Novo Resources Annual Report 2008

FY2008 Annual Report · Novo Resources
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Financial, social and environmental performance

Our focus is
our strength

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Performance
highlights
2008

2008 

2007 

Change

Financial performance
Sales total 
Diabetes care  
Of which modern insulins 
Biopharmaceuticals 
Gross proﬁ t 
Gross margin 
Sales and distribution costs  
Research and development costs 
Research and development costs excl AERx® *) 
Administration expenses 
Operating proﬁ t 
Operating proﬁ t excl AERx® *) 
Net proﬁ t 
Effective tax rate 
Capital expenditure 
Free cash ﬂ ow 

Long-term ﬁ nancial targets
Operating proﬁ t growth 
Operating proﬁ t growth excl AERx® *) 
Operating margin 
Operating margin excl AERx® *) 
Return on invested capital (ROIC) 
Cash to earnings (three-year average) 

Non-ﬁ nancial performance
Employment impact worldwide 
Water consumption 
Recycling percentage (waste) 
CO2 emissions 
Employees 
Employee turnover rate 
Engaging culture (employee engagement) 
New patent families (ﬁ rst ﬁ ling) 

Share performance
Dividend per share (proposed) 
Closing share price (B shares) 
Market capitalisation (B shares) **) 

DKK million 
DKK million 
DKK million 
DKK million 
DKK million 
% 
% of sales 
% of sales 
% of sales 
% of sales 
DKK million 
DKK million 
DKK million 
% 
DKK million 
DKK million 

% 
% 
% 
% 
% 
% 

Number of jobs 
1,000 m3 
% 
1,000 tons 
FTE 
% 
Scale 1–5 
Number 

45,553 
33,356 
17,317 
12,197 
35,444 
77.8 
28.2 
17.2 
16.5 
5.8 
12,373 
12,698 
9,645 
24.0 
1,754 
11,015 

38.4 
23.7 
27.2 
27.9 
37.4 
97.6 

88,500 
2,684 
51 
215 
26,575 
12.1 
4.2 
71 

DKK 
DKK  
DKK billion 

6.00 
271 
135 

**) Excluding non-recurring costs related to discontinuation of all pulmonary diabetes projects.
**) Novo Nordisk B shares (excluding treasury shares).
See more ﬁ nancial and non-ﬁ nancial highlights on pp 16–17.

41,831 
30,478 
14,008 
11,353 
32,038 
76.6
29.6
20.4
17.2
6.0
8,942 
10,267 
8,522 
22.3
2,268 
9,012 

(1.9)
12.6
21.4
24.5
27.2
87.0

81,600 
3,231 
38
236 
25,516 
11.6
4.1
116 

4.50 
335 
172 

9%
9%
24%
7%
11%

38%
24%
13%

(23%)
22%

8%
(17%)

(9%)
4%

(39%)

33%
(19%)
(22%)

 
 
About
Novo Nordisk’s
annual reporting

Novo Nordisk is the world leader in diabetes 
care and has leading positions within haemosta-
sis management, growth hormone therapy and 
hormone replacement therapy. The company 
also has an ambition to build a strong platform 
within inﬂ ammation.

With over 27,000 employees in 81 countries, Novo 
Nordisk manufactures and markets pharmaceutical 
products and services that make a signiﬁ cant differ-
ence to patients, the medical profession and society.

This is the ﬁ fth consecutive year of reporting on 
the company’s ﬁ nancial and non-ﬁ nancial perform-
ance in one inclusive document, the Annual Report, 
covering the ﬁ scal year 2008. The report discusses 
key challenges and strategic initiatives to develop the 
business in order to meet targets and sustain long-
term value creation. It also explains Novo Nordisk’s 
way of doing business as a values-based company 
guided by a vision.

The feature articles present company-driven activities 
in pursuit of the Novo Nordisk Vision and respond 
to concerns identiﬁ ed through interactions with 
shareholders, ﬁ nancial analysts and other stakehold-
ers during the year.

External opinion leaders have been invited to con-
tribute their perspectives on some of the key issues: 
the current economic climate, challenges in the 
healthcare industry and marketplace, new treatment 
paradigms for diabetes care and the interrelationship 
of the global climate change and a healthy future.

Designed to meet the information needs of share-
holders, ﬁ nancial analysts and other corporate 
stakeholders, the report seeks to support business 
performance and enhance shareholder value by 
exploring the interactions between ﬁ nancial and 
non-ﬁ nancial objectives.

Novo Nordisk is in compliance with applicable 
corporate governance codes and follows current 
international standards for mandatory and voluntary 
reporting:

•   International Financial Reporting Standards (IFRS).

•   AA1000 Assurance Standard (2003).

•   US Sarbanes–Oxley Act requirements for docu-
menting and reporting on the effectiveness of 

internal controls for ﬁ nancial reporting. Novo Nor-
disk embarked in 2008 on a process of structuring 
the control environment for non-ﬁ nancial data 
with the aspiration to have full alignment with the 
control environment for ﬁ nancial data.

•   The accountability standard, the AA1000 Frame-

work.

•   Global Reporting Initiative (GRI) G3 Sustainability 

Reporting Guidelines.

•   UN Global Compact, Communication on Progress.

In the absence of global standards for inclusive re-
porting, the Annual Report is prepared in respect of 
current best practice for ﬁ nancial and non-ﬁ nancial 
reporting, respectively. This includes applying the 
principles of materiality, completeness and respon-
siveness.

Novo Nordisk has chosen to apply the term ‘non-
ﬁ nancial reporting’ to performance on sustainability-
driven issues. Hence, the Annual Report includes 
both ﬁ nancial statements and non-ﬁ nancial state-
ments, while the narrative parts of the report present 
the company’s performance from an inclusive 
perspective.

The accuracy, completeness and reliability of the 
company’s reporting is veriﬁ ed through internal
controls, assurance and independent audits.

The Annual Report 2008 includes the ﬁ nancial 
statements of the parent company, Novo Nordisk 
A/S (see pp 105–112), and is issued in February 
2009 for approval by shareholders at the Annual 
General Meeting on 18 March 2009. It is subse-
quently ﬁ led with the Danish Commerce and Com-
panies Agency. In addition, a Form 20-F Report for 
2008 is ﬁ led with the United States Securities and 
Exchange Commission in February 2009.

These two public ﬁ lings contain references and links 
to information posted on the Company’s website; 
such information is not incorporated by reference 
into the public ﬁ lings.

Additional reporting online provides more back-
ground, context and data. Many sections of this 
report reference additional online information and 
an index on p 116 provides links to online content at 
annualreport2008.novonordisk.com.

or-
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t at 

Charlotte Lucas Østerlund expresses the full effect of living with diabetes at the 2008 meeting of the European Association for the Study of Diabetes in Rome. 

 
 
Fifteen Novo Nordisk employees marked World Diabetes Day in Denmark by running a marathon from the company’s headquarters, past several company sites, 
to the Changing Diabetes® Village in the centre of Copenhagen, Denmark.

Welcome to
Novo Nordisk

      Pages 2–7

  2  Our focus is our strength
  4   Managing in the current 

economic climate

  6  Novo Nordisk at a glance

Business results

      Pages 8–19

  8  Performance in 2008
15  Outlook for 2009
16  Financial highlights
17  Non-ﬁ nancial highlights
18  Pipeline progress

Business
environment

      Pages 20–29

20  Doing business the Novo Nordisk Way
21  Values drive performance
22  Pursuing a focused strategy
24  Managing risks
26  Universal principles guide action
27  Diversity supports global growth
28   Strengthening environmental

management

Diabetes care

      Pages 30–37

30  Changing diabetes is possible
32   Supporting individualised

treatment options

34  Setting an agenda for change
36  Ensuring access to care

Biopharma-
ceuticals

      Pages 38–41

38   Focusing on strengths
in biopharmaceuticals
40  Living with haemophilia
41   Changing possibilities for
people with haemophilia

Shareholder
information

      Pages 42–50

42  Corporate governance
44  Executive remuneration
46  Board of Directors
48  Executive Management
49  Shares and capital structure

Consolidated
ﬁ nancial and
non-ﬁ nancial
statements 2008

        Pages 51–104

  51   Consolidated ﬁ nancial and 

non-ﬁ nancial statements

  52  Consolidated ﬁ nancial statements
  89   Consolidated non-ﬁ nancial

statements

        Pages 105–112

105   Financial statements of 
the parent company

        Pages 113–115

113  Management statement
114  Auditor’s reports

Additional
information

        Page 116 and inside back cover

116  Index
    •  Contacts
    •  References
    •  Novo Nordisk key products

Novo Nordisk Annual Report 2008     1

Welcome to Novo Nordisk  Our focus is our strength

Our focus
is our
strength

The year 2008 is likely to be remembered by many as the year 
when, like a ﬂ ash of lightning, a severe economic crisis brought 
an end to the belief in uninterrupted growth. The globalisation 
we have witnessed in recent years, which has had many positive 
effects, suddenly showed another face: no nation, no company 
and no individual is unaffected by the economic downturn. Busi-
nesses, large and small, are in crisis. Some that were considered 
icons in their industries no longer exist.

Against such a backdrop it is with great humility, but also with 
pride and satisfaction, that we can report on a year that has 
been very positive for Novo Nordisk, demonstrating the results 
of our focused business approach. We increased sales by 12% 
(mea sured in local currencies) and our reported operating proﬁ t 
by 38%. Our investment in research and development resulted 
in a strengthened pipeline of new products. And we continued 
to optimise processes and globalise our sales and production 
activities, which makes our organisation even better prepared for 
challenges in coming years.

One of the reasons why Novo Nordisk came through 2008 in 
better shape than many other companies is that we produce 
lifesaving medicines. Our customers, particularly people with 
chronic conditions, require treatment during recessions as
well as periods of economic prosperity. But a great deal of our
success is attributable to our more than 27,000 Novo Nordisk
colleagues who have once again delivered excellent results.
With doctors and patients, in the laboratories, in production,
in administration and throughout our value chain, there has 
been a focus on achieving results for all stakeholders both in
the short and long term.

Innovation boosts competitiveness

Innovation in our pipeline is the source of long-term competitive-
ness in our industry, and in this area 2008 was very eventful.

Not everything has worked out as planned. In early 2008, we 
discontinued our attempts to develop inhalable insulin. Later in 
the year we had to reconcile ourselves to the fact that the effect 
of NovoSeven® for treatment of acute bleeds in trauma could not 
be proven in controlled clinical trials within the foreseeable future. 
We also decided to discontinue trials to investigate the beneﬁ ts 
of growth hormone therapy for dialysis patients because of the 
difﬁ culty in recruiting trial participants.

Liraglutide has the potential to improve the treatment of type 2 
dia betes. Even though requirements for approval of new medicines 
have become increasingly challenging, we are cautiously optimistic 
about the ﬁ nal outcome of regulatory assessment. We currently an-
ticipate regulatory approval in the US and some European countries 
in 2009, followed by Japan and a number of other countries in 2010.

We know that even the best insulins available in the market today 
are not perfect. Phase 2 results for the company’s new generation 
of insulins have demonstrated that long-acting insulins and insu-
lins with a combined short- and long-acting effect can be further 
improved. If preliminary results are conﬁ rmed by additional trials, 
this new generation of insulins has the potential to offer better 
treatment for people with diabetes and to strengthen Novo Nor-
disk’s competitive position.

In 2008, we decided to focus our biopharmaceutical research 
efforts in haemostasis, growth disorders and inﬂ ammation. Re-
search in inﬂ ammation will be conducted by our Danish research 
organisation and a newly established research centre for inﬂ am-
mation in Seattle, US. Collaboration with a number of biotech 
companies also plays a signiﬁ cant role in our ability to bring new 
products to market in this area.

In 2008, Novo Nordisk made two 
signiﬁ cant breakthroughs that may 
have great impact on future diabetes 
treatment.

International expansion supports growth

In the diabetes market we have maintained our position as the 
world leader with a market share of more than 50% by volume. 
Demand for our products has increased and we see a continu-
ing transition from traditional human insulin to modern insulins. 
Novo Nordisk won market share for modern insulins in 2008 and 
remains the only company with a full portfolio of short-acting, 
mixed and long-acting insulins. To expand our competitive posi-
tion and brand awareness, not least among general practitioners, 
we have expanded our sales organisation in several key markets.

However, 2008 will mostly be remembered as the year in which 
Novo Nordisk made two signiﬁ cant breakthroughs that may have 
great impact on future diabetes treatment. The development of 
liraglutide for the treatment of type 2 diabetes was ﬁ nalised and 
regulatory approval was sought in the US, Europe, Japan and 
many other countries. In addition, a new generation of insulins
for both type 1 and type 2 diabetes showed promising results
in phase 2 trials.

In November, we laid the foundation stone for a major expansion 
of our production site in Tianjin, China, which will create 500 
new jobs. The new insulin formulation and ﬁ lling plant is one of 
the largest investments in the history of Novo Nordisk and our 
biggest single investment outside Denmark. The second-largest 
single investment, the production site in Montes Claros, Brazil, 
became fully operational in 2008 and today provides insulin to a 
number of markets.

2     Novo Nordisk Annual Report 2008

Welcome to Novo Nordisk  Our focus is our strength

Sten Scheibye, chairman of the Board of Directors, and Lars Rebien Sørensen, president and chief executive ofﬁ cer.

Managing responsibly
Many readers of this Annual Report will know that Novo Nordisk 
is managed using the Triple Bottom Line business principle. We 
assess our performance from three perspectives: ﬁ nancial, social 
and environmental. As we see it, a business can only be sustain-
able in the long term if it meets stakeholders’ expectations in 
relation to all three aspects.

In this report we provide examples of how we conduct our activi-
ties in ways that are socially and environmentally responsible. We 
think a couple of them deserve particular mention.

In November, we announced a new programme to offer diabetes 
treatment, including free insulin, to 10,000 children in some of the 
world’s poorest countries. This is part of a ﬁ ve-year programme 
called ‘Changing the Future for Children with Diabetes’, which 
begins in 2009. In addition to making free insulin available to a par-
ticularly vulnerable population of people with diabetes, the project 
will also build long-term solutions for distribution of insulin and 
sustainable diabetes treatment in the world’s poorest countries.

We are well on our way to achieving the ambitious target for 
CO2 reduction we set for ourselves in 2006 and, as a result of our 
efforts, the majority of our future electricity supplies will be gen-
erated from wind. Just as the ﬁ nancial crisis is global, so is climate 
change, and everyone must take responsibility for addressing it. 
We will leave it to the scientists to debate to what extent climate 
change is human-induced or caused by natural developments 
that are not related to human activity. There are, however, many 
reasons, including ﬁ nancial, for managing a business in a way that 
minimises environmental impact, and we will retain our focus on 
this in coming years.

Challenges ahead

The pharmaceutical industry today is faced with a number of chal-
lenges that have certainly not diminished with the current global 
recession.

life-saving medicines. The increasing prevalence of chronic disease 
is already a major ﬁ nancial burden with treatment costs putting 
pressure on healthcare budgets, even in wealthy countries. It will 
be a huge challenge to ﬁ nance public health systems in the future 
in a way that makes it attractive to bring new and improved medi-
cines to market and at the same time secure equal access to care.

It is well known that new medicines are needed to improve the 
treatment of many diseases, but it is also evident that public 
healthcare providers and insurance companies are subjecting the 
costs versus the beneﬁ ts of new medicines to increased scrutiny. 
At the same time, increasing requirements to document potential 
long-term side effects make bringing new treatments to market 
even more costly. These challenges impact the outlook for the 
entire industry.

At Novo Nordisk we are, however, optimistic about the future. 
With our focus on diabetes care and biopharmaceutical niche 
products, we believe that we are uniquely placed. We also believe 
our unique market position justiﬁ es further investment in our 
research and development and in expanding our international 
organisation and global supply through controlled growth and 
with continued focus on ﬁ nancial results.

We would like to take this opportunity to thank our customers, 
shareholders and partners for their trust in Novo Nordisk during 
2008. We also thank everyone at Novo Nordisk for their great 
efforts, creativity and engagement, which is the heart of our 
organisation and the foundation of the strong results presented in 
this report.

Lars Rebien Sørensen

Sten Scheibye

We believe that the current economic downturn will impair 
societies’ and individuals’ ability to pay for healthcare, including 

President and
chief executive ofﬁ cer

Chairman of the
Board of Directors

Novo Nordisk Annual Report 2008     3

Welcome to Novo Nordisk  Managing in the current economic climate

Managing in the current
economic climate
Interview with Novo Nordisk’s CFO, Jesper Brandgaard

In your opinion, what impact will
the current economic downturn
have on the pharmaceutical industry?

We have to recognise that this crisis is not 
only global, it is severe, and it is likely to 
be of signiﬁ cant duration. There are pro-
found implications for wealth and growth 
throughout the world. Even in a sector less 
impacted by short-term economic swings, 
such as the pharmaceutical sector, there 
is a clear correlation between long-term 
economic growth at the societal level and 
growth opportunities for companies.

We believe the pharmaceutical sector will 
ﬁ rst see an impact in economies that are 
largely dependent on exporting either 
goods or raw materials. Oil price volatil-
ity is, of course, important in this regard. 
Societies such as Russia, Algeria and Ven-
ezuela may experience an impact on their 
ability to procure advanced pharmaceut-
ical products.

In many countries, notably in Europe, 
pressure to reduce the growth of public 
spending for pharmaceutical products will 
increase, with more substitution of ge-
neric products. There will also be greater 
emphasis on health economics to make 
sure that products paid for by society are 
achieving the desired health outcomes.

With the new administration in Washing-
ton, there is a high likelihood that 2009 
will bring price reform in government-
funded healthcare programmes such as 
Medicaid and Medicare. We have said 
that there has been an advantage for the 
industry from the migration of patients 
from Medicaid to the Medicare Part D 
programme and we did not think this was 
sustainable. The details of a potential pric-
ing reform remain to be seen, but we do 
anticipate changes in some of the schemes 
funded by the federal government, includ-
ing Medicare Part D.

In the private health insurance market in 
the US, we are also looking at a scenario 
where funds are getting tighter. Patients 

4     Novo Nordisk Annual Report 2008

are likely to face higher co-payments. 
Ev erything else being equal, it will be 
increasingly difﬁ cult to obtain reimburse-
ment for new, advanced treatments.

How do you see the ﬁ nancial
crisis impacting the structure
of the industry?

There is still a profound need for large 
pharmaceutical companies to acquire 
innovation. These companies are gene r-
ating signiﬁ cant positive cash ﬂ ows but 
are challenged by lack of innovation and 
regulatory hurdles. At the same time, small 
biopharm companies that do not yet have 
products on the market will have increas-
ing difﬁ culty accessing long-term venture 
capital. These ﬁ rms are likely to either look 
for opportunities to partner with larger 
ﬁ rms or put themselves up for sale. In this 
environment, we expect to see consolida-
tion in the industry.

We have not changed 
direction; we have 
stayed the course, and 
we believe this will now 
present us with new 
opportunities.

How was Novo Nordisk impacted
by market volatility in 2008?

While Novo Nordisk has continued to have 
strong sales and cash ﬂ ow and has not 
experienced any liquidity issues, recent 
market turmoil has had a bigger impact on 
the composition of Novo Nordisk’s share-
holder base than we originally anticipated.

Novo Nordisk’s largest shareholder con-
tinues to be The Novo Nordisk Foundation 
through the Novo A/S holding company. 
The Foundation has bylaws stating that its 
primary objective is to be a stable owner 

of the Novo Group companies, including 
Novo Nordisk. Beyond the Foundation, we 
have experienced changes in the holdings 
of other large investors, notably US inves-
tors repatriating funds.

We have also seen a number of Danish 
pension institutions reducing their hold-
ings in Novo Nordisk in order to maintain 
portfolio diversiﬁ cation. The challenge in 
the Danish stock exchange environment is 
that the relative performance of Novo Nor-
disk compared with other companies listed 
on NASDAQ OMX Copenhagen increased 
Novo Nordisk’s weighting on the exchange 
dramatically during 2008.

So we have seen the shareholdings of 
some of the company’s largest investors 
reduced. At the same time, we have seen 
solid support from new European and
US investors, as well as from retail invest-
ors in Denmark.

These changes have not impacted the
way the company interacts with the equity 
market, but have highlighted the need to 
be very transparent.

How does Novo Nordisk manage
its balance sheet, and have there
been recent changes in direction?

Historically, Novo Nordisk, like most 
pharmaceutical and large-cap biopharm 
ﬁ rms, has had a balance sheet with little 
debt. In fact, Novo Nordisk has operated 
with slightly positive net ﬁ nancial assets 
on its balance sheet. This is an advantage 
because having access to cash can now 
provide us with interesting investment 
possibilities. We have not changed direc-
tion; we have stayed the course, and we 
believe this will now present us with new 
opportunities.

In terms of cash returned to shareholders, 
Novo Nordisk has adhered to its dividend 
policy of gradually increasing the payout 
ratio to a level around the pharma industry 
average, which is now approximately 
40%.

Welcome to Novo Nordisk  Managing in the current economic climate

What impact did exchange
rate ﬂ uctuations have on
the company in 2008?

One obvious example of the impact that 
currency developments had on Novo 
Nordisk in 2008 was the impact on sales 
growth. In 2008, Novo Nordisk achieved 
sales growth of 12% when adjusted for 
the impact of currencies. However, in re-
ported terms sales growth was 9% due to 
negative exchange rate impact compared 
to the Danish kroner of approximately 3%, 
or more than 1 billion kroner.

For a company with global operations like 
Novo Nordisk, extreme volatility requires 
that we be ever more transparent in our 
disclosures. In the longer term, it also 
requires that we continue to make invest-
ments globally that help to balance our 
long-term currency exposure.

A good example of this is the 400 million 
US dollar investment the company com-
mitted to make in China in 2008 for a new 
production facility. Beyond the attractive-
ness of the project in a growing market, 
the investment will help provide Novo 

Jesper Brandgaard, chief ﬁ nancial ofﬁ cer.

Nordisk with a better balance between the 
company’s income base and cost base. In 
addition, the more assets the company has 
in China, the easier it becomes to attract 
local talent.

Are there lessons that Novo
Nordisk has learned from previous 
economic downturns that apply
to the current situation?

Previous downturns we’ve seen in recent 
years have been conﬁ ned to speciﬁ c 
regions, such as the Asian currency crisis 
in the late 1990s. The current downturn is 
likely to turn into a global recession with 
wide-ranging implications, some of which 
will be difﬁ cult to predict.

Cautious spending behaviour combined 
with a willingness to invest in markets with 
long-term growth prospects will continue 
to be the cornerstones of Novo Nordisk’s 
strategy. In the longer term, this approach, 
along with a commitment to managing 
responsibly, has proven to be integral to 
the sustainable business model that the 
company is pursuing.

Fareed Zakaria
Editor, Newsweek International

Novo Nordisk invited Fareed Zakaria 
to provide his perspective on the 
global economy.

A problem
of growth

I would argue that the current economic 
crisis is a problem of growth, created by 
124 countries growing simultaneously and 
by the fact that you have a single world 
economy in which everyone is partici-
pating, so Chinese savings can fuel US 
consumption and vice versa.

The most important real world effect we 
have to worry about is countries turning 
inward. The possibility of turning away 
from the single, global market, away from 
the idea that we can create a greater 
degree of global prosperity and raise stan-
dards of living.

The challenge for a 
company like Novo 
Nordisk is to explore 
whether it can play a 
role in trying to keep the 
Western world open.

The challenge for a company like Novo 
Nordisk is to explore whether it can play 
a role in trying to keep the Western world 
open. This is a path most corporations 
have steered away from because they 
don’t want to get politically involved.

Dr Fareed Zakaria is editor of Newsweek 
International, host of CNN’s Fareed Zakaria 
GPS, and co-host of PostGlobal, an online 
discussion of international issues.

Novo Nordisk Annual Report 2008     5

Welcome to Novo Nordisk  Novo Nordisk at a glance

Novo Nordisk
at a glance

Novo Nordisk is a focused healthcare company and a world 
leader in diabetes care. Key market ﬁ gures for the diabetes 
care business are provided here and on p 10.

In its other business segment, biopharmaceuticals, Novo 
Nordisk has a leading position within the therapeutic areas 
of haemostasis management, growth hormone therapy 
and hormone replacement therapy. The company reports 
biopharmaceutical sales globally and by therapy area. See 
pp 10–11 for more information.

North America

International Operations

Europe

Sales: 33% of total sales.

Sales: 19% of total sales.

Sales: 38% of total sales.

Insulin/modern insulin volume share: 
42% of the total market; 33% of the segment.

Insulin/modern insulin volume share: 
57% of the total market; 57% of the segment.

Insulin/modern insulin volume share: 
55% of the total market; 51% of the segment.

Performance: The number of people with diabe-
tes in the US is now 24 million, according to the 
national Centers for Disease Control (CDC), and 
this is projected to exceed 30 million within 10 
years. The rate of new cases of diabetes soared by 
about 90% in the past decade, according to the 
CDC, fuelled by growing obesity and sedentary 
lifestyles.

Novo Nordisk sees significant opportunities to 
improve care and treatment for people with 
diabetes in the US. To deliver on these oppor-
tunities, market access is crucial. More than 
80% of the US population is currently covered 
by medical insurance. Novo Nordisk’s products 
are eligible for reimbursement through 90% of 
managed care formularies, a key competitive 
advantage.

Performance: Novo Nordisk’s International 
Operations – covering South and Central America, 
the Middle East, Africa and Asia (excluding Japan 
& Oceania) – is a vast area representing 85% of 
the world’s population and 80% of all people with 
diabetes.

Lack of access to adequate diabetes care is a con-
tinuing concern in these countries, although there 
are encouraging signs that diabetes is rising on 
the public health agenda. A growing middle class 
in emerging markets such as China and India are 
also better able to afford more advanced treat-
ments. The dramatic rise in the number of people 
with diabetes in these markets is driven by several 
factors, including urbanisation, an ageing popu-
lation, unhealthy eating habits and sedentary 
lifestyles.

Performance: Modern insulins are driving growth 
in the company’s European operations. Levemir®, 
the company’s basal insulin, is reinforcing Novo 
Nordisk’s market leadership in the region.

Through its afﬁ liates, Novo Nordisk is driving home 
the message that changing diabetes care begins 
with raising awareness and working with partners. 
In Italy, Novo Nordisk supported a meeting of 
about 200 diabetes experts, policy-makers, patient 
representatives, industry and media to discuss how 
to stop the epidemic growth of diabetes. Marking 
its 50th anniversary, Novo Nordisk’s afﬁ liate in 
Germany held its second Camp D for young people 
with diabetes in 2008. Nearly 700 young people 
attended the four-day event, which focuses on 
enhancing quality of life for people with type 1 
diabetes.

Capacity-building: 89,500 healthcare profes-
sionals have been trained or educated through 
Novo Nordisk’s National Changing Diabetes®
programmes.

Capacity-building: 151,500 healthcare profes-
sionals have been trained or educated through 
Novo Nordisk’s National Changing Diabetes®
programmes.

Capacity-building: 79,000 healthcare profes-
sionals have been trained or educated through 
Novo Nordisk’s National Changing Diabetes®
programmes.

6     Novo Nordisk Annual Report 2008

  Production sites
  Bagsværd, Denmark
  Chartres, France
  Clayton, North Carolina, US
  Dely Brahim, Algeria
  Gentofte, Denmark
  Hillerød, Denmark
  Hjørring, Denmark
  Kalundborg, Denmark
  Koriyama, Japan
  Køge, Denmark
  Mexico City, Mexico
  Montes Claros, Brazil
  Måløv, Denmark
  Tianjin, China
  Værløse, Denmark

  R&D facilities

  Bagsværd, Denmark
  Beijing, China
  Gentofte, Denmark
  Hillerød, Denmark
  Måløv, Denmark
  Seattle, Washington, US

  Clinical development centres

  Beijing, China
  Princeton, New Jersey, US
  Tokyo, Japan
  Zurich, Switzerland

  Regional and business area ofﬁ ces

  Afﬁ liates

  Representative ofﬁ ces

Japan & Oceania

Sales: 10% of total sales.

Insulin/modern insulin volume share: 
71% of the total market; 61% of the segment.

Performance: Recognition of the need for bet-
ter screening and earlier diagnosis of diabetes 
and other chronic diseases prompted a move by 
Japanese authorities in 2008 to establish a health-
screening programme for adults ages 40–74, or 
45% of the population, which will include a check 
of HbA1c or blood glucose levels.

Levemir® is helping drive Novo Nordisk’s long-
standing market leadership in Japan, where it 
was introduced in 2007 and has had the fastest 
penetration among the company’s major markets, 
owing to an aggressive and tightly focused launch, 
as well as its high acceptance among physicians 
and patients. While there has been increased 
competition, not least in the area of devices, Novo 
Nordisk’s products and devices continue to hold a 
strong position in Japan.

Capacity-building: 60,000 healthcare profes-
sionals have been trained or educated through 
Novo Nordisk’s National Changing Diabetes®
programmes.

50

40

30

20

10

0

Sales by geographical area 

DKK billion

2004

2005

2006

2007

2008

 Europe
(cid:116) North America
(cid:116) International Operations
(cid:116) Japan & Oceania

Welcome to Novo Nordisk  Novo Nordisk at a glance

Innovation and growth
Novo Nordisk was created in 1989 from 
the merger of two companies founded in 
the 1920s that independently pioneered 
several breakthroughs in diabetes care. 
Both companies focused on treating 
the whole person and not just diabetes 
symptoms, and this approach continues to 
be a hallmark of Novo Nordisk’s business.

The company has experienced signiﬁ cant 
growth in recent years, with total sales 
increasing by 119% since 2000. In the 
same period, the number of Novo Nordisk 
employees almost doubled to more than 
27,000 in 81 countries. The milestones 
below highlight the company’s recent 
innovations and growth.

1996 NovoSeven® – for the treatment 
of haemophilia patients with inhibitor 
reaction – is launched.

1998 Activelle® (Activella® in the US) – the 
ﬁ rst low-dose continuous-combined oral 
HRT for postmenopausal women
– is introduced.

1999 NovoRapid® (NovoLog® in the US) 
– the company´s ﬁ rst modern insulin, 
a rapid-acting insulin analogue – is 
marketed. Modern insulins are designed to 
better mimic the normal insulin response 
to changes in blood sugar levels.

2000 The company’s enzymes business 
is spun off as a separate company, 
Novozymes A/S.

2001 NovoRapid® FlexPen® is marketed. 
FlexPen® is a new preﬁ lled pen, designed 
for easy and discreet use.

2002 NovoMix® 30 – a dual-release 
modern insulin – is introduced.

2003 Norditropin NordiFlex® – the world’s 
ﬁ rst preﬁ lled growth hormone pen – is 
launched.

2004 Levemir® – a long-acting modern 
insulin – is launched.

2007 In Montes Claros, Brazil, Novo 
Nordisk inaugurates its largest insulin 
production facility outside Denmark.

See more at novonordisk.com/about_us/
history/milestones_in_nn_history.asp.

Novo Nordisk Annual Report 2008     7

Business results  Performance in 2008

Performance 
in 2008

Novo Nordisk continued on a sustain-
able growth path in all its major busi-
ness areas and delivered solid results 
in 2008.

Sales increased by 12% measured in local 
currencies and by 9% in Danish kroner. 
Modern insulins continued to be the main 
contributor to growth increasing by 28% 
in local currencies (24% in Danish kro-
ner), and NovoSeven® and Norditropin® 
also continued to contribute to growth, 
increasing, respectively, by 14% in local 
currencies (9% in Danish kroner) and 
12% in local currencies (10% in Danish 
kroner).

Sales growth was realised in all regions 
measured in local currencies. The main 
contributors to growth were North Amer-
ica and International Operations, which 
contributed 48% and 29%, respectively, 
of total sales growth. Europe contributed 
21% and Japan & Oceania 2% of total 
sales growth in 2008, measured in local 
currencies.

The gross margin increased to 77.8% in 
2008, up from 76.6% in 2007, reﬂ ecting 
an improvement of 1.2 percentage points, 
primarily driven by sustainable productivity 
improvements. Costs related to research 
and development decreased by 8%; 
however, when adjusted for non-recurring 
costs related to the closure of all pulmo-
nary diabetes projects in 2007 and 2008, 
research and development costs increased 
by 4%. This reﬂ ects a sustained high level 
of investment in research and develop-
ment activities supporting the future 
growth of the company.

Operating proﬁ t in 2008 increased by 
38% to DKK 12,373 million compared
to 2007. 

Net proﬁ t increased by 13% to DKK 9,645 
million. When adjusted for the non-recur-
ring income from the divestment in 2007 
of Dako A/S’s business activities and the 
non-recurring costs related to the closure 
of all pulmonary diabetes projects, net 
proﬁ t increased by 22%.

8     Novo Nordisk Annual Report 2008

Earnings per share (diluted) increased by 
16% to DKK 15.54.

2008 performance on
long-term ﬁ nancial targets

Focusing on growth, proﬁ tability, ﬁ nan-
cial return and generation of cash, the 
four long-term ﬁ nancial targets guide the 

Sales by therapy area 

DKK billion

2004

2005

2006

2007

2008

 Diabetes care
(cid:116) Haemostasis management (NovoSeven®)
(cid:116) Growth hormone therapy
(cid:116) Hormone replacement therapy (HRT)
(cid:116) Other products

Sales growth 
Local and reported rates

%

50

40

30

20

10

0

30

25

20

15

10

5

0

2006

2005

2004
(cid:116) In DKK as reported
(cid:116) In local currencies

2007

2008

company’s ﬁ nancial development, aimed 
at ensuring a focus on shareholder value 
creation. These targets are operating 
proﬁ t growth, operating margin, return on 
invested capital and cash conversion. By 
2008, Novo Nordisk reached the perform-
ance level stipulated in the four long-term 
ﬁ nancial targets which were outlined in 
2006. The four ratios are still considered an 
appropriate way to ensure value creation, 
and several of the targets have consequent-
ly been increased. The revision is based 
on an assumption of a continuation of the 
current business environment and given 
the current scope of business activities and 
has been prepared assuming that currency 
exchange rates remain at current levels.

Operating proﬁ t growth was realised at 
38%. However, adjusted for non-recurring 
costs related to the closure of all pulmo-
nary diabetes projects and a negative 
currency impact, the underlying operating 
proﬁ t increased by more than 25%. The 
long-term target is an average annual 
growth of 15%. The performance reﬂ ects 
solid underlying sales growth as well as an 
improved gross margin.

The operating margin for 2008 was 
realised at 27%, up from 24.5% in 2007 
adjusted for non-recurring costs related 
to the closure of AERx®, and exceeds the 
long-term target of 25%. The improve-
ment in operating margin is driven by an 
improved gross margin.

The return on invested capital was 37%, 
signiﬁ cantly up compared to 2007 and 
now exceeding the long-term target of 
30%. The improvement mainly reﬂ ects 
solid growth in operating proﬁ t as well as 
a lower level of invested capital primarily 
due to a reduction in the ﬁ xed asset base.

The cash to earnings ratio was realised 
at 114% in 2008 and at 98% for the last 
three years on average compared to the 
long-term target of 70%. The cash-con-
version ability will ﬂ uctuate in any given 
year, and therefore the long-term target 
measures the cash to earnings ratio over
a three-year period.

Business results  Performance in 2008

Operating margin 

Growth in operating proﬁt 

Return on invested capital 
(ROIC)

Cash to earnings 
(three-year average)

%

%

%

30

25

20

15

10

5

0

40

30

20

10

0

-10

50

40

30

20

10

0

%

100

80

60

40

20

0

2004 2005 2006 2007 2008
(cid:116) Target
(cid:116) Realised
(cid:116) Realised excl pulmonary
(cid:116) diabetes projects

2004 2005 2006 2007 2008
(cid:116) Target
(cid:116) Realised
(cid:116) Realised excl pulmonary
(cid:116) diabetes projects

2004 2005 2006 2007 2008
(cid:116) Target
(cid:116) Realised

2004 2005 2006 2007 2008
(cid:116) Target
(cid:116) Realised

Long-term
ﬁ nancial targets
Focusing on growth, proﬁ tability, ﬁ nancial 
return and generation of cash, Novo Nor-
disk introduced four long-term ﬁ nancial 
targets in 1996 to balance short- and 
long-term considerations, thereby ensuring 
a focus on shareholder value creation. The 
targets were subsequently revised and up-
dated in 2001 and in 2006. By 2008, and 
despite a challenging currency exchange 
rate environment since the last update 
of the targets, Novo Nordisk has now 
reached the performance level stipulated 
in the four long-term ﬁ nancial targets and 
has consequently revised the target levels. 
The revision is based on an assumption of 
a continuation of the current business en-
vironment and given the current scope of 
business activities and has been prepared 

assuming that currency exchange rates 
remain at current levels.

