Q2 2022 Novo Nordisk A/S Earnings Call - London

[music].

I'm thinking the model and the pension for hosting us today. So thanks a lot.

Unknown Speaker: I would like to start by thanking Vimal and Bernstein for hosting us today, so thanks a lot.

Lars Joergensen: I'm Lars Joergensen, I'm the CEO of Novo Nordisk, and with me I have Camilla Sylvest from commercial, Martin from medical, and Karsten our CFO.

Jo Walton: It's, of course, also a product, that hasn't been on the market for very long.

Jo Walton: Two questions and then just a quick clarification.

I'm not sure I got jobs I'm, the CEO of North I wasn't there.

From a commercial.

Watching from Medico and.

Uh huh.

So we'll do a quick introduction and just set the scene by making a few presentations here.

Lars Joergensen: So we'll do a quick introduction and just set the scene by making a few presentations here.

Jo Walton: Then on the stay time, you also asked about that.

Jo Walton: Just on returning, back to the select-injury analysis, sorry, we're going back there again.

Jo Walton: We see, we haven't concluded on new stay time data, for Wicovi yet, it's simply too early.

Lars Joergensen: We're talking about the future, which is inherently risky, so stay alert on the risk factors and our forward-looking statement here.

Jo Walton: And giving also that we haven't been fully in the market.

Jo Walton: Just to understand though, I think you said at the capital market stage that the secondary endpoints would be considered. You've now said that a third of events roughly happened in the secondary versus the primary.

If you're talking about the future, which is an inherently risky so are they.

Jo Walton: But what we can say is that we, of course, expect the stay time on Wicovi to be longer, giving that we have shown in clinical trials that people reduce weight up until 60 weeks, and even up towards 102 weeks, we see no increase in the weight again.

Jo Walton: So just to be super clear here, if we had have seen, shall we say, 22%, above 20%, the interim would have then said the trial should be unblinded irrespective of secondary.

On the risk factors in our forward looking statements.

Lars Joergensen: On strategic aspirations, we have set these aiming at delivering strong contribution to society, the environment, but of course also our shareholders.

Jo Walton: So, from that point of view, we expect that people would like to stay longer on the product than what we see on TaxSender today, where the average is more $5,000.

Jo Walton: Just to be super clear on this.

On strategic aspirations are we have said these are aiming at delivering.

Strong contribution to society.

The environment, but of course also all shareholders. So we feel that based on this aspiration and we believe we're making good progress we have.

Lars Joergensen: So we steer that based on these aspirations, and we believe we're making good progress.

Lars Joergensen: We have exciting progress from an innovation point of view, and Martin will talk a bit to that, as we're really focused on raising the bar in diabetes and obesity, and expand it to some adjacent disease areas.

Citing.

Progress from an innovation point of view, Boston will talk a bit to that.

We believe focus on raising the bar in diabetes and obesity and its been expanded for some adjacent disease areas.

Lars Joergensen: You can see our commercial execution is really strong, strong growth in the first half year here, a continuation of an accelerated growth trend we have seen over the past quarters.

You can see how commercial execution has been strong strong growth in the.

First.

Yeah Yeah.

Generation of an accelerated growth trends, we have seen over the past quarters.

Lars Joergensen: Adding competitive strength in expanded markets here in diabetes, and all that translate into very attractive growth numbers, and we have now for the second quarter in a row made significant upgrades in our earnings outlook for the year, and I think we also have quite attractive cash conversion and return to our shareholders.

Adding competitive strength.

It expanded market share in diabetes, and all that translate into very.

With respect to gross numbers and we have now for the second quarter in a row made significant upgrades in our earnings.

Yeah.

And I think we always have quite effective.

Cash conversion.

To all shareholders.

So really strong start to the year and we are quite confident.

Lars Joergensen: So really strong start to the year, and we are quite confident on the competitive dynamics and commercial execution we see, and we think we have a really interesting and exciting pipeline that can further drive our position in diabetes and obesity, and really lift innovation bar and stay competitive for the long term.

Jo Walton: University.

Jo Walton: There was a limit at which point it would be unblinded irrespective of secondary analysis.

Competitive.

Dynamics.

Commercial execution, we see I don't think we haven't really.

Interesting and exciting pipeline that can further drive our assistant studies PCT.

We did this innovation bar.

They are competitive for a long time with that I'll hand over to Camilla for a few commercial uptake.

Lars Joergensen: With that, I'll hand over to Camilla for a few commercial updates.

Jo Walton: Just a small additional comment, so as we put in our announcement, now we have more than, 80% unrestricted access in commercial in the U.S. So we actually upgraded our commercial access in the U.S. compared to the last quarter.

Jo Walton: And then just coming back to reimbursement just based on select, in the U.S., could there be a scenario where select could lead to a secondary prevention-style reimbursement?

Jo Walton: And when we look at access at a patient level, then we are, when you go across channels, we're around 20 million people with obesity who have insurance access in the U.S., and of the Govi, but also in terms of the Simpig.

Camilla Sylvest: Thank you, Lars.

Jo Walton: Yes, so I can answer that.

Jo Walton: And I guess leading on from that, is it possible to conduct a primary prevention trial in obesity?

Uh huh.

Camilla Sylvest: And as you know, 16% sales growth in the first half of this year, primarily driven by North America, 65% of the share of growth coming from North America, 35% coming from I.O.

Jo Walton: No, I don't think we have to do that.

Jo Walton: Sorry, just on a very tactical specific comment, Michael, on Q2 for the Govi.

Jo Walton: Or is that the sort of study that would need, I guess, like a U.K., for example, a sort of government access-type trial, if you like, because it just isn't viable to conduct primary prevention in this sort of market?

And then.

Jo Walton: I think we had a similar tactics when we launched the Govi to, you know, build early experience, as we built access.

Jo Walton: So tactically, the reason why you get to the value prescript that you get to is also impacted, by the current supply chain situation that we've been discussing on the Govi and the availability of the different dose strings.

Jo Walton: And then, sorry, just to clarify, CAGRI-SEMA, you said, was really important for type 2 diabetes, trials.

Jo Walton: We have robust access, as can be seen, both for the Govi, but also for Simpig.

Jo Walton: So the fact that some of the dose strings are not available in the U.S. market leads, to the fact that the wholesaler inventory levels are lower, and as a consequence, you get to a lower value prescript than you otherwise would have in a growing concern business.

And I think things have been faithful to the first half of Bcf, primarily driven by North America, 65% of the scaffold.

Jo Walton: So it's in that state-of-state commercial model you have to compete long-term.

Jo Walton: If not in the initial, say, early access experience, we feel we have to compete.

Jo Walton: So we're quite comfortable with that.

Jo Walton: And, yes, we used similar tactics when we launched the Govi.

Coming from North America, 35% coming from Iot.

Jo Walton: Thank you.

Camilla Sylvest: You see 10% growth in I.O.

Jo Walton: Hi.

Jo Walton: K.

And you also see some slowing in China will be a negative.

Camilla Sylvest: You also see each of the regions growing except for China, where the negative growth is related to the volume-based procurement, that initiated as of May, as we have discussed several times. On the right-hand side, you see the growth per therapy area.

And they get these losses related to the volume based procurement PBT impact.

As of today.

I said several times.

On the right hand side you see.

And the first half.

Camilla Sylvest: You see strong growth driven by GLP-1, 45% growth on GLP-1, driven both by North America and also by international operations.

Yes.

So Steven the 145%.

One Steven both by North America.

Camilla Sylvest: Then you see a decline in the insulin growth, primarily driven by price decreases in the U.S., but in I.O., the negative growth is related also here to China.

Then you see a decline in the insulin growth primarily.

Driven by price increases in the U S, but in the Iot.

A negative losses related to offer to you.

Camilla Sylvest: And then you see obesity growth of 84%, 60% in I.O., all driven by Sexenta, and then 102% growth in North America, of course, driven by a combination of both Sexenta and B. coli.

And then you'll see the growth of <unk>.

84%.

2% in IL all driven.

And then a 102% growth in North America of course, driven by a combination of both.

Camilla Sylvest: And then we have flat growth in rare disease.

And then we have that.

That growth.

Uh huh.

If we look at and see if.

Camilla Sylvest: The CLP-1 class expansion, you here see a significant increase in the CLP-1 class growth, more than 35% growth, and you also see that OCEMPIC now has the market leadership in this segment as a brand, and you also see that Novo Nordisk continues to increase our total market share in CLP-1, now up to 56.4%.

He has one fast expansion with a significant increase in this year's Q1 SaaS growth.

More than 35% growth and you'll also see that the same.

<unk> now has the market leadership in this segment at the Gwen and then you also see that Illinois continues to increase.

Let's hold market share and TLC, one now up to $56 12 per se the market underlying market dynamics being very very strong.

Hi.

Much stronger recognition.

Opportunities please.

Both <unk> and cardiovascular risk profile for people living with diabetes.

If we zoom in on obesity care.

Market growing 84%.

Also have an 84% market share in Youll be proceed segment much more interesting use of course that there is a lot stronger desire to speak to you later. Please proceed.

This is of course, a combination of market development efforts the recognition that needs to be treated because of the risks that he didnt guarantee has in other fields chronic conditions and and in the U S. We now have formulary access of more than 80%.

Net exits are somewhat lower.

Lower than that and then we.

We have discussed.

We are looking to make although for zalviso will be available in the U S.

He and WCS.

The commercial production of.

At our CMO has been vacated in Q2, and we are progressing towards making all those specifics at the end of this year.

And then finally, we have also outside the U S. Mexico will be available initially now in France had a clinical experience program.

And we also looking forward to launching the Kobe.

In a few countries towards the end of the year and of course, the majority of the launches in international operations will be Colby will be in 2023.

And with that I'd like to hand over to back into it.

What's about.

Thank you very much I'm going to start with most of you have had some attention on that study.

Just wanted to take a bit.

Yes.

And remind us what insulate selected the cardiovascular outcome trial of 7500 patients randomized to either to Mexico.

