Interim financial report for the period 1 January 2010 to 31 March 2010

Interim financial report for the period 1 January 2010 to 31 March 2010 (27 April 2010)

Operating profit increased by 15% in the first quarter of 2010
Sales growth driven by modern insulins and Victoza®

Sales increased by 9% in Danish kroner and by 11% in local currencies.

Sales of modern insulins increased by 17% (20% in local currencies).

Sales of NovoSeven® increased by 6% (8% in local currencies).

Sales of Norditropin® increased by 5% (7% in local currencies).

Sales in North America increased by 15% (21% in local currencies).

Sales in International Operations increased by 10% (10% in local currencies).

Gross margin improved by 1.0 percentage point in local currencies and by 0.4 percentage points in Danish kroner to 80.3% in the first quarter of 2010, reflecting continued productivity improvements, higher average selling prices in the US, favourable product mix development and a negative currency impact of around 0.6 percentage points. 

Reported operating profit increased by 15% to DKK 4,382 million. Adjusted for the impact from currencies, operating profit in local currencies increased by around 20%.

Net profit increased by 23% to DKK 3,324 million. Earnings per share (diluted) increased by 27% to DKK 5.61. 

Following the approval of Victoza® in the US on 25 January 2010, the product was launched in February 2010. The initial performance in the US, as measured by prescription level data, is encouraging. The European launch continues to progress as expected, with Victoza® now launched in 14 countries including France.

The largest clinical trial programme in the history of insulin therapy, the phase 3 programmes BEGIN(TM) and BOOST(TM) for the next generation of modern insulin analogues, Degludec and DegludecPlus, involving 10,000 patients in 43 countries, is progressing according to plan with more than three quarters of the patients enrolled.

For 2010, sales growth measured in local currencies is now expected to be in the range of 7-10%, and operating profit measured in local currencies is now expected to increase by more than 10%.

Lars Rebien Sørensen, president and CEO: "We are encouraged by the solid business performance in the first quarter of 2010. The increasing use of our modern insulins is the primary driver of growth. Furthermore, the roll-out of Victoza®, our new treatment for type 2 diabetes, is progressing well in both the US and Europe."

Contacts for further information

Media: Investors:
Elin K Hansen  Klaus Bülow Davidsen
Tel: (+45) 4442 3450 Tel: (+45) 4442 3176
[email protected]  [email protected] 
  Kasper Roseeuw Poulsen
  Tel: (+45) 4442 4471
  [email protected] 
In North America: In North America
Sean Clements Hans Rommer
Tel: (+1) 609 514 8316 Tel: (+1) 609 919 7937
[email protected]   [email protected] 

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