The target level for operating proﬁ t 
growth remains at 15% on average. The 
target still allows for deviations in indivi-
dual years if necessitated by business op-
portunities, market conditions or exchange 
rate movements. 

The target level for operating margin is 
increased from 25% to 30%. The key en-
abling factors are expected to be further 
productivity improvements in the manu-
facturing and administrative areas while 
at the same time ensuring investments for 
both research and development as well
as sales and marketing. It should be noted 
that the achievement of the operating 
margin target may be inﬂ uenced by signiﬁ -
cant changes in market conditions includ-

ing regulatory developments, changes
in pricing environment, healthcare reforms 
as well as exchange rate movements. 

The target level for return on invested 
capital (ROIC) measured post tax is 
increased from 30% to 50%. The raised 
target reﬂ ects the expectation of contin-
ued lower growth in invested capital rela-
tive to operating proﬁ t as well as a stable 
effective tax rate. 

The target level for the cash-to-earnings 
ratio is increased from 70% to 80%, re-
ﬂ ecting improved cash conversion ability. 
As previously, this target will be pursued 
looking at the average over a three-year 
period. Performance on this ratio may be 
impacted in individual years by signiﬁ cant 
acquisitions, investments or licensing 
activities.

Ratio 

Previous target 

Result 2008 

New targets

Growth in operating proﬁ t 
Operating margin 
Return on invested capital (ROIC) 
Cash to earnings (three-year average) 

15% 
25% 
30% 
70% 

38.4% 
27.2% 
37.4% 
97.6% 

15%
30%
50%
80%

Novo Nordisk Annual Report 2008     9

Business results  Performance in 2008

Diabetes care

Novo Nordisk retained its position as 
global leader with 52% of the total insulin 
market and 44% of the modern insulin 
market, both measured by volume. The 
company is determined to sustain its 
leadership in diabetes care by leveraging 
the value of its full portfolio of modern 
insulins and delivery devices while devel-
oping new antidiabetic agents and a new 
generation of insulins to better address 
future needs for effective diabetes care. 
See pp 30–37.

Sales performance

Sales of diabetes care products increased 
by 13% measured in local currencies and 
by 9% in Danish kroner to DKK 33,356 
million compared to last year.

Insulin value market share 
Geographical areas

%

100

80

60

40

20

0

2007

2008

2005

2006

2004
(cid:116) Europe
(cid:116) North America
(cid:116) International Operations
(cid:116) Japan & Oceania

Modern insulins 
Global value market share of segment

%

100

80

60

40

20

0

Modern insulins, human insulins
and insulin-related products
Sales of modern insulins, human insulins 
and insulin-related products increased 
by 12% measured in local currencies and 
by 9% in Danish kroner to DKK 30,965 
million. All regions contributed to growth, 
with North America and International Op-
erations having the highest growth rates.

Sales of modern insulins increased by 28% 
in local currencies in 2008 and by 24% in 
Danish kroner to DKK 17,317 million. Sales 
of Levemir® increased by 55%, sales of 
NovoRapid® (NovoLog® in the US) increased 
by 22% and sales of NovoMix® (NovoLog® 
Mix 70/30 in the US) increased by 23%, all 
measured in local currencies. All regions 
realised solid growth rates, with North 
America and Europe as the primary contrib-
utors to growth. Sales of modern insulins 
contributed 77% of the overall growth in 
local currencies and now constitute 59% of 
Novo Nordisk’s sales of insulins.

North America

Sales in North America increased by 21% 
in local currencies in 2008 and by 14% in 
Danish kroner, reﬂ ecting a solid penetration 
of the modern insulins Levemir®, NovoLog® 
and NovoLog® Mix 70/30. In the fourth 
quarter of 2008, US sales were positively 
impacted by a rebate reversal related to 
a federal healthcare programme. Novo 
Nordisk maintains its leadership posi-
tion in the US insulin market with 41% of 
the total insulin market and 32% of the 
modern insulin market, both measured by 
volume. Currently, more than 37% of Novo 
Nordisk’s modern insulin volume is sold in 
FlexPen®.

Europe

Sales in Europe increased by 6% in local 
currencies and 5% measured in Danish 
kroner, reﬂ ecting continued progress for 
the portfolio of modern insulins. Novo 
Nordisk holds 55% of the total insulin 
market and 51% of the modern insulin 
market, both measured by volume, and
is capturing the main share of growth
in the modern insulin market.

International Operations

Sales within International Operations 
increased by 18% in local currencies 
and by 14% in Danish kroner. The main 
contributor to growth in 2008 was sales 
of modern insulins, primarily in Turkey 
and China. Furthermore, sales of human 
insulins continue to add to overall growth 
in the region, driven by China.

2005
2004
(cid:116) NovoRapid®
(cid:116) NovoMix®
(cid:116) Levemir®

2006

2007

2008

Japan & Oceania

Sales in Japan & Oceania increased by 1% 
in local currencies and by 6% measured 

10     Novo Nordisk Annual Report 2008

in Danish kroner. The sales development 
reﬂ ects sales growth for the modern insu-
lins NovoRapid®, NovoRapid Mix® 30 and 
Levemir®. Novo Nordisk holds 72% of the 
total insulin market in Japan and 64% of 
the modern insulin market, both measured 
by volume.

Oral antidiabetic products
(NovoNorm®/Prandin®)

Sales of oral antidiabetic products in-
creased by 16% in local currencies and 
by 11% in Danish kroner to DKK 2,391 
million compared to 2007. This primarily 
reﬂ ects increased sales in International 
Operations and North America, mainly 
due to an increased market share in China 
and a higher average sales price in the US 
market.

Biopharmaceuticals

Novo Nordisk continues to grow its bio-
pharmaceuticals therapy areas by pursuing 
new indications for its existing product 
range and by exploring new potential 
proteins in other areas. See pp 38–41.

Sales performance

Sales of biopharmaceutical products 
increased by 11% measured in local cur-
rencies and by 7% measured in Danish 
kroner to DKK 12,197 million compared to 
last year.

NovoSeven®

Sales of NovoSeven® increased by 14% in 
local currencies and by 9% in Danish kro-
ner to DKK 6,396 million compared to last 
year. Sales growth for NovoSeven® was 
primarily realised in North America and 
International Operations. The sales growth 
for NovoSeven® during 2008 primarily 
reﬂ ected increased sales within the con-
genital bleeding disorder segments, where 
Novo Nordisk is the global leader, and was 
supported by the launch of room temper-
ature-stable NovoSeven® in the US as well 
as key markets in Europe. Treatment of 
spontaneous bleeds for congenital inhibi-
tor patients remains the largest area of 
use. In the fourth quarter of 2008, sales of 
NovoSeven® in the US were positively im-
pacted by wholesaler stock building. Sales 
of NovoSeven® in International Operations 
in 2008 were positively impacted by the 
timing of tender sales compared to 2007.

Growth hormone therapy
(Norditropin®)

Sales of Norditropin® (ie growth hormone 
in a liquid, ready-to-use formulation) in-
creased by 12% measured in local curren-
cies and by 10% measured in Danish kro-
ner to DKK 3,865 million. North America 
and Europe were the main contributors to 

growth measured in local currencies. Novo 
Nordisk is the second-largest company in 
this market with 23% market share meas-
ured by volume.

Other products

Sales of other products within bio-
pharmaceuticals, which predominantly 
consist of hormone replacement therapy 
(HRT)-related products, increased by 1% 
in local currencies and decreased by 2% in 
Danish kroner to DKK 1,936 million. This 
development primarily reﬂ ects generic 
competition in the US for Activella®, a con-
tinuous-combined HRT product, but also 
continued sales progress for Vagifem®, 
Novo Nordisk’s topical oestrogen product.

Pipeline progress

Novo Nordisk made signiﬁ cant progress in 
research and development in 2008. See 
pp 18–19 for a status on the current pipe-
line and progress during the year.

Within diabetes care the key events for 
late-stage pipeline compounds during 
2008 are summarised below:

•   Novo Nordisk ﬁ led for regulatory ap-

proval of liraglutide for the treatment of 
type 2 diabetes in the US, Europe, Japan 
and many other countries. The applica-
tions contain documentation from an ex-
tensive clinical development programme 
designed to obtain the indication for use 
of liraglutide to treat type 2 diabetes as 
an adjunct to diet and exercise, both as 
monotherapy and in combination with 
commonly used antidiabetic medications.

•   Novo Nordisk initiated the phase 3 
programme with liraglutide for the 
treatment of severe obesity.

•   Novo Nordisk ﬁ nalised two phase 2 
clinical studies with NN1250, a long-
acting new generation of insulin with 
a potential duration of action of more 
than 24 hours, and two phase 2 clinical 
studies with NN5401, a neutral, soluble 
dual-acting, new generation of insulin, 
also with a potential duration of action 
of more than 24 hours.

•   A phase 2 clinical study was initiated 
with the longer-acting human GLP-1 
analogue, NN9535, designed for once-
weekly treatment of type 2 diabetes.

•   Novo Nordisk discontinued all pulmonary 
diabetes activities, including AERx®, in 
2008 and decided to focus on injection-
based delivery and alternative non-
invasive approaches to delivery of insulin, 
GLP-1 and other therapeutic proteins.

Business results  Performance in 2008

Within biopharmaceuticals the key events 
for late-stage pipeline compounds in 2008 
were:

•   Novo Nordisk received marketing ap-

proval for a temperature-stable version 
of NovoSeven® which is expected to 
deliver signiﬁ cant patient beneﬁ ts 
including immediate access to treatment 
as well as fast and convenient adminis-
tration when a bleeding episode occurs.

In 2008, costs amounting to DKK 171 mil-
lion in connection with general employee 
share programmes were expensed. In 
2008, Novo Nordisk expensed costs in 
relation to share-based long-term incen-
tive programmes for senior management 
and other senior employees (around 580 
participants in total) amounting to DKK 
160 million. The comparable expense for 
2007 was DKK 121 million (around 525 
participants in total).

•   A phase 3 study with recombinant FXIII 
in congenital FXIII deﬁ ciency was initi-
ated.

Licence fees and other operating income 
were DKK 286 million in 2008 compared 
to DKK 321 million in 2007.

•   A phase 2 clinical study was initiated 
with a long-acting human growth 
hormone analogue designed for once-
weekly treatment.

•   Novo Nordisk decided to discontinue 
the phase 3 clinical study with Novo-
Seven® for the treatment of bleeding
in patients with severe trauma.

•   An update of the haemostasis strat-

egy was presented including plans for 
continuing development of potential 
successors to NovoSeven® as well as 
extending activities into general haemo-
philia.

•   Novo Nordisk decided to discontinue 
the phase 3 study with Norditropin® 
in dialysis patients with low serum 
albumin.

Operating performance

The cost of goods sold was DKK 10,109 
million in 2008, representing a gross margin 
of 77.8% compared to 76.6% in 2007. This 
improvement reﬂ ects improved produc-
tion efﬁ ciency and higher average prices in 
the US. The gross margin was negatively 
impacted by around 0.5 percentage points 
due to a negative currency development.

In 2008, total non-production-related 
costs amounted to DKK 23,357 million 
and were largely at the same level as in 
2007. This development reﬂ ects lower 
costs related to research and develop-
ment, primarily reﬂ ecting the non-recur-
ring costs related to the discontinuation of 
AERx® in 2007, of DKK 1,325 million and 
non-recurring costs of DKK 325 million 
in 2008 related to the discontinuation 
of AERx®  and other pulmonary diabe-
tes projects. Sales and distribution costs 
increased at a lower level than sales, 
primarily explained by a return of a deposit 
related to an antidumping case in Brazil 
countered by higher costs related to the 
expanded sales force in the US.

Operating proﬁ t in 2008 increased by 
38% to DKK 12,373 million compared
to 2007.

Net ﬁ nancials and tax

Net ﬁ nancials showed a net income of 
DKK 322 million in 2008 compared to a 
net income of DKK 2,029 million in 2007.

Gross margin 

%

80

78

76

74

72

70

12

10

8

6

4

2

0

2005

2006

2007
2004
(cid:116) Development in gross margin

2008

Research & development costs 

DKK billion

2004

2005

2006

2007

2008

 Diabetes care
(cid:116) (excl pulmonary diabetes projects)
(cid:116) Biopharmaceuticals

Novo Nordisk Annual Report 2008     11

Business results  Performance in 2008

Included in net ﬁ nancials is the result from 
associated companies with an expense of 
DKK 124 million, primarily related to Novo 
Nordisk’s share of losses in ZymoGenetics, 
Inc of approximately DKK 192 million.

In 2007, the result from associated compa-
nies was an income of DKK 1,233 million, 
primarily related to the non-recurring 

US dollar
Cover and exchange rate

Months

Rate

12/07 03/08 06/08 09/08 12/08
(cid:116) Cover (left)
(cid:116) Rate (right)

Japanese yen
Cover and exchange rate

Months

Rate

540

520

500

480

460

440

6.0

5.7

5.4

5.1

4.8

4.5

24

20

16

12

8

4

0

24

20

16

12

8

4

0

12/07 03/08 06/08 09/08 12/08
(cid:116) Cover (left)
(cid:116) Rate (right)

12     Novo Nordisk Annual Report 2008

tax-exempt income of approximately DKK 
1.5 billion from Novo Nordisk’s divest-
ment of the ownership of Dako’s business 
activities.

The foreign exchange result was an income 
of DKK 159 million compared to an income 
of DKK 910 million in 2007. This develop-
ment reﬂ ects gains on foreign exchange 
hedging activities, especially in US dollars, 
partly offset by losses on commercial bal-
ances in primarily non-hedged currencies. 
Foreign exchange hedging losses of DKK 
864 million have been deferred for future 
income recognition, primarily in 2009.

The effective tax rate for 2008 was 24.0%, 
an increase from 22.3% in 2007, when the 
effective tax rate was positively impacted 
by the non-recurring tax-exempt income 
from the divestment of Novo Nordisk’s 
ownership of Dako A/S’s business activities 
as well as from the non-recurring effect 
from the re-evaluation of the company’s 
deferred tax liabilities as a consequence of 
the reduction in the Danish corporation tax 
rate to 25%, introduced in 2007.

Capital expenditure
and free cash ﬂ ow

Net capital expenditure for property, plant 
and equipment in 2008 was realised at 
DKK 1.8 billion compared to DKK 2.3 
billion for 2007. The main investment 
projects in 2008 were manufacturing ex-
pansion of FlexPen® assembly capacity as 
well as expansion of the puriﬁ cation and 
ﬁ lling capacity for insulin products.

Free cash ﬂ ow for 2008 was realised at 
DKK 11.0 billion compared to DKK 9.0 bil-
lion for 2007. Novo Nordisk’s ﬁ nancial re-
sources at the end of 2008 were DKK 17.2 
billion, higher than the level at the end of 
2007. Included in the ﬁ nancial resources 
are unutilised committed credit facilities of 
approximately DKK 7.5 billion.

Equity

Total equity was DKK 32,979 million at 
the end of 2008, equal to 65.2% of total 
assets, compared to 67.4% at the end of 
2007.

Proposed dividend
At the Annual General Meeting on 18 
March 2009, the Board of Directors will 
propose a 33% increase in dividend to 
DKK 6.00 per share of DKK 1, correspond-
ing to a payout ratio of 37.8%, compared 
to 34.9% for the ﬁ nancial year 2007, 
when adjusted for the impact from the 
divestment of Dako’s business activities 
and the AERx® discontinuation in 2007. 
No dividend will be paid on the company’s 
holding of treasury B shares.

Share repurchase programme

During 2008, Novo Nordisk repurchased 
15,579,207 B shares at an average price 
of DKK 303 per share, equal to a cash 
value of DKK 4.7 billion. The Board of 
 Directors has approved an increase of DKK 
1.0 billion in the ongoing DKK 17.5 billion 
share repurchase programme, bringing the 
total share repurchase programme to DKK 
18.5 billion. Novo Nordisk still expects to 
ﬁ nalise the share repurchase programme 
before the end of 2009. As a consequence 
Novo Nordisk expects to repurchase shares 
equal to a cash value of DKK 6 billion in 
2009. In 2006 and 2007, Novo Nordisk 
repurchased B shares equal to a cash value 
of DKK 7.8 billion in total.

Holding of treasury shares
and reduction of share capital

As per 28 January 2009, Novo Nordisk 
A/S and its wholly-owned afﬁ liates owned 
25,721,095 of its own B shares, correspond-
ing to 4.06% of the total share capital.

In order to maintain capital structure ﬂ ex-
ibility, the Board of Directors at the 2009 
Annual General Meeting will also propose 
a reduction in the B share capital from 
DKK 526,512,800 to DKK 512,512,800 
by cancelling 14,000,000 B shares of 
DKK 1 from the company’s own hold-
ings of B shares at a nominal value of 
DKK 14,000,000, equal to 2.2% of the 
total share capital. After implementa-
tion of the share capital reduction, the 
company’s share capital will amount to 
DKK 620,000,000 divided into an A share 
capital of DKK 107,487,200 and a B share 
capital of DKK 512,512,800.

Business results  Performance in 2008

Legal issues
Novo Nordisk is party to a number of legal 
cases. See key legal issues and information 
on contingencies for pending litigations on 
pp 86–87.

Long-term incentive
programmes
Novo Nordisk’s existing remuneration 
policy for executives aims to attract, retain 
and motivate members of the Board of 
Directors and Executive Management of 
Novo Nordisk. Remuneration levels are 
designed to be competitive and to align 
the interest of the executives with those of 
the shareholders.

Long-term share-based incentive
programme for senior management

As from 2004, members of Novo Nor-
disk's Executive Management (currently 
ﬁ ve) and the other members of the Senior 
Management Board (currently 24) have 
participated in a performance-based 
incentive programme where a proportion 
of the calculated shareholder value crea-
tion has been allocated to a joint pool for 
the participants. For members of Execu-
tive Management and the other members 
of the Senior Management Board the 
joint pool operates with a yearly maxi-
mum allocation per participant equal to 
eight months’ ﬁ xed base salary plus pen-
sion contribution. Once the joint pool has 
been approved by the Board of Directors 
the total cash amount is converted into 
Novo Nordisk A/S B shares at market 
price. The shares in the joint pool are 
locked up for a three-year period before 
they potentially may be transferred to the 
participants.

For 2005, 232,026 shares were allocated 
to the joint pool and the market value 
of the scheme, corresponding to DKK 
35.5 million, was expensed in 2005. The 
number of shares in the 2005 joint pool 
has not been reduced as the ﬁ nancial 
performance in the subsequent years 
(2006–2008) reached speciﬁ ed thresh-
old levels. Hence, the original number 
of shares allocated to the joint pool 

will, according to the principles of the 
scheme, be transferred to 23 current and 
former members of senior management 
immediately after the announcement of 
the full-year 2008 ﬁ nancial results on 29 
January 2009.

For 2008 and based on an assessment of 
the economic value generated in 2008, 
as well as the performance of the R&D 
portfolio and key sustainability projects, 
the Board of Directors on 28 January 2009 
approved the establishment of a joint pool 
for the ﬁ nancial year 2008 by allocating 
a total of 171,492 Novo Nordisk B shares, 
corresponding to a cash value of DKK 55 
million. This allocation amounts to eight 
months of ﬁ xed base salary and pension 
on average per participant. This amount 
was expensed in 2008.

As the long-term share-based incentive 
programme is evaluated by the Board of 
Directors to have worked successfully in 
2008, it is planned to continue in 2009 
with an unchanged structure.

Long-term share-based incentive
programme for corporate vice
presidents and vice presidents

As from 2007, a number of key employ-
ees below top-level management also 
participate in a share-based programme 
with similar performance criteria as the 
programme for the members of Execu-
tive Management and the other members 
of the Senior Management Board. The 
share-based incentive programme for key 
employees will, as is the case for the pro-
gramme for Executive Management and 
the other members of the Senior Man-
agement Board, be based on an annual 
calculation of shareholder value creation 
compared to the planned performance for 
the year. The pool will operate with a max-
imum contribution per participant equal to 
four months’ ﬁ xed base salary. The shares 
in the pool are also locked up for a three-
year period before they potentially may be 
transferred to the participants.

Based on an assessment of the economic 
value generated in 2008 as well as the 

performance of the R&D portfolio and 
key sustainability projects, the Board of 
Directors on 28 January 2009 approved 
the establishment of a pool for 2008 by 
allocating a total of 570,390 Novo Nordisk 
B shares, corresponding to a cash value of 
DKK 181 million. This allocation amounts 
to four months of ﬁ xed base salary on 
average per participant. The number of 
participants for 2008 is approximately 
550. The cash value of the allocation will 
be amortised over four years.

Compliance with
Sarbanes–Oxley
requirements

In 2008, Novo Nordisk was, as was the 
case in 2007, compliant with the US 
Sarbanes–Oxley Act section 404 that 
requires detailed documentation of how 
ﬁ nancial reporting processes, systems and 
controls are designed and operating. Man-
agement’s conclusion and the external 
auditor’s certiﬁ cation of the 2008 compli-
ance are included in the Form 20-F, which 
Novo Nordisk as a listed company on the 
New York Stock Exchange is required to 
ﬁ le with the US Securites and Exchange 
Commission (SEC). Form 20-F is expected 
to be ﬁ led in February 2009.

Non-ﬁ nancial performance

Managing direct and indirect economic, 
environmental and social impacts in areas 
of strategic importance serves a dual 
purpose: to reduce risks and to strengthen 
competitiveness. Novo Nordisk’s Triple 
Bottom Line approach aims to deliver 
long-term value to the business and bene-
ﬁ ts to society. See performance highlights 
on p 17 and the consolidated non-ﬁ nancial 
statements on pp 89–99.

Economics

In 2008, Novo Nordisk created 1,059 
new positions worldwide and had 26,575 
full-time positions, measured as full-time 
equivalents (FTE) at the end of the year. 
This is an increase of 4% compared to 
2007 and reﬂ ects the company’s contin-
ued expansion, particularly in sales and 

Novo Nordisk Annual Report 2008     13

Business results  Performance in 2008

Full-time positions 
Geographical areas

1,000 full-time positions

30

25

20

15

10

5

0

130

120

110

100

90

2004

2005

2006

2007

2008

 Denmark
(cid:116) Europe (excluding Denmark)
(cid:116) North America
(cid:116) International Operations
(cid:116) Japan & Oceania

Sales per average full-time position

Index (2003 = 100)

2005

2006
2004
(cid:116) Sales in DKK per average full-time position

2007

2008

Environmental impacts 
compared to sales

Index (2003 = 100)

120

100

80

60

40

2006

2005
2004
(cid:116) CO2 emissions/sales in DKK
(cid:116) Waste/sales in DKK

2007

2008

14     Novo Nordisk Annual Report 2008

marketing functions and geographically 
in International Operations. Via the mul-
tiplier effect, the increase translates into 
61,925 indirect jobs in the global supply 
chain.

In 2008, a new diversity strategy was 
implemented, setting a ﬁ ve-year goal 
for all senior management teams to be 
diverse in terms of gender and national-
ity. See p 27.

Sales per employee was DKK 1.7 million, 
up from DKK 1.6 million in 2007, indicat-
ing an ability to maintain high productivity 
while expanding the workforce.

Environment

Novo Nordisk strives to reduce resource 
consumption and waste production. The 
aim is to decouple production growth and 
environmental impacts.

The level of employee engagement is 
measured by the average answers of 10 
equally weighted questions in the annual 
survey, eVoice. In 2008, the consolidated 
score (on a scale of 1–5, with 5 being 
highest) was 4.2, increasing by 0.1 from 
2007 and well above the long-term target 
of 4.0. This is underscored by a continued 
high closure rate at 99% of all action 
points arising from facilitations.

The company’s ambitious long-term 
target to achieve a 10% absolute reduc-
tion in CO2 emissions from production 
by 2014 as compared with 2004 levels is 
on track. In 2008, CO2 emissions fell for 
the ﬁ rst time from 236,000 tons in 2007 
to 215,000 tons. It is expected that the 
curve will break signiﬁ cantly at the end 
of 2009 when supplies of wind energy 
for the Danish production facilities can 
begin.

Measured by volume, the consumption of 
water and energy decreased by 17% and 
9%, respectively, while waste volumes 
increased by 16%. The Eco Intensity Ratios 
(EIR) showed improved performance in 
both diabetes care and biopharmaceuti-
cals, and for both water and energy, and 
on track with the targets for a 10% reduc-
tion by 2010 compared with 2005. A set 
of new long-term targets for environmen-
tal performance will be implemented as of 
2009. See pp 28–29.

A continued preventative focus on compli-
ance with environmental regulation is 
beginning to show results. In 2008, the 
number of accidental releases decreased 
by 13% to a total of 91. However, in the 
same period, the number of breaches of 
regulatory limit values increased by 27% 
from 22 in 2007 to 28.

During 2008, 13 prescreening audits and 
19 regular audits of suppliers’ environmen-
tal and social performance were conduct-
ed. These resulted in four critical ﬁ ndings 
and termination of relationship with one 
supplier.

Social

Attraction and retention of talented
people is a key precondition for Novo
Nordisk’s ability to develop and grow
its business. In 2008, employee turn-
over increased to 12.1% from 11.6%.
A global employer-branding campaign
was launched in 2008.

In 2008, the annual spending on training, 
measured as average spent per employee 
remained high, amounting to  DKK 13,192, 
which was a slight increase of 0.5%. This 
level  reﬂ ects the company’s strategic 
priority on talent and leadership develop-
ment, and on lifelong learning offered to 
all employees.

Changing Diabetes®, Novo Nordisk’s 
global campaign to improve preven-
tion, detection and care, effectively 
put diabetes on the public and political 
agendas. In the second year of marking 
the UN-observed World Diabetes Day, 
14 November, Novo Nordisk succeeded 
in engaging more than 300,000 people 
in events in 56 countries. The company’s 
global advocacy to raise awareness of 
and spur action on diabetes supports
the implementation of the UN Resolution 
on diabetes, adopted in December 2006, 
in recognition of diabetes as a major
global health challenge and in respect
of the human right to proper care.
See pp 34–37.

Novo Nordisk’s strategy to improve 
access to diabetes care is a long-term 
leadership strategy to promote on-time 
insulin and provide sustainable diabetes 
care for all who need it. It focuses on 
giving people with diabetes priority, 
driving health outcomes and breaking 
the curve of the diabetes pandemic. 
See pp 30–33.

In 2008, the company launched an ambi-
tious ﬁ ve-year programme to supply free 
insulin and care for children with type 1 
diabetes in the world’s poorest countries. 
The programme, ‘Changing the Future 
for Children with Diabetes’ aims to reach 
a total of 10,000 children by 2013. It will 
be carried out in partnership with the 
World Diabetes Foundation and local 
partners.

Outlook 
for 2009

Expectations are
as reported, if not 
otherwise stated 

Current expectations
29 January 2009

Sales growth
  • in local currencies 
At the level of 10%
  • as reported  Around 5 percentage points higher

Operating proﬁ t growth
At the level of 10%
  • in local currencies 
  • as reported  Around 9 percentage points higher

Net ﬁ nancial expense 

Around DKK 1.6 billion

Effective tax rate 

Around 24%

Capital expenditure 

Around DKK 3 billion

Depreciation, amortisation
and impairment losses 

Around DKK 2.6 billion

Free cash ﬂ ow 

At least DKK 9 billion

Novo Nordisk expects sales growth in 2009 
at the level of 10% measured in local cur-
rencies. This is based on expectations of 
continued market penetration for Novo Nor-
disk’s key strategic products within diabetes 
care and biopharmaceuticals as well as 
expectations of continued intense competi-
tion during 2009. Given the current level 
of exchange rates versus Danish kroner, the 
reported sales growth is expected to be 

Forward-looking 
statement
Novo Nordisk’s reports ﬁ led with or furnished to 
the US Securities and Exchange Commission (SEC), 
including this document and the company’s Form 
20-F (expected to be ﬁ led with the SEC in Febru-
ary 2009), and written information released, or 
oral statements made, to the public, in the future 
by or on behalf of Novo Nordisk, may contain 
forward-looking statements.

Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, 
‘plan’, ’strategy’, ’prospect’, ’foresee’, ’estimate’, 
’project’, ’anticipate’, ’can’, ’intend’, ‘target’ and 
other words and terms of similar meaning in con-
nection with any discussion of future operating 
or ﬁ nancial performance identify forward-looking 
statements. Examples of such forward-looking 
statements include, but are not limited to:

•  statements of plans, objectives or goals for 

future operations, including those related to 
Novo Nordisk’s products, product research, 
product development, product introductions 
and product approvals as well as cooperations 
in relation thereto,

•  statements containing projections of or targets 
for revenues, income (or loss), earnings per 

around 5 percentage points higher than the 
growth rate measured in local currencies.

For 2009, operating proﬁ t growth meas-
ured in local currencies is expected to be 
at the level of 10%. The forecast reﬂ ects 
a continued improvement of the gross 
margin and increased spending for sales 
and distribution relative to sales due to an 
expected high level of sales and marketing 
activities primarily related to the expected 
approval and launch of liraglutide and 
continued global market penetration for 
the portfolio of modern insulins. Given the 
current level of currency exchange rates 
versus Danish kroner, the reported operat-
ing proﬁ t growth is expected to be around 
9 percentage points higher than the 
growth rate measured in local currencies.

For 2009, Novo Nordisk expects a net 
ﬁ nancial expense of around DKK 1.6 billion, 
reﬂ ecting signiﬁ cant foreign exchange hedg-
ing losses, primarily related to the US dollar 
and the Japanese yen as well as expected 
losses related to non-hedged currencies.

The effective tax rate for 2009 is expected 
to be around 24%. Capital expenditure 
is expected to be around DKK 3 billion 
in 2009. Expectations for depreciations, 
amortisation and impairment losses are 
around DKK 2.6 billion, and free cash ﬂ ow 
is expected to be at least DKK 9 billion. 

share, capital expenditures, dividends, capital 
structure or other ﬁ nancial ratios,

•  statements of future economic performance, 
future actions and outcome of contingencies 
such as legal proceedings, and

•  statements of the assumptions underlying or 

relating to such statements.

In this document, examples of forward-looking 
statements can be found under the headings ‘Our 
focus is our strength’, ‘Pursuing a focused strat-
egy’, ‘Performance in 2008’, including long-term 
ﬁ nancial targets, ‘Outlook for 2009’ and note 31, 
‘Financial risk’, on p 76.

These statements are based on current plans, 
estimates and projections. By their very nature, 
forward-looking statements involve inherent risks 
and uncertainties, both general and speciﬁ c. Novo 
Nordisk cautions that a number of important fac-
tors, including those described in this document, 
could cause actual results to differ materially from 
those contemplated in any forward-looking state-
ments.

Business results  Outlook for 2009

All of the above expectations are based on 
the assumption that the global economic 
downturn will not signiﬁ cantly deteriorate 
the business environment for Novo Nordisk 
during 2009. In addition, all of the above 
expectations are provided that currency 
exchange rates, especially the US dollar, re-
main at the current level versus the Danish 
krone for the rest of 2009. Novo Nordisk 
has hedged expected net cash ﬂ ows in 
relation to US dollars, Japanese yen, Brit-
ish pounds, Chinese yuan and Canadian 
dollars and, all other things being equal, 
movements in key invoicing currencies will 
impact Novo Nordisk’s operating proﬁ t as 
outlined in the table below.

Invoicing currency
Annual impact on Novo 
Nordisk’s operating proﬁ t of 
a 5% movement in currency 

Hedging
period
(months)

USD 
JPY 
GBP 
CNY 
CAD 

DKK 530 million 
DKK 150 million 
DKK 80 million 
DKK 80 million 
DKK 40 million 

15
14
13
15 *)
5

*) USD used as proxy for hedging of Novo Nordisk’s CNY exposure.

The ﬁ nancial impact from foreign ex-
change hedging is included in ‘Net 
ﬁ nancials’.

or failure of projects related to research and/or 
development, unplanned loss of patents, inter-
ruptions of supplies and production, product 
recall, unexpected contract breaches or termina-
tions, government-mandated or market-driven 
price decreases for Novo Nordisk’s products, 
introduction of competing products, reliance on 
information technology, Novo Nordisk’s ability to 
successfully market current and new products, 
exposure to product liability and legal proceed-
ings and investigations, changes in governmental 
laws and related interpretation thereof, including 
on reimbursement, intellectual property protec-
tion and regulatory controls on testing, approval, 
manufacturing and marketing, perceived or 
actual failure to adhere to ethical marketing 
practices, investments in and divestitures of 
domestic and foreign companies, unexpected 
growth in costs and expenses, failure to recruit 
and retain the right employees and failure to 
maintain a culture of compliance. Please also 
refer to the overview of risk factors in ‘Managing 
risks’ on pp 24–25.

Factors that may affect future results include, but 
are not limited to, global as well as local political 
and economic conditions, including interest rate 
and currency exchange rate ﬂ uctuations, delay 

Unless required by law, Novo Nordisk is under no 
duty and undertakes no obligation to update or 
revise any forward-looking statement after the dis-
tribution of this document, whether as a result of 
new information, future events or otherwise. 

Novo Nordisk Annual Report 2008     15

Business results  Financial highlights

Sales

2004 

2005 

2006 

2007 

2008 

 2007–2008 

2007 

2008

DKK million  DKK million  DKK million  DKK million  DKK million 

Change 

EUR million 

EUR million

Diabetes care:
Modern insulins (insulin analogues) 
Human insulins  
Insulin-related sales 
Oral antidiabetic products (OAD) 

4,507 
13,033 
1,350 
1,643 

7,298 
13,543 
1,463 
1,708 

10,825 
13,451 
1,606 
1,984 

14,008 
12,572 
1,749 
2,149 

17,317 
11,804 
1,844 
2,391 

Diabetes care total 

20,533 

24,012 

27,866 

30,478 

33,356 

Biopharmaceuticals:
Haemostasis management 
Growth hormone therapy 
Hormone replacement therapy 
Other products 

Biopharmaceuticals total 

4,359 
2,317 
1,488 
334 

8,498 

5,064 
2,781 
1,565 
338 

5,635 
3,309 
1,607 
326 

5,865 
3,511 
1,668 
309 

6,396 
3,865 
1,612 
324 

9,748 

10,877 

11,353 

12,197 

Total sales by segment 

29,031 

33,760 

38,743 

41,831 

45,553 

Europe *) 
North America 
International Operations *) 
Japan & Oceania 

12,887 
7,478 
4,368 
4,298 

14,020 
9,532 
5,497 
4,711 

15,300 
12,280 
6,494 
4,669 

16,350 
13,746 
7,295 
4,440 

17,219 
15,154 
8,425 
4,755 

Total sales by geographical area 

29,031 

33,760 

38,743 

41,831 

45,553 

3,309 
(768) 
95 
242 

2,878 

531 
354 
(56) 
15 

844 

3,722 

869 
1,408 
1,130 
315 

3,722 

1,880 
1,687 
235 
288 

4,090 

788 
471 
224 
41 

1,524 

5,614 

2,194 
1,845 
979 
596 

5,614 

2,323
1,583
247
321

4,474

858
518
216
43

1,635

6,109

2,309
2,032
1,130
638

6,109

15% 
(4%) 

11% 

15% 
1% 

16% 

16% 
(1%) 

15% 

13% 
(5%) 

8% 

12%
(3%)

9%

DKK million  DKK million  DKK million  DKK million  DKK million 

Change 

EUR million 

EUR million

Price and volume/mix 
Currency 

Total growth 

Key ﬁ gures

Operating proﬁ t 
Operating proﬁ t excl AERx® **) 
Net ﬁ nancials 
Proﬁ t before income taxes 
Net proﬁ t 
Equity 
Total assets 
Capital expenditure (net) 
Free cash ﬂ ow 

Per share/ADR of DKK 1

6,980 
– 
477 
7,457 
5,013 
26,504 
37,433 
2,999 
4,278 

8,088 
– 
146 
8,234 
5,864 
27,634 
41,960 
3,665 
4,833 

Earnings per share 
Earnings per share, diluted 
Proposed dividend 
Quoted price at year-end for B shares 

Ratios

Growth in operating proﬁ t 
Growth in operating proﬁ t excl AERx® **) 
Growth in operating proﬁ t, three-year average 
Operating proﬁ t margin 
Operating proﬁ t margin excl AERx® **) 
Return on invested capital (ROIC) 
Cash to earnings 
Cash to earnings, three-year average 
Net proﬁ t margin 
Equity ratio 

DKK 

7.45 
7.42 
2.40 
150 

% 

8.7 
 – 
8.9 
24.0 
– 
21.5 
85.3 
59.0 
17.3 
70.8 

DKK 

8.95 
8.92 
3.00 
178 

% 

15.9 
– 
11.0 
24.0 
– 
24.7 
82.4 
82.4 
17.4 
65.9 

9,119 
– 
45 
9,164 
6,452 
30,122 
44,692 
2,787 
4,707 

DKK 

10.05 
10.00 
3.50 
236 

% 

12.7 
– 
12.4 
23.5 
– 
25.8 
73.0 
80.2 
16.7 
67.4 

8,942 
10,267 
2,029 
10,971 
8,522 
32,182 
47,731 
2,268 
9,012 

DKK 

13.49 
13.39 
4.50 
335 

% 

(1.9) 
12.6 
8.9 
21.4 
24.5 
27.2 
105.7 
87.0 
20.4 
67.4 

12,373 
12,698 
322 
12,695 
9,645 
32,979 
50,603 
1,754 
11,015 

3,431 
2,431 
(1,707) 
1,724 
1,123 
797 
2,872 
(514) 
2,003 

DKK 

Change 

15.66 
15.54 
6.00 
271 

2.17 
2.15 
1.50 
(64) 

1,200 
1,378 
272 
1,472 
1,144 
4,316 
6,401 
304 
1,210 

EUR 

1.81 
1.80 
0.60 
44.96 

1,660
1,704
43
1,703
1,294
4,426
6,792
235
1,478

EUR

2.10
2.08
0.81
36.35

% 

Long-term ﬁ nancial target in % ***)

15%

25%

30%

70%

38.4 
23.7
16.4
27.2 
27.9
37.4 
114.2
97.6 
21.2
65.2

***)  Comparative sales ﬁ gures from 2004 to 2006 have been adjusted in order to reﬂ ect a changed organisational structure from 1 January 2007 which transferred eight countries, incl Bulgaria and 

Romania, from International Operations to Europe.