With the primary purpose of Brocade Woodcock basketball.

As with both customers.

Nick.

That basically means that.

Looking up our visits in order to do a statistically.

On this one.

Although as with both our compliance as an opportunity.

That is what we call an interim analysis.

Got it.

Given that.

We want to make absolutely sure that we get good and robust.

From our perspective from operations from our investigators.

And so it goes from a regulatory.

He said the BOP anyway.

I started like generic sample size.

17%.

Systems with respect.

The basic.

We have a 95% power.

Sure.

Camilla Sylvest: It also means that we can show statistical difference, so fashion is below 70%, but also, obviously higher than 70%.

It also means that we can show statistical difference Sebastian with Sidoti.

But also obviously it hasn't been.

Camilla Sylvest: But if we wanted to stop at the income analysis, we needed something that is bigger than that because we had fewer events to look at.

But if we wanted to stop at the interim analysis.

Consulting, but bigger than that because we have to deliver.

But this is the result of movements with the David Larsen Committee was to fully recover.

Camilla Sylvest: That basically means our agreement with the data monitoring committee was to only recommend to stop selection if That also means that when the EMC calls us and talks about or recommends us to continue, the study, it means with some likelihood we are below that substantial number.

So there.

If the budget isn't visit.

Just on the primary endpoint.

Thanks.

Some of you are asking what is the best above that.

That's a double we don't want I suppose like the absolutes.

Seven six points.

The reason for you all.

In terms of what.

That also means that when you didnt see coal.

Talk about that.

<unk> continued to discuss with.

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This substantial level.

Camilla Sylvest: That does not mean that selection is a big one.

That does not mean, that's the thing.

Goodbye.

Actually it means that we basically.

Camilla Sylvest: Actually it means that we basically can go back to our base assumption that there is a substantial 17% difference. It could be slightly more, it could be slightly less, but that is our base assumption and we are going to continue the trial until we land in towards mid of next year.

Basketball based assumptions as an essential service.

Subsequent could decide the board could decide.

But that's our base assumption is we're going to continue the trial until.

Right.

It's towards openness.

Camilla Sylvest: I have also been asked a couple of times does the EMC look at other than the primary endpoint.

I've also been asked a couple of times.

Does the CMC bogus.

Ben.

I'm sorry.

Okay.

Camilla Sylvest: As with any EMC, it is that prerogative to look at the totality of the data that goes, for everything, that goes for safety.

And if you separate Robert this is Luke.

Data that goes with it.

Camilla Sylvest: But you also have to consider, and I'm sorry to become a little technical here, again this is a function of how many events you have.

But you also have to consider and I'm, sorry to the government's fiscal year.

Again this is a function of how many events.

Camilla Sylvest: And if you look at the secondary endpoint, you have approximately one third of the events, that you have on the primary endpoint.

And if you look at secondary school you have approximately one third of your bed partner.

It also means that you don't have a lot of policy fix statistical business.

Camilla Sylvest: That also means that you don't have a lot of power to detect statistical difference in those endpoints. And therefore we specifically recommended and guided the EMC to primarily focus on the primary endpoint.

These dosing studies.

And therefore, we.

We recommended a guide.

Camilla Sylvest: They had the prerogative to look at the totality of the data, but we asked them to primarily look at the primary endpoint.

Baird.

Yeah.

They had the prerogative to Lucas of sensitive data.

Bill.

Camilla Sylvest: Again I want to illustrate 17% would be very effective, numbers below 17% would be very effective.

They don't want to answer it.

17%.

Barry.

Book to Bill.

Camilla Sylvest: And we have the statistical power to even detect statistical difference in the DOA teams.

Barry.

And we have the statistical power.

This capability.

Camilla Sylvest: You have seen smaller outcomes trials than this that show statistical difference all the way down to 11%.

These smaller outcome straws.

So statistical difference all the way down to 11.

Camilla Sylvest: And therefore we are very, very confident that around mid next year we'll come out as planned with very robust data.

And therefore, we are very very confident.

Rob This is Jim will come off those thing.

Sure.

Camilla Sylvest: Turning to something that is also super exciting.

Jo Walton: This is Parag from Goldman Sachs.

Jo Walton: Does that mean we should get a press release on the phase 2?

Okay.

Jo Walton: Or is this normal, no vote, and we should wait for November, probably, for an update in three years?

Turning to something.

But also.

Got it.

As we reported on.

Additional.

Camilla Sylvest: Last week we reported on two additional onwards, trials.

Jo Walton: Two questions, please.

Jo Walton: Thank you.

Jo Walton: First, Kamila, when we met last time in London, your view was that Icotech should have majority, share of the basal insulin market, and that was before you saw the entirety of the phase three data.

So basically you said, we have now reported a $5 six.

Camilla Sylvest: That basically means that we have now reported on five of six onwards trials.

Jo Walton: Now that you have the data, kind of, and you've shared it with us, what's your update on that?

Jo Walton: I think there was a new variant of the question.

On what.

As the development program.

Okay.

Camilla Sylvest: Onwards is the development program for one screen changing in iPhone.

Jo Walton: And what's your updated view on what would be a good or a bad commercial outcome for, insulin Icotech as a part of the basal insulin market?

Jo Walton: I don't know if you want to repeat the answer.

So super excited about that.

Jo Walton: Separately, last apologies for going back to this.

Jo Walton: This is the third time in about 12 months that you've come and given us updated timelines, for VW Supply.

Sofa.

Jo Walton: I'm sure it's more frustrating for you than for all of us combined, but love your thoughts, on what point does it start becoming an issue from a patient or a doctor perspective?

Depicted in this slide.

Jo Walton: The people who have been waiting for this drug for 6-12 months now.

Jo Walton: University, Jens Stoltenberg, Jens Stoltenberg, Jens Stoltenberg, Jens Stoltenberg, Jens, Stoltenberg, Jens Stoltenberg, Jens Stoltenberg, [inaudible] So we decided to take the start of doses out to make sure that you kind of handle that in one go.

Almost one two and three.

Jo Walton: And those patients who then stayed on treatment, they could titrate up to the high dose, which, we can provide.

Jo Walton: But I respect the critical point that we didn't get this perfectly right.

Jo Walton: Well, it's a slightly different answer, but you're absolutely right.

Jo Walton: So right now, I think it's a relatively stable situation from a prescriber patient point, of view, because those on treatment, they can stay on treatment.

Jo Walton: I mean, focusing on the primary endpoint, there was a set cutoff, and they, again, it's a guidance, and they had the prerogative to look at the totality of the data. But with a high, high likelihood, they had been looking at the primary endpoint and followed that guidance of following that specific endpoint.

Jo Walton: And physicians do not need to worry too much about can we go or can we not, because we've, taken the start of doses out.

And faced with Goldman Sachs.

Jo Walton: Then it's fair to say that we have moved the timeline somewhat.

Jo Walton: When this happened in December, relatively quick, we had to make an assessment and guide, what we believed in.

You've already heard us talk about almost one or two.

Jo Walton: And we guided that there would be limited supply during the first half.

Jo Walton: And if you look at what our contract manufacturer has done, they have actually quite competently, delivered on the plan.

Jo Walton: Now we have a situation where volumes coming out is a bit below that plan that was made, back then.

Superiority in terms of flexible control versus the dollar.

Jo Walton: But baking in the different remediations you need to do and the oversight you put in to, make sure that now it's robust, that is a fine art to scale.

Jo Walton: So I'm actually online pleased with what they're doing, but it's really important for us that, we do not go out in the market again until we believe we have the inventory needed not to create that issue with patients and physicians.

Jo Walton: And we are in this for the long term.

Jo Walton: So you can say the guidance was during second half, and now we're towards the end of the, year. That's a few months later. And for me, a few months of delay is the right thing to do if you can get back in a reliable, manner and try that business for the long term because we think the opportunity is intact.

Jo Walton: We are very confident in what we go, we can do. And we're also confident in our ability to get the volumes up and to have, say, redundancy, more sites, more contract manufacturers doing this part of the work for us.

Awesome.

Jo Walton: So we'll come back, we'll be strong.

With those systems.

This will help a bit.

And both of them.

Almost.

This is a simplified in the sense that we're building at Batesville.

The difference between all the fleet of almost <unk>.

It was double blind sell themselves. So it is very very high on the scientific rigor.

And showing the same superiority.

Thanks for the data as we've seen in the open label.

So the robustness of the data that we've generated but also.

Really exciting profile.

Thank you.

Obviously it was regarding this.

<unk>.

<unk> regulatory submission.

Because we have China.

Okay.

Dealing with recruitment and we have an agreement with tax authorities that integrated in China.

The program also allows us to see a consulting.

Local places for submission.

A final statement.

Almost fall.

The board because this is basic phones.

Yes.

Okay.

Approximately 40% of the volume.

Yes.

Fitbit based loans and be fulfilled from a volume perspective and from a business perspective.

<unk> 45.

We're happy to see those differences that's applicable no different.

Okay.

Because then we can conclude that we had.

And Ed was especially through the perfect size.

In person.

The dysfunction that patient.

We of course.

A typical full scope.

Yes.

Jo Walton: And we're not proud about that.

And therefore, we are as excited as ever about.

Jo Walton: But certain things happen, and when it happens at the same time, it can end up in this type, of challenge.

About the prospect of interest in Iceland.

Jo Walton: Yeah?

Finally, as just taking you through some of the highlights of what is going to come next.

Jo Walton: The word you described was to transform the residential end market.

In the next couple of quarters.

Jo Walton: Is that transforming from a volume perspective or a value perspective as well?

Camilla Sylvest: We're super excited, about the results that we've seen so far.

Jo Walton: Yeah.

I think there has been.

Some of you.

Super Super.

I don't know about.

Phase II.

Five reaching out.

Sure.

This is for type two diabetes is important point out business shortly.

Well, it's a combination of mix side.

Okay.

Hello.

Very very expensive.

That profile.

Wait till probably used to assess the potential.

Inventory.

That's got a leader right.

During the course of Q3.

