got smaller to be benign.

And then the second topic is kind of along the line of with respect to the European approval of <unk> would go the just.

Just a few some questions if I'm if I may given that there's not many people.

Simon Baker: for the screen approval of WeGoVi. Just a few sub questions if I may, given there's not many people.

Just on that firstly capacity constraints I'm, assuming by the time, we get approved in Q4, a lot simpler benign docs. So there shouldn't be any issues. There secondly, I mean, how should we really trying to think about that you always talk about 100 million patients in the U S and we can track prescriptions very well that obviously ex U S.

Simon Baker: Just on that, firstly, capacity constraints. I'm assuming by the time you get approved in Q4, that should have all been ironed out, so there shouldn't be any issues there.

Simon Baker: But secondly, I mean, how should we really try and think about it?

Simon Baker: , Peter Welford, Simon Baker, Emmanuel Papadakis, Eric Berrigaud, Benjamin Yeoh, Rajesh Kumar, Harry Sephton, Lars Jorgensen, Michael Novod, Thomas Bowers, Harry Sephton, Lars Jorgensen, but he's still continuing to grow.

unknown: [inaudible]

It's a lot more difficult in the reimbursement landscape.

Very different.

But you're still continuing to grow I think Q2 sucks and there was exceptionally strong growth.

Does that answer the pocket and just just really trying to get a sense of the huge opportunity it could be because clearly I think you've shown in the second quarter, the pent up demand.

Simon Baker: I mean, was that out of the pocket and just really trying to get a sense of the huge opportunity It could be because, clearly, I think you showed in the second quarter.

unknown: [inaudible]

Obesity drug and you know it could be clearly a lot stronger than what youre thinking and I think just on that basis.

When do you expect them to them.

The market with respect to your outlook for the obesity sales opportunity obviously wanted to double by 2025 I think consensus is around about 2023, but the run rate is it could go it could even be seen I'm not familiar with it.

Simon Baker: When do you expect to be able to update the market with respect to your outlook for the event?

unknown: [inaudible]

Could address then that's a question that would be fantastic.

Karsten Munk Knudsen: It couldn't be sooner than that, so maybe if you could address those questions, that would be fantastic. Thank you.

So thank you Simone.

If you can start by addressing.

Karsten Munk Knudsen: Yes, so thank you, Simon. Karsten, if you can start by addressing any stocking in a half-year results in this area, and then maybe while you are at it, also comment a bit on, you know, our strategic aspirations for obesity, when and how much. And then Camilla, you can talk a bit too, as we assume we have capacity. How can one look at volumes outside of North to the first cast?

And he's talking in our half year results in this area and then maybe while you I did also comment a bit on.

Our strategic aspirations of obesity, when and how much and then Camille you can talk a bit too as we assume you have capacity.

How how can 1 look at at volumes outside of North America.

So first cost.

Yeah. So yeah, so I'd say church ticket to chop down than the 12% growth we delivered in the first half the year.

Karsten Munk Knudsen: Yeah, so, so I say to take it top down, then the 12% growth we delivered in the first half of the year does have a slight benefit of facing shipments in IO and slightly higher wholesaler inventories in the US by the end of Q2. So if you have to adjust, which is always dangerous, then perhaps you should, you know, pull out one to two percentage points of growth to a very large extent across the value chain to maximize our opportunity in obesity.

They do have a slight benefit of fishing of shipments in I O and slightly higher wholesaler inventories in the U S. By probably end of Q2. So if you have to adjust which is always dangerous than perhaps you should.

Pull out 1 to 2 percentage point of growth.

Growth for the first half 2 to get to the underlying growth level, but but largely lastly, rich since if I I'm sorry.

So that covers the first 1 in terms of obese desperation of more than doubling compared to 19.

I'd just like to start out by saying, so clearly we're not holding back in any way and for them and you see that also in the end.

In Q2, and if you go relaunch. So so we are allocating resources to a very large extent across the value chain.