***)  Excluding costs related to the discontinuation of pulmonary projects.

***) The long-term ﬁ nancial targets were updated in January 2009. See p 9.

Key ﬁ gures are translated into EUR as supplementary information – the translation of income statement items is based on the average exchange rate in 2008 (EUR 1 = DKK 7.45593) and the translation 
of balance sheet items is based on the exchange rate at the end of 2008 (EUR 1 = DKK 7.45060).

16     Novo Nordisk Annual Report 2008

 
 
 
 
 
Business results  Non-ﬁ nancial highlights

Economics

R&D 

R&D expenditure to tangible investments *) 
R&D as share of sales *) 

Remuneration 

Remuneration as share of cash received 

Ratio 
% 

% 

2004 

2005 

2006 

2007 

1.5:1 
15.0 

34 

1.4:1 
15.1 

34 

2.3:1 
16.3 

33 

3.2:1 
17.2 

32 

2008

4.3:1
16.5

31

Employment 

Employment impact worldwide (direct and indirect) 

Number of jobs 

73,100 

78,000 

82,700 

81,600 

88,500

Corporate tax 

Total corporate tax as share of sales 

% 

Exports 

Novo Nordisk exports as share of Danish exports (estimated)  % 

8.4 

3.9 

7.0 

4.7 

7.0 

4.0 

5.9 

3.4 

6.7

2.7

Environment

Resources 

Water consumption 
Energy consumption 
Raw materials and packaging materials 

Wastewater 

COD 
Nitrogen 
Phosphorus 

Waste 

Total waste 
Recycling percentage 

Emissions to air  CO2 

CO2 emissions/sales in DKK (Index 2003 = 100) 
Organic solvents 

EIR Water 

EIR Energy 

Diabetes care 
Biopharmaceuticals 

Diabetes care 
Biopharmaceuticals 

Compliance 

Breaches of regulatory limit values 
Accidental releases 

1,000 m3 
1,000 GJ 
1,000 tons 

Tons 
Tons 
Tons 

Tons 
% 

1,000 tons 
Tons/Sales in DKK 
Tons 

m3/MU  
m3/g API 

GJ/MU  
GJ/g API 

Number 
Number 

Social

Living our values  Importance of social and environmental issues for the future 

People 

of the company **) 
Scale 1–5 
Managers’ behaviour consistent with Novo Nordisk’s values **)  Scale 1–5 
Fulﬁ lment of action points from  facilitations of the NNWoM  % 

Number 
Employees (total) 
% 
Rate of absence 
% 
Rate of employee turnover 
Engaging culture (employee engagement) **) 
Scale 1–5 
Opportunity to use and develop competences/skills **) 
Scale 1–5 
People from  diverse backgrounds have equal opportunities **)  Scale 1–5 

2,756 
2,397 
111 

1,448 
121 
21 

3,014 
2,679 
135 

1,303 
126 
22 

2,995 
2,712 
142 

1,000 
107 
19 

3,231 
2,784 
152 

813 
107 
14 

2,684
2,533
132

891
95
15

21,855 
40 

23,776 
33 

24,165 
35 

17,576 
38 

20,346
51

210 
92 
115 

– 
– 

– 
– 

74 
29 

4.2 
4.0 
96 

20,725 
3.2 
7.3 
– 
3.8 
3.8 

228 
86 
124 

– 
– 

– 
– 

174 
104 

229 
75 
102 

7.8 
4.8 

5.5 
9.2 

123 
135 

236 
72 
81 

7.3 
4.1 

5.1 
7.9 

22 
105 

215
60
93

5.5
3.7

4.0
7.3

28
91

4.2 
4.0 
100 

22,460 
3.2 
8.0 
– 
3.8 
3.9 

7.3 
0 

4.3 
4.1 
99 

23,613 
3.0 
10.0 
4.0 
3.9 
3.9 

6.2 
0 

4.4 
4.2 
99 

26,008 
2.7 
11.6 
4.1 
4.0 
4.0 

5.9 
0 

4.5
4.3
99

27,068
2.2
12.1
4.2
4.1
4.1

5.4
0

Health & safety 

Frequency of occupational injuries 
Fatalities 

Training costs 

Annual training costs per employee 

Access to health  LDCs where Novo Nordisk operates 

LDCs where Novo Nordisk sells insulin at or below 
the policy price 
Healthcare professionals trained or educated 
People with diabetes trained or treated 

Patent families  Active patent families to date 

New patent families (ﬁ rst ﬁ ling) 

Animals 

Animals purchased 

**) R&D costs adjusted for costs related to discontinuation of all pulmonary diabetes projects.

**)  On a scale of 1–5, with 5 being the highest.

See the consolidated non-ﬁ nancial statements on pp 89–99.

No/million work hrs 
Number 

5.6 
1 

DKK 

Number 

Number 
1,000 
1,000 

Number 
Number 

Number 

8,992 

9,899 

11,293 

13,130 

13,192

35 

33 
– 
– 

778 
145 

35 

32 
– 
– 

812 
130 

35 

38 

36

34 
297 
1,060 

913 
149 

36 
336 
1,260 

1,003 
116 

32
380
1,854

890
71

47,311 

57,905 

56,533 

54,675 

57,253

Novo Nordisk Annual Report 2008     17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business results   Pipeline progress

Pipeline
progress

In 2008, signiﬁ cant progress was made across Novo Nordisk’s 
clinical development pipeline.

This overview illustrates key development activities: entries
into the pipeline, progression of development compounds,
exits from the pipeline and major regulatory approvals.

Diabetes care

Biopharmaceuticals

See more at novonordisk.com/investors/rd_pipeline/rd_pipeline.asp.

Phase 1
Studies in a small group of healthy volunteers, and 
sometimes patients, usually between 10 and 100, to 
investigate how the body handles new medication 
and establish maximum tolerated dose.

Phase 2
Testing a drug at various dose levels in a larger 
group of patients to learn about its effect on 
the condition and its side effects.

rFVIIa subcutaneous formulation (NN7720)
(Haemophilia patients with inhibitors)

NN1250
(Type 1 and type 2 diabetes)

Novo Nordisk is conducting a phase 1 study investigating 
bioavailability of subcutaneous injections of innovative 
formulation technologies to increase convenience of 
administration for patients. The trial is expected to be 
completed in 2009.

Long-acting factor VIIa derivative (NN7128)
(Haemophilia patients with inhibitors)

In 2008, Novo Nordisk completed a phase 1 study of its long-
acting recombinant factor VIIa analogue involving 40 healthy 
males. The analogue is a potential next-generation derivative 
of NovoSeven® in the treatment of haemophilia patients with 
inhibitors. With its long duration of action, it is intended to 
enable prevention of bleeding for the patient. Novo Nordisk 
expects to initiate a phase 2 clinical trial in 2009.

rFXIII (NN1810)
(Cardiac surgery)

In 2008, Novo Nordisk completed a phase 1 study 
of recombinant blood-clotting factor FXIII in patients 
undergoing cardiac surgery involving 43 patients and 
expects to initiate a phase 2 trial in 2009.

In 2008, Novo Nordisk completed a phase 2 programme 
for NN1250, a neutral, soluble, long-acting new generation 
of insulin with a ﬂ at and predictable proﬁ le, potentially 
providing more than 24-hour coverage by once-daily 
injection. Novo Nordisk expects to initiate phase 3 trials in 
the second half of 2009.

NN5401
(Type 1 and type 2 diabetes)

In 2008, Novo Nordisk completed a phase 2 programme 
for NN5401, a neutral, soluble, dual-acting new generation 
of insulin with improved properties and potential duration 
of action above 24 hours. Novo Nordisk expects to initiate 
phase 3 trials in the second half of 2009. 

Once-weekly GLP-1 analogue (NN9535)
(Type 2 diabetes)

Novo Nordisk is conducting a phase 2 clinical trial of a once-
weekly GLP-1 human analogue, designed for people with 
type 2 diabetes. The phase 2 clinical trial involves more than 
400 patients and is expected to be completed in the ﬁ rst 
half of 2009.

Anti-IL20
(Psoriatic arthritis and rheumatoid arthritis)

rFVIIa analogue (NN1731)
(Haemophilia patients with inhibitors)

In 2008, Novo Nordisk initiated a phase 1 clinical study of 
anti-IL20, a monoclonal antibody neutralising the interleukin 
20 protein. The clinical trial programme involves a study of 
about 80 patients with moderate-to-severe plaque psoriasis 
as well as a smaller combined phase 1 trial in healthy 
volunteers and patients with rheumatoid arthritis. 

Novo Nordisk is conducting a phase 2 trial of its fast-
acting recombinant analogue of rFVIIa involving about 
75 haemophilia patients with inhibitors. The targeted and 
topicalised mode of action is expected to deliver predictable, 
fast and sustainable haemostasis. The trial is expected to be 
completed in 2009. 

Anti-C5aR
(Rheumatoid arthritis and systemic lupus erythematosus)

Once-weekly growth hormone
(Growth hormone deﬁ ciency)

A phase 1 clinical study was initiated in 2008 for anti-C5aR, 
a monoclonal antibody blocking the C5a receptor. The study 
involved around 50 healthy volunteers. If successful, this will 
be followed by trials in patients with rheumatoid arthritis 
and systemic lupus erythematosus.

In 2008, Novo Nordisk moved its long-acting growth hor-
mone compound into a phase 2 trial involving more than 30 
adults. The product is intended to improve patient conveni-
ence by reducing the number of injections needed. The trial 
is expected to be completed in 2009.

18     Novo Nordisk Annual Report 2008

Business results   Pipeline progress

“Novo Nordisk will sustain its leadership in diabetes care by providing
new treatments to achieve safe glycaemic control and weight beneﬁ ts.”

Mads Krogsgaard Thomsen
Chief science ofﬁ cer

Phase 3
Studies in large groups of patients worldwide, 
comparing the new medication with a commonly 
used drug or placebo for both safety and efﬁ cacy 
in order to establish its beneﬁ t-risk relationship.

Filed/regulatory approval
A New Drug Application is submitted for review 
by various government regulatory agencies.

Liraglutide
(Obesity)

Liraglutide
(Type 2 diabetes)

In 2008, Novo Nordisk moved its study for the use of 
liraglutide as an antiobesity treatment into phase 3. The 
phase 3 programme will include around 5,000 people 
and will focus on weight loss and delayed onset of type 
2 diabetes, weight loss in subjects with type 2 diabetes 
and prevention of weight regain. Novo Nordisk expects to 
complete the programme in 2011.

rFXIII (NN1841)
(Congenital rFXIII deﬁ ciency)

Novo Nordisk is developing a recombinant FXIII intended 
to treat congenital FXIII deﬁ ciency. FXIII is part of the 
coagulation cascade and functions by cross-linking ﬁ brin 
to increase the stability of the clot, making it mechanically 
stronger and more rigid and elastic. The phase 3 trial 
involves 40 patients and is expected to be completed in 
2009.

In 2008, Novo Nordisk applied for regulatory approval 
for liraglutide in the US, Europe and Japan among many 
other countries. Liraglutide is a long-acting human GLP-1 
analogue. The clinical development programme involved 
around 6,200 patients. It is targeted as a treatment for 
type 2 diabetes as an adjunct to diet and exercise, both 
as monotherapy and in combination with commonly used 
antidiabetic medications. 

NovoMix® 50 and 70
(Type 1 and type 2 diabetes)

NovoMix® 50 and 70 are premixed formulations of the 
rapid-acting modern insulin aspart. The phase 3 programme 
involved around 1,500 patients with type 1 or type 2 diabetes. 
NovoMix® 50 and 70 have been launched in Europe and 
NovoMix® 50 is approved in the US. Phase 3 trials are under 
way in Japan. 

PrandiMet®
(Type 2 diabetes)

A tablet formulation combining the short-acting insulin 
secretagogue repaglinide with the insulin-sensitising agent 
metformin in a single tablet. The clinical development 
programme for this combination regimen has involved more 
than 550 patients. PrandiMet® has been approved and 
launched in the US.

Activelle®/Eviana® low dose
(Hormone replacement therapy)

The low-dose version of Activelle® (Activella® 0.5 mg/0.1 mg 
in the US) is a continuous-combined hormone replacement 
therapy intended for treatment of menopausal symptoms 
and as one of the treatment alternatives for osteoporosis 
prevention. In 2008, it was launched in the US and approved 
by EU regulatory authorities.

Vagifem® low dose
(Hormone replacement therapy)

Vagifem® low dose is a topical product for vaginal appli cation. 
It was ﬁ led for approval in the EU in November 2008.

Novo Nordisk Annual Report 2008     19

Business environment   Doing business the Novo Nordisk Way

Doing business
the Novo 
Nordisk Way

The Novo Nordisk Way of Manage-
ment forms the values-based govern-
ance framework for the company. 
From vision to policies, it guides how 
people at Novo Nordisk put values 
into action and deﬁ nes the principles 
for how the company does business.

The Novo Nordisk Way of Management de-
scribes the principles for how to work and 
behave as an employee of Novo Nordisk.
It consists of three elements: the vision,
the charter and a set of global policies.

This comprehensive framework was de-
veloped more than a decade ago to help 
grow a culture of empowerment and in-
novation, and it has proven to be a robust 
system.

Pursuing the vision
Novo Nordisk’s aspiration is to be the 
world’s leading diabetes care company 
and, ultimately, to defeat diabetes. This is 
the core business proposition, the essence 
of Novo Nordisk’s contribution to sustain-
able development and the heart of the 
vision.

The vision sets Novo Nordisk’s objectives 
in context and inspires people in their 
work. It serves to keep everyone’s focus 
on creating long-term shareholder value 
and leveraging the company’s unique 
qualities to gain competitive advantage.

ity, expressed by the Triple Bottom Line, 
fundamental principles of management, as 
well as a follow-up methodology to ensure 
adherence to the principles across the 
organisation.

As part of the follow-up methodology 
Novo Nordisk has a global facilitator team 
consisting of senior people with deep 
insight into the business and the busi-
ness environment. On a three-year basis, 
or more frequently, they measure the 
extent to which business units operate in 
compliance with the Novo Nordisk Way of 
Management.

Values in action

The charter includes the values, the 
commitment to corporate responsibil-

The head of the facilitation group has a 
formal reporting line to the chairman of 
the Board.

The Novo Nordisk Way 
of Management

Vision

Charter
Values
Commitments
Fundamentals
Follow-up methodology

Policies

20     Novo Nordisk Annual Report 2008

Vision

The vision describes what the company aims to achieve, and how:
•  We will be the world’s leading diabetes care company
•  We will offer products and services in other areas where we can make a difference
•  We will achieve competitive business results
•  A job here is never just a job
•  Our values are expressed in all our actions

Charter

  Values

 Each employee is expected to be: accountable, ambitious, responsible, engaged with 
stakeholders, open and honest, and ready for change.

 Commitments
 Novo Nordisk is committed to conducting its activities in a ﬁ nancially, environmentally 
and socially responsible way. This commitment is anchored in the company’s Articles 
of Association. Any decision should always seek to balance three considerations. Is it 
economically viable? Is it socially responsible? Is it environmentally sound?

 Fundamentals
 A set of 11 management guidelines to ensure focus on efﬁ ciency and alignment in 
business direction, customer focus, organisational development, cross-functional 
cooperation and product quality.

 Follow-up methodology
 Ongoing systematic and validated documentation of performance in all material areas 
of Novo Nordisk. Four components provide assurance to stakeholders of the quality of 
the company’s processes and performance: ﬁ nancial and non-ﬁ nancial performance; 
facilitations; organisational audit including an assessment of ‘linking business and 
organisation’ as well as succession management; and quality audits.

Policies

In 13 selected areas greater mutual understanding and global standards are particularly 
helpful in guiding company operations: bioethics, business ethics, communication, 
environment, ﬁ nance, global health, health and safety, information technology, legal, 
people, purchasing, quality and risk management.

 
 
 
 
 
Business environment   Values drive performance

Values
drive
performance

In today’s interconnected economy the 
ability to manage the complexity of 
business and societal challenges helps 
ensure sustained growth. The Triple 
Bottom Line principle enables Novo 
Nordisk to balance corporate proﬁ t-
ability with corporate responsibility, 
stay attuned to stakeholder concerns 
and exploit opportunities for innova-
tive collaboration.

From one perspective, the ﬁ nancial down-
turn is likely to slow economic wealth 
creation and hamper equitable social 
development. From another, the current 
challenges may offer opportunities for 
alternative solutions that generate long-
term value. Energy efﬁ ciency supports 
operational excellence and helps mitigate 
climate change, healthier lifestyles reduce 
costs for public healthcare systems and 
enhance people’s quality of life, and cost-
consciousness sharpens focus on value-
adding activities. The implications of the 
current global economic situation are yet 
to be seen, but history presents ample evi-
dence that businesses that operate with a 
long-term view and a broad approach are 
more likely to be risk resilient and adapt-
able to change.

Earning trust

Novo Nordisk’s values-based approach to 
doing business drives performance and 
enhances shareholder value. The Triple
Bottom Line principle expresses Novo 
Nordisk’s commitment to sustainable 
deve lopment and balanced growth and is 

The Triple Bottom Line approach

Economically viable

Patients

Novo Nordisk employee Jeppe Kjems took personal leave to travel across South America to help raise 
awareness and screen people for diabetes.

consistent with the principles of the United 
Nations Global Compact. Through this 
approach, the company seeks to build its 
business in a way that is ﬁ nancially, environ-
mentally and socially responsible. Decision-
making seeks to balance short-term gains 
with long-term proﬁ tability and shareholder 
return with other stakeholder interests.

In the current business environment there is 
more focus than ever on accountability and 
transparency. Renewed attention is given to 
risk management, and for the pharmaceut-
ical industry reputational risk is of particular 
importance. Regulatory authorities, policy-
makers, payers, patients and other stake-
holder groups seek assurance that compa-
nies act with integrity and can demonstrate 
consistency of words and deeds.

licence to operate and innovate. It helps 
build reputation and earn trust among 
stakeholders, attract talent and engage 
people, build customer loyalty and drive 
innovation. Ultimately, the commitment 
to pursue ambitious long-term targets 
for socially, environmentally and ethically 
responsible conduct strengthens the com-
pany’s competitive position in its markets.

This is why Novo Nordisk has chosen 
to account for the company’s ﬁ nancial 
and non-ﬁ nancial performance in one, 
inclusive report. The intent is to enhance 
shareholders’ valuation of the company 
and demonstrate accountability to other 
stakeholders.

See how Novo Nordisk deﬁ nes materiality 
of sustainability-driven issues on p 89 and 
performance data for prioritised actions 
on pp 90–99.

Novo Nordisk Annual Report 2008     21

Socially
responsible

Environmentally
sound

The Triple Bottom Line plays a key role in 
earning and maintaining Novo Nordisk’s 

Business environment   Pursuing a focused strategy

drugs are often better suited to mid-size 
and smaller companies, which haven’t 
built, and don’t have to maintain, regula-
tory and commercial infrastructures whose 
economic rationale depends on mass-
market products.

Which leaves the drug industry in a par-
ticularly difﬁ cult position: infrastructure- 
and expense-heavy propped up for now 
by the signiﬁ cant cash ﬂ ow from its exist-
ing products, but with precious little in its 
pipelines to replace essential blockbusters 
soon to face generic competition. Most 
Big Pharmas face the challenge of replac-
ing products that will be generic within 
a few years and that today accounts for 
25% or more of their 2007 cash ﬂ ow.

In reaction, many drug ﬁ rms are diversify-
ing into generics and OTC medicines, to 
tap into new markets and a more stable 
cash ﬂ ow. All of them are acquiring and/
or allying with biotechs to access large-
molecule technologies and products. 
And all of them are at least attempting to 
restructure their commercial organisations 
to permit the kind of specialised market-
ing that is second nature to mid-size and 
smaller companies.

Maybe some of their experiments will 
work. But for large companies to thrive in 
this new environment, they will have to 
do more than experiment. They will have 
to embrace wholly new strategies which 
in turn will require painful managerial and 
infrastructure decisions. The shape of the 
industry – and the winners within it – will 
be determined by how the large drug 
companies adapt to the new realities.

Roger Longman co-founded Windhover 
Information, publisher of pharmaceutical 
industry publications IN VIVO and START-
UP, and the comprehensive database of 
industry alliances, Strategic Transactions. 
In March 2008, Windhover was acquired 
by Reed Elsevier and Longman is now 
managing director of Elsevier Business 
Intelligence. He has been involved with 
the healthcare industry for more than 20 
years, is regularly asked to speak at many 
key industry events and lectures at leading 
universities.

Pursuing
a focused
strategy

Novo Nordisk is a focused healthcare 
company clearly differentiated from 
most other major global pharmaceu-
tical companies. It has more than 85 
years of specialisation in therapeutic 
proteins (biologicals) with a clear 
focus on targeted therapy areas and 
a strong research and development 
pipeline.

Focus on proteins

One of the key differentiators for Novo 
Nordisk compared with traditional big 
pharmaceutical companies is that Novo 
Nordisk’s business is almost purely focused 
on protein engineering, expression and 
formulation supported by device technol-
ogy for the convenient administration 
of medicines. Conversely, most major 
pharmaceutical companies are cur-
rently dependent on small-molecule drugs 
(medicines in tablet form) and trying to 
build a presence within proteins. However, 
developing protein-based drugs requires a 
very different set-up compared with small-
molecule drugs.

Novo Nordisk has world-leading compe-
tences in engineering human proteins to 
make efﬁ cacious, convenient and safe 
treatment options for serious diseases 
such as diabetes, haemophilia and growth 
hormone disorders.

Expression of proteins is a key area for 
Novo Nordisk. In fact, Novo Nordisk is 
at the forefront of innovation in protein 
expression in yeast, which is used for insu-
lins, E coli, used for growth hormone, as 
well as mammalian cells, which are used 
for NovoSeven®.

Global reach

Even though Novo Nordisk focuses on 
relatively few therapy areas, the company 
sells its products in 179 countries and has 
a presence in 81 countries. Global sales 
force reach has been achieved by the 
company’s leadership position in diabetes 
care and is supported by expanded market 
positions within haemophilia and growth 
hormone disorders.

Roger Longman
Editor in Chief, IN VIVO

Novo Nordisk invited Roger Longman 
to comment on the main challenges 
facing the pharmaceutical industry 
today.

Industry
trends

It’s been a tough decade for the 
world’s largest drug companies.

Big Pharma remains disturbingly reliant on 
developing new primary-care drugs that 
may improve upon existing therapies with-
out signiﬁ cantly changing them. World 
regulatory bodies increasingly demand 
levels of safety assurance in chronic medi-
cines that most companies simply can’t 
provide. And when they can, governments 
and insurers in the world’s largest markets 
increasingly balk at paying for the drugs.

Science – at least the way Big Pharma has 
gone about taking advantage of it – hasn’t 
done much to help. The extraordinary pre-
dictions that prompted and were in turn 
prompted by, the ﬂ ood of funding into 
genomics and other new drug discovery 
technologies in the late 1990s and early 
2000s, have proven hollow. Plenty of new 
drugs may still come out of all this science, 
but they won’t come quickly.

And they may not come from, or to, Big 
Pharma. The new drugs that are being 
approved often target conditions affecting 
relatively small patient populations, some-
times because regulatory bodies impose 
strict marketing conditions. Those aren’t 
the kinds of markets in which Big Pharma 
is used to making money. Moreover, more 
of these new products are biologicals – 
fruits of a technology Big Pharma is still 
struggling to master. Indeed, today’s new 

22     Novo Nordisk Annual Report 2008

Business environment   Pursuing a focused strategy

Historically, Novo Nordisk’s sales and 
marketing efforts have been focused on 
specialist doctors in all its therapy areas. 
Due to the rapid increase in diabetes 
prevalence, Novo Nordisk is expanding its 
reach to general practitioners to ensure 
people with diabetes receive timely treat-
ment. This reduces the risk of long-term 
complications such as blindness and 
kidney failure.

Focus on key
therapy areas
Diabetes care:
strategy to expand leadership

Novo Nordisk is the world’s leading insulin 
company with more than 50% market 
share by volume. Novo Nordisk is the only 
company with a full portfolio of modern 
insulins and the company produces the 
most widely used disposable and durable 
insulin pen devices in the world. Beginning 
with the ﬁ rst patients treated with insulin 
in the 1920s, Novo Nordisk has been 
dedicated to continuously improving the 
safety, effectiveness and convenience of 
diabetes treatment.

Novo Nordisk’s leadership position within 
diabetes care is further underlined by 
the fact that it is the only company with 
two new generation insulins in late-stage 
clinical development. If successful, this 
new generation of insulins is expected to 
improve treatment outcomes and con-
venience for people with diabetes even 
further. Both compounds are expected to 
enter into the ﬁ nal phase of clinical devel-
opment before the end of 2009.

The company’s long-acting GLP-1 ana-
logue, liraglutide, has been submitted for 
regulatory review in the US, Europe and 
Japan, as well as other markets. Backed by 
robust clinical data, liraglutide is believed 
to be well positioned to gain leadership 
in this new segment in the diabetes care 
market.

In early 2008, Novo Nordisk decided to 
stop all further development of inhaled 
insulin and to accelerate efforts in a new 

long-term ambition within diabetes care to 
develop GLP-1 products and oral insulin. 
The development of these new products 
is still at an early stage and many tech-
nological barriers remain, but signiﬁ cant 
progress has been made and Novo Nordisk 
and its partners are enthusiastic about the 
potential within this area.

Obesity and prediabetes:
strategy to explore opportunity

Novo Nordisk is looking at new ways to 
prevent type 2 diabetes by treating its pre-
stages, including obesity, which is known 
to be a major risk factor in developing type 
2 diabetes, cardiovascular disease as well as 
a range of other life-threatening diseases. 
More than 75% of people with diabetes 
are overweight or obese, as are the major-
ity of prediabetic patients. The company 
initiated a phase 3 clinical trial for liraglutide 
treatment of obesity at the end of 2008. 
From a commercial perspective there is at-
tractive potential, but also many challenges, 
for Novo Nordisk to move into prediabetes 
and obesity treatment.

Biopharmaceuticals: 
strategy to establish leadership

Novo Nordisk has a solid position in hae-
mophilia with inhibitors due to the success 
of NovoSeven®, which remains the only 
recombinant treatment option for hae-
mophilia patients with inhibitors. In 2008, 
Novo Nordisk launched a room tempera-
ture-stable version of NovoSeven®. Novo 
Nordisk is also working to develop two po-
tential successors to NovoSeven®: a long-
acting recombinant factor VIIa derivative 
and a short-acting recombinant factor VIIa 
analogue, both in clinical development.

To expand its leadership beyond haemo-
philia with inhibitors, Novo Nordisk is 
committed to leveraging its core protein 
capabilities to develop recombinant factor 
VIII and IX compounds for the treatment 
of haemophilia A and B, respectively. The 
long-term ambition is to develop more 
convenient treatment options for haemo-
philia patients. Novo Nordisk expects to 
move several new compounds into clinical 
development over the next couple of years.

Within growth hormone therapy, Novo 
Nordisk continues to expand the label 
for Norditropin®, which is still the only 
liquid, room temperature-stable growth 
hormone product in a preﬁ lled pen 
device on the market. Novo Nordisk is 
developing a new-generation growth 
hormone that may signiﬁ cantly improve 
convenience for patients with growth 
hormone disorders. The new-generation 
growth hormone is designed to be 
injected once a week, compared with the 
existing growth hormone products that 
are once daily.

Inﬂ ammation:
strategy to build presence

Inﬂ ammation is a relatively new area of 
investment for Novo Nordisk but, follow-
ing the discontinuation of all research 
and development activities within oncol-
ogy, Novo Nordisk has strengthened its 
efforts to establish a presence within this 
area. Building a presence within inﬂ am-
mation is a long-term commitment and 
the company is in the process of estab-
lishing a research centre in Seattle as well 
as investing in research and development 
in Denmark. In order to succeed, Novo 
Nordisk expects to rely on both internal 
research and external partnerships.

The way forward

The pharmaceutical industry and Novo 
Nordisk face a multitude of challenges 
(see pp 24–25). Compared with most ma-
jor pharmaceutical companies, however, 
Novo Nordisk is relatively well positioned 
for future growth owing to its focus on 
proteins, attractive therapy areas and 
exciting opportunities in the development 
pipeline.

To secure long-term success, Novo Nordisk 
will continue to grow its business in ways 
that are both responsible and sustainable. 
The company seeks to make a positive 
economic, environmental and social 
impact through its operations, global 
management standards, community en-
gagements, partnerships and knowledge 
exchanges.

Novo Nordisk Annual Report 2008     23

Business environment   Managing risks

Managing
risks

Increased pressure for substantial in-
novation in research and development 
and the need to sustain the growth 
of Novo Nordisk’s business require an 
entrepreneurial spirit that encourages 
calculated risk-taking while upholding 
rigorous quality standards. At the same 
time, to protect its people, assets and 
reputation, Novo Nordisk has to be 
vigilant about assessing and effectively 
managing ﬁ nancial and non-ﬁ nancial 
risks. In the volatile economic climate of 
2008, the importance of Novo Nordisk’s 
approach became clearer than ever.

Overseen by its Risk Management Board, 
representing senior managers from all 
parts of the company’s value chain, Novo 
Nordisk has a systematic, integrated pro-
cess to continually risk assess a wide range 
of potential issues. Enterprise risk manage-
ment increases the company’s ability to 
assess and understand risks separately and 
in relation to each other.

along with plans or processes to manage 
these risks. The Risk Ofﬁ ce challenges 
business areas about reported risks and 
encourages exploration of longer-term 
concerns. Reported risks are then con-
solidated into a ranking and assessment 
of the company’s key risks. This informa-
tion is presented to the Risk Management 
Board, who challenges the overall risk and 
control proﬁ le of Novo Nordisk.

The process is linked to the strategic plan-
ning process and considers both ﬁ nancial 
and non-ﬁ nancial risks.

All assessments of risk take into account 
the likelihood of an event and its potential 
impact on the business. Impacts are quan-
tiﬁ ed and assessed in terms of potential 
ﬁ nancial loss and reputational damage. 
Risks are assessed based both on the as-
sumption that no mitigating actions will 
be implemented and at the net risk level, 
taking into account mitigating actions and 
their anticipated effect.

Each quarter, all major business areas in 
the company are required to report to 
the Risk Ofﬁ ce their most signiﬁ cant risks, 

The risks that Novo Nordisk deems of 
greatest importance to its business are 

Risk management 
reporting structure

External
reporting

Board of
Directors

Executive
Management

Risk Management Board

Risk Ofﬁ ce

Regions, committees, boards
and management groups

24     Novo Nordisk Annual Report 2008

Risk assessment example

t
c
a
p
m

I

Critical

Major

Moderate

Minor

Unlikely Possible Likely Very likely

Likelihood

• Gross assessment
• Net assessment after mitigation

categorised and described below. They are 
not, however, ranked. Many of these is-
sues are discussed elsewhere in the report.

Market risks
Price pressures

Novo Nordisk focuses on developing dif-
ferentiated products that offer improved 
treatment options for patients and eco-
nomic beneﬁ ts to healthcare systems. As 
healthcare costs have risen, outstripping 
the pace of economic growth, there is in-
creasing economic, political and regulatory 
pressure to contain pharmaceutical prices. 
The current global economic contraction 
is likely to add to pressure on government 
budgets, exacerbating this trend, which 
could impact the company’s proﬁ tability.

Documenting treatment beneﬁ ts is critical 
to ensuring that innovation is properly 
valued. Novo Nordisk is increasing the 
number of clinical and health economic 
studies to substantiate the beneﬁ ts of its 
products, particularly for improved diabe-
tes treatment.

Biosimilar competition

The market for therapeutic proteins is 
becoming more attractive to biosimilar pro-
ducers as more lenient regulatory rules in 
Europe have made it easier for producers to 
introduce biosimilar products when patent 
protection for branded products expires. 
More lenient rules have also been proposed 

in the US. The introduction of lower-priced, 
biosimilar products could potentially result 
in a signiﬁ cant reduction in net sales.

Traditional insulins have been off patent 
for years so this is a risk with which Novo 
Nordisk is familiar and has considerable 
experience addressing. In countries such 
as India and China, where the company 
has long had biosimilar competition, Novo 
Nordisk has a volume market share of ap-
proximately 60% in insulin.

Infringement of
intellectual property rights

Patent rights promote and protect invest-
ment in innovation, which leads to new 
and better treatments and long-term 
economic growth and job creation. Novo 
Nordisk defends its patent rights when-
ever there is infringement that could have 
ﬁ nancial implications for the company.

R&D risks
Bringing new products to market

Continued growth in Novo Nordisk’s 
business, particularly as patents expire, 
depends on the company’s ability to 
develop and market new treatments 
or breakthrough products. While Novo 
Nordisk commits substantial effort and 
resources to research and development 
activities, certain challenges could delay 
the introduction of new products. These 
include an increasingly difﬁ cult regulatory 
environment, recruitment of patients for 
clinical trials and issues related to produc-
tion processes.

Regulatory approval

Before a new treatment can be launched, it 
must receive regulatory approval based on 
its safety and efﬁ cacy. The approval pro-
cess for new products is generally lengthy 
and can be expensive and subject to delays. 
Failure to obtain, or delays in obtaining, 
regulatory clearance to market products 
could adversely affect the results of opera-
tions. Even after a product is approved, it 
may be subject to regulatory action based 
on newly discovered ﬁ ndings about safety 
or efﬁ cacy. Regulatory action may ad-
versely affect product marketing, require 
changes to product labelling or even lead 
to withdrawal of regulatory approval.

Production
and quality risks
Supply disruptions

Failure or breakdown in any of the com-
pany’s vital production facilities could ad-
versely affect the results of operations, as 
well as possibly causing employee injuries 
or infrastructure damage.