And then obviously we are excited about the indication about the combination of debate.

Yes.

This is Phil.

Clinical from a medical and also from a commercial perspective getting the best of two worlds.

Yes.

In this space.

Obviously.

So thank you very much.

The results of these studies.

Initially all of it.

Let's see.

Okay.

Okay.

One.

I don't know.

Okay.

Potentially.

Tim in terms of basics.

But he added convenience.

And all of them.

In the rare disease space I think you've heard us talk a lot about consistently.

Very much forward to initiatives.

But we are equally excited about epic.

Got it.

Index.

Sure.

But the two 7% with a tremendous.

And finally, I just want to point out.

Including the creation of our <unk> vessels.

Yeah.

That's the necessary.

Camilla Sylvest: They are depicted in this slide.

Jo Walton: It's too early to comment on that, Keyur.

Jo Walton: Sorry, set point.

Camilla Sylvest: Onwards 1 and 2 and 3 are in phase with over the screen.

Jo Walton: Just to clarify, when we talked about the decreased power on the secondary endpoint, the primary endpoint is a composite of myocardial infarction, stroke, and cardiovascular death.

Christina.

Last year.

Got it.

And also.

Sarah Hyland.

So with that over to you.

Camilla Sylvest: You've already heard us talk about onwards, and showing the same superiority over Incident Deck-to-Deck as we've seen in the Open Label files is due to the robustness of the data that we've generated but also to the really exciting profile that we've seen with the Incident IP.

Jo Walton: So at least I would promise you from a volume perspective and data, we can talk about pricing, right?

Jo Walton: And it goes without saying, if you look at individual components of that endpoint, then you lose power.

Thank you Allison.

Camilla Sylvest: The second reason why Onward 3 is exciting is because it caters to a true global reference, for submission of the Incident IP because we have China and Chinese patients in the Onward 3 program and we have an agreement with the Chinese authorities that integrating, China in the global program also allows us to create a true global reference for submission at finalization of the program.

Camilla Sylvest: Onward 4 is important because business-based loans in statute IPs has approximately 40% in statute IPs, a really, really strong candidate in business-based loans with good blood-temperature control, good safety, and a superior convenience profile.

So also the financials you've seen the P&L, so I'm not going to go through it in detail you had 16%.

Constant exchange rate sales growth in the first six months and can be this presentation I can do it even better because we're not adding currency then we exclude 25% reported.

Camilla Sylvest: And therefore, we are as excited as ever about the prospect of Incident IP.

Jo Walton: So I think that's premature for now.

Jo Walton: And therefore, either the differential has to be very, very big, or you have to have a lot of events.

Jo Walton: When we get closer to the launch or around the launch time, that is the right time to, talk about that.

Jo Walton: Hi.

Camilla Sylvest: Finally, just taking you through some of the highlights of what is going to come next in, the next couple of quarters.

Jo Walton: That also means that that's why we asked them specifically to focus on the primary endpoint, because the likelihood of seeing anything on secondary endpoint is not really the same.

Didn't really amazing growth driven for the company when you look at.

Both the relative and absolute growth levels.

Camilla Sylvest: Obviously, I think as with some of you, I am super curious and super excited about seeing, phase 2, case of SEMA trials leading out later this year.

Jo Walton: Specifically on Kaggle-SEMA, I don't think, I said it was very important.

Yeah, well when we go through our P&L, you'll see the continued dynamics on our gross margin benefits from product mix driven.

Driven by just one portfolio continued to drive efficiencies and then of course.

Camilla Sylvest: This is for statute IPs.

We have a negative impact from pricing, but net net and improving gross margin at constant exchange rates of some 60 basis points in the first six months.

Camilla Sylvest: It's important to point out this is exploratory.

Camilla Sylvest: We don't know what the combination of tumericicides and aminib can do in terms of blood-temperature, control and statute IPs.

R&D look at that growth rate.

6% up on an hour.

R&D spending.

That links to so basically the investments that that margin.

And Microsoft Research quality got off assuring in terms of expanding and diversifying our pipeline.

Around half of the step up in R&D and it comes from the acquisition of it.

If you would expect that closed in the fourth quarter of last year.

And we're already starting to see some encouraging signs not reporting and Martin slides.

In our early pre projects with Marquis starting to get the additional volumes into our early pipeline. So so really encouraging there and continued it investments.

LNG going forward net net operating profit up 14%.

And then of course, you see hedging going the other way with net financial yourself of a negative.

2.8, which is basically the you know the.

We are comfortable hedging of net financial it's not not in the lines.

Texas nothing to say net net diluting diluted earnings per share up 13% in the first six months are very attractive.

Camilla Sylvest: We know that it has a very, very attractive safety profile in terms of weight loss, but, we need to assess the potential in glucose-lowering.

This all plays into it and upgrade of our full year outlook driven by the momentum behind our tier one franchise in diabetes rebelliousness and Olympic.

Camilla Sylvest: That's going to read out during the course of Q3.

Well as soon as market growth.

<unk> segment. So you see the step up as <unk> showed you with the center and its nice Operation Center and also some big coffee sales in the U S. So really strong momentum in our obesity franchise.

Which in combination with tier one diabetes enables us to step up our guidance in terms of sales growth and operating profit growth and then again conscious a favorable especially in the U S. Dollar strengthening this year that we're all the way up out. So so now we're seeing a.

Camilla Sylvest: And then, obviously, we are excited about the initiation of our combination of tumericicide, and SGLT2 inhibitors.

Nine percentage points benefit on topline unfortunate since the funds.

<unk> benefits on our operating profit from their from currencies.

Ken will partially be offset by by hedging losses, but when you do the net math.

They do have a favorable mix.

Net of currency to the tune of 32 4 billion just in case. This year. So a very favorable and this then translates into an upgrade is the cash flow generation of between 50 762 billion, which plays into all catch location strategy.

With that we're thinking through in terms of returning our free cash flow.

In the form of dividends and share buybacks. So we're maintaining our share buyback program of 24 billion DKK four for this year and then the board has decided to issue an interim dividend in August for Kona in 'twenty five.

Yeah, which ties into our strategy of continuing with around 50% payout ratio of net profit in the form of dividends between interim and full year results.

Camilla Sylvest: This is, I think, from a clinical, from a medical, also from a commercial perspective, getting the best of two worlds with the GFD1 and the SGLT2.

Jo Walton: I don't want to belittle it.

So that was the brief run up.

Financial center or Sheila.

Camilla Sylvest: In the space of obesity, obviously, we are looking very much forward to seeing the results, of the study that we just initiated with all aminib.

So thank you for my colleagues and I were ready for the Q&A session and welcome questions from both buy and sell side and if you could please.

Camilla Sylvest: That's basically, again, building towards aminib and GFD1.

Jo Walton: Emily Field from Barclays.

Camilla Sylvest: In the rare disease space, I think you've heard us talk a lot about contestants, you've, heard us talk a lot about MiMED, we're looking very much forward to initiating MiMED-PSC programs, we bought last year, and we're super excited to see what that can happen, and also it is very high on demand.

Please start by stating your name.

Your name and reputation and then we have some microphone for working around.

Camilla Sylvest: So with that, over to you, Karsten.

Jo Walton: Hi.

Let me start with <unk>.

So out of respect.

Thank you very much.

Karsten Knudsen: Thank you, Martin.

So can I just ask about select not be intuitive.

Jo Walton: Emily Field from Barclays.

So my question is really about how important.

These two uptake so if I think about reimbursement and penetration in.

In the near term with them without select how does novo actually think about it because we think it's really important.

Given where we are in terms of penetration.

How mature this market does it actually matter near term to how well the Kobe is actually going to do that's the first question and then my second question is on.

On <unk> and <unk>.

<unk> so.

<unk> looked quite painful again on a net price basis, if I'm just doing the simple math of reported sales and volumes instead of first half overall looks quite.

Quite tough. So my question really is are we now starting to see greater pressure for <unk> from payers.

As they compare to <unk> pricing.

And so is it fair to assume moving forward.

<unk> pricing will decline to a greater extent than the injectable GOP.

Okay. Thank you so for me the first on select.

Karsten Knudsen: So over to the financials, you've seen the P&L, so I'm not going to drill through it in detail.

Jo Walton: A question on the Treat and Reduce Obesity Act in the United States.

Jo Walton: I said it was very exciting.

How important is it to have these days than our first customer.

Jo Walton: What needs to happen for that to move forward?

Jo Walton: Do you need any more data?

Yes.

So it's very clear that the <unk> has already established itself as a very important brand in the eyes of it.

People living later. Please proceed but also with sufficient so in the short term. We believe that there is a very very strong momentum in the VLCC market, we even see the market developing now flowing the market, 84% and it basically means that there is you know.

Jo Walton: And could that be impacted if there's a change in legislative control at the midterms?

Jo Walton: Kind of just any incremental color there.

Jo Walton: And maybe a question for Martin.

Jo Walton: Pfizer looks like they might be advancing a once-daily oral GLP-1.

Jo Walton: So just any updated thoughts on the competitive landscape from potential novel variants?

Jo Walton: Minister of Energy, Mind, Energy, Land Office, Society of公 சClintijn van Wanckvadejin, ted Manane dunkendjay, hoasnarhardos Coen Rossum DuIkuraswamy, Sadhapati JagadkiNgufadi, so isotuluKarthigarayaSo, whatneeds to happen, in the U.S. is there needs to be a bipartisan vote for treat and reduce obesity act to allow for obesity prescription in Medicare part D. And of course it's difficult for all political processes to say exactly where that's happened, but there is yes lot of good traction around that we've talked about a couple of times today.

Jo Walton: We've talked about the importance of treating this and just on a comment to that we also, do know that there is a great underlying need also in this segment of course so that's why we continue to work on this and it may be more a matter of when exactly it happens and if it happens in my view.

Both for the short term and the medium cell Ikea.

Jo Walton: And while Martin works for Nobel Nordisk, not Pfizer, a perspective.

Okay.

Impact from products that can wait till today.