Makes them myself opportune sheet in B C and D and of course, if that and <unk> said that we would get there earlier than the 25. All we exceeded 25 then the then to US. That's that's of course, clearly luxury problem and we do everything we can to succeed what Ray said.

Karsten Munk Knudsen: And, and of course, if that entails that we get there earlier than than 25, or we exceed in 25, then then to us, that's, of course, clearly a luxury problem. And we do everything we can to succeed.

On 5.5 weeks launch is probably not enough to really redefine what the aspiration should be so it can.

Karsten Munk Knudsen: Thank you very much.

Can we learn on the.

On what you expect outside of.

North America, Yeah, so in Iowa, most of the market so far.

Camilla Sylvest: North America. Yeah, so in IO, most of the markets so far are generally not reimbursed for obesity. Nevertheless, we see after COVID-19 now again a great pickup on Saxenda. So we see in the first half of this year 46% growth in IO in obesity, only driven by Saxenda, of course, and in the second quarter, actually even more. So the underlying growth in obesity is very strong, and there is, it is customary to pay out of pocket. Nevertheless, of course, there are a few countries that in recent years have now initiated reimbursement for Saxenda. We last talked to the UK and NICE.

Not to embarrass obesity. Nevertheless, we see after COVID-19, now again, a great pick up on music Center and so we see in the first half of this year and 46% growth in Io in obesity and.

Only driven by FX and out of college and in the second quarter actually even more so as the underlying growth in obesity.

Very strong.

And there is a it is constant to pay out of pocket. Nevertheless of course, a few countries that in recent years have now initiated reimbursement on the fixed Linda.

We last held to a U K a knife and we've also seen similar things in Switzerland and of course with V go will be coming in and with 3 times. The efficacy. It is likely that we will see more of that nevertheless, we still expect that it would be many out of Harvard magazine Io for many years in the future to come but it.

Camilla Sylvest: And we've also seen similar things in Switzerland. And, of course, with WeCovi coming in with three times the efficacy, it is likely that we will see more of that. Nevertheless, we still expect that there will be many out-of-pocket markets in IO for many years to come, but with big underlying growth. So, of the 650 million people living with obesity, only 100 of them live in the U.S. So the remaining part lives outside the U.S. This is a great underlying problem.

<unk> underlying growth so up to 650 million people living with obesity, only 100 of them, leaving the U S. So the remaining patent if oh outside the U S.

And so a great underlying potential.

Thank you Peter and thank you Simon.

Next question please.

Camilla Sylvest: Thank you, Camilla. And thank you, Simon.

From the line of Emily field at Barclays. Please go ahead. Your line is open.

Operator: That's from the line of Emily Field at Barclays. Please go ahead with your line as well.

Hi, Thank you I just wanted to follow up again on the stay time question in obesity.

Emily Field: Hi, thank you. I just wanted to follow up on the stay time question and obesity. Is it right that the succinct stay time was, you know, just under about half a year? And I was also curious, so then is the primary reason for discontinuation either a lack of efficacy or perceived lack of efficacy? And then, with Govee, how quickly does the patient's weight return to baseline after discontinuation? And in the real world setting, are you expecting any sort of rationing of the product or spacing out of the product with patients? Or would that result in a loss of efficacy?

Is is it right that sits under stay time was just under about half a year and I was also curious, though then is the primary reason for discontinuation.

Either a lack of efficacy or perceived lack of efficacy and then well go V.

How quickly does the patients we'd return to baseline after discontinuation and in the real world setting are you expecting any sort of rationing of a product or a spacing out of the product with patients or would that result in a loss of efficacy and then just a quick question on Novo 7.

Emily Field: And then just a quick question on Novo 7. You mentioned on the call the other day that, you know, perhaps in the US, the impact of competitor products perhaps could be, I guess, fully encapsulated maybe at this point. So, and obviously, there's very large growth this quarter. Are you thinking of that maybe declining or at a slower rate or perhaps kind of being more flat going forward? Thank you.

You mentioned on the call the other day that.

<unk> in the U S that the you know the impact of the competitor products, perhaps could be I guess fully encapsulated maybe at this point, so and obviously, there's a very large growth this quarter or are you thinking of that may be declining or at a slower rate or perhaps kind of being more flat going forward. Thank you.