Business environment   Managing risks

Fire-prevention design, alarms and ﬁ re 
instructions, annual inspections, back-up 
facilities and safety inventories are aimed 
at mitigating this risk. To spread this risk 
geographically and optimise costs and 
supply logistics, Novo Nordisk is expanding 
production capacity beyond the com-
pany’s European base to the US, Brazil and 
China.

Risk of product recalls

Product safety is directly linked to patient 
well-being, so safety and product quality 
are paramount concerns from both ﬁ nan-
cial and reputational perspectives. While 
the gross risk is very high, with product 
safety having the potential to adversely 
affect operations, Novo Nordisk believes 
that its vigorous efforts to manage and 
mitigate this risk effectively reduce the 
company’s net risk proﬁ le. Novo Nordisk 
has a corporate quality system in place, 
with quality audits, quality improve-
ment plans and systematic management 
reviews.

People-related risks
Attracting and retaining
talented people

Particularly in areas where Novo Nordisk 
does not currently have a leadership posi-
tion, recruiting can be a challenge. Novo 
Nordisk makes substantial investments 
in training, and this makes Novo Nordisk 
people attractive to other companies, 
particularly those seeking to build a strong 
platform within the diabetes segment. 
Appropriately managing remuneration, 
non-ﬁ nancial beneﬁ ts and recognition is 
critical to the company’s long-term success 
and is prioritised accordingly.

Financial risks
Exchange rates

As a global business, ﬂ uctuations in cur-
rency exchange rates impact the reported 
performance. Novo Nordisk’s reporting 
currency and the functional currency of 
corporate operations is the Danish krone, 
which is closely linked to the euro in a 
narrow range of ±2.25%. However, the 
company has substantial exposure to other 
currencies, including the US dollar, Japa-
nese yen, Chinese yuan and British pound.

For information on how the company 
manages these risks, see note 31 in the 
ﬁ nancial statements on p 76.

The company’s ability to develop innova-
tive products and ensure growth and 
high performance depends on its ability 
to attract and develop talented people. 

Ethical risks
Marketing practices

In a competitive environment with increas-
ing public scrutiny and regulation, market-
ing practices can be the source of legal 
action or reputational risk. The company’s 
reputation as a trusted healthcare partner 
is integral to its ability to effectively main-
tain and grow its business. At the same 
time, the regulatory context for marketing 
activity is constantly changing.

A business ethics policy and global busi-
ness ethics procedures, paired with close 
monitoring of performance and enhanced 
reporting requirements, all aim to miti-
gate these risks. The policy supplements 
long-standing local ethics and compliance 
policies. Signiﬁ cant resources are also 
dedicated to training marketing and sales 
people around the world.

Legal risks

Legal issues related to intellectual prop-
erty, product liability claims and business 
practices are included in the overview of 
current legal cases on pp 86–87.

Mao Jingmei, senior medical affairs 
manager for Novo Nordisk in China, 
has been with the company since 
2001 and has seen the company’s 
growth ﬁ rst hand.

Novo Nordisk Annual Report 2008     25

Business environment   Universal principles guide action

Universal
principles
guide action

Harnessing the potential of markets 
and business by putting values into ac-
tion is the basis of the United Nations 
Global Compact. Novo Nordisk has 
been a subscriber and an active sup-
porter since 2001, and the Compact’s 
10 principles for responsible business 
are incorporated into the company’s 
governance framework, the Novo 
Nordisk Way of Management.

Acting with integrity in the market place 
is paramount to earn trust and win 
stakeholders’ conﬁ dence. Novo Nordisk’s 
sustainability-driven approach aims to se-
cure the company’s licence to operate and 
innovate. It also drives performance and 
sparks innovation across the value chain.

UN Global Compact
as a strategic frame

The UN Global Compact’s 10 principles on 
human rights, labour rights, environment 
and anticorruption are well aligned with 
the Novo Nordisk Way of Management
(see p 20). The company’s annual commu-
nication on progress accounts for achieve-
ments and challenges in relation to the 
business and within its sphere of inﬂ uence.

In 2008, Novo Nordisk continued to drive 
company-wide initiatives in respect of 
these principles across the value chain. 
Some of these are described below and
on the following pages.

Respect for human rights

In 1998, Novo Nordisk was among the 
ﬁ rst companies to publicly declare support 
for the United Nations Universal Declara-
tion of Human Rights and include respect 
for human rights into its principles of do-
ing business. 2008 was the 60th anniver-
sary of this declaration, and Novo Nordisk 
marked the occasion, along with its 
partners in Business Leaders Initiative on 
Human Rights, chaired by Mary Robinson, 
president of Realizing Rights.

Standards for responsible sourcing

Novo Nordisk has implemented global 
standards for responsible sourcing in a 
ﬁ rst phase, asking direct spend suppli-

26     Novo Nordisk Annual Report 2008

ers to document performance in terms 
of compliance with laws and regulations, 
environment, health and safety, labour 
practices, ethics and subsuppliers. Expand-
ing the reach to all of the company’s 
approximately 38,000 suppliers requires a 
robust methodology to identify and assess 
relative levels of commercial and reputa-
tional risk. This work began in 2008 and 
will be completed in 2009, with the aim of 
segmenting suppliers into high-, medium- 
and low-risk groups. A correlating audit 
system undertakes prescreenings with 
new suppliers and audits.

“Respect for human 
rights is relevant to our 
business in several ways. 
It guides our approach 
to improving access 
to health, promoting 
diversity in the workplace 
and managing risks in
our supply chain.”

Lise Kingo
Executive vice president
and chief of staffs

High standards in bioethics

In research and development, ethical 
standards for bioethics apply, and Novo 
Nordisk has a track record of leading this 
ﬁ eld. In 2008, the company advocated 
successfully for a new European Medicines 
Agency guideline on virus safety that 
postpones the requirement for animals in 
cell line testing until after phase 3 clinical 
trials. Since many products never reach 
that stage, this stipulation will reduce the 
number of animals used in the develop-
ment of new pharmaceuticals in Europe. 
The guideline comes into force in February 
2009.

Business ethics compliance
Novo Nordisk has established a Business 
Ethics Compliance ofﬁ ce to support and 
monitor the company’s business ethics 
policy and procedures, and manage training 
covering anticorruption, conﬂ icts of inter-
est, promotion of pharmaceutical products, 
and interaction with healthcare profession-
als, suppliers and intermediaries.

These procedures were updated in 2008 
to ensure the company’s public affairs 
work is consistent with its values and in 
compliance with legal requirements. All 
managers must be trained in business 
ethics, and sales and marketing employees 
undergo annual training. In 2008, 99% 
of sales and marketing employees were 
trained. Compliance is overseen by Group 
Internal Audit, which conducts reviews 
of business units worldwide. In 2008, 25 
reviews were conducted and recommen-
dations are followed up.

Measuring values-based
orientation internally

The risk of not living up to the Novo 
Nordisk Way of Management is greater 
for some activities than for others, and 
this relative risk determines the frequency 
of facilitations, the internal values audit 
pro cess. For some units, facilitations take 
place annually; for others, the process 
takes place once every three years.

A consolidated report, covering the 45 
facilitations undertaken in 2008, was pre-
sented to the Board in December. These 
facilitations covered units representing 
about 9,000 employees, and more than 
2,000 were interviewed to determine how 
corporate values are being lived and imple-
mented throughout the organisation.

The report concludes that there is a strong 
level of compliance with not just systems 
and procedures, but also the spirit of the 
Novo Nordisk Way of Management. Issues 
observed included opportunities to further 
improve employee development activities 
and ways to improve the company’s work 
climate.

Business environment   Diversity supports global growth

Diversity
supports
global growth

Effective globalisation of Novo 
Nordisk’s business operations is a 
precondition for further develop-
ment and growth. A new diversity 
strategy aims to leverage individuals’ 
unique perspectives, talents and skills 
to strengthen teams’ ability to deliver 
competitive business results.

Diverse management teams are best suited 
to promote globalisation and drive perform-
ance. This is the underlying assumption of 
the company’s renewed diversity strategy. 
Inclusion is an integral element; the key to 
success is valuing and utilising differences.

In a ﬁ rst phase the focus will be on foster-
ing gender and nationality diversity in 
management teams. Taking a ﬁ ve-year 
perspective, the aspiration is that all senior 
management teams should be diverse 
in gender and nationality. Currently, 12 
of 28 senior management teams include 
men, women, locals and non-locals. To 

Tamara  Turman, a 
sales representative 
in the US, provides 
doctors with 
information in 
different languages 
to help patients with 
diverse backgrounds.

bring the remaining teams in line with this 
objective, a number of supporting actions 
are being introduced.

stakeholders, it is critical to be able to at-
tract, retain and develop talented people 
from diverse backgrounds.

Best individual for the position

Selecting the best individual for a particular 
position remains the primary principle for 
recruitment. Secondly, ensuring equal op-
portunities and non-discrimination is part 
of the company’s values-based framework.

Greater transparency and a peer chal-
lenger function are being introduced for 
this process, which includes succession 
lists and preparation of individuals through 
development plans. From 2009, inclusion 
of men, women, locals and non-locals 
must be considered for succession lists for 
all key positions.

Mentorship will be offered and supportive 
network initiatives including expatriate 
networks and a ‘family-buddy’ system is 
being set up. A network established in 
the US in 2007, Women in Novo Nordisk 
(WINN), is being replicated in other re-
gions to support women’s career develop-
ment throughout the company.

Training in diversity and cultural inclu-
sion is also offered to all employees and 
is integrated in the company’s leadership 
development programmes for managers, 
vice presidents and young talent to build 
leadership capabilities and a global mind-
set. In 2008, nearly 500 new managers 
went through a four-day personal leader-
ship programme.

The outcome of these measures will be 
tracked through key performance indica-
tors and assessed through the annual 
organisational audit process.

Strong global growth can best be sup-
ported by a diverse team that reﬂ ects the 
diversity of the company’s customers. The 
majority of the nearly 3,500 new employ-
ees hired in 2008, about 75%, work in the 
company’s expanding afﬁ liates. Projections 
indicate a particular need to recruit people 
for research and development activites, and 
sales and marketing. Notably, the majority 
of the company’s workforce growth over 
the next decade will be outside Denmark.

Recruiting talent

To attract the best talent as the company 
grows rapidly, Novo Nordisk invests in 
strengthening its proﬁ le at leading univer-
sities in key markets. In 2008, the com-
pany expanded its Graduate Programme 
to China, where university graduates work 
for three eight-month stints at different lo-
cations, including locations in both China 
and Denmark.

A great place to work

The annual global work climate survey, 
eVoice, shows that people at Novo Nordisk 
are highly engaged. On an index that mea-
sures employees’ level of engagement by 
10 criteria, the average score was 4.2 on
a scale of 1 to 5, with 5 being the highest.

The company’s commitment to ﬁ ght 
diabetes and the way it takes social and 
environmental responsibility are particu-
larly motivating to employees. The Novo 
Nordisk values, global standards and the 
opportunity for a life-changing career 
are the building blocks for the company’s 
recent employer-branding initiative.

Expanding workforce globally

For Novo Nordisk to continue to innovate 
and grow globally, the quality of its people 
is the competitive factor. Novo Nordisk is 
committed to managing in a socially re-
sponsible manner by caring for the people 
who rely on the company’s products as 
well as employees. To successfully create 
long-term value and relationships with 

“The company culture, the opportunity to 
save people’s lives, to make a difference 
in society, and to grow personally and 
professionally: this is the employer value 
proposition that differentiates Novo Nor-
disk. It also reﬂ ects what many of today’s 
job applicants seek in an employer,” says 
Lars Christian Lassen, senior vice presi-
dent, Corporate People & Organisation.

Novo Nordisk Annual Report 2008     27

Business environment   Strengthening environmental management

Strengthening
environmental
management

Through prudent use of nature’s 
resources since the early 1990s, Novo 
Nordisk has achieved improvements 
in eco-productivity. Efﬁ cient resource 
consumption reduces environmental 
impacts and lowers costs for both the 
company and society.

The correlation between sound environ-
mental management and cost optimisa-
tion is a well-established business case for 
a broader business perspective. Now Novo 
Nordisk’s updated strategy for environ-
ment, health and safety raises the bar. The 
company expects to continue to increase 
production. This means being able to 
provide treatment for more patients while 
decreasing environmental impacts and 
reducing the frequency of occupational 
injuries.

Progress towards the ambitious target 
of achieving an absolute 10% reduction 
in 2004 CO2 emissions by 2014 demon-
strates that it is possible to reduce energy 
consumption while increasing produc-
tion. Similar absolute reduction targets 
have now been set for energy and water 
consumption, frequency of occupational 
injuries and injury severity. CO2 emissions 
fell for the ﬁ rst time in 2008, achieving a 
9% reduction compared to 2007.

Climate action shows results
Novo Nordisk’s climate strategy aims to 
reduce carbon-based fuel dependency 
and demonstrate leadership. It hinges on 
three levers: continued efﬁ ciency gains, 
energy savings and conversion to renew-
able energy. While the strategy is global, 
particular focus has been on Danish pro-
duction sites. The energy-intensive process 
of producing the active pharmaceutical 
ingredient for Novo Nordisk’s insulin prod-
ucts takes place only in Denmark and in 
2008 represented 85% of the company’s 
total CO2 emissions.

tively simple facility management changes 
to optimise ventilation, the company has 
achieved signiﬁ cant energy savings and 
emission reductions.

Nearly a quarter of the 112 energy-saving 
projects the company undertook during 
the year required no upfront investment, 
only changes in facility management. Half 
of the energy-saving projects undertaken 
globally in 2008 are expected to pay for 
themselves within one year, and two-
thirds of the rest are expected to pay for 
themselves within three years.

Novo Nordisk launched its pioneering 
partnership with its Danish energy 
supplier, DONG Energy, in 2007 to help 
identify energy savings and translate the 
ﬁ nancial value of these into new wind 
energy. The company’s objective was to 
use only green electricity for its Danish 
operations by 2014. Signiﬁ cant reductions 
in energy consumption, even as sales and 
production have increased, mean that this 
goal is expected to be achieved several 
years ahead of schedule.

Pharmaceutical industry standards include 
stringent air quality requirements, so a 
large percentage of energy is used for 
ventilation and cooling. By making rela-

Outside Denmark, the company’s Brazilian 
production facility in Montes Claros is now 
using biomass instead of fuel oil for steam 
production, bringing the facility close to 
CO2 neutral as the main electricity supply 
is based on hydropower. When running at 
full capacity, this plant will be the com-
pany’s biggest insulin ﬁ lling facility.

Novo Nordisk has also built signiﬁ cant 
energy and water efﬁ ciencies into the 
production facility currently under con-
struction in Tianjin, China. The facility is 
expected to open in 2012, and as a result 
of eco-efﬁ cient design will need less 
energy than similar production facilities 
elsewhere.

Climate 
change 
and health

The World Health Organization’s new 
report on ‘The Social Determinants of 
Health’ is an extraordinary document. It 
spells out the dire consequences for socie-
ties all over the world of the cumulative 
impact of today’s toxic ‘policy mix’ – a mix 
that has driven economic growth at all 

costs, increasing levels of inequality, trash-
ing the environment, and bringing us to 
the brink of runaway climate change.

The health impacts of climate change, 
particularly in developing and emerg-
ing economies are already severe: more 
people suffering from water and food 
shortages, more people displaced from 
degraded lands or spreading deserts; 
insect-borne diseases expanding their 
range, and so on. The WHO estimates
as many as 150,000 excess deaths a
year from climate change.

Understandably, scientists are cautious 
about claiming that any particular event 

Jonathon Porritt
Founder director, Forum for the Future

Novo Nordisk invited Jonathon Porritt 
to present his perspective on the 
connection between climate change 
and global health.

28     Novo Nordisk Annual Report 2008

Business environment   Strengthening environmental management

Credit for much of the company’s progress 
in resource management is due to the 
hard work and diligence of energy stew-
ards placed throughout the organisation. 
In addition to implementing efﬁ ciency 
projects, the 30 energy stewards serve 
as challengers at the production facili-
ties, looking for ways the company can 
improve.

Updated strategy

Following an assessment of the company’s 
performance, trend analysis and peer 
reviews, an updated strategy for environ-
ment, health and safety at Novo Nordisk’s 
production sites highlights six focus areas: 
energy, water, waste, accidental releases, 
occupational injuries and ergonomics. The 
strategy sets three- to ﬁ ve-year targets in 
each of the areas, and action plans will be 
implemented in 2009.

Credit for much of the 
company’s progress in 
resource management
is due to the hard work 
and diligence of energy 
stewards.

Reducing water usage

Understanding and developing a com-
prehensive plan for managing the 
company’s water footprint was another 
2008 achievement. An absolute water 
reduction target has now been set, and 
detailed water mapping will be ﬁ nalised 
by 2012 at sites using the most water. 
The company’s ﬁ lling plants, particularly 
those outside Denmark, offer the biggest 

opportunities for reducing water usage 
per produced unit.

Waste management next on list

Performance improvements were seen in 
all of the company’s key environmental 
indicators in 2008 with the exception of 
waste. Efﬁ cient waste management is a 
challenge that will have to be tackled.
A systematic assessment to better un-
derstand the sources of waste and their 
impact will be undertaken with the aim
of stabilising waste volumes.

Certiﬁ ed health and
safety management

Novo Nordisk’s commitment to health and 
safety supports the company’s people-
centred culture, which helps attract em-
ployees and reduce staff turnover.

All production units passed an OHSAS 
18001 health and safety certiﬁ cation 
process in 2008. This required introduc-
tion of health and safety stewards and 
workplace assessments at sites globally, as 
well as a more structured process for as-
sessing health and safety risks. As a result, 
despite the company’s growth, job-related 
injuries fell during 2008, nearly reaching 
the company’s target for 2010. At the new 
facility construction in China, the health 
and safety target is a maximum of 10 
injuries for every 1 million working hours, 
the company’s global target for produc-
tion sites. Construction contractors must 
undergo regular inspections, have exten-
sive safety training in place, investigate all 
work-related injuries and submit plans to 
avoid future injuries.

is the direct consequence of climate 
change. After all, there have always been 
ﬂ oods and droughts, heat waves, forest 
ﬁ res, extreme air and water pollution 
events. But it is the increased incidence of 
such phenomena that is now being laid 
at the door of climate change – as with 
the dramatically increased incidence of 
forest ﬁ res in Mediterranean countries, 
for instance.

The heat wave that hit France in August 
2003 (leading to at least 30,000 additional 
premature deaths) exceeded ‘normal’ tem-
perature ranges by such a huge margin 
that all scientists now attribute this directly 
to climate change.

All that is just a taste of things to come. 
Accelerated climate change, whether in 
the rich world or the poor world, brings 
with it the prospect of increasingly serious 
health impacts. Public health practition-
ers and sustainable development activists 
may still speak ‘different languages’, but 
they have everything to gain from working 
much more closely together.

Governments need to make that happen 
in terms of joining up different policy 
areas (climate change, health, transport, 
education and so on), and businesses can 
make that happen by helping employ-
ees and customers to understand that a 
healthy life has to be a low-carbon life.

Frank Jensen-Maar discusses energy savings 
at Novo Nordisk’s production site in Hillerød, 
Denmark, with Johan Moltke of DONG Energy.

Jonathon Porritt is co-founder of Forum 
for the Future, a leading sustainable devel-
opment charity. He was appointed chair-
man of the UK Sustainable Development 
Commission, the UK government’s prin-
cipal source of independent advice across 
the sustainable development agenda, in 
July 2000. His latest books are Capitalism 
As If The World Matters and Globalism & 
Regionalism.

Novo Nordisk Annual Report 2008     29

Diabetes care   Changing diabetes is possible

Rury Holman FRCP
Professor of Diabetic Medicine, 
University of Oxford

Novo Nordisk invited Rury Holman
to discuss research that supports
earlier insulin inititation for
diabetes treatment.

Limitations
of existing
diabetes
treatment

Despite the availability of many different 
treatment modalities for type 2 diabetes, 
two fundamental therapeutic issues have 
yet to be addressed. People with type 
2 diabetes continue to have an excess 
cardiovascular morbidity and mortality, 
compared with the general population, 
and no single therapy is able to maintain 
good blood glucose control in the longer 
term.

Individuals with type 2 diabetes are two 
to four times more likely to develop 
cardiovascular disease than non-diabetic 
individuals, even after adjustment for age, 
ethnicity, household income, cholesterol, 
blood pressure and smoking. 65% of 
people with diabetes continue to die from 
coronary heart disease or a stroke, despite 
cholesterol, blood pressure, smoking and 
other risk-reduction strategies. An open 
question is whether long-term good 
blood glucose control can further reduce 
cardiovascular risk in these individuals. The 
20-year UK Prospective Diabetes Study 
(UKPDS) showed that improved blood 
glucose control reduced the risk of loss of 
vision and kidney damage but had only 
a marginal impact on coronary disease. 
Three new cardiovascular outcome trials 
of improved blood glucose control that 

30     Novo Nordisk Annual Report 2008

reported in 2008 (ACCORD, ADVANCE 
and VADT) all showed small reductions 
in cardiovascular risk but none achieved 
statistical signiﬁ cance. Although inconclu-
sive, these favourable trends are however 
in line with UKPDS data that suggest 
improving blood glucose control could 
result in a modest reduction in the risk of 
heart attacks (14% reduction for a 1% 
drop in HbA1c). The good news is that the 
new UKPDS 10-year post-trial monitoring 
data, also published in 2008, conﬁ rms the 
long-term cardiovascular beneﬁ ts of earlier 
improved blood glucose control with 
emerging risk reductions of 15% for heart 
attacks and 13% for death. The ACCORD 
trial, however, added a cautionary note 
with an unexpected 22% increased risk 
of death associated with overly aggressive 
glucose lowering in people with long-
standing diabetes, many of whom already 
had cardiovascular disease.

It is now clear that the achievement and 
maintenance of good glycaemic control 
should be a primary aim from the time 
diabetes is ﬁ rst diagnosed. The ACCORD, 
ADVANCE and VADT trials showed that 
sustained improved glucose control could 
be obtained with combinatorial use of 
currently available therapies but there 
remains a major unmet need for more dur-
able glycaemic treatments. These should 
facilitate near-normal HbA1c levels without 
promoting weight gain or hypoglycaemia, 
be simple to administer without onerous 
glucose monitoring requirements and, 
crucially, have no long-term adverse ef-
fects such as further increasing patients’ 
cardiovascular risk.

Prof Rury Holman was the ﬁ rst Professor 
of Diabetic Medicine to be appointed at 
the University of Oxford. He is immedi-
ate past Academic Chairman of the Ox-
ford Centre for Diabetes, Endocrinology 
and Metabolism (OCDEM), Director of 
the University of Oxford Diabetes Trials 
Unit, and an Honorary Consultant Physi-
cian to the Oxford Radcliffe Hospitals 
NHS Trust. He divides his time between 
clinical care of patients, teaching and 
his extensive research interests. He has 
published over 250 peer-reviewed manu-
scripts and has designed and run many 
multicentre studies that focus primarily 
on the prevention, appropriate treat-
ment and cardiovascular risk reduction 
of type 2 diabetes. Currently he Co-
Chairs the NAVIGATOR and TECOS trials 
and is Chief Investigator of the 4-T, ACE 
and UKPDS trials. 

Changing 
diabetes
is possible

With effective insulin treatment peo-
ple with diabetes can achieve good 
blood sugar control. The critical factor 
is for care providers to offer timely 
initiation and intensiﬁ cation.

Achieving and maintaining good glycae-
mic control is key to effective diabetes 
care, but many people with type 2 diabe-
tes do not achieve treatment targets. Poor 
control can lead to late-stage complica-
tions such as blindness, kidney disease
and lower limb amputations.

Novo Nordisk’s diabetes strategy is to pro-
vide innovative treatments that improve 
quality of life and treatment outcomes for 
people with diabetes.

In the near term, the main focus is a contin-
ued drive to make Novo Nordisk’s portfolio 
of modern insulins available to more people 
and to ensure optimal treatment outcomes. 
For the individual, this means ‘treat to 
target’ – that is, keeping blood sugar levels 
stable within the recommended range.

New treatment guidelines

In October 2008, a new set of treatment 
guidelines for type 2 diabetes was issued 
jointly by a panel of experts from the 
American Diabetes Association and the 
European Association for the Study of 
Diabetes. For the initial treatment phase, 
the guidelines continue to suggest lifestyle 
changes – diet and exercise – and treat-
ment with metformin.

If glucose/glycaemic goals are not met 
or maintained over time, the guidelines 
recommend combining metformin with a 
basal insulin, such as long-acting Levemir®, 
with Glucagon-Like Peptide-1s (GLP-1s) as 
an alternative treatment option. GLP-1s 
are the class of diabetes treatment that 
includes liraglutide, a once-daily human 
analogue of the naturally occurring human 
hormone, submitted by Novo Nordisk for 
regulatory approval in the US, Europe, 
Japan and many other countries in 2008.

As a third step, the guidelines call for a 
transition to intensive insulin treatment 

to maintain treatment targets. This may 
include adding a rapid-acting modern 
insulin at mealtimes, such as NovoRapid®, 
in addition to a basal insulin.

Substantial innovation

The use of GLP-1 as an option for early 
treatment is supported by clinical data 
and experience, including Novo Nor disk’s 
comprehensive LEAD™ programme 
(Liraglutide Effect and Action in Diabe-
tes). LEAD™, a series of six randomised, 
controlled, double-blind studies conducted 
in more than 40 countries, involved about 
4,000 patients with type 2 diabetes and 
inadequately controlled blood glucose.

“High blood glucose 
levels lead to health 
complications. 
Unfortunately, better 
control has long 
been associated with 
hypoglycaemia and 
weight gain and it is 
known that some
patients avoid treatment 
to avoid the associated 
weight gain.”

Mads Krogsgaard Thomsen
Chief science ofﬁ cer

Liraglutide works by stimulating the 
release of insulin only when glucose levels 
become too high and by suppressing 
appetite. Data from a 52-week phase 3 
study (LEAD™ 3) published in The Lancet 
showed that liraglutide, when taken 
alone, produces statistically signiﬁ cant 
and sustained improvements in blood 
sugar control in patients with early type 2 
diabetes, as compared with glimepiride, a 
widely used oral antidiabetic drug. Treat-
ment with liraglutide also led to weight 
loss, reduced systolic blood pressure and 
lower rates of hypoglycaemia1.

See more at annualreport2008.
novonordisk.com/how-we-perform/
responsible-business-practices/advocacy/
changing-diabetes.asp.

Diabetes care   Changing diabetes is possible

Mads Krogsgaard Thomson, chief science ofﬁ cer, was interviewed during the 2008 meeting of the 
European Association for the Study of Diabetes.

Focus on 
patients

For people with diabetes, like Leena Irmeli 
Lallukka of Finland, achieving treatment 
targets and staying in good control is 
often a challenge. She was 44 with a 
demanding job as head of two day care 
centres when she was diagnosed with 
type 2 diabetes.

Leena Irmeli Lallukka ﬁ rst tried to regulate 
her diabetes by following a healthy diet, 
but when her blood sugar levels were still 
too high, she was prescribed tablets and 
insulin to treat the condition. Now that 
she is combining exercise with a low-fat 
diet and proper medication, “I feel quite 
well,” she says.

Still, she admits that managing her treat-
ment can be difﬁ cult. “I don’t monitor my 
blood sugar level as often as I should. I 
want to lose more weight, and I would like 
to lower the stress I am feeling because 
of my work. Then I could eat better and 
exercise regularly.”

In addition to advocating for treatment 
improvements and care access, Novo 
Nordisk encourages healthcare profes-
sionals and policy-makers to adopt clini-
cally validated solutions to support better 
self-management through the DAWN 
(Diabetes Attitudes Wishes and Needs) 
programme. The initiative, a collaboration 
with the International Diabetes Federation, 
the International Society for Pediatric and 
Adolescent Diabetes and an international 
expert advisory board, puts patients at the 
centre of diabetes care.

Leena Irmeli Lallukka, who was diagnosed with 
type 2 diabetes at the age of 44, wishes she had 
more time for exercise.

Novo Nordisk Annual Report 2008     31

Diabetes care   Supporting individualised treatment options

Supporting
individualised
treatment options

At the end of 2008, Novo Nordisk was 
the global market leader in diabetes 
care with 52% of the total insulin 
market and 44% of the modern insulin 
market, both measured by volume. 
Market growth is expected to con-
tinue and there is signiﬁ cant potential, 
particularly with modern insulins.

Modern insulins are designed to mimic the 
body’s own physiological insulin regulation 
of blood glucose levels more closely than 
human insulin, resulting in better glucose 
control, low hypoglycaemia and increased 
convenience. Better regulation of blood 
glucose levels is associated with fewer 
serious complications and better treatment 
outcomes. Modern insulins are classiﬁ ed 
by how fast they start to work in the body 
and how long their effects last.

Novo Nordisk offers a full portfolio of 
modern insulins covering fast-acting, long-
acting and premixed modern insulins:

•   Levemir®, a soluble long-acting modern 

insulin for once-daily use.

•   NovoRapid® (NovoLog® in the US), a 

rapid-acting modern insulin to be used 
at mealtimes.

•   NovoMix® 30 (NovoLog® Mix 70/30 in 
the US), a dual-release modern insulin 
that covers both mealtime and basal 
requirements.

Kåre Schultz, chief operating ofﬁ cer.

32     Novo Nordisk Annual Report 2008

Strategy to expand leadership
The company’s commercial strategy is 
to expand its leadership within inject-
able insulin, gain GLP-1 leadership and 
continue to offer innovations that ad-
dress unmet medical needs. Two new 
generation insulins, which have ﬁ nalised 
phase 2 development, are designed to be 
even longer acting to improve treatment 
outcomes and provide more conven-
ient therapy. If successfully brought to 
market, Novo Nordisk’s continued insulin 
leadership will be sustained when cur-
rent modern insulin patents expire and 
biosimilar insulin analogues potentially 
enter the markets.

“Our full portfolio of 
modern insulins and 
superior delivery devices 
offer treatment options for 
all people with diabetes.”

Kåre Schultz
Chief operating ofﬁ cer

Novo Nordisk’s protein engineering exper-
tise, combined with device competences, 
provides a strong base for continued 
leadership in diabetes care. Insulins and 
GLP-1s must currently be injected through 
the skin with the help of a pen device. 
Novo Nordisk’s advanced products within 
insulin delivery systems include FlexPen®, 
the world’s most used insulin delivery 
device. Development of new preﬁ lled and 
durable devices support new products and 
offers improved convenience. Research 
in this area includes new injection device 
platforms, insulin pumps, and oral admin-
istration of GLP-1 and insulin.

Pursuing options for
treatment administration

Sometimes clinical development does not 
lead to desired outcomes despite hard work 
and dedication. That was the case when 
in early 2008 Novo Nordisk announced it 

Diabetes key
events 2008
•   Novo Nordisk maintains global 
market leadership in diabetes 
care.

•   Novo Nordisk ﬁ les for regulatory 
approval of liraglutide in the US, 
Europe, Japan and many other 
countries.

•   Novo Nordisk researchers are 
nominated for Europe’s top 
innovation prize for engineering 
Levemir®.

•   Novo Nordisk launches the

new generation of FlexPen®
– the world’s most widely
used preﬁ lled insulin pen.

•   NovoMix® 30 achieves block-

buster status, with 1 billion US 
dollars in sales in a 12-month 
period.

•   Novo Nordisk discontinues

the development of pulmonary 
projects.

would discontinue its development of in-
haled insulin and instead focus on research 
and development of a new generation of 
delivery systems and options such as oral 
administration. As a result, 360 employees 
at Novo Nordisk Delivery Technologies Inc. 
in Hayward, California, became redundant 
but all were offered other positions or 
outplacement assistance.

The decision also brought to an end phase 
3 clinical trials involving around 2,500 pa-
tients in nearly 40 countries. Patients were 
switched to treatment alternatives recom-
mended by their doctors. The decision was 
not due to safety concerns, but because it 
was found that fast-acting inhaled insulin, 
in the form it is known today, is unlikely 
to offer signiﬁ cant beneﬁ ts over injections 
with pen devices.

Diabetes care   Supporting individualised treatment options

Diabetes care
Sales development 

DKK billion

Modern insulins
Sales development 

DKK billion

50

40

30

20

10

0

18

15

12

9

6

3

0

2004

2005

2006

2007

2008

2004

2005

2006

2007

2008

 Modern insulins
(cid:116) Human insulins
(cid:116) Insulin-related products
(cid:116) Oral antidiabetic products (OAD)

 NovoRapid®
(cid:116) NovoMix®
(cid:116) Levemir®

American Eric Howell, pictured with
his mother Bobbi, has type 1 diabetes.

Modern insulin
portfolio update

because weight gain is a common barrier 
to insulin initiation, according to diabetes 
experts.

Levemir® available in 69 countries

NovoRapid® in pumps for children

Levemir® was launched in six countries in 
2008, including Mexico and Algeria, bring-
ing the total number of countries where it 
is marketed to 69.

Two studies during 2008 conﬁ rmed the 
beneﬁ ts of Levemir®: a head-to-head 
study with an alternative treatment, insulin 
glargine, demonstrated that once daily is 
an effective dosing frequency for Levemir® 
and that Levemir® has a comparable blood 
glucose response to insulin glargine over 
a 24-hour period in patients with type 
2 diabetes2. In the other study, Levemir® 
additionally demonstrated signiﬁ cant 
weight loss for overweight or obese type 
2 patients being initiated into insulin treat-
ment3. The weight advantage is important 

In 2008, the US regulatory authorities, 
FDA, approved NovoRapid® (NovoLog® 
is the brand name in the US) for infusion 
by external insulin pump in paediatric pa-
tients between the ages of 4 and 18 years. 
NovoLog® is the ﬁ rst and only modern 
insulin approved for this use.

Over 70% of patients reach
target with NovoMix® 30

In 2008, results were published from 
IMPROVE™, one of the largest-ever ob-
servational studies in diabetes, designed 
to assess the safety and effectiveness 
of NovoMix® 30 in type 2 diabetes. The 
study involved over 58,000 patients from 
11 countries. Results showed that after 
six months of treatment with NovoMix® 

30, 71% of patients reached the target 
HbA1c (a way of measuring blood glucose 
levels) of less than or equal to 7%. This 
was achieved with a 70% reduction in 
patient-reported major hypoglycaemic 
events and no signiﬁ cant weight gain4. 
At enrolment, more than half of all 
patients were in poor control, with an 
HbA1c of over 9%, signiﬁ cantly higher 
than the recommended target of less 
than 7%.

FlexPen® simpliﬁ es treatment

Because treatment compliance is closely 
linked to better health outcomes, the com-
pany continues to develop more conveni-
ent delivery systems that make it easier 
for patients to manage their condition 
and without interruption to their lives. 
These include FlexPen®, the world’s most 
used insulin delivery device5. Novo Nordisk 
launched a new generation of FlexPen® 
during 2008.

Novo Nordisk Annual Report 2008     33

Diabetes care   Setting an agenda for change

Former Secretary-General of the UN Koﬁ  Annan 
with Novo Nordisk’s Chief of staffs Lise Kingo at 
the ‘Unite to Change Diabetes’ Leadership Forum 
in Moscow.

tion and spreads awareness of best treat-
ment practices that can lead to improved 
outcomes. The second international Forum 
‘Unite to Change Diabetes’ was held in 
Moscow in November 2008 at the initia-

“Without tackling the 
diabetes epidemic which 
is now gripping our 
world, we will, I fear, ﬁ nd 
many of our ambitions 
for the future simply 
impossible to achieve.”

Koﬁ  Annan
Former Secretary-General
of the United Nations

tive of the Russian Diabetes Federation. 
Koﬁ  Annan, former secretary-general of 
the UN, gave the keynote address.

“When people get involved, politicians of-
ten ﬁ nd the courage to do the right thing,” 
he said, proposing the Global Fund for
HIV/AIDS as a potential model for diabetes.

Improving healthcare is a priority of the 
current Russian government. Diabetes and 
related complications are the third most 
common cause of death in the country, 
after cardiovascular disease and cancer.

The forum was attended by about 300 
healthcare professionals, regional govern-
ment ofﬁ cials, and people representing 
international and national patient organi-
sations. Participants adopted a resolution 
for improving quality of care and a pilot 
project was launched to improve diabetes 
screening and diagnosis with the aim of 
improving treatment outcomes.