Everyone have a 70% 80% of it.

And having said that of course over time, a landmark study likes to make but also describe how these actions have patient things through the system also other serious chronic issues that are related to obesity and this of course, they've been Chicago, that's the outcome, but of course understanding that was an important just like 20 years ago. We saw how important was to understand.

Jo Walton: I think it's really, really interesting, also because, from a scientific perspective, I'm curious, what goes without saying, if this turns out to be as strong in diabetes as it is in obesity, we have a really...

Jo Walton: So to close, we are really pleased with our execution commercially.

Jo Walton: We are really pleased in how we are building our pipeline.

Jo Walton: I think ICOTEC is an example of us aiming to raise innovation heights to levels where, people have said up front that that's not possible.

Type two diabetes.

Jo Walton: We are also very pleased with the execution of the GOVI despite the challenges we've spoken, about here.

Jo Walton: We think there's a tremendous opportunity in the obesity market. I think we're really well-positioned to grab that.

So when you ask about whether that has an impact on task.

And additional cardiovascular influences of the Avis App, but it's also clear that even with extended now received reimbursement in many many more countries because the importance of treating. Please proceed has seen much better understood Nathan and recently and.

This of course in itself is already very strong and that's why you see.

Such a strong sales growth even in international operations.

Short answer yes, it's very important to get to make that we look forward to the readout next yes as planned.

But it's clear that the demand for the Goldman Sachs Anyhow and is very strong.

Karsten Knudsen: You heard 16% constant, exchange rate sales growth in the first six months in Camilla's presentation.

Okay. Thank you.

On the pricing, yes, so so first of all.

Karsten Knudsen: I can do it even better, because when I add in currency, then we exclude 25% reported, so a really, really amazing growth level for the company when you look at both the relative and absolute growth levels.

<unk> never looked at pricing for just one quarter right because there's so many confounding factors.

We now expect <unk> scripts.

Inventory you name it so so never look at it by.

By quarter end and.

And we price rebelliousness, according to the product benefits, which are very closely aligned to all benefits us.

Jo Walton: So broadly speaking Pfizer are not the only ones looking at new or versions of GF1.

Jo Walton: I think small molecules are interesting in the sense that the data we've seen so far, is a reasonable efficacy and I think the safety assessment is still out with small molecules that's always a little bit of an unknown until you've seen the data.

Jo Walton: From a timing perspective they are sort of way into the future.

Jo Walton: And that means from a true differential perspective maybe it's the FMC that could be the difference, and based on our own efforts also on potentially improving not only by availability but also our manufacturing as far as we can see we have also there a competitive profile with the next generation.

Just one category. So so I wouldn't tie it to switch gears to pricing rolling forward or anything like that.

It's one based products with good benefits.

Benefits and.

And then I would say depending on how you do yours.

That you're modeling.

We believe we have also nice uptake ex USA on the doses. So so we see Japan, moving very nicely and we also see some European markets, putting off very nicely, if let's say with move outs. So.

We see good trajectory in.

Product toppling and actually being a very nice growth.

Growth driver.

But of course, it's a little bit all Chateau fire defense I think the same thing for phones.

Thank you.

Sure.

Jo Walton: Thanks Pete, but I'll add two questions to Martin just on GlipGyp and CMD.

Joe Wilson from Credit Suisse, a couple of questions. Please.

Jo Walton: Can you just remind us how Novo is trying to differentiate in the GlipGyp space and, the preferential ratio and binding you have between GYP and GLIP with your offering?

Jo Walton: And then just wondering, if we go back to CMD, what was the thinking to stand up and, mention this interim analysis at that point?

I'll be coming back to the first one again.

Karsten Knudsen: When you go through our P&L, you see the continued dynamics on our gross margin of benefit from product mix, driven by a year to one, portfolio, continues to drive efficiencies, and then of course, we have a negative impact from pricing, but net-net and improving gross margin at constant exchange rates of some 60 basis points in the first six months.

It seems more than six months ago, when you were saying, 6% to 8% constant currency growth and now you've delivered 16 in the first half now at the beginning of the year you say, absolutely don't expect any leverage coming through we will reinvest everything now we've got a much higher top line I'm just wondering how long you can see.

Karsten Knudsen: R&D, look at that growth rate, 26% up on R&D spending, that links to basically the investments that Martin and Marcus, our research colleague, are pursuing in terms of expanding and diversifying our pipeline.

Jo Walton: I mean I'm just wondering did you do that because you were confident that it was going, to hit the end point, but if not I just want to understand why you decided to mention it because judging by the events of the last three days it could have saved you a lot of hassle, a lot of share price pain.

Jo Walton: Just let the data speak for itself, thank you.

Jo Walton: I can start by answering that because Martin has not been responsible for this all along.

Jo Walton: So some time back somebody in the company mentioned a potential interim analysis and, that was maybe a mistake because it's a difficult topic to actually communicate on because we don't sit with the insights.

Jo Walton: So before the CMD there was increasing talk about it so we just felt we had to kind of, level the playing field by telling what's the setup and what to leave about it.

Karsten Knudsen: Around half of the step-up in R&D comes from the acquisition of Dyserna Therapeutics that closed in the fourth quarter of last year, and we're already now starting to see some encouraging signs, not reporting in Martin's slides, but in our early pre-projects with Marcus, starting to get additional volumes into our early pipeline, so really encouraging there, and a continued investment in R&D going forward.

Jo Walton: I think also at the ADA investment meeting there was also a quite clear message coming, out along what Martin just mentioned.

Karsten Knudsen: Net-net operating profit of 14%.

Jo Walton: So there was a historical mentioning of it and that meant that we had to kind of clarify, at the CMD going forward you should not expect us to talk to interim analysis.

Jo Walton: Martin, keep flipping.

Stick with that line absolutely we can understand more investments in R&D you invest today, we see the benefit shareholders see the benefits in the future.

But in the in the review that constant gave you didn't highlight just how much the marketing cost has gone up in the first half as well.

So I wondered if you could just talk a little bit about the.

Environment, where the this is proactive because lilly is coming down the road with Giro and you just want to be fast in every doctor seats. So they really cold even getting or whether this is.

Massive DTC, but just something about the sustainability.

How we should think about the enormous marketing expense going on.

My second question would be.

To Camilla on the acceptability of reimbursement, we've all got multibillion dollar numbers outlet for the obesity market.

And when it is quite small we can imagine that payers will pay full very obese people to get reimbursed.

What is it can you give us an update on how people are thinking about that reimbursement will broadly because you mentioned, 80% reimbursement, but you said the net number was less so perhaps I don't know whether you could only take it for two years or the minute you come down below a certain of BMO you have to stop.

How we should be thinking about that.

And perhaps to select if you get select.

Does that change People's voices view, so they come back and say this is awesome.

Now cost effective at a much lower price and get to you is that what really triggers everyone to start reimbursing you. Thank you.

Thank you.

Karsten Knudsen: Then, of course, you see hedging going the other way with net financials of a negative 2.8%, which is basically, we account for our hedging in net financials, not in the lines.

Jo Walton: That was a good answer.

Allow me to give some initial perspective on the margins in the literature.

Karsten Knudsen: Taxes, nothing to say, and net-net diluted earnings per share of 13% in the first six months.

We can perhaps chicken.

Jo Walton: And guidance also.

I know that that always.

Different things like now we've taken that.

We have impact from volume based procurement in China et cetera.

Jo Walton: So on GLP-1, GLP-1, obviously, you've already seen that that's a good combination.

But from a strategic point of view, it's really the market shaping up.

Efficiency and launching.

Same thing.

And of course also be Colby <unk>.

What's driving our business.

Jo Walton: From our perspective, when looking at a combination of mechanisms, what we are trying to assess is optimizing efficacy while minimizing potential risk.

So the opportunity we have over the coming.

Based on the shipment based products is a tremendous opportunity.

So it's not something where we say that now competition is coming so we upped our game is really a deep built.

Post two PC market.

Also.

Awareness of what a product like a simple Ken can deliver.

And of course, when you when you have a proposal.

Proposal. She also needs to have a bit more of a GP type approach.

And we can see as she also good for yourself, we can see that when we do those investments we actually get a return on it. So when you sit with really really strong products.

Karsten Knudsen: Very attractive.

Jo Walton: As you all know, we both had a triagonist actually in our pipeline.

Karsten Knudsen: This all then plays into an upgrade of our four-year outlook, driven by the momentum behind our year-to-one franchise in diabetes, rubellosis, and ozempic, as well as market growth in the obesity segment.

Jo Walton: We also obviously had the dual agonist, and we still have that in our pipeline.

Karsten Knudsen: You see the step-up, as Camilla showed you, with SacSenter in its mass operations, and also Zombie Gobi sales in the U.S., so really strong momentum in our obesity franchise, which in combination with year-to-one diabetes enables us to step up our guidance in terms of sales growth and operating profit growth.

Jo Walton: Always our assessment is then the balance of efficacy versus risk safety.

Karsten Knudsen: And then, again, currencies are favorable, especially the U.S. dollar strengthening this year that we're all aware about, so now we're seeing a 9% benefit on top line and 14% benefit on our operating profit from, currencies, which, again, will partially be offset by hedging losses, but when you do the net math, we actually do have a variable net of currencies to the tune of 3 to 4 billion DKK this year, so very favorable.

Making sure they off to a good track and get the right perception in the market.

Karsten Knudsen: And this then translates into an upgraded cash flow generation of between 57 and 62 billion, which plays into our, capital allocation strategy that we're sticking to in terms of returning our free cash flow in the form of dividends and share buybacks, so we're maintaining our share buyback program of 24 billion DKK for this year, and then the board has decided to issue an interim dividend here in August of 4 kroner and 25 euro per share, which ties into our strategy of continuing with around 50% payout ratio of net profit in the form of dividends between interim and full year results.

Is a very important investment to make upfront.

Karsten Knudsen: So that was the brief run-up of financials, and I owe it to you Lars.

And then you can say longer term. We have also guided that we believe that that will have some leverage.