Thank you Emily So Martin can you start talking a bit to what do we know of no state time on 6 tender and when you look at we go we stay time and if you drop out how fast to regain weight restrictions around that and then maybe talk you can talk.

Martin Holst Lange: Thank you, Emily. So, Martin, can you start talking a bit about what we know of, you know, stay time on sex tender?

Martin Holst Lange: And when you look at where we go we in stay time and if you drop out, how fast do you regain weight? Perspectives around that. And then maybe Doug, you can talk about what you see in the US on Novo 7. Do we have the full impact from Lieber back then? How do you see the latest trends?

To what Youre seeing in the U S on October 7.

Do we have the full impact from him leave it back then how do you see the latest trends. Thanks.

Absolutely. So so so maybe just recapping what launch it with the free time drop in efficacy as compared to what is out there.

Martin Holst Lange: Thanks. Yeah, absolutely. So, maybe just recapping what I said, with a three times increase in efficacy as compared to what is out there, and the sustainability that we've seen from step five, so sustained weight loss for a full two years. Obviously, we do expect to see a better stay time. We know from all of our clinical trials that weight loss is associated with improved quality of life, so the patients actually feel that it goes beyond what they see in the mirror.

And the sustainability that we've seen from some step 5 social a sustained weight loss.

Sure.

2 years.

Obviously, we do expect to see better stay time, we know from all of our clinical trials that the weight loss is associated with improved quality of lives of the patients actually feel that beyond what they see.

In the mirror.

And we can also see actually a good indicator in our clinical trials all patients are more willing to stay in the trial and be active in the trials that what we've seen previously.

Douglas J. Langa: And we can also see, actually, as a good indicator in our clinical trials, our patients are more willing to stay in the trials and be active in the trials than what we've seen previously with other compounds. We have a very clear answer to how fast we regain weight because we conducted a study called Step 4 where we ran patients on semaglutide 2.4 mg for 20 weeks. All patients lost a mean of 10% of their body weight during those 20 weeks, and patients were then randomized to either switching to placebo or continuing on semaglutide.

With other compounds.

We have a very clear answer to how fast we regain weight because we conducted a study called step full wherever we ran patients in on.

She magnetite 2.4 milligrams for 20 weeks all patients were where were losing a mean of 10% of their body weight. During those 2 weeks and patients were then randomized to either switching to placebo or continuing on to magnify patients continuing on tomato side continues to.

To lose weight.

Douglas J. Langa: Patients continuing on semaglutide continued to lose weight during the full 68 weeks of the study, and patients who were switched to placebo started immediately to regain weight, almost returning to baseline in the following 40 weeks. So from our perspective, the combination of Step 4 and Step 5 clearly indicates that you get a very, very sustained weight loss staying on semaglutide, and if you switch to placebo in this case or stop semaglutide, the regain of weight starts immediately. And we see this obviously as a very strong indicator that this is at the very least a long-term, potentially lifelong treatment. Thank you, Martin. Very clear data there. Doug, Novo 7 Dynamics in the U.S.

During the full 68 week of the study.

And in patients who were switched to placebo started immediately to regain weight almost returned to baseline in the following 40 weeks. So so from our perspective, the combination of Stifel and step 5 clearly, indicating you can get a very very sustained way.

Las are staying.

Staying on <unk> side, and switching to placebo in this case or stopping some agent side the regain of weight starts immediately.

And NBC. This obviously is a very strong indicator that that this is at the very least long term potentially lifelong treatment.

Thank you much and very clear data there are dark.

No 7 dynamics in the U S.

Yeah.

Emily for the question and I would say that you know him Libre an answer.

Douglas J. Langa: Yeah, thank you, Emily, for the question. And I would say that, you know, Hemlibra, and to answer your question specifically, it's still a good product. We do see that a lot of the impact in the heme and inhibitor space is probably behind us, but it's still a competitive product. And we still believe that they'll be taking share in the breakthrough category, bleeding category, where Novo7 is the

Answer your question specifically is still a good product, we do see that a lot of the impact and he may inhibitor space is probably behind us.