Setting
an agenda
for change

Novo Nordisk’s promise of Changing 
Diabetes® underpins the company’s 
strategy in diabetes care. Three ambi-
tions drive its efforts: give priority to 
people with diabetes, improve treat-
ment outcomes and break the curve of 
the global diabetes pandemic.

Through its Changing Diabetes® initiatives, 
Novo Nordisk supports the implementa-
tion of the UN Resolution on Diabetes to 
secure the right to diabetes care. With its 
resolution, adopted in December 2006, 
the UN encourages member countries to 
develop national policies for the preven-
tion, treatment and care of diabetes in line 
with the sustainable development of their 
healthcare systems.

Give diabetes priority

Putting diabetes on the health policy 
agenda is the aim of the Global Changing 
Diabetes® Leadership Forums spearheaded 
by Novo Nordisk. This initiative calls for ac-

34     Novo Nordisk Annual Report 2008

In 2009, Novo Nordisk will coordinate a 
Forum to address the diabetes challenge 
in China.

Improving treatment

The Novo Nordisk IMPROVE™ programme 
is a global medical and public awareness 
campaign seeking to engage stakehold-
ers in solving the problem of inadequate 
treatment. The programme is backed by 
the Changing Diabetes® Barometer which 
identiﬁ es best practices for the preven-
tion and management of diabetes. The 
Barometer provides a set of quality indica-
tors deﬁ ned by international guidelines 
including targets for blood glucose, blood 
pressure, weight control and lipids. It also 
measures quality of life experienced by 
patients and direct and indirect healthcare 
expenditures. By creating more transpar-
ency, it is the aim to give policy-makers 
and healthcare providers the best possible 
basis for making informed decisions about 
improving health outcomes while bringing 
down total costs.

By the end of 2008, more than 70 coun-
tries had submitted data for the Changing 
Diabetes® Barometer online world map, 
which goes live in 2009. The map shows 
the status of diabetes treatment and is a 
collaboration with the International Diabe-
tes Federation.

Where data is available, the map includes 
health economic data. One such case 
comes from the US where a study found 
that, due to higher medical expenditures 
and lost productivity, the total cost of 

diabetes in the United States exceeds 217 
billion US dollars6. The research com-
missioned by Novo Nordisk’s National 
Changing Diabetes® Programme shows 
that beyond the estimated 174 billion 
dollars that is widely accepted as the cost 
of diagnosed diabetes in 2007, other costs 
include 18 billion dollars spent on 6.3 
million people with undiagnosed diabetes; 
25 billion dollars for 57 million American 
adults with prediabetes; and 623 million 
dollars for the 180,000 pregnancies where 
diabetes during pregnancy is diagnosed.

Breaking the curve

With 380 million people predicted to be 
in need of diabetes care for the rest of 
their lives by 2025, this condition presents 
a signiﬁ cant challenge to socioeconomic 
development. Every 10 seconds two peo-
ple develop diabetes, and one person dies 
from diabetes-related complications. In 
one generation, the prevalence of diabetes 
has increased sixfold worldwide.

While diabetes is not yet a curable disease, 
it can be treated and, in many cases, it can 
even be prevented. Novo Nordisk's global 
awareness-raising campaign, which in-
cludes the Changing Diabetes® Bus, drives 
awareness of the personal and societal 
risks of diabetes. Through its National 
Changing Diabetes® programmes, Novo 
Nordisk promotes better education of 
healthcare professionals and wider avail-
ability of screening for diabetes symptoms 
to help save lives and signiﬁ cant costs 
long term. Capacity-building outreach is 
reported on pp 6–7.

More than 40,000 people visited the Changing Diabetes® Village in Cairo on World Diabetes Day in 2008.

Diabetes care   Setting an agenda for change

Making change
happen in Turkey
Increased prevalence of diabetes is particu-
larly notable in emerging markets such as 
Turkey. The country’s move in 2004 from a 
central provision system to a free pharma-
ceutical market with reimbursement made 
healthcare available to more people in a 
country where the national prevalence of 
diabetes is higher than the global average 
(7.8% versus 5.9%). An estimated 3.2 mil-
lion people have the condition – a number 
expected to nearly double to 5.5 million by 
2025. Many are in poor glycaemic control.

In 2007, Turkey created a national plan for 
awareness and treatment of diabetes and 
initiated a Turkish Diabetes Control Project. 
The project’s aim is to educate physicians 
about better diabetes treatment. By the end 
of 2008, it had reached an estimated 700 
physicians, 200 nurses and 750 patients.

Novo Nordisk was a catalyst for these ac-
tivities as part of its efforts to highlight dia-
betes on Turkey’s healthcare agenda. Since 
establishing its afﬁ liate in Turkey in 1993, 
Novo Nordisk has collaborated closely with 
healthcare authorities, healthcare profes-
sionals and patients on activities such as 
sponsoring information supplements, TV 
and radio programmes about diabetes, 
diabetes congresses for physicians, and 
meetings for people with diabetes to learn 
how to better manage the condition.

Novo Nordisk is the insulin market leader in 
Turkey. Its basal insulin, Levemir®, has gained 
the highest market share in Turkey of all of 
the company’s top 10 markets. Motivation 
and engagement by employees is high, with 
an unusually low level of staff turnover.

As in any fast-growing pharmaceutical 
market, there are challenges, including 
increased competition, pricing pressures 
and more regulation of the industry. Yet 
Turkey’s recognition of the need to apply 
resources to address diabetes and other 
chronic diseases serves as a model for 
other countries.

“Improving diabetes care not only beneﬁ ts 
the quality of life for millions of people 
but also greatly reduces healthcare costs 
in the long run due to fewer complications 
and better health outcomes. This is what 
Changing Diabetes® is all about,” says 
Mads Bo Larsen, vice president of Novo 
Nor disk’s Near East business area and ge-
neral manager of Novo Nordisk in Turkey.

Novo Nordisk Annual Report 2008     35

Diabetes care   Ensuring access to care

Ensuring
access
to care

Novo Nordisk leverages its history of 
building healthcare partnerships to 
create long-term solutions that have 
impacts far beyond the company’s 
own efforts. The company's approach 
to improved access aligns with the UN 
Global Compact principles in respect 
of human rights and the UN Millen-
nium Development goals.

Novo Nordisk's comprehensive pro-
grammes in the ﬁ eld of diabetes care 
target disadvantaged communities and 
the most vulnerable populations with the 
least access to care. These groups include 
people living in the countries classiﬁ ed 
by the United Nations as least developed 

countries (LDCs); low-income groups in 
emerging economies; migrants in devel-
oped countries; women and children.

While affordability of care is a signiﬁ cant 
barrier, there are other obstacles that 
are just as critical. These include lack 
of awareness about diabetes, lack of 
knowledge among healthcare providers in 
diagnosing and treating the condition, too 
few hospitals and clinics equipped to treat 
diabetes, and a lack of national healthcare 
strategies to tackle the epidemic. Seeking 
to overcome these barriers, the company 
puts efforts into building sustainable solu-
tions that provide immediate relief while 
also building long-term capacity.

During the World Diabetes Foundation summit in India in 2008, Lars Rebien Sørensen, CEO, greeted the 
teacher of a course on healthy eating.

36     Novo Nordisk Annual Report 2008

Changing the future
for children in Africa
While access to insulin is generally difﬁ cult 
in poor countries, many children die in 
hospitals even where insulin is available. 
Parents often lack money to pay for trans-
portation to hospitals. Because diabetes 
shows in children as an acute crisis, they 
are often misdiagnosed and given the 
wrong, sometimes fatal, treatment.

In December 2008, Novo Nordisk an-
nounced an ambitious ﬁ ve-year project 
to change the future of these children. 
The programme, called ‘Changing the 
Future for Children with Diabetes’, will 
begin in 2009 with an initial roll-out in 
Cameroon, Uganda, Tanzania, Guinea-
Conakry and the Democratic Republic of 
Congo. A series of satellite centres will 
be set up around existing hospitals and 
clinics for diagnosis, patient education 
and registration, and healthcare training. 
Treatment, including free insulin, will also 
be provided.

The programme, which supports the UN 
goal of reducing child mortality, builds 
on an approach the company began in 
Tanzania in 2006. Children with type 1 
diabetes are referred to a Novo Nordisk-
funded diabetes clinic for specialised care, 
which has led to dramatically decreased 
mortality. Emergency admissions have also 
dropped. The company hopes to reach 
10,000 children by 2013 by expanding this 
approach.

Improved pricing initiative

Novo Nordisk has since 2001 been 
committed to improving access to care 
and essential medicines to people living 
in the least developed countries. One 
important initiative involves offering 
insulin to the public health systems in the 
least developed countries at or below a 
price of 20% of the average prices for 
insulin in the Western world. In 2008, 
the company launched pilot projects in 
six countries to ensure that people with 
diabetes actually beneﬁ t from prefer-
ential pricing. These measures include 
reducing insulin prices on the private 

Diabetes care   Ensuring access to care

market, initiating discussions with local 
agents to reduce mark-ups, and working 
with governments to centralise insulin 
procurement.

Women at higher risk

Children born to mothers with gestational 
diabetes are eight times more likely to 
develop diabetes, and the mothers have 
a 70% risk of redeveloping diabetes. 
Novo Nordisk initiated a new focus on this 
issue along with the Danish Minister for 
Development Cooperation, the Global Al-
liance for Women’s Health and the World 
Diabetes Foundation, at a leadership 
forum in 2008. Novo Nordisk, as part of 
its commitment to support the Millennium 
Development Goal on gender equality and 
women’s empowerment, is working with 
partners to conduct further research into 
women, diabetes and development. The 
company will also increase its focus on 
women and diabetes through other diabe-
tes care activities in the developing world. 
These include screening programmes and 
awareness campaigns.

See more at annualreport2008.
novonordisk.com/how-we-perform/
access-to-health/default.asp.

Anja Lægaard Almind, a lab technician at Novo Nordisk, volunteered at Tanzania’s second diabetes 
summer camp for children.

The World Diabetes 
Foundation (WDF)
In recognition of the World Diabetes 
Foundation’s (WDF’s) achievements 
during its ﬁ rst ﬁ ve years, shareholders 
of Novo Nordisk approved an additional 
donation of up to 575 million Danish 
kroner at the March 2008 Annual 
General Meeting for the next 10-year 
period.

In addition, Novo Nordisk employees 
donated nearly 500,000 kroner in 
2008 to support speciﬁ c WDF fundrais-

ing projects. The WDF has funded 182 
projects in 83 countries, focusing on 
awareness, education and capacity-build-
ing at local, regional and global levels. 
The total project portfolio has reached 
191.4 million US dollars of which 62.2 
million dollars were donated by the WDF. 
A projection based on achievements to 
date indicates that the initiatives funded 
by the WDF will positively impact the 
lives of 66 million people.

Performance indicators

•   5,103,470 people have attended 4,427 

•   2,876,565 people have been screened 

for diabetes.

•   229,829 people have been treated at 
the 754 established clinics funded by 
the WDF.

By the end of 2008, the WDF had sup-
ported the training of 14,433 doctors, 
12,835 nurses and 27,852 paramedics.
In addition, more than 32,090 cases of 
diabetic retinopathy have been detected, 
and 21,991 eyes and 18,232 feet saved.

screening camps.

See more at worlddiabetesfoundation.org.

Novo Nordisk Annual Report 2008     37

Biopharmaceuticals   Focusing on strengths in biopharmaceuticals

Focusing on
strengths in 
biopharmaceuticals

Novo Nordisk’s ambition is to offer 
products and services that make a dif-
ference. Over the years, Novo Nordisk 
has built very specialised expertise in 
protein engineering and formulation. 
The company’s focus on haemophilia, 
inﬂ ammatory conditions, human 
growth hormone therapy and hor-
mone replacement therapy builds on 
this expertise, as well as decades of 
experience with chronic and auto-
immune conditions.

Expanded haemophilia pipeline

Since its introduction 12 years ago, 
 NovoSeven® has been a ﬁ rst-line treatment 
for bleeding in haemophilia patients with 
inhibitors. Because of the effectiveness of 
NovoSeven® as a coagulant to stop bleed-
ing, the company pursued regulatory ap-
proval for the product in critical and severe 
bleeding. It was hoped that NovoSeven® 
could be used to reduce severe bleeding 
in cases where no other treatment exists, 
but the practical difﬁ culties of proving 
effectiveness for severe traumatic injuries 
in a way that would satisfy regulators led 
Novo Nordisk to discontinue this research 
in 2008.

Biopharmaceuticals
Sales development 

DKK billion

18

15

12

9

6

3

0

2004

2005

2006

2007

2008

 Haemostasis management (NovoSeven®)
(cid:116) Growth hormone therapy
(cid:116) Hormone replacement therapy
(cid:116) Other products

38     Novo Nordisk Annual Report 2008

The company has continued to introduce 
improvements that have made NovoSeven® 
more convenient, including the launch 
in 2008 of a room temperature-stable 
formulation, which may reduce the time to 
treatment both inside and outside home 
and hospital settings. NovoSeven® was 
developed to meet the needs of the ap-
proximately 3,500 people with haemophilia 
worldwide who have developed inhibitors. 
Novo Nordisk’s ambition is also to develop 
new compounds based on other blood-
clotting factors, offering treatment options 
to the more than 300,000 people with 
haemophilia A and B.

Today, treatments for haemophilia require 
frequent intravenous infusions. Novo 
Nordisk’s pipeline includes work on both 
long-acting compounds allowing for less 
frequent treatment and products that 
support more convenient subcutaneous 
delivery.

As part of the company’s expanded focus 
on general haemophilia, Novo Nordisk 
acquired intellectual property rights from 
its long-standing partner Neose Tech-
nologies Inc. during 2008. Application 
of Neose’s proprietary GlycoPEGylation 
technology allows the half-life of proteins 
to be extended for less frequent treat-
ment.

Leveraging protein strengths
to ﬁ ght inﬂ ammation

In inﬂ ammation, Novo Nordisk’s protein 
heritage combined with its long experi-
ence of management of chronic disease 
provides the company with a signiﬁ cant 
opportunity to address unmet medical 
needs. Many inﬂ ammatory conditions also 
have autoimmune characteristics with 
similarities to type 1 diabetes.

Biopharmaceuticals 
key events 2008
•   Novo Nordisk launches 
a temperature-stable 
formalation of NovoSeven®.

•   Novo Nordisk celebrates

the 20th anniversary of the 
launch of Norditropin®.

•   Novo Nordisk launches a new 
inﬂ ammation R&D centre in 
Seattle.

•   Novo Nordisk begins phase 3 

trials for a recombinant FXIII to 
treat congenital FXIII deﬁ ciency.

•   Novo Nordisk maintains market 
leadership with Vagifem®, the 
world’s best-selling topical 
oestrogen therapy.

•   Novo Nordisk discontinues 

phase 3 trials of NovoSeven®
for trauma and consequently 
closes its haemostasis centre
in New Brunswick, New Jersey, 
US, affecting 26 employees.

•   Novo Nordisk discontinues 

phase 3 trials of Norditropin® 
for patients with low serum 
albumin on dialysis (LSAD).

“There are huge numbers of people with 
autoimmune inﬂ ammatory conditions that 
have unmet medical needs, even with the 
best existing therapies,” says Don Foster, 
head of the new Novo Nordisk inﬂ amma-
tion discovery centre in Seattle.

Novo Nordisk’s commitment to inﬂ amma-
tion research and development is being 
pursued by leveraging R&D competences 
in Denmark while establishing a new, 
specialised R&D centre in Seattle, Wash-
ington, US. By 2010, the company expects 
to have around 80 scientists working on 
inﬂ ammation at the US centre.

In 2008, Novo Nordisk initiated phase 1 
trials for anti-IL20 and anti-C5aR, com-
pounds the company is developing for 
treatment of psoriatic arthritis, rheuma-
toid arthritis and systemic lupus ery-
thematosus. The company also entered 
into a collaboration agreement with VLST 
Corporation, a Seattle-based biotechnol-

Biopharmaceuticals   Focusing on strengths in biopharmaceuticals

Patrick Moll, who has a growth disorder, lives with his parents in Wuppertal, Germany.

2007, does not currently have generic 
competition. Novo Nordisk’s long-
standing position is that HRT should be 
prescribed at the lowest effective doses 
and for the shortest duration consistent 
with treatment goals and risks for the 
individual woman.

Novo Nordisk decided in October 2008
to discontinue the phase 3 study of
Norditropin® in dialysis patients with
low serum albumin, which was started
in 2007. The decision to discontinue the 
study was due not to safety concerns,
but to difﬁ culties in recruitment of pa-
tients for the study, which was expec ted 
to impact study outcomes.

Topical oestrogen and low-dose
hormone replacement therapy

Novo Nordisk is also expanding market 
leadership with Vagifem®, the world’s 
best-selling topical oestrogen therapy.

ogy company. Novo Nordisk and VLST 
will jointly undertake a research pro-
gramme to identify collaboration targets 
and develop product candidates within 
the ﬁ eld of autoimmune and inﬂ amma-
tory disorders.

Market leadership in
human growth hormone

Novo Nordisk is on its way to becoming 
the world’s leading company within the 
human growth hormone segment, driven 
by solid sales of Norditropin®, the only 
liquid growth hormone product that does 
not require refrigeration and is available in 
a preﬁ lled device, ready to use.

Novo Nordisk’s advanced device technol-
ogy is used for Norditropin®. Years of re-
search have gone into ﬁ nding the simplest 
and most convenient ways to inject pro-
tein molecules and, across product lines, 
the strategy is to provide improvements in 
compound formulations, along with easy-
to-use device systems for optimal treat-
ment outcomes.

Sales of Norditropin® have increased by 
12% annually over the past ﬁ ve years and 
the treatment is the best-selling human 
growth hormone therapy in many mar-
kets. Long-acting once-weekly human 
growth hormone in a preﬁ lled device is
in the pipeline.

In 2008, Norditropin® was approved in 
the US for the treatment of short stature 
in children born small for gestational age 
(SGA). Approximately 100,000 children 
are born annually in the US with this diag-
nosis, which is characterised by very low 
relative birth weight. A 13-year clinical trial 
of children born SGA found that, when 
treated with Norditropin®, 63% reached 
normal height by adulthood.

Growth hormone therapy 
Global value market share

%

30

25

20

15

10

5

0

2006

2007

2008

2005
2004
(cid:116) Norditropin®

Generic competition for Activelle® 
 (Activella® 1.0 mg/0.5 mg in the US) 
since mid-2008 has eroded the com-
pany’s market share in the US. However, 
Activella® 0.5 mg/0.1 mg, launched in 

Don Foster is the head of Novo Nordisk Inﬂ am-
mation Research Center in Seattle. He is an expert 
in autoimmunity and coagulation biology, has 
published over 120 scientiﬁ c papers and is the 
author of 45 issued patents.

Novo Nordisk Annual Report 2008     39

Biopharmaceuticals   Living with haemophilia

Paul Mahoney, pictured near his home in England, has haemophilia with inhibitors.

Living with haemophilia

Paul Mahoney has had haemophilia 
with inhibitors as far back as he can 
remember but it hasn’t slowed him 
down. “I have never wrapped myself 
up in cotton wool and subsequently 
suffered from lots of bleeds,” he 
says.

When he was a boy, he had a wisdom 
tooth removed and it “just bled and bled – 
it was so serious that I got to a point when 
my life was in danger,” he recalls.

As he got older, he learned to deal with 
the bleeds himself. “All my joints have 
their story to tell,” he says. “Some are 
more damaged than others but I get by 
and have no complaints. My attitude to 
haemophilia is to live and learn from it, 
and I heartily follow the old maxim ‘carpe 
diem’ – live for today.”

Today Paul Mahoney leads an active life 
in a small seaside village in Cornwall, 

40     Novo Nordisk Annual Report 2008

England, working as a web designer and 
pursuing wildlife photography and boat-
ing. While he has developed arthritis as a 
consequence of his damaged joints, Paul 
Mahoney is grateful to have access to reli-
able treatment.

“My body allows me to do most things I 
want. Obviously as I get older it becomes 
less easy. But then that’s true for everyone 
to some degree. I reckon the world is out 
there, and it’s up to me to take advantage 
of all it has to offer.”

For more than a decade, Novo Nordisk 
has revolutionised treatment for people 
like Paul Mahoney with haemophilia with 
inhibitors. He uses NovoSeven®, which 
remains the only recombinant treat-
ment available to people with inhibitors. 
In 2008, he began using the new room 
temperature-stable NovoSeven®, which 
does not need to be refrigerated.

“I lead a pretty active 
life, and particularly love 
sailing, so being able to 
get hold of my treatment 
as soon as I need it is 
a big help. Plus I have 
a smaller volume to 
inject, which means less 
discomfort each time I 
treat a bleed.”

Paul Mahoney
Haemophilia patient

Biopharmaceuticals   Changing possibilities for people with haemophilia

Changing possibilities
for people with
haemophilia

Novo Nordisk’s research and develop-
ment efforts targeting haemophilia with 
inhibitors began 20 years ago and today 
NovoSeven® is still the only recombinant 
medication available. Novo Nordisk’s 
understanding of the needs of people with 
haemophilia, both those with and without 
inhibitors, is reﬂ ected in the company’s 
commitment to changing possibilities for 
all people with haemophilia. Backed by an 
ambitious clinical development programme, 
Novo Nordisk is building one of the broad-
est haemophilia portfolios in the industry.

Novo Nordisk has a heritage of working to 
improve existing standards of care by facil-
itating education, awareness and training 
for physicians, patients and caregivers.

In the US, the company offers a range of 
educational grants and individual achieve-
ment awards, and general information for 

patients on the changingpossibilities-us.
com website. SevenSecure® is an assist-
ance programme offering ﬁ nancial and 
insurance support to people with haemo-
philia with inhibitors.

Novo Nordisk collaborates with the French 
national association for haemophilia 
patients to support roundtable meetings 
among patients and healthcare profession-
als about treatment and the challenges of 
living with the condition.

In South Africa, where haemophilia 
remains largely undiagnosed and often 
poorly managed, Novo Nordisk in 2008 
sponsored a mobile education unit in col-
laboration with the South African Haemo-
philia Foundation and the Department of 
Health. More than 1,300 South Africans 
were screened for haemophilia in 2008 as 
a result of this programme.

Peter Sinclair, pictured with 
his family, has lived with 
haemophilia for more than 
40 years.

The Novo Nordisk
Haemophilia Foundation
Haemophilia is a neglected and non-
prioritised disease in the developing world, 
where 75% of people with the condition 
live. Many of them suffer serious compli-
cations and premature death. By working 
to build a network of partners around the 
world who can share experiences and bet-
ter practices, the Novo Nordisk Haemo-
philia Foundation (NNHF) helps to improve 
the care and treatment of patients with 
haemophilia and related bleeding dis-
orders. The activities the NNHF supports 
include capacity-building, awareness crea-
tion and disease impact reduction. The 
NNHF partners with healthcare profes-
sionals, patient organisations and health 
ministries to carry out projects.

In 2008, it supported 25 projects in 22 
countries in many regions of the world, 
including South America, North Africa, 
South Africa, Asia, the Middle East and 
Eastern Europe. Four fellowships were 
awarded in 2008 to physicians from China, 
Iraq and Thailand for further training in 
haemophilia diagnosis and bleeding
disorder management.

In Venezuela, the NNHF expanded haemo-
philia care into rural areas, where it was 
largely unavailable. A multidisciplinary 
team focused on patient and physician 
education and improving cooperation be-
tween patient associations and their local 
hospitals, and beneﬁ ting about 1,300 pa-
tients and their families. The programme 
covered the entire country, increased the 
diagnosis of known haemophilia patients 
from around 1,300 to more than 1,700, 
and trained 250 healthcare professionals. 
The result is a stronger haemophilia care 
system, increased awareness and the for-
mation of a national haemophilia network.

In the NNHF project in Poland, haemo-
philia care was decentralised from two 
centres in Warsaw to a further 17 regional 
blood centres, and a newly established 
group of haemophilia experts developed 
national treatment guidelines for haemo-
philia. Almost 500 medical professionals 
received training, and a diagnostic cam-
paign screened over 1,000 people, who 
were then registered.

See more at nnhf.org.

Novo Nordisk Annual Report 2008     41

Shareholder information   Corporate governance

Corporate
governance

Novo Nordisk is part of the Novo 
Group, a family of independent com-
panies with a common history and 
shared values. The Novo Group com-
prises a holding company, Novo A/S, 
wholly owned by the Novo Nordisk 
Foundation.

Corporate governance refers to the way a 
company is managed and controlled, and 
the major principles and frameworks that 
regulate interaction between the com-
pany’s managerial bodies, its owners and 
other stakeholders.

Framework

The framework for Novo Nordisk’s corporate 
governance system consists of external regu-
lation and codes, and internal principles.

Novo Nordisk is in compliance with applica-
ble securities laws in Denmark, the US and 
the UK. The company is also in full compli-
ance with the Danish Corporate Govern-
ance Recommendations and is in general 
compliance with corporate governance 
standards as a foreign listed issuer on the 
New York and London stock exchanges.

Novo Nordisk’s values are consistent with 
principles of good governance, and The 
Novo Nordisk Way of Management forms 
the internal values-based governance 
framework (see p 20).

Governance
Accountability to shareholders

Novo Nordisk holds itself accountable to 
shareholders for its performance. The com-
pany seeks to enhance the accuracy, com-
pleteness and reliability of the information 
provided in the company’s annual ﬁ nancial 
and non-ﬁ nancial reporting through internal 
controls, assurance and independent audits. 
Reporting helps shareholders assess the ac-
tions of the Board and management.

liability company wholly owned by the 
Novo Nordisk Foundation, which is a com-
mercial, proﬁ t-making foundation. The B 
shares are traded on the stock exchanges 
in Copenhagen and London and in the 
form of ADRs on the New York Stock 
Exchange. Each A share (= nominal value
1 Danish krone) carries 1,000 votes and 
each B share (= nominal value 1 Danish 
krone) carries 100 votes (see p 50).

Special rights attached to A shares include 
preemptive subscription rights in case of 
an increase of the A share capital and pre-
emptive purchase rights in case of a sale 
of A shares and priority dividend if divi-
dend is below 0.5%, while B shares take 
priority for dividend between 0.5% and 
5% and B shares take priority for winding 
up proceedings.

Novo Nordisk is of the opinion that the 
current share and ownership structure is 
appropriate for the long-term develop-
ment of the company. The company’s 
transparent share structure beneﬁ ts share-
holders, who know in advance the relative 
voting power of each share class.

Novo Nordisk is not aware of the existence 
of any agreements with or between share-
holders on the exercise of votes or control.

Shareholders have ultimate authority over 
the company and exercise their right to 
make decisions regarding Novo Nordisk at 
general meetings, either in person or by 
proxy. Resolutions can generally be passed 
by a simple majority, while resolutions to 
amend the articles are subject to adoption 
by at least two-thirds of votes cast and 
capital represented unless stricter require-
ments are imposed by Danish company 
law. At the annual general meeting, share-
holders approve the annual report and any 
amendments to the company's articles. 
They also elect board members and the 
independent auditor.

Shareholder rights

Novo Nordisk’s share capital is divided be-
tween A shares and B shares. All A shares 
are held by Novo A/S, a Danish limited 

All shareholders may, no later than 1 Feb-
ruary, request that proposals for resolution 
be included on the agenda. All sharehold-
ers may also ask questions at the general 

meetings. Simultaneous interpretation 
between English and Danish is available, 
and the meeting is webcast live.

The Novo Nordisk Foundation

The Foundation supports Novo Nordisk 
in achieving its vision and adhering to the 
Charter for Companies in the Novo Group. 
All strategic and operational matters are 
solely decided by the Board and the man-
agement of Novo Nordisk. Overlapping 
board memberships help to ensure that 
the Foundation and Novo Nordisk share a 
common vision and strategy.

Board of Directors

The company has a two-tier board structure 
consisting of the Board of Directors and 
Executive Management. The two bodies are 
separate and no person serves as a member 
of both. On behalf of the shareholders, the 
Board determines the company’s overall 
strategy and actively contributes to develop-
ing the company as a focused global phar-
maceutical company. The Board supervises 
Executive Management in its decisions and 
operations and may issue new shares or buy 
back shares in accordance with authorisa-
tions granted by the general meeting and 
recorded in the minutes.

The Board currently has 11 members, seven 
of whom are elected by shareholders at 
general meetings and four by employees. 
Shareholder-elected board members serve 
a one-year term and may be re-elected 
at the general meeting. Board members 
must retire at the ﬁ rst general meeting 
after reaching the age of 70. A proposal for 
nomination of shareholder-elected board 
members is presented by the Chairmanship 
to the Board, taking into account required 
competences and reﬂ ecting the result of a 
self-assessment process. The assessment 
process is based on written questionnaires 
and evaluates whether each board member 
and executive participates actively in board 
discussions and contributes with indepen-
dent judgement. The Audit Committee 
conducts a similar self-assessment.

In nominating candidates, the Chairman-
ship seeks to achieve a balance between 

42     Novo Nordisk Annual Report 2008

Shareholder information   Corporate governance

renewal and continuity. Executive search 
has helped identify board members who 
meet such criteria. Four of the sharehold-
er-elected board members are indepen-
dent as deﬁ ned by the Danish Corporate 
Governance Recommendations, while 
three shareholder-elected board members 
are related to the majority shareholder 
through board or executive positions, and 
two of these have also previously been ex-
ecutives in Novo Nordisk (see pp 46–47).

Under Danish law, Novo Nordisk em-
ployees in Denmark are entitled to be 
represented by half of the total number 
of board members elected at the gen-
eral meeting. Board members elected by 
employees serve a four-year term and have 
the same rights, duties and responsibilities 
as shareholder-elected board members.

In 2008, the Board met eight times and all 
board members attended all board meet-
ings and the Annual General Meeting, 
except for two occasions where one and 
two members, respectively, were excused.

With the exception of agenda items 
reserved for the Board’s internal discus-
sion at each meeting, executives attend 
and may speak, without voting rights, at 
board meetings to ensure that the Board 
is adequately informed of the company’s 
operations. Executives’ regular feedback 
from meetings with investors allows board 
members an insight into major sharehold-
ers’ views of Novo Nordisk.

Chairmanship

A chairman and a vice chairman elected 
by the Board from among its members 
form the Chairmanship of the Board. 

In 2008, the Chairmanship held seven 
meetings and both members participated 
in all meetings. The Chairmanship carries 
out administrative tasks, such as plan-
ning board meetings to ensure a balance 
between overall strategy-setting and 
ﬁ nancial and managerial supervision of the 
company. It also reviews the ﬁ xed asset 
investment portfolio.

Other tasks include recommending the 
remuneration of directors and executives 
and suggesting candidates for election 
by the general meeting. In practice, the 
Chairmanship has the roles and responsi-
bilities of a nomination committee and a 
remuneration committee.

In March 2008, the Board re-elected Sten 
Scheibye chairman and Göran A Ando vice 
chairman.

Research and development facilitator

The Board has appointed a research and 
development facilitator to assist the Board 
and Executive Management in preparing 
the Board’s discussions about research and 
development. The key tasks are review-
ing R&D strategies and evaluating the 
competitiveness of the R&D organisation, 
processes and projects.

In March 2008, the Board re-elected 
Göran A Ando as R&D facilitator.

Audit Committee

The Audit Committee currently has two 
members elected by the Board from 
among its members. Both members 
qualify as independent as deﬁ ned by the 
US Securities and Exchange Commission 
(SEC). In 2008, the Audit Committee held 

The Novo Nordisk model of corporate governance

Framework

Shareholders

Governance structure

External codes
and regulations

Novo Nordisk
Way of
Management

Board of Directors

Chairmanship

Audit 
Committee

R&D Facilitator

Executive Management

Organisation

Assurance
and follow-up
methodology

Financial audit
and non-ﬁ nancial
assurance

Facilitation

Organisational
audit

Quality audit

The Novo Nordisk corporate governance model sets the direction and is the framework within which the
com pany is managed (see also p 20). 

four meetings and both members partici-
pated in all meetings.

The Audit Committee assists the Board of 
Directors with oversight of:

•   The external auditors

•   The internal audit function

•   The procedure for handling complaints 
regarding accounting, internal account-
ing controls, auditing or ﬁ nancial report-
ing matters and business ethics matters 
(‘whistleblower function’)

•   The ﬁ nancial reporting process includ-
ing the effectiveness of the systems of 
internal controls, risk management and 
the accounting policies

•   Post-completion reviews and post-
investment reviews of investments

In March 2008, the Board re-elected Kurt 
Anker Nielsen as chairman and Audit 
Committee ﬁ nancial expert (as deﬁ ned by 
the SEC) and re-elected Jørgen Wedel as a 
member of the Audit Committee. In Janu-
ary 2009, the Board designated Jørgen 
Wedel as ﬁ nancial expert (as deﬁ ned by 
the SEC).

Hotline support
(whistleblower programme)

Concerns over possible breaches of ethical 
business conduct and ﬁ nancial fraud may 
be raised anonymously to the Audit Com-
mittee by telephone or on the web in nine 
languages, with no subsequent disciplinary 
or retaliatory action towards the whistle-
blower.

Corporate governance
codes and practices
Novo Nordisk is in compliance with the Danish 
Corporate Governance Recommendations and
– as a foreign listed issuer – is in general compliance 
with the corporate governance standards of the 
stock exchanges in London and New York, where 
Novo Nordisk's B shares and ADRs respectively are 
listed:

•  NASDAQ OMX Copenhagen
  Danish Corporate Governance
Recommendations (2008)

•  New York Stock Exchange
  Corporate Governance Standards (2008)

•  London Stock Exchange
  The Combined Code (2008)

The applicable codes and a detailed review 
of Novo Nordisk’s compliance are available at 
annualreport2008.novonordisk.com/
who-we-are/corporate-governance/compliance.

Novo Nordisk Annual Report 2008     43

Shareholder information   Executive remuneration

Each complaint, concern or other commu-
nication is investigated and the Audit Com-
mittee retains records of complaints. As the 
company wishes to encourage good faith 
reporting of any violation of this policy, 
while avoiding damage to the reputation 
of innocent persons initially suspected of 
wrongful misconduct, investigations are 
conducted in a conﬁ dential manner to the 
maximum extent consistent with a thor-
ough and complete investigation.

Management of the company

The Board has delegated responsibility 
for day-to-day management to Executive 
Management. Executive Management 
consists of the president and chief execu-
tive ofﬁ cer and four other executives (see 
p 48) and is responsible for organisation 
of the company as well as allocation of 
resources, determination and implementa-
tion of strategies and policies, direction-
setting and ensuring timely reporting and 
provision of information to the Board and 
the stakeholders of Novo Nordisk. Execu-
tive Management meets at least once a 
month and often more frequently.

Assurance
External audit

The company’s ﬁ nancial reporting and the 
internal controls over ﬁ nancial reporting 
processes are audited and assessed by 
an external auditor elected by the annual 
general meeting. The auditor acts in the 
interest of shareholders and the public (see 
p 114). The auditor reports any signiﬁ cant 
ﬁ ndings regarding accounting matters and 
any signiﬁ cant internal control deﬁ ciencies 
via the Audit Committee to the Board and 
in the auditor long-form report.

As part of the company’s commitment 
to ﬁ nancial, environmental and social 
responsibility, Novo Nordisk voluntarily 
includes an assurance report for non-
ﬁ nancial reporting in its annual report 
(see p 115). The assurance provider 
reviews whether the non-ﬁ nancial per-
formance information included in the 
annual report is complete, covers aspects 
deemed to be material and is responsive 
to company stakeholders.

Internal audit

The Board appoints members of Executive 
Management and determines remu-
neration. The Chairmanship reviews the 
performance of the executives.

The internal audit function provides 
independent and objective assurance 
primarily within internal control and 
governance. To ensure that the function 

works indepen dently of management, 
its charter, audit plan and budget are 
approved by the Audit Committee chair-
man. The Audit Committee must approve 
the appointment, remuneration and 
dismissal of the head of the internal audit 
function.

Internal control

Novo Nordisk’s risk management and 
internal controls in relation to ﬁ nancial 
processes are designed with the purpose 
of effectively controlling the risk of mate-
rial misstatements. A detailed description 
of the implemented internal controls and 
risk management system in relation to 
ﬁ nancial reporting processes is available at 
novonordisk.com/about_us.