After we have produced those protections and we also have an intention to build further brands that we can invest in down the road, but now we have to do.

Massive investments.

And then we will look at all options.

Jo Walton: And when looking at our pipeline, we do see efficacy with GLP-1, we do see efficacy with the triagonist.

Jo Walton: And when we look at our opportunities for driving growth there, also short-term, we, are very encouraged about that.

Down the road.

In R&D and commercial.

Jo Walton: But we also specifically look at potential safety issues.

Jo Walton: And all of that has led to both exciting clinical data and an upgrade for the second time this, year.

I think the only thing we can promise, we'll keep investing in the opportunities we have.

Jo Walton: Having then what we believe is the potential perfect combination of GLP-1 and ambulance in our pipeline, where we saw potential for far superior weight loss, as we just discussed, it could potentially also work in type 2 diabetes, without having to compromise on patient solubility, basically the same profile as we have with the magnified hormone therapy.

Jo Walton: So we are on a roll.

And.

Jo Walton: And I'd like to thank again Vimal and Bernstein for hosting us here today and to all of you, for showing up with great questions.

Then the success of that will then generate the leverage over time.

Similar on the.

Lars Joergensen: Yep, so thank you to my colleagues, and now we're ready for the Q&A session.

Jo Walton: No reason to progress on a triagonist, specifically because of the glucagon.

Jo Walton: Thank you very much.

Jo Walton: We keep, and so we are absolutely certain that CACU Center is going to make it.

Efficiency reimbursements.

Jo Walton: I mean, with any development program, there are potential risks.

Jo Walton: We're seeing fewer and fewer risks ahead of us as we speak.

Lars Joergensen: And a welcome question from both buy and sell sides, and if you could please start by stating your name and affiliation, and then we'll have some microphones working around.

The reimbursement.

Lars Joergensen: Shouldn't we start with our host? Out of respect, I think.

Very exciting and I just give you a perspective for the U S. And then probably this fall.

Unknown Speaker: Thank you very much.

Jo Walton: They're still there.

Jo Walton: But to hedge all of our bets, we keep our own GLP-1 VIP in our pipeline.

Jo Walton: We believe that we still haven't seen the data on efficacy to be a good and safe compound.

Jo Walton: But again, based on what we've seen so far, CACU Center is probably the better combination, because you get even more efficacy, and you, get that without having to compromise on safety solubility.

Countries outside the U S. We saw about 80% plus access in the commercial segment.

Unknown Speaker: So can I just ask about select, not the interim?

Jo Walton: So I think I don't want to belittle that combination.

And 40% at foster approximated, 40% excess net access and the <unk>.

<unk> segment, driven by our employers opt in so basically technicality of the U S market, but in summary, basically means that 20 million people have access to treatment and when you compare that to how many have been treated to date. There is of course already a good opportunity for people to get treatment at no co pay for them to do it.

Unknown Speaker: So my question is really about how important select is to uptake.

Jo Walton: I think it's good.

Jo Walton: I think it's strong.

Jo Walton: I think we also have something better in our pipeline.

Jo Walton: So we're committed to raising the innovation height in both diabetes and obesity.

Unknown Speaker: So if I think about reimbursement and penetration in the near term, with and without select, how does Novo actually think about it?

Jo Walton: And with the assets that's in the market, on the way to the market, you need to really be sharp on that step change, change innovation height.

Jo Walton: And we believe we have, you know, good shots on that, that you know about.

Jo Walton: But we also, believe we have early stuff that's preclinical, that is aimed at redefining what does good look like in a market where there's a lot of good choice today, but still a lot of patients with significant unmet medical need.

Jo Walton: So it's about, you know, understanding what does, you know, decades from now, what does innovation look like, and then have a state and a pipeline with different horizons in doing that.

Unknown Speaker: Because we think it's really important, but given where we are in terms of penetration, and how mature this market is, does it actually matter near term to how well Wigobi is actually going to do?

Jo Walton: Hi.

Jo Walton: Thanks.

Unknown Speaker: So that's the first question.

And then outside the U S. We've seen a very interesting development the last few years.

Unknown Speaker: And then my second question is on ribelsis and pricing.

Unknown Speaker: So 2Q looks quite painful again on a net price basis if I'm just doing a simple math of reported sales and volumes.

Unknown Speaker: And so the first half overall looks quite tough.

Unknown Speaker: So my question really is, are we now starting to see greater pressure for ribelsis from payers? You know, as they compare to SGLT2 pricing.

More and more closer to deciding to reinvest.

Linda.

This generation places with product and it.

Unknown Speaker: And so is it fair to assume moving forward that actually ribelsis pricing will decline to a greater extent than the injectable GLP1?

Unknown Speaker: Thank you.

Typically in most countries announced exclusive vastly but in the 10 countries.

Camilla Sylvest: So Camilla, first on select, how important is it to have these data?

That has sort of government reimbursement, we are more looking at people that have a BMI above 30 of us all of Us 35.

Karsten Knudsen: And then perhaps Carsten on pricing.

And in some cases also with Comorbidities.

Camilla Sylvest: So it's very clear that Wigobi has already established itself as a very important brand in the eyes of people living with obesity, but also with physicians.

When the window for 10 days old ladies and invest as a server.

It seems like that with respect to its also fall for a product like veeco with even higher waived all has to do also get.

That same space and I wanted to estimate to know that we also see significant.

Uptake in those country government funded and while we of course have reimbursement and the dialogue with the government about this there's also of course, where she talked about the cost of an expert opinion, because when we can model what the long term impact of this might be.

That would be proceeds related to many many theories other health conditions, then of course, the health economics.

And this is also a nice has endorsed.

<unk>.

Alright perfect.

So there's an interesting dynamic effects here. If you go a few years back and looked at the obesity market and the discussion we had about what does it take to unlock it.

Camilla Sylvest: So in the short term, we believe that there's a very, very strong momentum in the obesity market.

Camilla Sylvest: We even see the market development now growing the market 84 percent.

Camilla Sylvest: And it basically means that there is, you know, both for the short term and the medium term, a clear important impact from products that can reduce weight loss to the tune of 17 to 18 percent that we see with Wigobi.

That is different compared to today.

So if something has changed in the awareness of <unk>.

<unk> is a disease.

And you can speculate whether its the experiences of health care systems. During a pandemic you can speculate whether it's now that we feel that there's a real solution to the problem and often you can find the problems are not being a technologist until there's a solution.

So so something is changing.

Camilla Sylvest: Having said that, of course, over time, a landmark study like select would also describe how this actually transitions, into reducing also other serious chronic issues that are related to obesity. And this, of course, is linked to cardiovascular outcomes.

Camilla Sylvest: But, of course, understanding that would be important.

And it also links to the first question.

Camilla Sylvest: Just like 20 years ago, we saw how important it was to understand type 2 diabetes.

Select data are important.

But it's not the only key to unlock the market.

So a dynamic effects.

And also when you when you think of hit the more consumer type nature of the PC market that we are starting to see is also different compared to what we have seen on <unk>.

<unk> pharmaceuticals.

Da Vinci.

Mark your controller.

Jo Walton: Richard Foster from J.P. Morgan.

Okay.

So if I may the BMT exam.

Going back to select marketing just wondering obviously you've talked about this high bar you are above the sales order book of 17%, let's for argument sake say 522 system could.

Jo Walton: Could I come back to the comment on the volumes, not coming out of the manufacturing process being a bit below? Is that because there's lots of product wastage that the manufacturing process is not as efficient as you'd like?

Could you comment.

So if the trial was stopped for futility is up margin the same on the downside as it is on the upside and so therefore, we could assume.

Jo Walton: Is that because you can't get enough plastic or something from the supplier issue, or there, are not enough filters for the manufacturing process?

The number could be 12 to 21.

For the six months between borders come back to you with my first question and second one is just again all of them will go V.

Jo Walton: Just some color on what's going on there so that we can have comfort that it can be fixed.

Jo Walton: And then secondly, just thinking about the oral peptides and future peptides like Kagoshima, is there a way you can file those as a BLA, or do peptides always have to be NDAs in the U.S.?

Camilla Sylvest: So when you ask about whether that has an impact on payers, of course, there is an additional cardiovascular end point we will be able to add.

Camilla Sylvest: But it's also clear that even with sex center now, we see reimbursement in many, many more countries, because the importance of treating obesity has been much better understood lately and recently.

Camilla Sylvest: And this, of course, in itself is already very strong.

Gary.

Camilla Sylvest: And that's why we see such a strong stage growth even in international operations.

So payers.

Payers pushing supply will not increase.

Or I'm, just wondering if you could potentially comment.

True or not because they are seeing the huge demand for the product and so we don't see a bit worried that that budget as it can be blown out of the water I'm. Assuming is also could you share a percentage of the average size that you see given the stress in the market for 12 months.

So I don't know to what degree you can get more clarity on what's the mix I think of Linzess.

Camilla Sylvest: So short answer, yes, it's very important to get select.

Camilla Sylvest: And we look forward to the readout next year as planned.

Karsten Knudsen: But it's clear that the demand for the Gobi is there anyhow, and it's very strong.

An important question.

Karsten Knudsen: Thank you, Camilla.

Jo Walton: Thank you, Richard.

Karsten Knudsen: Carsten, on pricing. Yeah, so first of all, never look at pricing for just one quarter, right, because there are so many confounding factors, you know, between expectories, IQVS scripts, inventory, you name it.

Jo Walton: Two rather detailed questions, I would say.

First of all.

Karsten Knudsen: So never look at it by quarter.

Jo Walton: So if we look at – I cannot, go into all the details about exactly what's happening on the line.

Karsten Knudsen: And we price Rebelsis according to the product benefits, which are very closely aligned to the overall benefits of the GF1 category.

Jo Walton: I hope you respect that.

Basically I guess primarily directed for.

Karsten Knudsen: So I wouldn't tie it to STLC2 pricing rolling forward or anything like that.

Karsten Knudsen: This is a GF1-based product with GF1 benefits.