But it's still a competitive product and we still believe that they'll be taking share in.

And the breakthrough category bleeding category in over 7 years to go to product I mean, as we saw in the U S is as Covid impact decline if patients were increasing because of activity and this has led to significant bleeding episodes across all indications and Additionally, we saw patients that we're resuming in patient visits and elective.

Douglas J. Langa: I mean, as we saw in the US as the COVID impact declined, patients increased their physical activity, and this led to significant bleeding episodes across all locations. And additionally, we saw patients that were resuming, you know, inpatient visits, elective surgeries, and things like that. There was a bolus of that activity as COVID declined, but not necessarily sure, and hard to predict if that will continue going forward. So that's how I would characterize it.

Surgeries and things like that there there was a bolus of that activity as COVID-19 declined I'm not necessarily sure and hard to predict if that will continue going forward. So that's how I'd characterize it.

Thank you Doug I know you could say a global number 7 perspective is obviously that as some repo has been rolled out in most countries and at least the most significant countries of course, the impact from from rolling that out becomes smaller and smaller over time.

Douglas J. Langa: Thank you, Doug. And you could say from a global Novo 7 perspective that as Hymn Libre has been rolled out in most countries, and at least the most significant countries, of course, the impact from rolling that out becomes smaller and smaller over time. And as Doug said, it's clear that Novo 7 is the go-to product when you have breakthrough beats, which you do see also when you are on Hymn Libre. So thank you. Emily, next question, please. I think we have time for maybe one or two questions.

So it's clear that in over 7 years to go to a product when you have breakthrough beats, which you do see also when you are on the home depot.

So thank you Emily next question. Please I think we have time for maybe 1 or 2 questions.

It's from the line of Steve Scala Cowen. Please go ahead. Your line is open.

Operator: That's from the line of the Scala account. Please go ahead; your line is open. Thank you.

Thank you and I apologize for such a basic question and 1 which I probably should already know the answer but from the population based or epidemiologic standpoints do the causes of obesity differ geographically. So for instance is the reason that there are obese people here in the west different than the <unk>.

Steve: And I apologize for such a basic question, and one to which I probably should already know the answer. But from the population-based or epidemiologic standpoint, do the causes of obesity differ geographically? So, for instance, is the reason that there are obese people here in the US different than in the EU or Asia? And therefore, would you expect a long-term difference in the potential of Ogilvy in these markets? Given differences in diet, exercise, overall lifestyle, and ethnicity, I would imagine there is a difference, but I just don't know what that difference is. Thank you.

Our Asia, and therefore would you expect a long term difference in the potential of.

Goofy in these markets given differences in diet exercise overall lifestyle athletic ethnicity.

Imagine there are there is a difference but I just don't know what that differences. Thank you.

Thank you Steve I think that's a quick question for <unk>, we do see differences across the world. So what what can you say about that muscle. So so broadly speaking as you know the I mean, the vast majority of obesity is multi factorial multi fatone and calls so so important ethics in part lifestyle and that.

Martin Holst Lange: Thank you, Steve. I think that's a great question for Martin. We do see differences across the world, so what can you share about that, Martin? So, broadly speaking, as you know, the vast majority of obesity is multifactorial, so in part genetics, in part lifestyle. And that's obviously to do with diet and exercise. That being said, I think it's important to understand that across the world, our clinical trial results are actually quite similar.

That's obviously to do with diet and exercise.

That being said.

I think it's important to understand that across.

The world.

Clinical drive results are actually quite similar.

So so so approximately 90% of all patients receiving some magnified or we go away.

Martin Holst Lange: So, approximately 90% of all patients receiving semaglutide or WCOV lose at least 5% of their body weight, and approximately 40% of all patients lose up to 20% of their body weight. So from that perspective, there really is no difference. We do know that obesity, largely speaking, is related, apart from the few directly identifiable, to a sedentary lifestyle but also obviously increased food intake. And this is what we see at a global level with very small differences, which is also why we see a very consistent response across the globe. Thank you, Martin, and thank you, Steve. We now have time for the final question today.