Novo Nordisk is in compliance with US 
Sarbanes–Oxley Act section 404, which 
requires detailed documentation of the 
design and operation of ﬁ nancial report-
ing processes. Novo Nordisk must ensure 
that there are no material weaknesses in 
the internal controls that could lead to 
a material misstatement in its ﬁ nancial 
reporting. The company’s conclusion and 
the auditor’s evaluation of these pro-
cesses are included in its Form 20-F ﬁ ling 
to the US Securities and Exchange Com-
mission.

Executive
remuneration

Board members

Remuneration of the Board of Directors is 
aligned with other major Danish compa-
nies, and payments made to members of 
the Board are reported in detail on p 80.

The remuneration of board members is 
approved by the annual general meeting 
in connection with the approval of the an-
nual report and any proposed changes are 
announced in advance. Beginning in 2009, 
remuneration of board members will be 
a separate agenda item at the Annual 
General Meeting.

Each board member receives a ﬁ xed fee 
per year. Board members receive a ﬁ xed 
amount (the base fee) while the Chair-
manship receives a multiplier thereof: the 
chairman receives 2.5 times the base fee 
and the vice chairman 1.5 times. Service 
on the Audit Committee entitles members 

to additional payments of 0.5 times the 
base fee or, in the case of the committee 
chair, 1.25 times the base fee.

Individual board members may take on 
speciﬁ c ad hoc tasks outside the normal 
assigned duties. In such cases the Board 
determines a ﬁ xed fee for the work. This is 
the case for the R&D facilitation.

Expenses, such as travel and accommo-
dation in relation to board meetings as 
well as relevant training, are reimbursed. 
It will be proposed at the 2009 Annual 
General Meeting that all board members 
residing outside Denmark be paid a ﬁ xed 
travel allowance per meeting attended in 
Denmark. No travel allowance will be paid 
to board members when attending board 
meetings outside Denmark.

Board members are not offered stock op-
tions, warrants or other incentive schemes.

Executives

Executive remuneration is proposed by the 
Chairmanship and requires the approval 
of the entire Board. Detailed reporting of 
2008 executive pay appears on p 81.

Levels are evaluated annually against a 
Danish benchmark of large companies 
with international activities. This informa-
tion is supplemented by information on 
remuneration levels for similar positions 
in the international pharmaceutical 
industry.

Executive remuneration packages consist 
of a base salary, a short-term cash bonus, 
a long-term share-based incentive, pen-
sions and other beneﬁ ts. For executives 
being expatriated at the request of the 
company, the remuneration package is 
based on current Danish remuneration lev-
els, including pension entitlements, while 

44     Novo Nordisk Annual Report 2008

Shareholder information   Executive remuneration

a speciﬁ c expatriation package is added 
for the period of expatriation.

The short-term cash incentive bonus may 
yield a maximum annual payout equal to 
four months’ ﬁ xed base salary plus pen-
sion contribution. The long-term incentive 
programme may result in a maximum 
grant per year equal to eight months’ ﬁ xed 
base salary plus pension contribution.

Base salary

The base salary for each executive ac-
counts for between 40% and 60% of the 
total value of the remuneration package.

Short-term incentive programme

The short-term incentive programme 
consists of a cash bonus linked to the 
achievement of predeﬁ ned functional 
and individual business targets for each 
executive. The targets for the chief execu-
tive ofﬁ cer are set by the chairman of the 
Board, while targets for executive vice 
presidents are set by the chief executive 
ofﬁ cer.

The chairman of the Board evaluates the 
degree of target achievement for each 
executive and presents this, along with 
proposed cash bonus payments, for ap-
proval by the Board.

Long-term incentive programme

In January each year the Board decides 
whether to establish a long-term incen-
tive programme for the calendar year. The 
programme is based on a calculation of 
shareholder value creation compared with 
budgeted performance. In line with Novo 
Nordisk’s long-term ﬁ nancial targets, the 
calculation of shareholder value creation 
is based on reported operating proﬁ t after 
tax reduced by a WACC-based (weighted 
average cost of capital) return requirement 
on average invested capital.

Global remuneration
strategy
Novo Nordisk aspires to be an employer 
of choice. The company’s remunera-
tion strategy aims to attract, retain and 
motivate employees around the world. 
Compensation is designed to be competi-
tive and to align interests with those of 
shareholders.

On a global basis, compensation packages 
are guided by ﬁ ve broad principles:

•    A total rewards approach
In addition to base pay, incentives and 
beneﬁ ts, non-ﬁ nancial remuneration 

A proportion of the calculated shareholder 
value creation is allocated to a joint pool 
for the participants, which in addition 
to Executive Management include other 
senior managers.

budget for a particular year. In the lock-
up period the value of the joint pool will 
change depending on the development 
in the share price, aligning the interests of 
participants with those of shareholders.

For executives the joint pool operates with 
a yearly maximum allocation per partici-
pant equal to eight months’ ﬁ xed base 
salary plus pension contribution. The joint 
pool may, subject to the Board’s assess-
ment, be reduced in the event of lower-
than-planned performance in signiﬁ cant 
research and development projects or key 
sustainability projects. Targets for non-
ﬁ nancial performance may include achieve-
ment of certain milestones by set dates.

Once the joint pool has been approved 
by the Board, the total cash amount is 
converted into Novo Nordisk B shares at 
market price. The market price is calcu-
lated as the average trading price for 
Novo Nordisk B shares on NASDAQ OMX 
Copenhagen in the open trading window 
following the release of ﬁ nancial results 
for the year prior to the bonus year. The 
shares in the joint pool are allocated to the 
participants on a pro rata basis: the chief 
executive ofﬁ cer has three units, executive 
vice presidents have two units each and 
other members of the Senior Manage-
ment Board have one unit each. Joint pool 
shares for a given year are locked up for 
three years before they are transferred to 
participants.

If an executive resigns during the lock-
up period, their shares will remain in the 
joint pool to the beneﬁ t of the other 
participants. In the lock-up period, the 
Board may remove shares from the joint 
pool in the event of lower-than-planned 
value creation in subsequent years if, for 
example, the economic proﬁ t falls below 
a predeﬁ ned threshold compared with the 

Pension

The pension contribution for executives is 
between 25% and 30% of the ﬁ xed base 
salary including bonus.

Other beneﬁ ts

Non-monetary beneﬁ ts such as company 
car and phone are negotiated with each 
executive individually. In addition, the 
executives may participate in normal pro-
grammes that are offered to Novo Nordisk 
employees.

Severance

In addition to their notice period, execu-
tives are entitled, in the event of termina-
tion, whether by Novo Nordisk or by the 
individual due to a merger, acquisition or 
takeover of Novo Nordisk, to a severance 
payment of 36 months’ ﬁ xed base salary 
plus pension contribution. In the event 
of termination by Novo Nordisk for other 
reasons, the severance payment is three 
months’ ﬁ xed base salary plus pension 
contribution per year of employment as 
an executive, but in no event less than 12 
or more than 36 months’ ﬁ xed base salary 
plus pension contribution.

The Remuneration Policy for Novo Nordisk 
Board members and Executive Manage-
ment is available at novonordisk.com/
about_us/corporate_governance/remuner-
ation.asp. Application of the Remunera-
tion Policy in 2008 is described in notes 33 
and 34 on pp 78–82. Remuneration for 
board members and Executive Manage-
ment will be in accordance with this policy 
for 2009. This is also expected to be the 
case for 2010.

such as continuing education, career 
progression and working environment are 
important elements of the ‘total rewards’ 
package.

employee performance and remuneration. 
Variable pay is used to reward perform-
ance, with base pay increases reﬂ ecting 
market conditions.

•   Market linked
Salaries, incentives and beneﬁ ts are 
positioned and maintained at the level re-
quired to be competitive in local markets, 
generally between the local market me-
dian and upper quartile. Novo Nordisk also 
provides adequate life insurance, health-
care and pension provisions irrespective of 
local competitive practice.

•   Performance linked
There is a transparent, direct link between 

•   Transparency
Clear communication of remuneration 
programmes is a priority, and all costs as-
sociated with compensation practices are 
known and publicly disclosed.

•   Flexibility
Subject to corporate governance or legal 
requirements, ﬂ exibility is encouraged. 
Flexible solutions must be cost neutral 
to Novo Nordisk, and adequate levels of 
insurance must be maintained.

Novo Nordisk Annual Report 2008     45

Shareholder information   Board of Directors

Board of
Directors

Sten Scheibye
Chairman of the
Board of Directors

ing fellow of the American College of Rheumatology 

Enzymes Division in 1977. After a number of years 

in the US. Dr Ando serves as chairman of the Board of 

in various specialist and managerial positions within 

Novexel SA, France, as vice chairman of the Board of 

this area, Mr Gürtler was appointed corporate vice 

S*Bio Pte Ltd, Singapore, and as a board member of 

president of Human Resource Development in Novo 

Novo A/S, Denmark, Bio*One Capital Pte Ltd, Singa-

Nordisk A/S in 1991, and in 1993 he was appointed 

pore, NicOx SA, France, Enzon Pharmaceuticals, Inc, 

corporate vice president of Health Care Production. 

US, and EUSA Pharma, UK, CBio Pte, Australia, and 

From 1996 to 2000, he was a member of Corpo-

Albea Pharmaceuticals AG, Switzerland. Dr Ando also 

rate Management of Novo Nordisk A/S with special 

serves as a Senior Advisor to Essex Woodlands Health 

responsibility for Corporate Staffs.

Ventures UK Ltd. and is chairman of the Scientiﬁ c 

Advisory Board, Southwest Michigan First, US.

Mr Gürtler is chairman of the boards of Novozymes 

A/S, Copenhagen Airports A/S and COWI A/S, all of 

Dr Ando qualiﬁ ed as a medical doctor at Linköping 

Denmark.

Medical University, Sweden, in 1973, and as a special-

ist in general medicine at the same institution in 1978.

Mr Gürtler has an MSc in Chemical Engineering from 

the Technical University of Denmark (1976).

From 1995 to 2008, Mr Scheibye was president 

The special competences possessed by Dr Ando that 

and CEO of Coloplast A/S, Denmark. Before joining 

are important for the performance of his duties are 

The special competences possessed by Mr Gürtler 

Coloplast in 1993, Mr Scheibye served as senior vice 

his medical qualiﬁ cations and his extensive executive 

that are important for the performance of his duties 

president, sales and marketing in Leo Pharma A/S, 

background within the international pharmaceutical 

are his knowledge of the Novo Group’s business and 

Denmark. He joined Leo Pharma in 1981. Mr Scheibye 

industry.

its policies and his knowledge of the international 

is chairman of the Board of Governors of DTU (the 

biotech industry.

Technical University of Denmark) and a member of the 

Dr Ando became vice chairman of the Novo Nordisk 

boards of Danske Bank A/S, DADES A/S, the Industrial 

A/S Board in 2006. Dr Ando has also been designated 

Mortgage Fund and the Aase and Ejnar Danielsen 

Research and Deve lopment Facilitator by the Board of 

Foundation, all of Denmark. Furthermore, he is chair-

Novo Nordisk A/S.

Johnny Henriksen

man of the Denmark–America Foundation and vice 

chairman of the Danish Fulbright Commission.

Mr Scheibye has an MSc in Chemistry and Physics from 

1978 and a PhD in Organic Chemistry from 1981, both 

from the University of Aarhus, Denmark, and a BComm 

from the Copenhagen Business School, Denmark, from 

1983. Mr Scheibye is also an adjunct professor of ap-

plied chemistry at the University of Aarhus.

Kurt Briner

Johnny Henriksen joined Novo Nordisk in January 

1986 and currently works as an environmental adviser 

in Product Supply.

The special competences possessed by Mr Scheibye 

Kurt Briner works as an independent consultant to 

Mr Henriksen has an MSc in Biology from the Univer-

that are important for the performance of his du-

the pharmaceutical and biotech industries and is a 

sity of Copenhagen, Denmark (1977).

ties are his knowledge of the healthcare industry, 

board member of OM Pharma, Switzerland, Progenics 

particularly as relates to patients requiring chronic 

Pharmaceuticals Inc, US, and GALENICA SA, Switzer-

care, and managerial skills relating to international 

land. From 1988 to 1998, he was president and CEO 

organisations.

of Sanoﬁ  Pharma, France. He has been chairman of 

the European Federation of Pharmaceutical Industries 

Mr Scheibye became vice chairman of the Board of 

and Associations (EFPIA). Mr Briner holds a Diploma 

Directors of Novo Nordisk A/S in 2004 and chairman 

of the Commercial Schools of Basel and Lausanne, 

in 2006.

Switzerland.

Pamela J Kirby

Göran A Ando, MD
Vice chairman
of the Board
of Directors

The special competences possessed by Mr Briner 

that are important for the performance of his duties 

Pamela J Kirby is chairman of the Board of Scynexis 

are his executive background and knowledge of the 

Inc, US, and a board member of Smith & Nephew plc 

pharmaceutical and biotech industries as well as of 

and Informa plc, both UK. From 2001 to 2003, Dr 

global, particularly European pharmaceutical regula-

Kirby was CEO of the contract research organisation 

Dr Ando was CEO of Celltech Group plc, UK, until 

2004. He joined Celltech from Pharmacia, now 

Pﬁ zer, US, where he was executive vice president and 

president of R&D with additional responsibilities for 

manufacturing, IT, business development and M&A 

from 1995 to 2003. From 1989 to 1995, Dr Ando was 

medical director, moving to deputy R&D director and 

tions and policies.

Henrik Gürtler

Quintiles Transnational Corporation, US, and before 

that Dr Kirby was director of Global Strategic Mar-

keting of F. Hoffman-La Roche Limited, Switzerland, 

from 1998 to 2001. From 1996 to 1998, Dr Kirby 

was commercial director at British Biotech plc, UK, 

and from 1979 to 1996 Dr Kirby was employed by 

Astra (now AstraZeneca) in various international 

positions, most recently as regional director/vice 

president Corporate Strategy, Marketing and Busi-

ness Development.

then R&D director of Glaxo Group, UK. He was also a 

Henrik Gürtler has been president and CEO of Novo 

Dr Kirby has a BSc in Pharmacology (1975) and a PhD 

member of the Glaxo Group Executive Committee. Dr 

A/S, Denmark, since 2000. He was employed by Novo 

in Clinical Pharmacology (1978), both from the Univer-

Ando is a specialist in general medicine and a found-

Industri A/S, Denmark, as an R&D chemist in the 

sity of London, UK.

46     Novo Nordisk Annual Report 2008

Shareholder information   Board of Directors

The special competences possessed by Dr Kirby that 

Mr Nielsen serves as chairman of the Board of Direc-

union steward. Stig Strøbæk has been an employee-

are important for the performance of her duties are 

tors of Collstrups Mindelegat, Denmark. Mr Nielsen 

elected member of the Board of Directors of the Novo 

her scientiﬁ c qualiﬁ cations and extensive executive 

has an MSc in Commerce and Business Administration 

Nordisk Foundation since 1998. Mr Strøbæk has a 

background within the international pharmaceutical 

from the Copenhagen Business School, Denmark 

diploma in electrical engineering and a diploma in 

and biotech industries, particularly as relates to mar-

(1972).

keting, strategic planning, clinical trials and lifecycle 

further training for board members from the Danish 

Employees’ Capital Pension Fund.

management in relation to pharmaceutical products.

The special competences possessed by Mr Nielsen 

Anne Marie 
Kverneland

Anne Marie Kverneland joined Novo Nordisk in July 

1981 as a laboratory technician and is currently work-

ing as a full-time union steward.

Ms Kverneland has a degree in medical laboratory 

technology from the Copenhagen University Hospital, 

Denmark (1980).

Kurt Anker Nielsen

that are important for the performance of his duties 

are his knowledge of Novo Nordisk A/S and its busi-

nesses, his working knowledge of the global pharma-

ceutical industry and his experience with accounting, 

ﬁ nancial and capital markets issues.

Mr Nielsen has been chairman of the Audit Commit-

tee at Novo Nordisk A/S since 2004 and is also desig-

nated as ﬁ nancial expert (as deﬁ ned by the SEC)4.

Søren Thuesen 
Pedersen

Jørgen Wedel

Jørgen Wedel was executive vice president of the Gillette 

Company, US, until 2001. He was responsible for Com-

mercial Operations, International, and was a member of 

Gillette’s Corporate Management Group. From 2004 to 

2008, he was a board member of ELOPAK AS, Norway.

Mr Wedel has an MSc in Commerce and Business 

Administration from the Copenhagen Business School, 

Denmark, (1972), majoring in accounting and ﬁ nanc-

ing, and an MBA from the University of Wisconsin, US, 

Søren Thuesen Pedersen joined Novo Nordisk in Janu-

(1974).

ary 1994 and is currently working as a specialist in 

Global Quality Development.

The relevant special competences possessed by Mr 

Wedel that are important for the performance of 

Søren Thuesen Pedersen has been an employee-

his duties are his background as a senior sales and 

elected member of the Board of Directors of the 

marketing executive in a global company within the 

Novo Nordisk Foundation since 2002. Mr Pedersen 

consumer goods industry, as well as particular insight 

has a BSc in Chemical Engineering from the Danish 

into the US market. In addition, he possesses compe-

Kurt Anker Nielsen was initially employed in Novo 

Academy of Engineers (1988).

tences in relation to auditing and accounting.

Industri A/S in 1974 as an economist. He served as CFO 

and deputy CEO of Novo Nordisk A/S until 2000 and 

from 2000 to 2003, he was CEO of Novo A/S. He serves 

as vice chairman of the Board of Novozymes A/S and as 

a member of the boards of the Novo Nordisk Founda-

tion, LifeCycle Pharma A/S, Denmark, and ZymoGenet-

ics, Inc, US. He is chairman of the Board of Reliance A/S, 

Denmark, and a member of the boards of StatoilHydro 

ASA, Norway, and Vestas Wind Systems A/S, Denmark. 

In Novozymes A/S, LifeCycle Pharma A/S, ZymoGenet-

Stig Strøbæk

Mr Wedel has been a member of the Audit Commit-

tee at Novo Nordisk A/S since 2005 and in January 

2009 he was designated as ﬁ nancial expert (as 

deﬁ ned by the SEC)4.

ics, Inc, StatoilHydro ASA and Vestas Wind Systems A/S 

Stig Strøbæk joined Novo Nordisk in 1992 as an 

he is also elected Audit Committee chairman.

electrician, and is currently working as a full-time 

Name (male/female) 
Sten Scheibye (m) 
Göran A Ando (m) 
Kurt Briner (m) 
Henrik Gürtler (m) 
Johnny Henriksen2 (m) 
Pamela J Kirby (f) 
Anne Marie Kverneland2 (f) 
Kurt Anker Nielsen (m) 
Søren Thuesen Pedersen2 (m) 
Stig Strøbæk2 (m) 
Jørgen Wedel (m) 

First elected 
2003 
2005 
2000 
2005 
2002 
2008 
2000 
2000 
2006 
1998 
2000 

Term 
2009 
2009 
2009 
2009 
2010 
2009 
2010 
2009 
2010 
2010 
2009 

Nationality 
Danish 
Swedish 
Swiss 
Danish 
Danish 
British 
Danish 
Danish 
Danish 
Danish 
Danish 

Date of birth 
03 Oct 1951 
06 Mar 1949 
18 Jul 1944 
11 Aug 1953 
19 Apr 1950 
23 Sep 1953 
24 Jul 1956 
08 Aug 1945 
18 Dec 1964 
24 Jan 1964 
10 Aug 1948 

Independence3
Independent
Not independent1
Independent
Not independent1
Not independent
Independent
Not independent
Not independent1, 4
Not independent
Not independent
Independent4

1 Member of management or the Board of Novo A/S or the Novo Nordisk Foundation.
2 Elected by employees of Novo Nordisk.
3 As deﬁ ned in Section V.4 of Recommendations for corporate governance designated by the NASDAQ OMX Copenhagen.
4 Mr Nielsen and Mr Wedel qualify as independent Audit Committee members as deﬁ ned by the US Securities and Exchange Commission (SEC).

Novo Nordisk Annual Report 2008     47

Shareholder information   Executive Management

Executive
Manage-
ment

Lars Rebien 
Sørensen
President and chief 
executive ofﬁ cer 
(CEO)

Lars Rebien Sørensen joined Novo Nordisk’s 
Enzymes Marketing in 1982. Over the years, 
he has been stationed in several countries, 
including the Middle East and the US. Mr Sø-
rensen was appointed a member of Corporate 
Management in May 1994 and given special 
responsibility within Corporate Management 
for Health Care in December 1994. He was ap-
pointed president and CEO in November 2000.

Mr Sørensen is a member of the boards of 
ZymoGenetics, Inc, US, and DONG Energy A/S, 
Denmark, as well as a member of the Bertels-
mann AG Supervisory Board, Germany. Mr 
Sørensen received the French award Chevalier 
de l’Ordre National de la Légion d’Honneur in 
2005. Mr Sørensen has an MSc in Forestry from 
the Royal Veterinary and Agricultural University 
(now University of Copenhagen), Denmark, 
from 1981, and a BSc in International Econom-
ics from the Copenhagen Business School, 
Denmark, from 1983. Since October 2007, Mr 
Sørensen has been adjunct professor at the Life 
Sciences Faculty of the University of Copenha-
gen. Mr Sørensen is a Danish national, born on 
10 October 1954.

Jesper Brandgaard
Executive vice 
president and 
chief ﬁ nancial 
ofﬁ cer (CFO)

Kåre Schultz
Executive vice 
president and 
chief operating 
ofﬁ cer (COO)

Jesper Brandgaard joined Novo Nordisk in 
1999 as corporate vice president of Corporate 
Finance and was appointed CFO in November 
2000. He serves as chairman of the boards of 
Simcorp A/S, NNE Pharmaplan A/S and NNIT 
A/S, all in Denmark. Mr Brandgaard has an MSc 
in Economics and Auditing from 1990 as well 
as an MBA from 1995, both from the Copenha-
gen Business School, Denmark. Mr Brandgaard 
is a Danish national, born on 12 October 1963.

Kåre Schultz joined Novo Nordisk in 1989 as 
an economist in Health Care, Economy & Plan-
ning. In November 2000, he was appointed 
chief of staffs. In March 2002, he took over 
the position of COO. Mr Schultz is a mem-
ber of the Board of LEGO A/S, Denmark. Mr 
Schultz has an MSc in Economics from the 
University of Copenhagen, Denmark, from 
1987. Mr Schultz is a Danish national, born on 
21 May 1961.

Lise Kingo
Executive vice 
president and 
chief of staffs (COS)

Mads Krogsgaard 
Thomsen
Executive vice 
president and 
chief science ofﬁ cer 
(CSO)

Lise Kingo joined Novo Nordisk’s Enzyme 
Promotion in 1988 and over the years worked 
to build up the company’s Triple Bottom Line 
approach. In 1999, Ms Kingo was appointed 
vice president, Stakeholder Relations. She was 
appointed executive vice president, Corporate 
Relations, in March 2002. Ms Kingo serves as 
chair of the board of Steno Diabetes Center 
A/S, Denmark. She is also associate professor at 
the Medical Faculty, Vrije Universiteit, Amster-
dam, the Netherlands. Ms Kingo has a BA in 
Religions and a BA in Ancient Greek Art from 
the University of Aarhus, Denmark, from 1986, 
a BComm in Marketing Economics from the 
Copenhagen Business School, Denmark, from 
1991, and an MSc in Responsibility and Busi-
ness Practice from the University of Bath, UK, 
from 2000. Ms Kingo is a Danish national, born 
on 3 August 1961.

Mads Krogsgaard Thomsen joined Novo 
Nordisk in 1991. He was appointed CSO in 
November 2000. He sits on the editorial boards 
of international journals and is a member of the 
Board of Cellartis AB, Sweden.

Dr Thomsen has a DVM from the Royal Veteri-
nary and Agricultural University (now the Uni-
versity of Copenhagen), Denmark, from 1986, 
where he also obtained a PhD degree in 1989 
and a DSc in 1991, and became adjunct profes-
sor of pharmacology in 2000. He is a former 
president of the National Academy of Technical 
Sciences (ATV), Denmark. Dr Thomsen is a Dan-
ish national, born on 27 December 1960.

Other members of the
Senior Management Board
Jesper Bøving – DAPI & CMC Supply
Kim Bundegaard – Facilitation & Group Internal Audit
Flemming Dahl – Biopharmaceuticals
Claus Eilersen – Japan & Oceania
Peter Bonne Eriksen – Regulatory Affairs
Lars Green – Corporate Finance
Jerzy Gruhn – North America
Susanne Hundsbæk-Pedersen – Devices & Sourcing
Jesper Høiland – International Operations
Lars Fruergaard Jørgensen – IT & Corporate Development
Terje Kalland – Biopharmaceuticals Research Unit

48     Novo Nordisk Annual Report 2008

Lars Guldbæk Karlsen – Global Quality
Jesper Kløve – Device Research & Development
Per Kogut – NNIT
Peter Kristensen – Global Development
Peter Kurtzhals – Diabetes Research Unit
Lars Christian Lassen – Corporate People & Organisation
Patrick Loustau – Global Marketing
Ole Ramsby – Legal Affairs
Jakob Riis – Liraglutide
Martins Soeters – Europe
Kim Tosti – Diabetes Finished Products
Per Valstorp – Product Supply
Hans Ole Voigt – NNE Pharmaplan

Shareholder information   Shares and capital structure

Shares
and capital
structure

Novo Nordisk aims to communicate 
openly with stakeholders about the 
company’s ﬁ nancial and business 
development as well as strategies and 
targets. Through active dialogue, the 
company seeks to obtain fair and ef-
ﬁ cient pricing of its shares.

To keep investors updated on ﬁ nancial 
and operating performance as well as the 
progress of clinical programmes, Executive 
Management and Investor Relations travel 
extensively to meet institutional investors 
and attend investor conferences.

This ensures that all investors with a major 
holding of Novo Nordisk shares can attend 
meetings on a regular basis and that a 
high number of smaller investors or poten-
tial investors also have access. Roadshows 
are primarily, but not exclusively, held 
in major European and North American 
ﬁ nancial centres.

A wide range of other investor activities 
are held during the year. Investors and ﬁ -
nancial analysts are welcome to visit Novo 
Nordisk at the headquarters in Bagsværd, 
Denmark, as well as at regional head-
quarters. In 2008, meetings with investor 
groups were held at regional headquarters 
in Princeton, US, Beijing, China, Moscow, 
Russia, and Tokyo, Japan.

Investors and analysts are also invited every 
year to presentations of the most recent 
scientiﬁ c results in connection with the two 
major medical diabetes conferences, Ameri-
can Diabetes Association and European 
Association for the Study of Diabetes.

In September 2008, Novo Nordisk hosted 
its biennial Capital Markets Day at the com-
pany’s production site in Hillerød, Denmark. 
At the Capital Markets Day, Executive Man-
agement and senior management provided 
120 investors and analysts with updates on 
the progress in both the diabetes care and 
biopharmaceuticals pipelines, on productiv-
ity improvements in manufacturing and 
on Novo Nordisk’s strategic position in key 
markets and therapy areas. Presentations 
and webcasts from key investor events 
are available on Novo Nordisk’s website 
novonordisk.com/investors.

500

400

300

200

100

0

600

500

400

300

200

100

0

600

500

400

300

200

100

0

Price development and monthly turn-
over of Novo Nordisk’s B shares on
the NASDAQ OMX Copenhagen 2008

DKK

DKK billion

15

12

9

6

3

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

(cid:116) Novo Nordisk’s B shares (prices in DKK)
(cid:116) Turnover of B shares in DKK billion

Price development of Novo Nordisk’s 
B shares relative to the MSCI Europe 
Health Care Index measured in DKK

Index 1 January 2004 = 100

2005

2008
2006
2004
(cid:116) Novo Nordisk’s B shares (prices in DKK)
(cid:116) MSCI Europe Health Care Index

2007

Price development of Novo Nordisk’s 
B shares relative to the MSCI US
Health Care Index measured in USD

Index 1 January 2004 = 100

2005

2008
2006
2004
(cid:116) Novo Nordisk’s B shares (prices in USD)
(cid:116) MSCI US Health Care Index

2007

Share price performance
Novo Nordisk's share price decreased by 
19% from its 2007 close of DKK 335 to
its 31 December 2008 close of DKK 271.

This was signiﬁ cantly better than the 
2008 performance of the NASDAQ OMX 
Copenhagen 20 Index, down 47%, and in 
line with the MSCI Europe Health Care In-
dex, down 19%, both measured in Danish 
kroner. Measured in US dollars, the price 
of the Novo Nordisk B share decreased by 
23%, in line with a US dollar loss of 24% 
for the MSCI US Health Care Index.

Novo Nordisk’s stable share price develop-
ment is perceived as a reﬂ ection of the 
company’s relatively solid position in a 
growing market with strong operating 
performance and ongoing progress in 
research and development.

In 2008, factors believed to have impacted 
the share price positively include a solid 
operating performance bolstered by solid 
sales growth, driven by the strategically 
signiﬁ cant modern insulin products. Sub-
stantial productivity increases, achieved 
through the production efﬁ ciency 
improvement programme cLEAN®, also 
contributed to a solid improvement in the 
gross margin of around 1.7 percentage 
points in 2008.

Within research and development one key 
event during 2008 believed to strengthen 
the share price was the simultaneous ﬁ l-
ing for regulatory approval of liraglutide 
in Europe and the US followed by ﬁ lings 
in Japan and other key markets. Another 
positive development was the comple-
tion of phase 2 clinical development of 
the new generation of insulins NN1250 
and NN5401, which are expected to enter 
pivotal phase 3 studies in the second half 
of 2009.

The most signiﬁ cant factors believed to 
have impacted the share price adversely 
include the discontinuation of certain 
research and development projects. An-
other factor was unfavourable currency 
developments, despite the substantial 
appreciation of some of Novo Nordisk’s 
key invoicing currencies, including the US 
dollar, in the second half of 2008. Finally, 
2008 was also a year with increased 
regulatory uncertainty for new diabetes 
compounds.

Capital structure

The Board of Directors believes that the 
current capital and share structure of Novo 
Nordisk serves the interests of the share-
holders and the company. In the event of 
excess capital after the funding of organic 

Novo Nordisk Annual Report 2008     49

Shareholder information   Shares and capital structure

growth opportunities and potential ac-
quisitions, Novo Nordisk’s guiding policy 
is to return capital to investors through 
dividend payments and share repurchase 
programmes.

As decided at the Annual General Meeting 
2008, a reduction of the company’s B 
share capital, corresponding to approxi-
mately 2% of the total share capital, was 
effected in June 2008 by cancellation of 
treasury shares. This enables Novo Nordisk 
to continue to buy back shares without 
exceeding the limit for a total holding of 
treasury shares of 10% of the total capital.

In 2008, Novo Nordisk repurchased shares 
worth 4.7 billion Danish kroner, compared 
with 4.8 billion kroner in 2007. This is 
part of the ongoing share repurchase 
programme for the period 2006–2009. In 
connection with the release of results for 
both the ﬁ rst six months and the full year 
for 2008, the Board of Directors approved 
an increase of 1.0 billion kroner in the 
ongoing share repurchase programme, 
bringing the total share repurchase pro-
gramme to 18.5 billion kroner. From 2008, 
the share repurchase programme is pri-
marily conducted in accordance with the 
provisions of the European Commission’s 
Regulation no 2273/2003 of 22 December 
2003, also known as the ‘Safe Harbour 
Regulation’. This programme gives the 
lead manager, J.P. Morgan Securities Ltd., 
mandate to purchase shares independently 
of Novo Nordisk A/S.

As part of the agenda for the Annual Gen-
eral Meeting 2009, the Board of Directors 
will propose a reduction of the company’s 
B share capital, corresponding to approxi-
mately 2% of the total share capital, by 
cancellation of treasury shares.

Share capital and ownership

Novo Nordisk’s total share capital of 
634,000,000 Danish kroner is divided into 
A share capital of nominally 107,487,200 
kroner, and B share capital of nominally 
526,512,800 kroner, of which 25,721,095 
kroner is held as treasury shares (ﬁ gures as 
of 31 December 2008). Novo Nordisk’s A 
shares (each 1 krone) are non-listed shares 
and held by Novo A/S, a Danish public 
limited liability company which is 100% 
owned by the Novo Nordisk Foundation. 
According to the Articles of Association 
of the Foundation, the A shares cannot be 
divested by Novo A/S or the Foundation. 
In addition, as of 31 December 2008 Novo 
A/S held 54,182,800 kroner of B share 
capital. Each holding of 1 krone of the 
A share capital carries 1,000 votes. Each 
holding of 1 krone of the B share capital 
carries 100 votes. With 25.5% of the total 

50     Novo Nordisk Annual Report 2008

share capital, Novo A/S controls 71.7% 
of the total number of votes, excluding 
treasury shares. The total market value of 
Novo Nordisk’s B shares excluding treasury 
shares was 135 billion kroner at the end 
of 2008.

Novo Nordisk’s B shares are quoted on 
the NASDAQ OMX Copenhagen and 
the London Stock Exchange, and on the 
New York Stock Exchange in the form of 
ADRs. The B shares are traded in units 
of 1 Danish krone. The ratio of Novo 
Nordisk’s B shares to ADRs is 1:1. The B 
shares are issued to the bearer but may, 
on request, be registered in the holder’s 
name in Novo Nordisk’s register of 
shareholders. As Novo Nordisk B shares 
are in bearer form, no ofﬁ cial record 
of all shareholders exists. Based on the 
available sources of information on the 
company’s shareholders, it is estimated 
that Novo Nordisk’s shares at the end of 
2008 were distributed as shown in the 

Breakdown of shareholders 

% of capital

 Novo A/S, Bagsværd, Denmark 26% (72% *) )
(cid:116) Novo Nordisk A/S 4% (0% *) ) 
(cid:116) Other 70% (28% *) )
 *)  % of votes, excl treasury shares

Geographical distribution 
of share capital

% of capital

 Denmark 50%
(cid:116) UK 25%
(cid:116) North America 19%
(cid:116) Other 6%

charts on this page. At the end of 2008, 
the free ﬂ oat was 70%.

Form 20-F

The Form 20-F Report for 2008 is ex-
pected to be ﬁ led with the United States 
Securities and Exchange Commission in 
February 2009. The report can be down-
loaded from novonordisk.com/investors.

Payment of dividends

Shareholders’ enquiries concerning dividend 
payments, transfer of share certiﬁ cates, 
consolidation of shareholder accounts and 
tracking of lost shares should be addressed 
to Novo Nordisk’s transfer agents (see inside 
back cover). For 2008, the proposed divi-
dend payments for Novo Nordisk shares are 
illustrated in the table below. Novo Nordisk 
does not pay a dividend on its holding of 
treasury shares. The dividend for 2007 paid 
in March 2008 was 4.50 Danish kroner per 
share of 1 krone.

Proposed dividend
payment for 2008

 A shares of DKK 1  B shares of DKK 1 

ADRs

DKK 6.00 

DKK 6.00  DKK 6.00

Analyst coverage

Novo Nordisk is currently covered by about 
30 analysts, including the top global 
investment banks that regularly produce 
research reports about Novo Nordisk. A 
list of analysts covering Novo Nordisk can 
be found in the investor section of Novo 
Nordisk’s homepage.

Internet

Novo Nordisk’s homepage for investors is 
novonordisk.com/investors. It includes his-
torical and updated information about Novo 
Nordisk’s activities: press releases from 1995 
onwards, ﬁ nancial and non-ﬁ nancial results, 
a calendar of investor-relevant events, inves-
tor presentations, background information 
and recent annual reports.