Karsten Knudsen: And then I would say, depending on how you do your value modeling, then clearly we have also a nice uptake ex-U.S. on Rebelsis.

The primary endpoint and stopping for efficacy in those countries.

Karsten Knudsen: So we see Japan moving very nicely, and we also see some European markets pulling off very nicely with Rebelsis.

Karsten Knudsen: So we see good trajectory and the product doubling and actually being a very nice sales growth driver.

But should they stopped for futility.

<unk> had been building it can live up to them.

Specifically significant.

There were not.

Doug.

17% you would have some scope in those 10%.

Yes.

Okay.

Hello.

So so so from that perspective, we are very far.

In our assumptions.

Thanks.

With the 17th.

Camilla on.

Reimbursement again four week over week.

Yeah.

Yeah Carlos.

We are in.

Not having any new information on that that is particularly on the other hand.

On the other hand.

In that we see ongoing so as often is the long tail of the nonwoven side.

Okay.

But of course this becomes more.

Karsten Knudsen: But, of course, it's a little bit overshadowed by the fantastic receptive performance.

Jo Walton: But if you look at our own manufacturing setups, we have different performance levels on different filling sites, and that can change a bit over time for different reasons.

Karsten Knudsen: Thank you.

More and more important for everyone to Sweden to offline to make that treatment available so and of course over time, it's likely that there will be as we've seen.

Jo Walton: Jo Walton from Credit Suisse, a couple of questions please and I'll be coming back to the first one again.

Jo Walton: But it seems more than six months ago that you were saying 6 to 8% constant currency growth and now you've delivered 16 in the first half.

Jo Walton: Now at the beginning of the year you said absolutely don't expect any leverage coming through, we'll reinvest everything. Now we've got a much higher top line.

Jo Walton: So what we're looking at here is not, say, a variance that's much different from what we would see in our own facilities.

Jo Walton: And of course, when you have taken a site down and done remediation, there is retraining and, you know, oversight that needs to be put in place.

Jo Walton: And that can sometimes mean that, say, release processes for volume is lower in a period of time.

Moving to more and more channels that would be that would be a negotiation.

Nice levels and so on but this is.

Also product that hasn't been on the market for very long.

And then on the statement and you also asked about that.

We see we haven't.

Conservative on new states on data so we get a sense as to early evening also that we havent been fully in the market, but I wasn't can say is that we are participating today timelines with obesity longer keeping debbie as shown in clinical trials.

People reduce weight of 50 weeks and even up to 100 until weeks, we see no increase in the rates again, so from that point of view, we expect that he would like to stay longer on the floor.

Our next Investor day will be average or small five to six months.

And it's just a small additional comment so as we put in our announcement and now we have more than 80% unrestricted access and commercially in the U S.

So we actually upgraded our commercial access in the U S compared to the last quarter.

When we look at the.

Access at the patient level and we are when.

When you go across channels, where round to 22 million if you with the VC who have for it.

Insurance access in the U S and that's a number which is increasing as we speak.

Okay.

And control of the microphone so.

Thanks, Michael.

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

<unk> in Q2.

<unk> volume was relatively low.

Was wondering if you could comment to whether you need to respond to lilly's fairly aggressive co pay program that seems to be running for.

Quite a while and I think about it in terms of Adobe, but also in terms of specifics.

Yes so.

I can answer that no I don't think we have to do that.

I think we had a similar tactics would be launched too.

Early experience as we build access.

Have robust access to both <unk>, but also for simply.

So it's and that's datasets commercial model you have.

To compete long term is not in the initial phase.

Early access experience.

We feel we have to compete so we're quite comfortable with that.

And we used a similar tactics when when we launched.

Sorry.

Just on a very tactical specific comment Michael on Q2 for Goldman.

So technically the reason why you get to the value prescript that youll get to it's also impacted by the current supply chain situations that we've been discussing <unk> and.

The different dose strengths to the fed.

Some of the dose strengths not available in the U S market.

Two the fact that the wholesaler inventory levels that Noah.

And as a consequence, you'll get to a lower <unk> than you otherwise would have in a in a going concern business.

Okay.

Jo Walton: I'm just wondering how long you can stick with that line.

Jo Walton: We have also experienced that ourselves.

Jo Walton: Absolutely we can understand more investment in R&D. You invest today, we see the benefit, or the shareholders see the benefit in the future.

Jo Walton: So that's not a particular problem that's blocking it.

Jo Walton: But of course, when you're running at a demand that's higher than supply, that becomes a, problem.

Keith with products from Goldman Sachs. Two questions. Please first coming up it can be met last time with London.

Your view for stock I could that should have a majority share of the pace of interesting market.

And that was before you saw the entirety of the phase III data.

Now that you have the data.

And you've shared with us.

What's your updated view on what could be.

Good or bad commercial outcome for.

The part of the basal insulin market.

Separately.

Apologies for going back to this.

This is the third time in 12 out 12 months, if you come in given us updated timelines for <unk> supply.

Sure it's more frustrating for you than for all of Us combined.

Love your thoughts on at what point does it start becoming an issue from a patient or a taco perspective, but people who've been waiting for this drug.

12 months now.

I was sleeping Paul you can create with Longbow.

What's kind of your learning from us as a company.

Not to harp on I would again.

So first on.

I predict.

Yes, so I think it would be mid last time, you already had some readout from the phase two trials and I think the last readout. We've had now for the next three slides are confirming what we saw when we discussed last time suite. We believe <unk> has a great opportunity to transform the basal insulin segment imagine to what Martin said.

Have a very very strong <unk> profile, we have a once weekly treatment should be a lot easier for suites.

Patient satisfaction and some of our trials. It also shows that this is truly relevant to them and then we have a very safe profile and hoping that we also have very strong environmental profiles because of the once weekly. It also means that we reduce carbon emissions and plastic with 70% to 80%.

There's a lot of good things to lag about I could I give you so much for the follow up with bringing it to a certain market.

And the last time, we felt we also spoke about our opportunity in the basic segment. We now have a market share of around 37% in value with 33 in volume and of course, there's room for us.

Expand on that so that's where we are coming from so I would only say that since last time, we have only sort of underlines that the this is a great opportunity.

And a fair challenge.

When we go we supply.

Yes.

You know the history and the Philippines, almost you could say from a.

Strategic point of view, we decided to.

In a in a device.

A feeling.

We do not have in house, we went with a contract manufacturer.

It's not unusual for launched only on one side. So we have had a robust plan on adding segments. This site and Thats, we are progressing on that that will happen.

23.

The launch volumes, we had expected.

Was adequately Haynesville project one site.

And they would be a hit also issues.

And.

And then it turned out the launch volumes were significantly larger than we are plentiful and at worst case.

Perhaps a short.

Shutdown, so when when things go wrong, it's often a combination of more than one thing happening so a significantly higher demand.

No.

A quality issue.

And then you can say.

Many learnings and how to avoid that from happening again.

You can say you should have.

Broad set of.

Capabilities and how are you.

<unk> devices and fulfill the market based on that.

That flexibility.

Flexibility at your own set up you have more options to play with.

<unk>.

Optionality in how you fulfill markets. So Japan degree possible is also good.

But it's not unusual that you launch a new product out of one facility.

But luckily normally you have more capacity than what we ended up heavy equipment.

When it becomes a problem for patients and physicians at the time where are you.

Run ups run also so to say you have to communicate a lot with physicians because they can no longer start prescriptions.

And so we decided to take the startup doses out to make sure that you kind of handle that in one go and those patients will then stayed on treatment.

They could titrate up to the high dose, which we can provide so what I'm, saying right now I think it's a relative stable situation from a prescriber and patient point of view because those on treatment. They can stay on treatment and physicians do not need to worry too much about can we go with that.

We have taken besides those yourself.

Then its fair to say that we have we have moved the timeline.

Somewhat.

When this happened.

In December .

Yeah.

Relative quick we had to make an assistant and guide what we depleted.

And we guided that there would be limited supply during the first half.

And if you look at what our contract manufacturer has done they have actually.

Alright.

<unk> delivered on the plane.

Now we have a situation where.

Volumes coming out is a bit below that plant that was made back then.

But baking in.

Different.

Jimmy durations, you need to do and the OSI to put in to make sure that now it's robust.

That is to find out to escape so.

So I'm actually online please with what they're doing but.

But it's really important for us that we do not go out in the market again until we believe it has to.

Inventory needed not to appraise that issue with patients and physicians.

Jo Walton: And we are aiming at already next year to have enough lines running, enough sites running, that we can get ahead of the game.

And we are in this for the long term.

Jo Walton: So we don't need to have a discussion with you if there is a line running a bit slower than normally, because that's actually part of doing manufacturing.

So you can say that guidance was during second half and now with towards the end of the year. That's a few months later.

And for me a few months is today, it's the right thing to do if you can get back in.

Reliable manner and try that business for the long term because we think the opportunities in Texas.

We are very confident in what we feel we can do.

Jo Walton: So it's a scaling game to make sure that you have, say, robustness against that.

And we're also confident in our ability to get the volumes up and to have save redundancy more sites more contract manufacturers doing this part of the workforce. So we'll come back really really strong.

But I I respect the critical point that we didn't get this perfectly right and we're not we're not part of our debt, but certain things happen, but when it happens at the same time. It can end up in this type of Kevin.

Yes.

Yes.

So would you describe was to transform the basal insulin market is.

Does that transforming from a volume perspective auto value perspective was fun.

Yeah.

Too early to comment on that.

Any sort of assumption from a volume perspective and data we can talk about pricing by itself I think that's premature for now.

When we get closer to the long shot along with that.

That is the right time to talk about that.

Jo Walton: But in the review that Karsten gave he didn't highlight just how much the marketing cost had gone up in the first half as well.

Jo Walton: So I wondered if you could just talk a little bit about the environment, whether this is proactive because Lilly is coming down the road with Monjaro and you just want to be sat in every doctor's seat so Lilly can't even get in, or whether this is massive DTC, or just something about the sustainability and how we should think about that enormous marketing expense going on.