At least 5% weight and an approximately 40% of all patients lose up to 20% of body weight. So so from that perspective really no difference.

We do know that obesity largely speaking is related apart from the few direct directly.

FIFO genetic diseases is associated to with a sedentary lifestyle, but also obviously increase the food intake and this is what we see.

At a global level with Barry.

All differences, which is also why we see a very consistent response across the globe with marathon.

Thank you Martin and thank you, Steve we have no time for the final question today.

That's from the line of Sachin Jain of Bank of America. Please go ahead. Your line is open.

Martin Holst Lange: And that's from the line of Sachin Jain of Bank of America. Please go ahead; your line is open. Thanks for meeting me.

Thanks for giving me a second round I just 2 big picture for me I'm, sorry, mid teen margins and first of all I think let's see M. D. You indicated a flattish margin structure Midtown.

Sachin Jain: second round, just too big a picture for me.

Sachin Jain: The mid-term margins of the first one, I think at the last EMB, you...

These can be a high margin product in the peak sales debate in the market as it would be nice when the school is a long way above your floor 2 billion.

Sachin Jain: , Peter Welford, Simon Baker, Emmanuel Papadakis, Eric Berrigaud, Emmanuel Papadakis,

Question is if it ends up being a bigger product 234 billion without additional EBIT be invested increment in R&D or SG&A when do we get more margin drop through that you had previously planned.

unknown: is a long way above your floor of 2 billion. So the question is, if it ends up being

Question laws.

It's sort of back to the long term, 1 and you alluded to port concentration in answer to your question and we've been fairly vocal on that topic, Iran's effects and sort of some of the R&D angles, but I wonder if you could just touch on a couple of others.

Think about it here you know a long way in advance of that so a the importance of transferring them potentially to write belts is given along with him formulation patents.

unknown: , Matthew Walsh, Peter Welford, Simon Baker, Simon Baker, Daniel Bowers, Harry Sephton, Richard Parkes, Martin Lange, Lars Jorgensen, Michael Novod, Thomas Bowers, Harry Sephton, Douglas Lange, Laurie Holt, Martin Jensen, Daniel Bowers, Andreas Fibig, Richard Parkes, Martin Jensen, Douglas Lange, Laurie Holt, Simon Baker, Daniel Bohsen, Martin Jensen,

And b, whether that's required or not given your semi fixed dose combinations and whether that really as you were and then picking on lifecycle management with the eminent again.

unknown: [inaudible]

Where do you think they can deliver enough additional efficacy to offset any pressure on generics.

Yeah.

Yeah.

So thank you thanks searching for those questions. So first on the on midterm margin and and the benefit we get from we go with penetration and maybe if you'd want in general.

Karsten Munk Knudsen: So, thanks for those questions. Karsten first on mid-term margin and the benefit we get from a GoWe penetration and maybe July 1 in general. Yes, and thanks for winding back to our CMDs logic, because that's how we continue to run the company. So as a reminder, we have an operating margin above 40, so we're in the top quartile, and again, we're not adjusting for anything. So we're already in a very competitive place in terms of margin.

Yes, Sachin and thankful for winding back to that's why CMT used are not ticket because that's our that's how we continue to run the company. So as a reminder, we are with an operating margin of about 40, then win in the top quartile and and again, we're not adjusting for anything so so we're already in in.

Very competitive place in terms of margin and then of course with the higher growth rates at a time auction processes that use opportunities for either March and leverage our increased investments and the and as we've discussed before and also to come around to a product concentration than the than we see.

Karsten Munk Knudsen: And then, of course, with the higher growth rates at high-margin products, that yields opportunities for either margin leverage or increased investments. And as we discussed before, and also to comment on product concentration, we see now as the right time to invest in future growth drivers in the long run for Novo Nordisk. So we will be investing more, especially in R&D but also in building the obesity market. So right now, we're still in the early days of building the whole obesity market.