Financial calendar 2009
Annual General Meeting 18 March 2009

Dividend 
Ex-dividend 
Record date 
Payment 

B shares 
19 March 
23 March 
24 March 

ADRs
19 March
23 March
31 March

Announcement of ﬁ nancial results
First three months 
Half year 
Nine months 
Full year 

30 April
6 August
29 October
2 February 2010

 
Consolidated ﬁ nancial and non-ﬁ nancial statements 2008

Consolidated
ﬁ nancial and
non-ﬁ nancial
statements 2008

        Pages 51–104

  52  Consolidated income statement
  53  Consolidated balance sheet
  54   Consolidated cash ﬂ ow statement 

and ﬁ nancial resources

  55   Consolidated statement of changes 

in equity

  56   Notes: Accounting policies and other 
notes to the ﬁ nancial statements
  89   Overview of non-ﬁ nancial reporting
  90  Non-ﬁ nancial indicators and targets
  91   Notes: Accounting policies and other 
notes to the non-ﬁ nancial data

100   Companies in the Novo Nordisk 

Group

102   Summary of ﬁ nancial data 2004–

2008

104   Quarterly ﬁ gures 2007 and 2008 

(unaudited)

        Pages 105–112

105   Financial statements of 
the parent company

        Pages 113–115

113   Management statement
114   Auditor’s reports

Novo Nordisk Annual Report 2008     51

Consolidated financial statements   Consolidated income statement

DKK million

Sales 
Cost of goods sold

Gross profit

Sales and distribution costs
Research and development costs
– hereof costs related to discontinuation of all pulmonary diabetes projects
Administrative expenses
Licence fees and other operating income (net)

Operating profit

Share of profit/(loss) in associated companies
Financial income
Financial expenses

Profit before income taxes

Income taxes

Net profit

Basic earnings per share (DKK)
Diluted earnings per share (DKK)

Note

2008

2007

2006

4, 5, 25
6, 7

6, 7
6, 7
3
6, 7, 8
9

16
10
11

12

13
13

45,553
10,109

35,444

12,866
7,856
(325)
2,635
286

12,373

(124)
1,127
681

41,831
9,793

32,038

12,371
8,538
(1,325)
2,508
321

8,942

1,233
1,303
507

12,695

10,971

3,050

9,645

15.66
15.54

2,449

8,522

13.49
13.39

38,743
9,585

29,158

11,608
6,316
–
2,387
272

9,119

(260)
931
626

9,164

2,712

6,452

10.05
10.00

52 Novo Nordisk Annual Report 2008

DKK million

Assets

Intangible assets
Property, plant and equipment
Investments in associated companies
Deferred income tax assets
Other financial assets

Total long-term assets

Inventories
Trade receivables
Tax receivables
Other receivables
Marketable securities and financial derivatives
Cash at bank and in hand

Total current assets

Total assets

Equity and liabilities

Share capital
Treasury shares
Retained earnings
Other reserves

Total equity

Long-term debt
Deferred income tax liabilities
Retirement benefit obligations
Other provisions

Total long-term liabilities

Short-term debt and financial derivatives
Trade payables
Tax payables
Other liabilities
Other provisions

Total current liabilities

Total liabilities

Total equity and liabilities

Consolidated financial statements   Consolidated balance sheet

Note

31 Dec 2008 31 Dec 2007

14
15
16
23
17

18
19

20
17
30

21

22
23
24
25

26

27
25

788
18,639
222
1,696
194

21,539

9,611
6,581
1,010
1,704
1,377
8,781

671
19,605
500
2,522
131

23,429

9,020
6,092
319
1,493
2,555
4,823

29,064

24,302

50,603

47,731

634
(26)
33,433
(1,062)

647
(26)
30,661
900

32,979

32,182

980
2,404
419
863

4,666

1,334
2,281
567
5,853
2,923

961
2,346
362
1,239

4,908

405
1,947
929
4,959
2,401

12,958

17,624

10,641

15,549

50,603

47,731

Novo Nordisk Annual Report 2008     53

Consolidated financial statements   Consolidated cash flow statement and financial resources

DKK million

Net profit

Adjustment for non-cash items:

Income taxes
Depreciation, amortisation and impairment losses
Interest income and interest expenses
Other adjustments for non-cash items

Income taxes paid
Interest received
Interest paid

Note

2008

2007

2006

9,645

8,522

6,452

7
10, 11
28

3,050
2,442
(385)
1,436
(3,172)
656
(247)

2,449
3,007
(16)
(309)
(2,607)
295
(324)

2,712
2,142
(73)
959
(3,514)
391
(296)

8,773

(804)
(686)
455

Cash flow before change in working capital

13,425

11,017

Change in working capital:
(Increase)/decrease in trade receivables and other receivables
(Increase)/decrease in inventories
Increase/(decrease) in trade payables and other liabilities

(1,110)
(651)
1,199

(702)
(617)
289

Cash flow from operating activities

12,863

9,987

7,738

Investments:
Acquisition of subsidiaries and business units
Sale of intangible assets and long-term financial assets
Purchase of intangible assets and long-term financial assets
Sale of property, plant and equipment
Purchase of property, plant and equipment
Net change in marketable securities (maturity exceeding three months)
Dividend received

Net cash used in investing activities

Financing:
Repayment of long-term debt
Purchase of treasury shares
Sale of treasury shares 
Dividends paid

Cash flow from financing activities

Net cash flow

Unrealised gain/(loss) on exchange rates and marketable securities 
included in cash and cash equivalents

Net change in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

Supplemental information:
Cash and cash equivalents at the end of the year
Bonds with original term to maturity exceeding three months
Undrawn committed credit facilities

29

15

16

30

30
17
26

–
–
(264)
18
(1,772)
466
170

(1,382)

(153)
(4,717)
295
(2,795)

(7,370)

(59)
–
(118)
40
(2,308)
(541)
1,470

(1,516)

(18)
(4,835)
241
(2,221)

(6,833)

4,111

1,638

(2)

(6)

4,109

4,617

8,726

8,726
997
7,451

1,632

2,985

4,617

4,617
1,486
7,457

–
175
(419)
111
(2,898)
514
–

(2,517)

(23)
(3,000)
210
(1,945)

(4,758)

463

39

502

2,483

2,985

2,985
1,001
7,456

Financial resources at the end of the year

17,174

13,560

11,442

Cash flow from operating activities
+ Net cash used in investing activities
– Net change in marketable securities (maturity exceeding three months)

Free cash flow

12,863
(1,382)
466

11,015

9,987
(1,516)
(541)

9,012

7,738
(2,517)
514

4,707

54 Novo Nordisk Annual Report 2008

Consolidated financial statements   Consolidated statement of changes in equity

Share
capital

Treasury
shares

Retained
earnings

Other reserves

Total

Exchange
rate
adjust-
ments

Deferred
gain/(loss)
on cash
flow hedges

Other
adjust-
ments

647 

(26)

30,661

209

678

13

32,182

9,645

(615)
(940)

(473)

8

18

–

(465)

(1,537)

9,645

(465)

(1,537)

(9)
39
(45)
55

40

40

331
(4,701)
292

(2,795)

9,645

(615)
(940)
(473)
(9)
39
(45)
81

(1,962)

7,683

331
(4,717)
295
–
(2,795)

–

–

(13)

–

–

(16)
3
13

634

(26)

33,433

(256)

(859)

53

32,979

DKK million

2008

Balance at the beginning of the year

Net profit for the year

Deferred (gain)/loss on cash flow hedges at the beginning of 
the year recognised as financial income/expenses for the year
Fair value adjustment on financial instruments
Exchange rate adjustment of investments in subsidiaries
Fair value adjustments on financial assets available for sale
Novo Nordisk share of equity recognised by associated companies
Other adjustments
Tax adjustments

Net income recognised directly in equity for the year

Total recognised income and expense for the year

Share-based payment
Purchase of treasury shares
Sale of treasury shares
Reduction of the B share capital
Dividends

Balance at the end of the year

At the end of the year proposed dividends (not yet declared) of DKK 3,650 million (DKK 6.00 per share) are included in Retained earnings. 
No dividend is declared on treasury shares.

DKK million

2007

Balance at the beginning of the year

Net profit for the year

Deferred (gain)/loss on cash flow hedges at the beginning of 
the year recognised as financial income/expenses for the year
Fair value adjustment on financial instruments
Exchange rate adjustment of investments in subsidiaries
Fair value adjustments on financial assets available for sale
Novo Nordisk share of equity recognised by associated companies
Other adjustments
Tax adjustments

Net income recognised directly in equity for the year

Total recognised income and expense for the year

Share-based payment
Purchase of treasury shares
Sale of treasury shares
Reduction of the B share capital
Dividends

Balance at the end of the year

Share
capital

Treasury
shares

Retained
earnings

Other reserves *)

Total

Exchange
rate
adjust-
ments

Deferred
gain/(loss)
on cash
flow hedges

Other
adjust-
ments

674

(39)

28,810

156

419

102

30,122

8,522

–

–

(27)

–

–

(16)
2
27

–

8,522

130
(4,819)
239

(2,221)

(363)
634

(12)

259

259

53

0

53

53

12
(41)
21
(81)

(89)

(89)

8,522

(363)
634
53
12
(41)
21
(93)

223

8,745

130
(4,835)
241
–
(2,221)

647

(26)

30,661

209

678

13

32,182

*) In 2007 adjustments have been made on other reserves regarding the split of tax adjustments.

At the end of the year proposed dividends (declared) of DKK 2,795 million (DKK 4.50 per share) are included in Retained earnings. 
No dividend is declared on treasury shares.

Novo Nordisk Annual Report 2008     55

Consolidated financial statements   Notes – Consolidated financial statements

1  Summary of significant accounting policies

The Consolidated financial statements are prepared in accordance with Inter -
national Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB) and with the International Financial
Reporting Standards as adopted by the EU. The Consolidated financial state-
ments are prepared in accordance with the historical cost convention, as
 modified by the revaluation of available-for-sale financial assets, financial
 assets and financial liabilities (derivative financial instruments) at fair value
through profit or loss. 

The Financial statements of the Parent company, Novo Nordisk A/S, are
 prepared in accordance with The Danish Financial Statements Act. These are
presented on pages 105 to 112 and the accounting policies are set out on 
page 108.

Further, the Annual Report is prepared in accordance with additional Danish
disclosure requirements for annual reports for listed companies.

Effects of new accounting pronouncements
In 2008, Novo Nordisk has adopted the following new or revised standards
and interpretations endorsed by EU effective for the accounting period
 beginning on 1 January 2008.

•  Interpretation guideline to IAS 19, IFRIC 14 – ‘The limit on a defined benefit

asset, minimum funding requirement and their interaction’. IFRIC 14
 provides guidance on assessing the  limit in IAS 19 ‘Employee benefits’ on
the amount of the surplus that can be recognised as an asset. It also
 explains how the pension asset or liability may be affected by a statutory or
con tractual minimum funding requirement. The guideline has no impact 
on the Group’s Financial Statements.

The following interpretation of published standards is mandatory for
 accounting periods beginning on 1 January 2008 but is not relevant to the
Group’s operations:

•  IFRIC 12, ‘Service concession arrangements’

Standards early adopted by the Group
The following standard with effective date of 1 January 2009 has been
 adopted by the group.

•  IFRS 8 ‘Operating segments’ was early adopted in 2008. The impact is

 limited as the reportable segments – diabetes care and biopharmaceuticals
– are unchanged as they are consistent with the internal reporting provided
to management. 

Standards not adopted by the Group
The following standards and interpretations relevant to Novo Nordisk have
been issued and endorsed by EU as per 31 December 2008 and are mandatory
for the Group’s accounting periods beginning on or after 1 January 2009.
These have not yet been adopted by Novo Nordisk:

•  IAS 1 (Revised), ‘Presentation of financial statements’ (effective from 

1 January 2009). The revised standard will prohibit the presentation of
items of income and expenses (that is, ‘non-owner changes in equity’) in
the statement of changes in equity, requiring ‘non-owner changes in
 equity’ to be presented separately from owner changes in equity (com -
prehensive income statement).

•  IAS 23 (Amendment) ‘Borrowing costs’ (effective from 1 January 2009). 

The option of immediately expensing borrowing costs of a qualifying asset
will be removed. Given the present capital structure of the Group the
 impact is expected to be limited.

•  IFRS 2 (Amendment), ‘Share-based payment’ (effective from 1 January

2009). The  amended standard deals with vesting conditions and
cancellations. All  cancellations, whether by the entity or by other parties,
should  receive the same accounting treatment. It is not expected to have a
material impact on the Group’s financial statements.

Standards not endorsed by EU
•  IAS 27 (Revised), ‘Consolidated and separate financial statements’,

 (effective from 1 July 2009). The revised standard requires the effects of all
transactions with non-controlling interests to be recorded in equity if there
is no change in control and these transactions will no longer result in good-
will or gains and losses. It is not expected to have a material impact on the
Group’s financial statements.

56 Novo Nordisk Annual Report 2008

•  IFRS 3 (Revised), ‘Business combinations’ (effective from 1 July 2009). The
revised standard continues to apply the acquisition method to business
combinations, with some  significant changes. For example, all payments 
to purchase a business are to be recorded at fair value at the acquisition 
date, with contingent payments classified as debt subsequently  remeasured
through the Income statement. All acquisition-related costs should be
 expensed. 

•  IFRS 5 (Amendment), ‘Non-current assets held-for-sale and discontinued

 operations’ (and consequential amendment to IFRS 1, ‘First-time adoption’)
(effective from 1 July 2009). The amendment clarifies that all of a sub-
sidiary’s assets and liabilities are classified as held for sale if a partial disposal
sale plan  results in loss of control. 

•  IAS 28 (Amendment), ‘Investments in associates’ (and consequential

amendments to IAS 32, ‘Financial Instruments: Disclosure and Presentation’,
and IFRS 7, ‘Financial instruments: Disclosures’) (effective from 1 January
2009). An investment in associate is treated as a single asset for the
 purposes of impairment  testing. It is not expected to have material impact
on the Group’s financial statements.

•  IAS 36 (Amendment), ‘Impairment of assets’ (effective from 1 January

2009). Where fair value less costs to sell is calculated on the basis of dis-
counted cash flows, disclosures equivalent to those for value-in-use
 calculation should be made. 

•  IAS 38 (Amendment), ‘Intangible assets’ (effective from 1 January 2009). 

A prepayment may only be recognised in the event that payment has been
made in  advance of obtaining right of access to goods or receipt of services.
It is not expected to have a material impact on the Group’s financial state-
ments.

•  IAS 19 (Amendment), ‘Employee benefits’ (effective from 1 January 2009).
The amendment clarifies the handling of plan amendment. The distinction
between short-term and long-term employee benefits will be based on
whether  benefits are due to be settled within or after 12 months of
 employee service being rendered. It is not expected to have a material
 impact on the Group’s financial statements.

•  There are a number of minor amendments to IFRS 7, ‘Financial instruments:
Disclosures’, IAS 1 (Amendment), ‘Presentation of financial statements’, 
IAS 8, ‘Accounting policies, changes in accounting estimates and errors’, 
IAS 10, ‘Events after the reporting period’, IAS 18, ‘Revenue’, IAS 34,
‘Interim financial reporting’ and IAS 39 (Amendment), ‘Financial instru-
ments: Recognition and measurement’. These amendments are not
 expected to have an impact on the Group’s financial statements.

•  IFRIC 16, ‘Hedges of a net investment in a foreign operation’ (effective from
1 January 2009). IFRIC 16  clarifies the accounting treatment in respect of
net investment hedging. This includes the fact that net investment hedging
relates to differences in functional currency not presentation currency, and
hedging instruments may be held anywhere in the Group. The requirements
of IAS 21, ‘The  effects of changes in foreign exchange rates’, do apply to the
hedged item. It is not expected to have a material impact on the Group’s
 financial statements.

The following interpretations and amendments to existing standards have
been published and are mandatory for the Group’s accounting periods
 beginning on or after 1 January 2009 or later periods but are not relevant for
the Group’s operations:

•  IFRS 1 (Amendment) ‘First time adoption of IFRS’, IAS 27 ‘Consolidated and
separate financial statements’, IAS 16 (Amendment), ‘Property, plant and
equipment’ (and consequential amendment to IAS 7, ‘Statement of cash
flows’), IAS 27 (Amendment), ‘Consolidated and separate financial state-
ments’, IAS 28 (Amendment), ‘Investments in associates’ (and consequential
amendments to IAS 32, ‘Financial Instruments: Disclosure and Presentation’
and IFRS 7, ‘Financial instruments: Disclosures’), IAS 29 (Amendment),
‘Finan cial  reporting in hyperinflationary economies’, IAS 31 (Amendment),
‘Interests in joint ventures’ (and consequential amendments to IAS 32 
and IFRS 7), IAS 32 (Amendment), ‘Financial instruments: Disclosure and
Presentation’, IAS 1 (Amend ment), ‘Presentation of financial statements’ –
‘Puttable financial instruments and obligations arising on liquidation’, 
IAS 37, ‘Provisions, contingent liabilities and contingent asset’, IAS 38
(Amend ment), ‘Intangible assets’, IAS 40 (Amendment), ‘Investment pro -
perty’ (and consequential amendments to IAS 16), IAS 41 (Amendment),

Consolidated financial statements   Notes – Consolidated financial statements

1  Summary of significant accounting policies (continued)

‘Agriculture’, IAS 20 (Amendment), ‘Accounting for government grants 
and disclosure of government  assistance’, IFRIC 13, ‘Customer loyalty
 programmes’ and IFRIC 15, ‘Agree ments for construction of real estates’.

Principles of consolidation
The Consolidated Financial Statements include the financial statements of
Novo Nordisk A/S (the Parent company) and all the companies in which Novo
Nordisk A/S directly or indirectly owns more than 50% of the voting rights or
in some other way has a controlling influence (subsidiaries). Novo Nordisk A/S
and these companies are referred to as the Group.

Companies that are not subsidiaries, but in which the Group holds 20% to
50% of the voting rights or in some other way has a significant influence 
on the operational and financial management, are treated as associated com-
panies.

sale is conditional on future events, the amount is recorded as income at the
occurrence of such future events.

Revenue is measured at the fair value of the consideration received or
 receivable.

Research and development
Due to the long development period and significant uncertainties relating to
the development of new products, including risks regarding clinical trials and
regulatory approval, it is concluded that the Group’s internal development
costs in general do not meet the capitalisation criteria in IAS 38 ‘Intangible
Assets’. Consequently, the technical feasibility criteria of IAS 38 are not con-
sidered fulfilled before regulatory approval is obtained. Therefore, all internal
research and development costs are expensed in the Income statement as
 incurred.

The Consolidated financial statements are based on the Financial statements
of the Parent company and of the subsidiaries and are prepared by combining
items of a uniform nature and eliminating intercompany transactions, share-
holdings, balances and unrealised intercompany profits and losses. The
Consolidated financial statements are based on financial statements prepared
by applying the Group’s accounting policies. 

For acquired in-process research and development projects the effect of
 probability is reflected in the cost of the asset and the probability recognition
criteria are therefore always considered satisfied. As the cost of acquired    
in-process research and development projects can often be measured reliably,
these projects fulfil the criteria for capitalisation. Please refer to the section
‘Intangible assets’ regarding the accounting treatment of intangible assets.

The purchase method of accounting is used to account for the acquisition of
businesses by the Group. The cost of an acquisition is measured as the fair
 value of the assets given and liabilities incurred or assumed at the date of
 exchange, plus costs directly attributable to the acquisition. Identifiable assets
acquired, liabilities and contingent liabilities assumed in a business combina-
tion are measured initially at their fair values at the acquisition date,
 irrespective of the extent of any minority interest. The excess of the cost of
 acquisition over the fair value of the Group’s share of the identifiable net
 assets acquired is recorded as goodwill.

Acquired and divested companies are included in the Income statement
 during the period of Novo Nordisk’s ownership. Comparative figures are not
adjusted for disposed or acquired companies.

CRITICAL ACCOUNTING POLICIES

Property, plant and equipment used for research and development purposes
are capitalised and depreciated over their estimated useful lives.

Derivative financial instruments
The Group uses forward exchange contracts, currency options, interest rate
swaps and currency swaps to hedge forecasted transactions, assets and
 liabilities, and net investments in foreign subsidiaries in foreign currencies. 

Novo Nordisk applies hedge accounting under the specific rules of IAS 39
‘Financial instruments’ to forward exchange contracts and currency swaps.
Upon initiation of the contract, the Group designates each derivative financial
contract that qualifies for hedge accounting as a hedge of a specific hedged
transaction: either i) a recognised asset or liability (fair value hedge), ii) a fore-
casted financial transaction or firm commitment (cash flow hedge), or iii) a
hedge of a net investment in a foreign entity.   

Novo Nordisk’s management considers the following to be the most critical
accounting policies for the Group.

Sales and revenue recognition
Sales represent the fair value of the sale of goods excluding value added 
tax and after deduction of provisions for returned products, rebates, trade
 discounts and allowances.

All contracts are initially recognised at fair value and subsequently re-
 measured at their fair values at the balance sheet date. The value adjustments
on forward exchange contracts designated as hedges of forecasted trans -
actions are recognised directly in equity, given hedge effectiveness. The cumu-
lative value adjustment of these contracts is removed from equity and in cluded
in the Income statement under Financial income or Financial expenses when
the hedged transaction is recognised in the Income statement. 

Provisions and accruals for rebates to customers are provided for in the period
the related sales are recorded. Historical data are readily available and reliable
and are used for estimating the amount of the reduction in sales.

Novo Nordisk applies the hedge accounting requirements to interest rate
swaps hedging forecasted transactions. Consequently, the fair value effect of
interest rate adjustments on these contracts is recognised in equity.

Revenue is recognised when it is realised or realisable and earned. Revenues
are considered to have been earned when Novo Nordisk has substantially
 accomplished what it must do to be entitled to the revenues. 

Revenue from the sale of goods is recognised when all the following specific
conditions have been satisfied:

•  Novo Nordisk has transferred to the buyer the significant risk and rewards

of ownership of the goods

•  Novo Nordisk retains neither continuing managerial involvement to the
 degree usually associated with ownership nor effective control over the
goods sold

•  The amount of revenue can be measured reliably
•  It is probable that the economic benefits associated with the transaction

will flow to Novo Nordisk; and

•  The costs incurred or to be incurred in respect of the transaction can be

measured reliably

Currency swaps used to hedge net investments in subsidiaries are measured
at fair value based on the difference between the swap exchange rate and the
exchange rate at the balance sheet date. The value adjustment is recognised
in equity.

Currency options are initially recognised at cost and subsequently re-
 measured at their fair values at the balance sheet date. While providing
 effective  economic hedges under the Group’s risk management policy, the
current use of currency options does not meet the detailed requirements 
of IAS 39 for allowing hedge accounting. Currency options are therefore
recognised directly in the Income statement under Financial income or
Financial expenses.

Forward exchange contracts and currency swaps hedging recognised assets or
liabilities in foreign currencies are measured at fair value at the balance sheet
date. Value adjustments are recognised in the Income statement under
Financial income or Financial expenses, along with any value adjustments of
the hedged asset or liability that is attributable to the hedged risk.

These conditions are usually met by the time the products are delivered to 
the customers. Licence fees are recognised on an accrual basis in accordance
with the terms and substance of the relevant agreement.

All fair values are based on marked-to-market prices or standard pricing
 models.

As a principal rule, sale of intellectual property is recorded as income at the
time of the sale. Where the Group assumes an obligation in connection with a
sale of intellectual property, the income is recognised in accordance with the
term of the obligation. On the sale of intellectual property where the final 

The accumulated net fair value of derivative financial instruments is presented
as ‘Marketable securities and financial derivatives’, if positive, or ‘Short-term
debt and financial derivatives’, if negative.

Novo Nordisk Annual Report 2008     57

Consolidated financial statements   Notes – Consolidated financial statements

1  Summary of significant accounting policies (continued)

Provisions 
Provisions, including tax and legal cases, are recognised where a legal or
 constructive obligation has been incurred as a result of past events and it is
probable that it will lead to an outflow of resources that can be reliably
 estimated. In this connection Novo Nordisk makes the estimate based upon
an evaluation of the individual most likely outcome of the cases. In the case
where a reliable estimate cannot be made, these are disclosed as contingent
liabilities.

OTHER ACCOUNTING POLICIES

Segment reporting
Operating segments are reported in a manner consistent with the internal
 reporting provided to executive management, who is responsible for business
strategies, allocating resources and addressing performance of the operating
segments. 

Translation of foreign currencies
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are
measured using the currency of the primary economic environment in which
the entity operates (functional currency). The Consolidated financial state-
ments are presented in Danish kroner (DKK), which is the functional and
 presentation currency of the Parent company.

Translation of transactions and balances
Foreign currency transactions are translated into the functional currency using
the exchange rates ruling at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from
the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the Income statement,
except when deferred in equity as qualifying cash flow hedges and qualifying
net investment hedges.

Translation differences on non-monetary items, such as financial assets
 classified as available-for-sale, are included in the fair value reserve in equity.

Translation of Group companies
Financial statements of foreign subsidiaries are translated into Danish kroner
at exchange rates ruling at the balance sheet date for assets and liabilities and
at average exchange rates for Income statement items. 

All exchange rate adjustments are recognised in the Income statement with
the exception of exchange gains and losses arising from:

•  The translation of foreign subsidiaries’ net assets at the beginning of the

year translated at the exchange rates at the balance sheet date

•  The translation of foreign subsidiaries’ income statements using average

 exchange rates, whereas balance sheets are translated using the exchange
rates ruling at the balance sheet date

•  The translation of long-term intercompany receivables that are considered

to be an addition to net investments in subsidiaries
•  The translation of investments in associated companies

Other intangible assets
Patents and licences, that include acquired patents and licences to in-process
research and development projects, are carried at historical cost less accumu-
lated amortisation and any impairment loss. 

Internal development of software and the costs related in connection with
major IT projects for internal use are capitalised under Other intangible assets.

Amortisation is provided under the straight-line method over the estimated
useful life of the asset as follows:

•  IT projects: 3–10 years

For the patents and in-process  research and development projects the
 amortisation commence in the year in which the rights first generate sales.

Property, plant and equipment 
Property, plant and equipment are measured at historical cost less accumu -
lated depreciation and any impairment loss. The cost of self-constructed
 assets includes costs directly attributable to the construction of the assets.
Interest on loans financing construction of major investments is recognised as
an expense in the period in which it is incurred. Subsequent cost is included in
the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the
item will flow to the Group and the cost of the item can be measured reliably.  

Land is not depreciated. Depreciation is provided under the straight-line
method over the estimated useful lives of the assets as follows: 

•  Buildings: 12– 50 years
•  Plant and machinery: 5 –16 years
•  Other equipment: 3 –16 years

The assets’ residual values and useful lives are reviewed, and adjusted if
 appropriate, at each balance sheet date.

An asset’s carrying amount is written down to its recoverable amount if the
asset’s carrying amount is higher than its estimated recoverable amount.

Leases
Leases of assets whereby the Group assumes substantially all the risks and
 rewards of ownership are capitalised as finance leases under Property, plant
and equipment and depreciated over the estimated useful lives of the assets,
according to the periods listed above. The corresponding finance lease
 liabilities are included in liabilities.

Operating lease costs are charged to the Income statement on a straight-line
basis over the period of the lease.

Investments in associated companies
Investments in associated companies are accounted for under the equity
method of accounting (ie at the respective share of the associated companies’
net asset value applying Group accounting policies).

The above exchange gains and losses are recognised in Other reserves under
equity.

Goodwill relating to associated companies is recorded under Investments in
associated companies.

Licence fees and other operating income (net)
Licence fees and other operating income (net) comprise licence fees and
 income (net) of a secondary nature in relation to the main activities of the
Group. The item also includes non-recurring income items (net) in respect of
sale of intellectual property.

Intangible assets
Goodwill
Goodwill represents any cost in excess of identifiable net assets, measured at
fair value, in the acquired company. Goodwill recorded under Intangible
 assets is related to subsidiaries.

Goodwill is measured at historical cost less accumulated impairment losses.
Gains and losses on the disposal of an entity include the carrying amount of
goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of impairment
testing. 

Impairment of assets 
Assets that have an indefinite useful life, for example brands or goodwill, 
are tested annually for impairment. The Group assesses the carrying amount
of intangible assets and long-lived assets annually, or more frequently if
events or changes in circumstances  indicate that such carrying amounts may
not be recoverable. Factors con sidered material by the Group and that could
trigger an impairment test  include the following:

•  Significant underperformance relative to historical or projected future

 results

•  Significant changes in the manner of the Group’s use of the acquired assets

or the strategy for its overall business

•  Significant negative industry or economic trends

When it is determined that the carrying amount of intangible assets, long-
lived assets or goodwill may not be recoverable based upon the existence of
one or more of the above indicators of impairment, any impairment is
 measured based on discounted projected cash flows.

58 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

1  Summary of significant accounting policies (continued)

This impairment test is based upon management’s projections and anticipated
future cash flows. The most significant variables in determining cash flows 
are discount rates, terminal values, the number of years on which to base the
cash flow projections, as well as the assumptions and estimates used to deter-
mine the cash inflows and outflows. Management determines the discount
rates to be used based on the risk inherent in the related activity’s current
business model and industry comparisons. Terminal values are based on the
expected life of products, forecasted lifecycle and forecasted cash flows over
that period and the useful lives of the underlying assets.

While the assumptions are believed to be appropriate, the amounts 
estimated could differ materially from what actually occurs in the future.
These discounted cash flows are prepared at cash-generating-unit level. The
cash- generating-units are the smallest group of identifiable assets that
 generates cash inflows from continuing use which are largely independent of
the cash inflows from other assets or groups of assets.

Financial assets
The Group classifies its investments in the following categories: Financial
 assets at fair value through profit or loss (financial derivatives), Loans and
 receivables and Available-for-sale financial assets. The classification depends
on the purpose for which the investments were acquired. Management
 determines the classification of its investments on initial recognition and re-
evaluates this designation at every reporting date to the extent that such a
designation is permitted and required.

Financial assets at fair value through profit or loss
Financial derivatives used for hedging purposes are classified under financial
assets at fair value through profit or loss even though financial derivatives
used for hedging purposes, which do not qualify for hedge accounting, are
regulated on equity. Assets in this category are classified as current assets. 

Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or
 determinable payments that are not quoted in an active market. Loans and
 receivables are included in Trade receivables and Other receivables in the
Balance sheet.

Trade receivables and Other receivables are stated at amortised cost less
 allowances for doubtful trade receivables. The allowances are based on an
 individual assessment of each receivable. 

Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either
 designated in this category or not classified in any of the other categories.
They are included in Other financial assets unless management intends to
 dispose of the investment within 12 months of the balance sheet date.
Marketable securities under current assets are classified as available-for-sale
financial assets.

Recognition and measurement
Purchases and sales of investments are recognised on the settlement date.
Investments are initially recognised at fair value plus transaction costs for all
financial assets not classified as fair value through profit or loss. 

Currency options, available-for-sale financial assets and financial assets at fair
value through profit or loss are subsequently carried at fair value. Loans and
receivables are carried at amortised cost using the effective interest method. 

Unrealised gains and losses arising from changes in the fair value of financial
assets classified as available-for-sale are recognised in equity. When financial
assets classified as available-for-sale are sold or impaired, the accumulated fair
value adjustments are included in the Income statement as gains and losses
from available-for-sale financial assets.

The fair values of quoted investments are based on current bid prices. Finan -
cial assets for which no active market exists are carried at cost if no reliable
valuation model can be applied (unlisted shares). 

The Group assesses at each balance sheet date whether there is objective
 evidence that a financial asset or a group of financial assets have been
 impaired. If any such evidence exists for available-for-sale financial assets, the
cumulative loss is removed from equity and recognised in the Income state-
ment. Impairment losses recognised in the Income statement on equity instru-
ments are not reversed through the Income statement.

Investments are derecognised when the rights to receive cash flows from the
investments have expired or have been transferred and the Group has trans-
ferred substantially all risks and rewards of ownership.

Inventories 
Raw materials and consumables are measured at cost assigned by using the
first-in, first-out method.

Work in progress and finished goods are stated at cost assigned by using the
first-in, first-out method. Cost comprises direct production costs such as raw
materials, consumables, energy and labour, and production overheads such as
employee costs, depreciation, maintenance etc. The production overheads 
are measured based on a standard cost method which is reviewed regularly in
order to ensure relevant measures of utilisation, production lead time etc. 

If the expected sales price less completion costs and costs to execute sales
(net realisable value) is lower than the carrying amount, a write-down is
recognised for the amount by which the carrying amount exceeds its net
 realisable value.

Tax
Income taxes in the Income statement include tax payable for the year with
addition of the change in deferred tax for the year.

Deferred income taxes arise from temporary differences between the
 accounting and tax balance sheets of the individual consolidated companies
and from realisable tax-loss carry-forwards, using the liability method. The 
tax value of tax-loss carry-forwards is included in deferred tax assets to the
 extent that the tax losses and other tax assets are expected to be utilised 
in the future taxable income. The deferred income taxes are measured
 according to current tax rules and at the tax rates expected to be in force on
the elimination of the temporary differences. 

Unremitted earnings are retained by subsidiary companies for reinvestment. 
No provision is made for income taxes that would be payable upon the
 distribution of such earnings. If the earnings were remitted, an immaterial
 income tax charge would result, based on the tax statutes currently in effect.

No deferred tax is calculated on differences associated with investments in
subsidiaries, branches and associates as the differences by nature are
 permanent differences. However, deferred tax is calculated if the differences
are tax deductible.

Employee benefits 
Wages, salaries, social security contributions, paid annual leave and sick leave,
bonuses and non-monetary benefits are accrued in the year in which the
 associated services are rendered by employees of the Group. Where the
Group provides long-term employee benefits, the costs are accrued to match
the rendering of the services by the employees concerned.

Pensions
The Group operates a number of defined contribution plans throughout the
world. In a few countries the group still operates defined benefit plans. The
costs for the year for defined benefit plans are determined using the projected
unit credit method. This reflects services rendered by employees to the dates
of valuation and is based on actuarial assumptions primarily regarding dis-
count rates used in determining the present value of benefits, projected rates
of remuneration growth and long-term expected rates of return for plan
 assets. Discount rates are based on the market yields of high-rated corporate
bonds in the country concerned. 

Actuarial gains and losses are recognised as income or expense when the net
cumulative unrecognised actuarial gains and losses for each individual plan at
the end of the previous reporting period exceeded 10% of the higher of the
defined benefit obligation and the fair value of plan assets at that date. These
gains or losses are recognised over the expected average remaining working
lives of the employees participating in the plans. 

Past service costs are allocated over the average period until the benefits be-
come vested. 

Pension assets and liabilities in different defined benefit schemes are not off-
set unless the Group has a legally enforceable right to use the surplus in one
plan to settle obligations in the other plan. Pension assets are only recognised
to the extent that the Group is able to derive future economic benefits in the
way of refunds from the plan or reductions of future contributions.

Novo Nordisk Annual Report 2008     59

Consolidated financial statements   Notes – Consolidated financial statements

1  Summary of significant accounting policies (continued)

3  Critical accounting estimates and judgements

The Group’s contributions to the defined contribution plans are charged to
the Income statement in the year to which they relate.

Share-based compensation
The Group operates equity-settled, share-based compensation plans. The fair
value of the employee services received in exchange for the grant of the
 options or shares is recognised as an expense and allocated over the vesting
period.

The total amount to be expensed over the vesting period is determined by
 reference to the fair value of the options or shares granted, excluding the
 impact of any non-market vesting conditions. The fair value is fixed at grant
date. Non-market vesting conditions are included in assumptions about the
number of options or shares that are expected to become exercisable. At each
balance sheet date, the Group revises its estimates of the number of options
or shares that are expected to become exercisable. Novo Nordisk recognises
the impact of the revision of the original estimates, if any, in the Income state-
ment and a corresponding adjustment to equity over the remaining vesting
period. Adjustments relating to prior years are included in the Income state-
ment in the year of adjustment. 

Liabilities
Generally, liabilities are stated at amortised cost unless specifically mentioned
otherwise.

Equity
Treasury shares
Treasury shares are deducted from the share capital at their nominal value of
DKK 1 per share. Differences between this amount and the amount paid 
for acquiring, or received for disposing of, treasury shares are deducted from
retained earnings.  

Other reserves
Other reserves consist of exchange rate adjustments, cash flow hedging
 reserve and other adjustments.

Dividends
Dividends are recognised as a liability in the period in which they are declared
at the Annual General Meeting.

Consolidated statement of cash flows and financial resources
The Consolidated statement of cash flows and financial resources is presented
in accordance with the indirect method commencing with net profit. The
statement shows cash flows for the year, the net change in cash and cash
equivalents for the year, and cash and cash equivalents at the beginning and
the end of the year.

Cash and cash equivalents consist of cash and marketable securities, with
original maturity of less than three months, less short-term bank loans.
Financial resources consist of cash and cash equivalents, bonds with original
term to maturity exceeding three months, and undrawn committed credit
 facilities expiring after more than one year.

2  Changes in the scope of consolidation

In 2008, no changes in the scope of consolidation occurred.