Jo Walton: And my second question would be to Camilla on the acceptability of reimbursement.

Hi, Emily field from Barclays.

Jo Walton: We've all got multi-billion dollar numbers out there for the obesity market and when it's quite small we can imagine that payers will pay for very obese people to get reimbursed.

A question on the treat and reduce obesity act in the United States what needs to happen for that can move forward do you need any more data and could that be impacted if there was a change in legislation legislative control at the midterm kind of just any incremental color there and maybe a question for Martin and <unk>.

Jo Walton: But what is it, can you give us an update on how people are thinking about that reimbursement more broadly?

Jo Walton: And then, Martin, on all peptides and registration approach... BLA versus NDS, I'm not at liberty to go into our regulatory strategies.

It looks like they might be advancing a once daily oral G. L. P. One so just any updated thoughts on the competitive landscape from potential novel competition.

With reduced American thing.

Yes.

Yeah, so what needs to happen in the USA, Sir Thank you Cynthia bipartisan vote by the Sweden reduce obesity Act basically analysis. Please proceed.

Jo Walton: Because you mentioned 80% reimbursement but you said the net number was less so perhaps, I don't know whether it's you can only take it for two years or the minute you come down below a certain BMI you have to stop.

Jo Walton: Or how we should be thinking about that and it ties in perhaps to select.

Jo Walton: If you get select, does that change people like ICE's view so they come back and say this is awesome, it's now cost effective at a much lower price and gets you, is that what really triggers everyone to start reimbursing you?

Jo Walton: Thank you.

Quick questions.

Medicare part D and of course it is.

Difficult for us, but also clinical processes to say exactly when does that happen, but there's a lot of construction allowances as we've talked about a couple of times today also in the U S about the importance of trading days and.

Jo Walton: Allow me to give some initial perspectives on the margin and the leverage and perhaps you can chip in.

Jo Walton: You know that there are always year over year different things like now we dig in Dyserna, we have impact from volume based procurement in China, etc.

Jo Walton: But you know from a strategic point of view it's really the market shaping of obesity and launching Osempic etc.

Yes.

Jo Walton: and of course also with Gobi, that's what's driving our investments.

In our comments to that we also do know that there is.

Jo Walton: So the opportunity we have over the coming cycle based on the center based products is a tremendous opportunity.

Jo Walton: So it's not something where we say that now competition is coming so we upped our game.

Jo Walton: It's really a deep build of both the obesity market but also the awareness of what a product like Osempic can deliver.

Jo Walton: And of course when you have rebalances you also need to have a bit more of a GP type approach.

Jo Walton: And we can see, as you also do for yourself, we can see that when we do those investments, we actually get a return on it.

Great.

Jo Walton: So when you sit with really, really strong products, making sure they are off to a good, track and get the right perception in the market is a very important investment to make up front.

Underlying need also in this segment of the call. So that's why we continue to work on this and this may be more a matter of when exactly it happens if it happens.

Jo Walton: And then you can say, longer term, we have also guided that we believe that we'll have, some leverage after we have, you know, produced those perceptions.

Jo Walton: And we also have the intention to build further brands that we can invest in down the road.

Jo Walton: But it's now we have to do those massive investments.

Jo Walton: And then we look at our options down the road in R&D, in commercial.

Jo Walton: And I think the only thing we can promise you, we'll keep investing in the opportunities, we have.

Jo Walton: And then the success of that will then generate the leverage over time.

Jo Walton: A question on obesity reimbursement.

Jo Walton: Yes, obesity reimbursement, very exciting.

Maybe.

Jo Walton: And I'll just give you a perspective for the U.S. and then for countries outside the U.S. So in U.S., we talk about 80% gross access in the commercial segment and approximately, 40% net access in the commercial segment driven by employers opt-in.

And while margin works for Nordstrom Pfizer.

Yes.

<unk> not the only ones.

Or.

Just one I think small molecule very interesting in the sense that.

<unk>.

The data we've seen so far is a reasonable efficacy.

I think the safety assessment is still out.

<unk> molecules that that's always a little bit of an unknown.

The data from a timing perspective.

Waiting for the future.

And that means.

From the truth.

Perfect.

Since the FMC.

Based on our own efforts also.

Potentially improving.

Not only bioavailability, but all of our manufacturing costs.

We can see.

Also there.

Yes.

Profiles.

<unk>.

Next generation.

Thanks, Peter two questions to Boston, just don't flip chip in the CMT.

Can you just remind us how nobody is trying to differentiate in the collaborative space.

The preferential ratio of buying that you have between typically with Europe .

And then just just wondering if you go back to CMV.

And what was the thinking to stand up and mentioned this interim analysis at that point I mean I'm. Just wondering did you do that because you were confident that its going to hit the endpoint, but even though it is one of them is that why you decided you mentioned.

Talking about the events of the last three days could save you a lot of hassle.

Share price paid.

I speak for yourself.

I can start answering that because merchandize that's been responsible for this all along.

No.

Some time back somebody in the company you mentioned potentially instruments.

And that was maybe a mistake because.

It's a difficult topic to actually communicate on because we don't see it with insight.

So before the Sandy there was increasing talk about it. So we just felt we had to kind of level.

The <unk> by telling what's the setup and what it will leave about it and I think also at the.

88.

Investor meeting there was also a quite clear message coming out.

And on what Martin just mentioned.

No.

There was a historical mentioned in August and that meant that we have to kind of clarify sandy going forward you should not expect us to talk to interim analysis.

Yeah.

Martin.

Please go ahead.

Yeah.

And guidance also.

[laughter].

And then just one GPU, obviously, you've already seen that.

A good combination from our perspective.

Looking at a combination of.

Of mechanisms, what we are trying to assess is optimizing efficacy while minimizing the potential safety issues.

As you all know we bought both at a fly up in those days.

In our past and we will also obviously have had with you.

<unk> equity and we still have that pipeline.

Always our assessment is the independence of efficacy.

Risk safety.

And when looking at our pipeline.

We do see.

If we do see efficacy.

Okay.

While we also specific liver glucagon soul potential safety.

Having debt.

We believe the potential perfect combination with one eminent.

Our pipeline.

Where we saw.

The potential for far superior weight loss.

This disclosure could potentially also wasn't without having to compromise.

Basically with the same profile.

Okay.

Yes.

<unk> recent progress.

Specifically lubricant.

Keith.

Until we are absolutely sure.

Okay.

Good day.

This development program.

We've seen fewer and fewer risks ahead of us as we speak.

Vessel there.

But to hit all of our pits we keep.

We still haven't seen the data on efficacy.

A good and.

And safe compounds.

But again based on what we've seen so far.

Welcome to the Fedex calculation, because it gets even more efficacy and you get that with us.

Yes.

Yes.

Compromise safety.

So I think I don't want to pin data that combination I think it's good stuff.

Something better.

So we are committed to raising the innovation in both diabetes and obesity.

And with the asset that's in the market on the way to the market you need to really be chevron that strip things changing innovation heightened.

And we believe we have.

Good shots on that.

That you know about but relatively we have yourself. That's preclinical that is aimed at redefining what those could look like in a <unk>.

Market, where there's a lot of good choice today, but still a lot of patients with significant unmet medical need.

It's about understanding what those decades from now what does innovation look like and then half of states.

And our pipeline with different.

Doing that.

Jo Walton: So this is the technicalities of the U.S. market.

Hi, Thanks, Richard Vasa from JP Morgan.

Jo Walton: In summary, it basically means that 20 million people have access to obesity treatment.

Jo Walton: And when you compare that to how many are being treated today, there is, of course, already a good opportunity for people to get treatment at low co-pays in the U.S. Then outside the U.S., we've seen a very interesting development the last few years, where more and more countries are starting to reimburse Saksenda, our first generation of obesity products.

Jo Walton: And typically, in most countries, and I'm just speaking roughly, but in the 10 countries, that have sort of government reimbursement, we are more looking at people that have a, BMI above 30 or above 35, and in some cases also with comorbidities.

Come back to the comment on the volumes coming out of the manufacturing process is being a bit below.

Is that because there's lots of product wastage that the manufacturing processes noise efficient light.

Is that because you can't get enough plastic or something from the supplier issue or not not fill sits for the manufacturer, but just some color on what's going on there. So that we can have comfort that it can be fixed.

And then secondly, just thinking about the oral peptide.

And future peptide like.

Is there a way you consolidated the BLA or do peptides always has to be NDA in the U S.

Thank you Richard to a rather detailed questions I would say.

So.

If we look at it I cannot go into all the details about exactly what is having on our line of hope with respect to it.

At our own manufacturing setups.

We have <unk>.

Current performance levels.

Filling sites and that can change a bit over time.

For different reasons.

So what we're looking at here is not say a variance that's much different from what we would see novel.

Jo Walton: So of course, when Saksenda is already reimbursed at this level, it seems like there are good, perspectives also for a product like WeGo with even higher weight loss to also get to that same stage.

Jo Walton: And I wanted just to let you know that we also see significant higher uptake in those, countries, government-funded, where we, of course, have reimbursement.

Jo Walton: And the dialogue with the government about this is also, of course, where, as we talked, about before, select will pay in because when we can model what the long-term impacts of this might be, knowing that obesity is related to many, many serious other health conditions, then, of course, the health economics of this is very positive.

Now of course, when you have taken.

Our site's down and done.

<unk> says retraining and oversight that needs to be put in place and that can sometimes mean that.

They released processes drove volume is lower.

Period of time, we have also experienced it ourselves. So so that's not a particular crop.

That's just blocking it of course, when you're running at at the demand is there.

That's higher than densify that becomes a problem.

We are aiming at already next year to have.

Enough lines running enough sites running that could we can't get ahead of the game. So we don't need to have a discussion with you.

There is a line running a bit slower than normally protest actually part of doing manufacturing.

So it's the scaling game to make sure that you have saved robustness against that.

And then margin on an all peptides.

Registration approach.