Now is the right time to invest in future growth drivers for in the long run for Nynorsk. So so we will be investing more especially in R&D, but also in building the obesity market. So so right now we're still in the early days of building D. All of the obesity market. So there will be increased investments in SG&A with the with.

Karsten Munk Knudsen: So there will be increased investments in SG&A with the success of Vigovi because with the pending success, then of course, we will also be looking at our overall investment profile, which I think is actually already pretty aggressive. But with Cagri Simmer coming and the high-dose all-simmer for obesity, I think we have good platforms to invest, both in our commercial infrastructure and general market development, and then, for sure, also in an R&D ratio which is below the industry average by, I'd say, some 4-5 percentage points.

The success of the Covid because with the pending success. Then of course, we would also be looking at are all investment profile, which I think is actually already now pretty aggressive, but with <unk> coming and and a high dose oral sema for P. C. I think we have a you know good platforms to invest both in.

In our commercial infrastructure and in German market augment and then for sure also in an R&D ratio, which is below industry average by I'd say, some 4.5 percentage points. So so for us to expand and diversify our pipeline. There also are investment dollars need it.

Karsten Munk Knudsen: So for us to expand and diversify our pipeline, there are also investment dollars needed. Of course, as CFO, my job is to ensure that we spend the money wisely and that we can see a return on what we're doing. So you should not be concerned about that.

Of course, the CFO my job is.

To ensure that we spent the money wisely and it is that we can see a return in what we're doing so so you should not be concerned about that so far.

With our current fans expect expect.

Lars Fruergaard Joergensen: So with our current plans, expect us to stay with a broadly stable operating margin. And to the second part, and Karsten was a bit alluding to it, I think we have a unique opportunity to do more for more patients and, you know, gain patients much earlier and also retain patients for longer. When you look at a product like weekly insulin, I predict using that on top of GF1 treatment.

Expect us to stay with.

Broadly stable operating margin in the midterm.

And 2 to the second part and cost him was a bit low.

No I think we have a unique opportunity off of doing more for more patients and gaining patients much earlier and also retaining patients for longer but when you look at a product like weekly instrument I predict using that on top of a 2 for 1 treatment.

If you look at glucose sensitive insulin so even within our core business today I think we have some quite good plays in and also sustaining growth.

Lars Fruergaard Joergensen: If you look at glucose-sensitive insulin, so even within our core business today, I think we have some quite good plays in sustaining growth beyond semaglutide. And then we are obviously, as I alluded to, trying to build additional franchises where there's significant unmet need and also using some disruptive technologies that lend opportunities for us to compete in completely different ways, like based on stem cell-based opportunities. So we have a clear focus on maximizing the potential of semaglutide, and I think that will drive a quite interesting decade ahead of us.

So Ms Lu side, and then we obviously as a route to trying.

Trying to build additional franchises, where there's significant unmet need and also using some disruptive technologies that links up 'twenty is forced to compete in completely different ways like based on the stem cell based opportunity. So.

We have a clear focus on maximizing the potential with some igloo tight and I think that will drive.

Drive a quiet.

In the case in front of us.

And we have already identified and we will be adding a growth options to to finish that and Oh. We have shown that we can we can take a leadership position in building new areas and also at times, we're giving up and even in therapies, we stick to them.

Lars Fruergaard Joergensen: And we have already identified, and we will be adding growth options to, you know, replenish that. And, you know, we have shown that we can take a leadership position in building new areas. So we remain confident in what we have in hand and our ability to also build for the long term.

Bringing pretty good innovation to patients. So we remain confident in what we haven't had and our ability to also build for the long term.

On that note. Thank who is searching for you for your question and thank you all for joining today.

Lars Fruergaard Joergensen: On that happy note, thank you for your question. Thank you all for joining us today. If you have further questions, do please reach out to our Investor Relations Officers. We are here to make sure we can address your questions. Thank you very much and have a great day. Bye bye.

If you have further questions do please reach out to our Investor Relations offices. We are here to make sure. We can address your questions. Thank you very much and have a great day bye bye.

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