Jo Walton: As we speak, as, you know, it's an evolving environment, and we will sort of follow the opportunities that we have.

<unk> versus <unk>.

I'm not.

Just to go into our regulatory strategy.

As we speak.

The evolving environment.

Yes.

Yes.

Sort of follow the opportunity.

Jo Walton: Simon Bay from Redburn.

So I went back from Beckman.

Two very quick questions and then just on select.

Jo Walton: I've got two very quick questions, and then one from Martin.

Given this clearly.

Surprisingly high focus on the magnitude of the benefit can you can you say whether any of the existing access.

Jo Walton: Just on select, given there's clearly a surprisingly high focus on the magnitude of the benefit, can you say whether any of the existing access that Wigobi has is conditional on the magnitude of the benefit in a positive select study?

Got it.

Is conditional on the magnitude of the benefit.

So that study.

Jo Walton: And then a quick question for Carsten on financials.

And then a quick question Carsten on.

You gave some commentary in the <unk>.

Statement on the net financials for the.

Quarter.

I think I saw it broken down into the financial income and expenses.

Karla.

The income line and then for Martin on <unk>.

We saw the costly on which study.

Safe of which 6% level of marketplace.

On both arms were there any differences in the distribution.

With time.

Okay.

Roughly the same rates.

Tom.

Okay.

Control.

Jo Walton: You gave some commentary in the, statement on the net financials for the quarter.

But I think I don't think we can get into more details on the first.

Question.

For customers on their finances, yeah, if we can get into a lot of details on the financials.

Jo Walton: I don't think I saw it broken down into financial income and expenses.

Jo Walton: I just wanted you to give us some colour on what was in the financial income line.

But Dana tells me it has to be a short answer. So so so put very simply we have to the tune of 2 billion DKK in benefit on EBIT from currency in the second quarter, and we had roughly 1 billion.

Building, a little bit more than $1 billion in hedging losses.

In the second quarter, so actually very favorable on a on a net currency <unk>.

Between the 1 billion, a little bit more and the one 6% in net financials.

Yeah.

Interest costs, and all kinds of and some minor adjustments to it.

Patients who have so a lot of I'll say a minor minor stuff.

Jo Walton: And then for Martin, on EICADEC, we saw across the onward study, say for onward six, that the level of hypose was broadly the same. And I'm just wondering if you could comment on the onward six, that the level of hypose was broadly the same on both arms.

Okay.

Yes, so it shows the distribution of hypotheses.

Excuse me is that we've seen obviously with very low numbers.

Jo Walton: Were there any differences in the distribution of hypose over time on any of those studies? Are they occurring at roughly the same rates on both arms as the difference between EICADEC, and control?

Once a free it's difficult to assess but onwards fall in on what six with unique distribution over time.

And maybe also important to call out we have not seen prolonged tens of hyperglycemia and we've consulted specific and dedicated hyperglycemia authority, where we saw no difference between incident.

So from a hydro hyperglycemia perspective, specifically in type two diabetes.

Okay and final question.

Peter Welford Jefferies.

Two questions that I had just a quick clarification just on considering Bachelor slightly into the analysis.

Again.

Just to understand that.

You said at the capital markets day that the secondary endpoints would be completed you've now set at a third dividend roughly secondary effects as the prime rate.

Just to be specific play here, if we had to see should we say, 22% above 20%. The interim would you sense that the trial should be a blinded irrespective secondly, just to keep a careful mix there was a limit at which point you would be unblinded irrespective secondary analyses.

And then just coming back to reimbursement just baked into that.

U S could there be a scenario where.

Select could lead to a secondary prevention style leads us.

I guess leading on from that.

Is it possible to conduct a primary prevention trial.

Or is that sort of study that would need I guess like the U K for example.

<unk> access type trial, if you're likely to see viable to conduct.

For the market.

And then sorry, just to clarify <unk> semi you said was really important for type two diabetes trial does that mean, we should get a press release on the phase III or is this normal nose load, we should wait to make that appropriate.

Appropriate for an update.

Thank you.

But I didn't think there was a new variant of this question is always going to repeat the answer.

If there are slightly different antibody.

You're absolutely right I mean, focusing on the primary endpoint there was a set cutoff and they again, it's the guidance than they had been for <unk>.

If you look at the percentage of the data.

But but.

Highlighting what they have been looking at the primary endpoint at followed that guidance.

Following that specific input sorry.

Sorry.

Just to clarify when we talked about the decrease on the secondary endpoint. The primary endpoint is a composite of myocardial infarction stroke and cardiovascular death.

It goes without saying if you look at individual components of that influenced introduced power.

Therefore, either the differential has to be very very big.

You have to have a lot of events that also means that that's why we ask a specific focus on the primary endpoint because the likelihood of seeing anything on secondary impact is.

It's not.

Specifically on the same I don't think I said it was very important I don't want to pay dividend.

That was very exciting.

It really believes the same also because from a scientific perspective, I'm curious what goes without saying if.

If this turns out to be.

As strong in diabetes.

In the future.

Jo Walton: And this is also what NICE has endorsed here in the U.K. already for the goal.

Jo Walton: I don't think we can get into more details on the first question.

Thank you.

So to close.

We are really pleased with our.

Execution commercially.

We are really pleased in how we are building our pipeline and I think I would take it as an example of us aiming to ration innovation Heights.

Jo Walton: So there is an interesting dynamic effect here.

Jo Walton: But Carsten, on the, financials?

Jo Walton: We can get into a lot of details on net financials.

Two levers where people have said upfront that that's not possible.

We are also very pleased with the execution of recovery. Despite the challenges we have spoken about here.

Jo Walton: If you go a few years back and look at the obesity market and the discussion we had about, what does it take to unlock it, that's different compared to today.

There's a tremendous opportunity in the PC market I think we're really well positioned to grab that.

Jo Walton: So something has changed in the awareness of obesity as a disease. And you can speculate whether it's the experiences of healthcare systems during a pandemic.

Jo Walton: You can speculate whether it's now that we feel that now there's a real solution to the, problem.

Jo Walton: And often, you can find that problems are not being acknowledged until there's a solution.

And when we look at our opportunities for driving growth there.

Also short term we are very encouraged about that.

And all of that has led to both exciting clinical data and our operates for a second time this year.

So we are on a roll and <unk>.

Jo Walton: So something is changing.

Jo Walton: But Dana tells me it has to be a short answer.

Thank again remodel and Benson for hosting us yesterday and to all of you for showing up to a great Christmas. Thank you very much.

Jo Walton: And it also links to the first question that the select data are important, but it's not the only key to unlock the market.

Jo Walton: So put very simply, we had to the tune of 2 billion DKK in benefit on EBIT from currency, in the second quarter. And we had roughly 1 billion, a little bit more than 1 billion in hedging losses in the second quarter. So actually very favourable on our net currency.

Jo Walton: So a dynamic effect.

Jo Walton: The spread between the 1 billion, a little bit more, and the 1.6 billion in net financials, that's interest costs and some minor value adjustments to some equity positions we have.

Jo Walton: And also when you think ahead, say the more consumer type nature of the obesity market that we're starting to see also different compared to what we have seen on the classic pharmaceutical interventions.

Jo Walton: So a lot of, I would say, minor stuff.

Jo Walton: Mark you're control of that.

Jo Walton: Yeah, so the distribution of hyperglycemia that we've seen obviously with very low numbers, in onwards 1 to 3, it's difficult to assess, but in onwards 4 and onwards 6, we see an equal distribution over time.

Jo Walton: Hi, I made the BMP exam.

Jo Walton: And maybe also important to call out, we've not seen prolonged events of hyperglycemia and we've conducted a specific and dedicated hyperglycemia study where we saw no difference between insulin blotting and insulin lipidate.

Jo Walton: Going back to select, Mark, I'm just wondering obviously you've talked about this high barrier above the delta, above the 17%.

Jo Walton: So from a hyperglycemia perspective, specifically in sub-2-therapeutics, we're very confident.

Jo Walton: But for argument's sake, it's five, so it's 22%.

Jo Walton: Great.

Jo Walton: Yeah, prioritizations.

Jo Walton: Peter Welford, Jefferies.

Jo Walton: Could you comment, if the trial was stopped for futility, is that margin the same on the downside as it is on the upside and so therefore we could assume the number could be 12 to 21, that the data monitoring board has come back to you with, is my first question.

Jo Walton: A final question?

Jo Walton: We are not having any new information on that.

Jo Walton: And second one is just again on, we'll go over the hearing talks of payers pushing for prior offs, now increases the prior off.

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Jo Walton: That is particularly, on the other hand, prevalent.

Jo Walton: I'm just wondering if you could potentially comment, whether or not that's true or not because they're seeing the huge demand for the product and so they're obviously a bit worried that their budgets are gonna be blown out of the water.

Jo Walton: On the other hand, we are seeing that, we see more and more employers opt in.

Jo Walton: I'm just wondering also, could you share potentially the average stay time that you're seeing given the structure in the market?

Jo Walton: It's a long tail of the number of employers, of course.

Jo Walton: That's what I'm wondering.

Jo Walton: But of course, this becomes, as Laszlo spoke to, more and more important for everyone to treat and to offer and to make that treatment available.

Jo Walton: So, I don't know to what degree, you can put more clarity on select.

Jo Walton: So, of course, over time, it's likely that there will be, as we've seen, when we move into more and more channels, there will be negotiations of price levels and so on.

Jo Walton: I think a little bit, this is an important question.

Jo Walton: But this is the status we are at.

Jo Walton: And first of all, we specifically, again, primarily directed the DMC to focus on the primary endpoint and stopping for efficacy and not for futility.

Jo Walton: But should they stop for futility, they would have been looking at, this can never be specifically significant.

Jo Walton: And there we're not even close to 17%, we would have to go below 10% to reach that level.

Jo Walton: So, from that perspective, we are very far in our assumptions away from futility with the 17%.

Jo Walton: Camilla on reimbursement again for Wicovi, and prior, is it?

Sure.

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David.

Yes.

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