In 2007, the Novo Nordisk subsidiary NNE A/S (NNE Pharmaplan A/S) com -
pleted the acquisition of the engineering activities in Pharmaplan GmbH from
the German medical group Fresenius. The cost of the business com bination
was DKK 59 million. The purchase price was paid in cash. The net  assets were
included in the consolidation as from 1 April 2007.

In 2006, no changes in the scope of consolidation occurred.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assump-
tions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date(s) of the financial statements
and the reported amounts of revenues and expenses during the reporting
 period(s). Management bases its estimates on historical experience and
 various other assumptions that are believed to be reasonable under the
 circumstances, the results of which form the basis for making judgements
about the reported carrying amounts of assets and liabilities and the reported
amounts of revenues and expenses that may not be readily apparent from
other sources. Actual results could differ from those estimates. Novo Nordisk
believes the following are the critical accounting estimates and judgements
used in the preparation of its consolidated financial statements.

Non-recurring costs related to discontinuation 
of all pulmonary diabetes projects
Towards the end of 2007, Novo Nordisk conducted a detailed analysis of the
future prospects for inhaled insulin and a review of the medical and commer-
cial potential of the AERx ® iDMS inhaled insulin system (AERx ®).

This analysis resulted in a non-recurring impairment cost regarding intangible
assets and manufacturing activities related to the AERx ® system and cost 
of discontinuing all clinical development in the amount of DKK 1,325 million,
which were recorded and negatively impacted operating profit in 2007.

In April 2008, Novo Nordisk also decided to discontinue the remaining part 
of its pulmonary activities.

As a result of these decisions an additional cost of DKK 325 million was
 included in Research and development costs in the 2008 Annual Report.

In 2008 and 2007, Novo Nordisk recorded the following charges related to
the impairment of pulmonary diabetes projects. 

DKK million

2008

2007

Impairment of intangible assets
Severance pay and other employee related costs
Impairment of tangible assets
Commitments regarding clinical trials
Leasing and investment commitments
Other cost related to closure of pulmonary diabetes projects

Total costs

–
155
53
–
42
75

325

117
–
753
326
129
–

1,325

These charges were included in Research and development costs. In addition,
a cost of DKK 52 million, related to the AERx ® discontinuation, was  included
as financial expense in 2007.

Sales rebate accruals and provisions 
Sales rebate accruals and provisions are established in the same period as the
related sales. The sales rebate accruals and provisions are recorded as a
 reduction in sales and are included in Other provisions and Other liabilities.

The accruals and provisions are based upon historical rebate payments. They
are calculated based upon a percentage of sales for each product as defined
by the contracts with the various customer groups.

Factors that complicate the rebate calculations are:

•  Identification of the products which have been sold subject to a rebate
•  The customer or government price terms which apply
•  The estimated time lag between sale and payment of a rebate

The US market has the most complex arrangements for rebates, discounts
and allowances. 

60 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

3  Critical accounting estimates and judgements (continued)

Significant sales rebate and discount amount are rebates from sales covered
by Medicaid and Medicare, the US public healthcare insurance system.
Provisions for Medicaid and Medicare rebates have been calculated using a
combination of historical experience, product and population growth, price
increases, the impact of contracting strategies and specific terms in the
 individual agreements. For Medicaid, the calculation of rebates involves inter-
pretation of relevant regulations, which are subject to challenge or change in
interpretative guidance by government authorities. Although accruals are
made for Medicaid and Medicare rebates at the time sales are recorded, the
Medicare and Medicaid rebates related to the specific sale will typically be
 invoiced to Novo Nordisk up to six months later. Due to the time lag, in any
particular period the rebate adjustments to sales may incorporate revisions of
accruals for prior periods.

Customer rebates are offered to a number of managed healthcare plans.
These rebate programmes provide that the customer receives a rebate after
attaining certain performance parameters relating to product purchases,
 formulary status and pre-established market share milestones relative to com-
petitors. Since rebates are contractually agreed upon, rebates are estimated
based on the specific terms in each agreement, historical experience, anti -
cipated channel mix, product growth rates and market share information.
Novo Nordisk considers the sales performance of products subject to
 managed healthcare rebates and other contract discounts and adjusts the
provision periodically to reflect actual experience. 

Wholesaler charge-backs relate to contractual arrangements Novo Nordisk
has with indirect customers, mainly in the US, to sell products at prices that
are lower than the list price charged to wholesalers. A wholesaler charge-
back represents the difference between the invoice price to the wholesaler
and the indirect customer’s contract price. Provisions are calculated for
 estimated charge-back using a combination of factors such as historical
 experience, current wholesaler inventory levels, contract terms and the value
of claims received yet not processed. Wholesaler charge-backs are generally
settled within one to three months of incurring the liability.

Novo Nordisk believes that the accruals and provisions established for sales
 rebates are reasonable and appropriate based on current facts and circum-
stances. However, the actual amount of rebates and discounts may differ
from the amounts estimated by management.

A reconciliation of gross sales to net sales for North America (includes the US
and Canada) is as follows:

DKK million

Gross sales

Gross-to-net sales adjustments:
Medicaid and Medicare rebates
Managed healthcare rebates
Wholesaler charge-backs
Cash discounts
Sales returns
Other rebates and allowances

2008

2007

2006

22,639

20,109

17,196

(1,672)
(1,543)
(2,949)
(433)
(512)
(376)

(1,279)
(1,333)
(2,594)
(381)
(432)
(344)

(1,186)
(1,073)
(2,074)
(310)
(116)
(157)

Total gross-to-net sales adjustments

(7,485)

(6,363)

(4,916)

Net sales

15,154

13,746

12,280

The carrying amount of sales rebate accruals and provisions is DKK 2,400
 million at 31 December 2008. Please refer to notes 5 and 25 for further infor-
mation on sales accruals and provisions.

Indirect production costs (IPCs)
Work in progress and finished goods are stated at cost assigned by using the
first-in, first-out method. Cost comprises direct production costs such as raw
materials, consumables, energy and labour, as well as IPCs such as employee
costs, depreciation, maintenance etc.

IPCs are measured based on a standard cost method which is reviewed
 regularly in order to ensure relevant measures of utilisation, production lead
time and other relevant factors. Changes in the parameters for calculation of
IPCs, including utilisation levels, production lead time etc could have an im-
pact on the gross margin and the overall valuation of inventories. The carrying
amount of IPCs is DKK 4,633 million at 31 December 2008. Please refer to 
note 18 for further information.

Allowances for doubtful trade receivables
Trade receivables are stated at amortised cost less allowances for potential
losses on doubtful trade receivables. 

Novo Nordisk maintains allowances for doubtful trade receivables for
 estimated losses resulting from the subsequent inability of the customers to
make required payments. If the financial conditions of the customers were to
deteriorate, resulting in an impairment of their ability to make payments,
 additional allowances may be required in future periods. Management specifi-
cally analyses trade receivables and analyses historical bad debt, customer
concentrations, customer creditworthiness, current economic trends and
changes in the customer payment terms when evaluating the adequacy of the
allowance for doubtful trade receivables. 

The uncertainty connected with the allowance for doubtful trade receivables
is considered limited. The carrying amount of allowances for doubtful trade
receivables is DKK 602 million at 31 December 2008. Please refer to note 19
for further information.

Income taxes
Management judgement is required in determining the Group’s provision for
deferred income tax assets and liabilities. Novo Nordisk recognises deferred
income tax assets if it is probable that sufficient taxable income will be avail-
able in the future against which the temporary differences and unused tax
losses can be utilised. Management has considered future taxable income in
assessing whether deferred income tax assets should be recognised. 

The carrying amount of deferred income tax assets and deferred income 
tax  liabilities is DKK 1,696 million and DKK 2,404 million respectively at 
31 December 2008. Please refer to note 23 for further information.

Provisions and contingencies
As part of normal business Novo Nordisk issues credit notes for expired goods.
Consequently a provision for future returns is made, based on historical
 statisti cal product returns.

Revenue recognition for new product launches is based on specific facts and
circumstances for the specific products, including estimated demand and
 acceptance rates from well-established products with similar market
 characteri stics. In recent years the products launched by Novo Nordisk have
been comparable with either other products already on the market or pro -
ducts in therapy areas well known to Novo Nordisk, and therefore uncertain-
ties surrounding products launched have been limited.

The carrying amount of provision for returned products is DKK 594 million at
31 December 2008. Please refer to note 25 for further information.

Management of the Group makes judgements about provisions and con -
tingencies, including the probability of pending and potential future litigation
outcomes that in nature are dependent on future events that are inherently
uncertain. In making its determinations of likely outcomes of litigation etc,
management considers the evaluation of external counsel knowledgeable
about each matter, as well as known outcomes in case law. Provisions 
for pending litigations are recognised under Other provisions. Please refer to
notes 25 and 36 for a description of significant litigations pending.

Novo Nordisk Annual Report 2008     61

Consolidated financial statements   Notes – Consolidated financial statements

4  Segment information

Business segments

For management reporting purposes, the Group operates in two global
 business segments based on different therapies:

Diabetes care: 
The business segment includes discovery, development, manufacturing and
marketing of products within the areas of insulin, GLP-1 and related delivery
systems as well as oral antidiabetic products (OAD).

Biopharmaceuticals: 
The business segment includes discovery, development, manufacturing and
marketing of products within the therapy areas haemostasis management,

growth hormone therapy, hormone replacement therapy, inflammation
 therapy and other therapy areas.

No operating segments have been aggregated to form the above reportable
operating segments.

Management monitors the operating result of its business segments
 separately for the purpose of making decisions about resource allocation and
performance assessment. Segment performance is evaluated based on
 operating profit consistent with the consolidated financial statements. Group
financing (including financial expense and financial income) and income taxes
are managed on a group basis and are not allocated to operating segments.

Business segments

DKK million

Segment sales and results

Sales
Modern insulins (insulin analogues)
Human insulins
Insulin-related sales
Oral antidiabetic products (OAD)

Diabetes care total

Haemostasis management
Growth hormone therapy
Hormone replacement therapy
Other products

Biopharmaceuticals total

Sales

Change in DKK (%)
Change in local currencies (%)

Cost of goods sold 
Sales and distribution costs 
Research and development costs
– hereof costs related to discontinuation of all pulmonary diabetes projects
Administrative expenses 
Licence fees and other operating income 
Operating profit 
Operating profit (excl cost related to discontinuation of all pulmonary diabetes projects)

Share of profit in associated companies
Financial income (net)
Profit before income taxes
Income taxes

Net profit

Other segment items

Depreciation and amortisation
Impairment losses in the Income statement
Additions to property, plant and equipment and intangible assets (net)
Long-term assets
Total assets
Total liabilities

2008

2007

2006

Diabetes care

17,317
11,804
1,844
2,391

14,008
12,572
1,749
2,149

10,825
13,451
1,606
1,984

33,356

30,478

27,866

33,356
9.4%
12.7%
8,705
10,497
4,791
(325)
1,936
142
7,569
7,894

30,478
9.4% 
14.1%
8,404
9,962
6,116
(1,325)
1,916
179
4,259
5,584

27,866
16.1%
17.0%
8,123
9,257
3,898
–
1,748
142
4,982
–

1,899
208
1,628
16,037
30,468
8,398

1,774
931
1,995
16,884
30,257
7,980

1,632
45
2,499
17,606
29,714
7,470

Geographical information

2008

2007

2006

2008

2007

2006

DKK million

Sales

Change in DKK (%)
Change in local currencies (%)

Additions to property, plant and equipment and intangible assets (net)
Property, plant and equipment
Total assets

Europe *)

North America

17,219
5.3%
6.7%
1,458
15,624
40,849

16,350
6.9%
6.8%
1,651
16,398
38,428

15,300
9.1%
8.9%
2,065
16,765
35,232

15,154
10.2%
17.7%
137
973
3,532

13,746
11.9%
21.8%
509
998
2,873

12,280
28.8%
29.4%
460
1,480
3,819

*) The country of domicile for Novo Nordisk is disclosed as Europe in the geographical information.

62 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

4  Segment information (continued)

There are no sales or other transactions between the business segments.
Costs have been split between business segments based on a specific alloca-
tion with the addition of a minor number of corporate overheads allocated
systematically to the segments. Other operating income has been allocated to
the two segments based on the same principle. Segment assets comprise 
the assets that are applied directly to the activities of the segment, including
 intangible assets, property, plant and equipment, long-term financial assets,
inventories, trade receivables and other receivables. Segment liabilities com-
prise liabilities derived from the activities of the segment, including provisions,
trade payables and other liabilities.

No single customer represents 10% or more of the total revenue.

Geographical information

The Group operates in four main geographical areas:

Europe: EU, EFTA, Albania, Bosnia-Herzegovina, Croatia, Macedonia, 
Serbia & Montenegro and Kosovo
North America: The US and Canada
Japan & Oceania: Japan, Australia and New Zealand
International Operations: All other countries

Sales are attributed to geographical regions based on the location of the
 customer. There are no sales between regions. Total assets and additions to
property, plant and equipment and intangible  assets are based on the 
location of the assets.

2008

2007

2006

2008

2007

2006

2008

2007

2006

Biopharmaceuticals

Corporate/unallocated

Total

6,396
3,865
1,612
324

5,865
3,511
1,668
309

5,635
3,309
1,607
326

12,197

11,353

10,877

12,197
7.4%
11.1%
1,404
2,369
3,065
–
699
144
4,804
4,804

11,353
4.4%
9.9%
1,389
2,409
2,422
–
592
142
4,683
4,683

10,877
11.6%
12.7%
1,462
2,351
2,418
–
639
130
4,137
–

17,317
11,804
1,844
2,391

14,008
12,572
1,749
2,149

10,825
13,451
1,606
1,984

33,356

30,478

27,866

6,396
3,865
1,612
324

5,865
3,511
1,668
309

5,635
3,309
1,607
326

12,197

11,353

10,877

45,553
8.9%
12.2%
10,109
12,866
7,856
(325)
2,635
286
12,373
12,698

(124)
446
12,695
3,050

41,831
8.0%
12.9%
9,793
12,371
8,538
(1,325)
2,508
321
8,942
10,267

1,233
796
10,971
2,449

9,645

8,522

(124)
446

3,050

1,233
796

2,449

(260)
305

2,712

38,743
14.8%
15.7%
9,585
11,608
6,316
–
2,387
272
9,119
–

(260)
305
9,164
2,712

6,452

1,963
179
3,009
23,857
44,692
14,570

284
3
329
3,220
6,640
2,448

263
–
391
3,470
6,685
2,488

291
–
509
3,684
6,783
2,269

47
1
–
2,282
13,495
6,778

37
2
–
3,075
10,789
5,081

40
134
1
2,567
8,195
4,831

2,230
212
1,957
21,539
50,603
17,624

2,074
933
2,386
23,429
47,731
15,549

2008

2007

2006

2008

2007

2006

2008

2007

2006

International Operations

Japan & Oceania

8,425
15.5%
20.5%
354
1,827
5,267

7,295
12.3%
17.8%
222
2,031
5,648

6,494
18.1%
18.7%
465
1,897
4,618

4,755
7.1%
2.1%
8
215
955

4,440
(4.9%)
3.1%
4
178
782

4,669
(0.9%)
5.0%
19
208
1,023

45,553
8.9%
12.2%
1,957
18,639
50,603

Total

41,831
8.0%
12.9%
2,386
19,605
47,731

38,743
14.8%
15.7%
3,009
20,350
44,692

Novo Nordisk Annual Report 2008     63

Consolidated financial statements   Notes – Consolidated financial statements

5  Sales rebate accruals and provisions

7  Depreciation, amortisation and impairment losses

DKK million

2008

2007

2006

DKK million

2008

2007

2006

At the beginning of the year
Additional rebates deducted from sales
Adjustments to previous year’s accruals 
and provisions
Payments and grants of rebates 
during the year
Exchange rate adjustments

1,833
4,157

1,847
3,176

1,872
2,761

(209)

(168)

(218)

(3,469)
88

(2,835)
(187)

(2,372)
(196)

At the end of the year

2,400

1,833

1,847

Included in the Income statement 
under the following headings:
Cost of goods sold
Sales and distribution costs
Research and development costs *)
Administrative expenses

Total depreciation, amortisation 
and impairment losses

1,831
38
473
100

1,652
31
1,205
119

1,682
56
302
102

2,442

3,007

2,142

Specification of sales rebate accruals 
and provisions:
Other liabilities
Current provisions

119
2,281

89
1,744

72
1,775

*) Hereof costs of DKK 53 million in 2008 related to discontinuation of all pulmonary 

diabetes projects (DKK 870 million in 2007).

Total sales rebate accruals and provisions

2,400

1,833

1,847

8  Fees to statutory auditors

6  Employee costs

DKK million

2008

2007

2006

Wages and salaries
Share-based payment costs (refer to note 33)
Pensions – defined contribution plans
Retirement benefit obligations 
(refer to note 24)
Other contributions to social security
Other employee costs

10,541
331
745

128
714
1,169

9,792
130
724

109
709
1,094

9,225
113
670

111
645
911

Total employee costs

13,628

12,558

11,675

Included in the Income statement 
under the following headings:
Cost of goods sold
Sales and distribution costs
Research and development costs
Administrative expenses

3,676
5,083
3,040
1,654

3,519
4,498
2,813
1,563

3,632
3,904
2,424
1,523

Total included in the Income statement

13,453

12,393

11,483

In addition the following employee 
cost are consolidated in other operating 
income (net):
NNE Pharmaplan A/S
NNIT A/S

Included in the Balance sheet as:
Capitalised employee costs related to 
assets in course of construction etc
Change in employee costs included 
in inventories

Total included in the Balance sheet

897
760

29

146

175

800
642

58

107

165

545
556

115

77

192

DKK million

2008

2007

2006

Statutory audit 
Audit-related services
Tax advisory services
Other services

Total 

25
4
16
1

46

25
6
15
1

47

24
7
16
1

48

9  Licence fees and other operating income (net)

DKK million

2008

2007

2006

Licence fees 
Net income from IT, engineering and 
other services
Other income

Total licence fees and other operating 
income (net)

146

50
90

229

148

26
66

55
69

286

321

272

10  Financial income

DKK million

2008

2007

2006

Interest income *)
Capital gain on investments etc (net)
Foreign exchange gain on derivative 
financial instruments (net)
Gains on currency options

631
–

462
34

322
–

911
70

Total financial income

1,127

1,303

369
153

407
2

931

*) 2008 includes interest income related to the conclusion of the antidumping case 

in Brazil.

Total employee costs

13,628

12,558

11,675

11  Financial expenses

In addition the following employee 
cost have been capitalised as assets 
in course of construction
NNE Pharmaplan A/S

297

264

545

For information on remuneration to the Board of Directors and 
Executive Management, please refer to note 34.

DKK million

2008

2007

2006

Interest expenses
Capital loss on investments etc (net) *)
Foreign exchange loss (net)
Other financial expenses

Total financial expenses

246
28
355
52

681

324
60
71
52

507

296
–
268
62

626

Average number of full-time employees
Year-end number of full-time employees

26,069
26,575

24,344
25,516

22,590
23,172

*) Including unrealised capital loss of DKK 52 million related to Novo Nordisk’s 

investment in Aradigm Inc. in 2007.

64 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

12  Income taxes

DKK million

Current tax on profit for the year
Deferred tax on profit for the year

Tax on profit for the year
Adjustments related to previous years – current tax
Adjustments related to previous years – deferred tax

Income taxes in the Income statement

Tax on entries in equity related to current tax
Tax on entries in equity related to deferred tax

Tax on entries in equity

Computation of effective tax rate:
Statutory corporate income tax rate in Denmark
Deviation in foreign subsidiaries’ tax rates compared to the Danish tax rate (net)
Non-tax income less non-tax deductible expenses (net)
Effect on deferred tax related to change in the Danish tax rate in 2007
Other

2008

2,233
851

3,084
(218)
184

3,050

27
(108)

(81)

25.0%
(0.3%)
(0.4%)
–
(0.3%)

2007

2006

2,835
(347)

2,488
(11)
(28)

2,449

43
50

93

25.0%
2.9%
(3.2%)
(2.0%)
(0.4%)

2,832
(213)

2,619
964
(871)

2,712

4
125

129

28.0%
2.1%
(0.4%)
–
(0.1%)

Effective tax rate

24.0%

22.3%

29.6%

13  Earnings per share

DKK million

Net profit

2008

9,645

2007

8,522

2006

6,452

Average number of shares outstanding *)
Dilutive effect of outstanding share bonus pool and options ‘in the money’ **)

in 1,000 shares
in 1,000 shares

615,780
4,947

631,783
4,639

641,862
3,526

Average number of shares outstanding incl dilutive effect of options ‘in the money’ 

in 1,000 shares

620,727

636,422

645,388

Basic earnings per share *)
Diluted earnings per share *)

DKK
DKK

15.66
15.54

13.49
13.39

10.05
10.00

In 2007 there was a stock split of the company’s A and B shares. The trade unit was changed from DKK 2 to DKK 1. The comparative figures for 2006 have been updated accordingly.

*) 
**) For further information on outstanding share bonus pool and options, please refer to note 33.

Novo Nordisk Annual Report 2008     65

Consolidated financial statements   Notes – Consolidated financial statements

14  Intangible assets

DKK million

2008
Cost at the beginning of 2008
Additions during the year
Disposals during the year
Exchange rate adjustments

Cost at the end of 2008

Amortisation and impairment losses at the beginning of 2008
Amortisation for the year
Impairment losses for the year
Amortisation reversed on disposals during the year
Exchange rate adjustments

Amortisation and impairment losses at the end of 2008

Carrying amount at the end of 2008

2007
Cost at the beginning of 2007
Additions during the year
Addition regarding acquisitions
Disposals during the year
Exchange rate adjustments

Cost at the end of 2007

Amortisation and impairment losses at the beginning of 2007
Amortisation for the year
Impairment losses for the year **)
Amortisation reversed on disposals during the year
Exchange rate adjustments

Amortisation and impairment losses at the end of 2007

Carrying amount at the end of 2007

Includes primarily internally developed software and costs related to major IT projects.

*) 
**) Impairment losses of DKK 117 million relates to discontinuation of AERx ®.

Goodwill

Patents and
licences etc

Other
intangible
assets *)

133
5
(2)
–

136

65
–
–
–
–

65

71

82
52
–
(1)
–

133

65
–
–
–
–

65

68

520
172
–
8

700

153
16
50
–
–

219

481

486
21
26
(11)
(2)

520

22
14
117
(1)
1

153

367

572
22
(7)
22

609

336
34
8
(5)
0

373

236

491
97
18
(41)
7

572

333
32
–
(37)
8

336

236

Total

1,225
199
(9)
30

1,445

554
50
58
(5)
0

657

788

1,059
170
44
(53)
5

1,225

420
46
117
(38)
9

554

671

66 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

15  Property, plant and equipment

DKK million

2008
Cost at the beginning of 2008
Additions during the year
Addition regarding acquisitions
Disposals during the year
Transfer from/(to) other items
Exchange rate adjustments

Cost at the end of 2008

Depreciation and impairment losses at the beginning of 2008
Depreciation for the year
Impairment losses for the year *)
Depreciation reversed on disposals during the year
Exchange rate adjustments

Depreciation and impairment losses at the end of 2008

Land and
buildings

Plant and
machinery

Other 
equipment

Total

Payments on 
account and 
assets in
course of
construction

12,208
164
–
(448)
472
(116)

15,564
261
–
(335)
378
(169)

12,280

15,699

3,618
516
6
(333)
(15)

3,792

7,317
1,399
92
(311)
(26)

8,471

2,289
164
–
(183)
335
15

2,620

1,366
265
3
(152)
4

1,486

2,547
1,183
–
(795)
(1,185)
39

32,608
1,772
–
(1,761)
–
(231)

1,789

32,388

702
–
53
(755)
–

13,003
2,180
154
(1,551)
(37)

–

13,749

Carrying amount at the end of 2008

8,488

7,228

1,134

1,789

18,639

2007
Cost at the beginning of 2007
Additions during the year
Addition regarding acquisitions
Disposals during the year
Transfer from/(to) other items
Exchange rate adjustments

Cost at the end of 2007

Depreciation and impairment losses at the beginning of 2007
Depreciation for the year
Impairment losses for the year *)
Depreciation reversed on disposals during the year
Exchange rate adjustments

Depreciation and impairment losses at the end of 2007

11,525
284
7
(241)
640
(7)

14,066
387
–
(720)
1,847
(16)

12,208

15,564

3,231
500
30
(133)
(10)

3,618

6,677
1,302
25
(685)
(2)

7,317

2,623
203
2
(646)
129
(22)

2,289

1,731
226
26
(609)
(8)

1,366

3,775
1,434
–
(33)
(2,616)
(13)

31,989
2,308
9
(1,640)
0
(58)

2,547

32,608

–
–
735
(33)
–

702

11,639
2,028
816
(1,460)
(20)

13,003

Carrying amount at the end of 2007

8,590

8,247

923

1,845

19,605

*) Impairment losses of DKK 53 million relates to discontinuation of all pulmonary diabetes projects in 2008 (DKK 753 million in 2007).

16  Investments in associated companies

DKK million

Aggregated financial information of associated companies:
Sales
Net profit/(loss)
Total assets
Total liabilities

Novo Nordisk’s share of profit/(loss) in associated companies
Hereof unrealised capital gains/(losses)
Novo Nordisk’s carrying amount of investments in associated companies
Hereof Novo Nordisk’s carrying amount of goodwill related to investments in associated companies

Market values of shareholdings in listed associated companies:
– ZymoGenetics, Inc. (NASDAQ symbol: ZGEN)
– Innate Pharma SA (Euronext symbol: IPH)

2008

2007

88
(681)
1,750
1,062

(124)
–
222
69

331
48

333
4,944
3,581
880

1,233
15
500
69

1,237
128

Novo Nordisk recorded in 2007 an income of DKK 1,518 million related to the divestment of the business activities in Dako A/S. As a shareholder in Harno 
Invest A/S (formerly Dako A/S) Novo Nordisk received a dividend of DKK 170 million in 2008 (DKK 1,470 million in 2007).

Please refer to page 101 for a list of Novo Nordisk’s associated companies.

Novo Nordisk Annual Report 2008     67

‘Loans and
Receivables’

‘Assets at
fair value 
through profit 
and loss’

‘Derivatives 
used for
hedging’

‘Available 
for sale’

Total

–
–
–
41
–

41

7,692
8,781

16,514

–
–
–
–
365

365

–
–

365

–
–
–
–
–

–

–
–

–

3
165
997
–
–

1,165

–
–

3
165
997
41
365

1,571

7,692
8,781

1,165

18,044

‘Liabilities at
fair value 
through profit 
and loss’

‘Derivatives 
used for
hedging’

‘Other financial 
liabilities 
at amortised
cost’

–
–
1,279
–

1,279

980
55
–
7,999

9,034

–
–
–
–

–

(9)
997
1.5
4.3%

Total

980
55
1,279
7,999

10,313

Consolidated financial statements   Notes – Consolidated financial statements

17  Financial instruments

DKK million

2008
Assets as per balance sheet
Available-for-sale financial assets:
– Listed shares
– Unlisted shares
– Bonds *)
Loans
Derivative financial instruments (refer to note 35)

Other financial assets and Marketable securities and financial derivatives

Trade and other receivables excluding prepayments (refer to note 19 and 20)
Cash at bank and in hand (refer to note 30)

Total

DKK million

2008
Liabilities as per balance sheet
Long-term debt (refer to note 22)
Bank loans and overdrafts (refer to note 26)
Derivative financial instruments (refer to note 35)
Trade and other payables excluding statutory liabilities (refer to Trade payables and note 27)

Total

Revaluation surplus on available-for-sale financial assets recognised in equity during the year
Bonds with maturity exceeding 12 months from the balance sheet date
Duration of the Group’s bond portfolio (years)
Redemption yield on the Group’s bond portfolio

68 Novo Nordisk Annual Report 2008

17  Financial instruments (continued)

DKK million

2007
Assets as per balance sheet
Available-for-sale financial assets:
– Listed shares
– Unlisted shares
– Bonds *)
Loans
Derivative financial instruments (refer to note 35)

Other financial assets and Marketable securities and financial derivatives

Trade and other receivables excluding prepayments (refer to note 19 and 20)
Cash at bank and in hand (refer to note 30)

Total

DKK million

Consolidated financial statements   Notes – Consolidated financial statements

‘Loans and
Receivables’

‘Assets at
fair value 
through profit 
and loss’

‘Derivatives 
used for
hedging’

‘Available 
for sale’

Total

–
–
–
40
–

40

6,983
4,823

–
–
–
–
1,048

1,048

–
–

11,846

1,048

–
–
–
–
–

–

–
–

–

5
107
1,486
–
–

1,598

–
–

5
107
1,486
40
1,048

2,686

6,983
4,823

1,598

14,492

‘Liabilities at
fair value 
through profit 
and loss’

‘Derivatives 
used for
hedging’

‘Other financial 
liabilities 
at amortised
cost’

2007
Liabilities as per balance sheet
Long-term debt (refer to note 22)
Long-term debt due within one year (refer to note 26)
Bank loans and overdrafts (refer to note 26)
Derivative financial instruments (refer to note 35)
Trade and other payables excluding statutory liabilities (refer to Trade payables and note 27)

Total

Revaluation surplus on available-for-sale financial assets recognised in equity during the year
Bonds with maturity exceeding 12 months from the balance sheet date
Duration of the Group’s bond portfolio (years)
Redemption yield on the Group’s bond portfolio

–
–
–
–
–

–

12
985
1.6
4.4%

–
–
–
45
–

45

961
154
206
–
6,560

7,881

*) Danish AAA-rated mortgage bonds issued by Danish credit institutions governed by The Danish Financial Supervisory Authority.

For a description of Credit quality of financial assets such as ‘Trade receivables’, ‘Cash at bank and short term bank deposits’ and ‘Derivative financial assets’ 
please refer to note 31.

Total

961
154
206
45
6,560

7,926

Novo Nordisk Annual Report 2008     69

Consolidated financial statements   Notes – Consolidated financial statements

18  Inventories

DKK million

Raw materials and consumables
Work in progress
Finished goods

Total inventories

20  Other receivables

2008

2007

DKK million

1,279
6,659
1,673

1,210
6,010
1,800

9,611

9,020

Prepayments
Interest receivable
Amounts owed by affiliated companies
Rent deposit
Other receivables

2008

2007

593
54
146
305
606

602
79
105
254
453

Total other receivables

1,704

1,493

Indirect production costs included in work 
in progress and finished goods

4,633

4,418

Amount of write-down of inventories 
recognised as expense during the year *)

Amount of reversal of write-down 
of inventories during the year

733

188

48

81

*) Write-downs in 2008 include a few batches of bulk insulin with impurities.

19  Trade receivables

DKK million

Trade receivables (gross)

Allowances for doubtful trade receivables:
Balance at the beginning of the year
Change in allowances during the year
Realised losses during the year

Balance at the end of the year

2008

2007

7,183

6,634

542
69
(9)

602

459
119
(36)

542

Total trade receivables

6,581

6,092

Trade receivables (net) are equal to an 
average credit period of (days)

53

53

Trade receivables (gross) can be specified as follows:
Not due

5,699

5,255

Overdue by:
Between 1 and 179 days
Between 180 and 359 days
More than 360 days

Total trade receivables (gross)

901
263
320

835
182
362

7,183

6,634

70 Novo Nordisk Annual Report 2008

21  Share capital

DKK million

Development in share capital:
A share capital
B share capital

At the end of the year

Consolidated financial statements   Notes – Consolidated financial statements

2008

2007

107
527

634

107
540

647

The A share capital remained unchanged at DKK 107 million from 2004 to 2008. In 2008 the B share capital was reduced by DKK 13 million from DKK 540 million
to DKK 527 million. In 2007 the B share capital was reduced by DKK 27 million from DKK 567 million to DKK 540 million. In 2006 the B share capital was reduced
by DKK 35 million from DKK 602 million to DKK 567 million. The B share capital remained 602 million from 2004 to 2005. 

See ‘Shares and capital structure’ on page 49.

At the end of 2008, the share capital amounted to DKK 107,487,200 in A share capital (equal to 107,487,200 A shares of DKK 1) and DKK 526,512,800 in 
B share capital (equal to 526,512,800 B shares of DKK 1).

Treasury shares:
Holding at the beginning of the year
Cancellation of treasury shares

Holding of treasury shares, adjusted for cancellation

Purchase during the year
Sale during the year
Value adjustment

Holding at the end of the year

Number of   As % of share
capital before
cancellation

B shares 
of DKK 1

As % of share
capital after
cancellation

Market value
DKK million

25,815,130
(12,960,000)

3.99%
(2.00%)

12,855,130

1.99%

2.03%

15,579,207
(2,713,242)

2.46%
(0.43%)

8,648
(3,950)

4,306

4,717
(295)
(1,758)

25,721,095

4.06%

6,970

Acquisition of treasury shares during the year is part of the 2006 to 2009 share buy-back programme of Novo Nordisk B shares. The programme was initiated 
in order to align the capital structure with the expected development in free cash flow. Sale of treasury shares relates to exercised share options and employee
shares.

At the end of the year 8,840,007 of the treasury B shareholding shares are regarded as hedge for the share-based incentive schemes and restricted stock 
awards to employees.

22  Long-term debt

DKK million

Mortgage debt and other secured loans *)

Unsecured loans and other long-term loans **) 

Total long-term debt

The debt is payable within the following periods as from the balance sheet date:
Between one and two years
Between two and three years
Between three and four years
Between four and five years
After five years

Total long-term debt

The debt is denominated in the following currencies:
DKK
EUR
USD

Total long-term debt

Adjustment of the above loans to market value at year-end 2008 would result in a loss of DKK 2 million (a loss of DKK 2 million in 2007).

*)  Terms to maturity between 2016 – 2022 and a weighted average interest rate of 4.09%.
**) Terms to maturity in 2011 and a weighted average interest rate of 1.63%.

2008

2007

504

476

980

0
476
0
42
462

980

2
502
476

980

504

457

961

0
0
457
0
504

961

2
502
457

961

Novo Nordisk Annual Report 2008     71

Consolidated financial statements   Notes – Consolidated financial statements

23  Deferred income tax assets and liabilities

DKK million

At the beginning of the year
Deferred tax on profit for the year
Adjustment relating to previous years
Deferred tax on items recognised on equity
Addition regarding acquisition
Exchange rate adjustments

Total deferred tax (assets)/liabilities (net)

DKK million

Assets

Liabilities

Specification
The deferred tax assets and liabilities are allocable 
to the various balance sheet items as follows:
Property, plant and equipment
Intangible assets
Indirect production costs
Unrealised profit on intercompany sales 
Allowances for doubtful trade receivables
Tax-loss carry-forward
Other

Netting of deferred tax assets and deferred tax liabilities related to 
income taxes for which there is a legally enforceable right to offset

Total deferred tax (assets)/liabilities (net)

(129)
(628)
–
(1,997)
(72)
(52)
(453)

(3,331)

1,502
7
1,158
–
2
–
1,370

4,039

1,635

(1,635)

(1,696)

2,404

2008
Total

1,373
(621)
1,158
(1,997)
(70)
(52)
917

708

–

708

2008

2007

(176)
851
184
(108)
–
(43)

708

Assets

Liabilities

(451)
(677)
–
(1,643)
(61)
(22)
(1,188)

(4,042)

1,321
1
1,103
–
1
–
1,440

3,866

1,520

(1,520)

(2,522)

2,346

87
(347)
(28)
50
7
55

(176)

2007
Total

870
(676)
1,103
(1,643)
(60)
(22)
252

(176)

–

(176)

Tax-loss carry-forward
Deferred tax assets are recognised on tax-loss carry-forwards that represent income likely to be realised in the future. The deferred tax assets of a tax loss of 
DKK 276 million (DKK 224 million in 2007) have not been recognised in the Balance sheet. Hereof DKK 15 million expire within three years.

72 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

24  Retirement benefit obligations

Most employees in the Group are covered by post-employment retirement plans in the form of primarily defined contribution plans or alternatively defined benefit
plans. Group companies sponsor these plans either directly or by contributing to independently administered funds. The nature of such plans varies according to
the legal regulations, fiscal requirements and economic conditions of the countries in which the employees are employed, and the benefits are generally based on
the employees’ remuneration and years of service. The obligations relate both to existing retirees’ pensions and to pension entitlements of future retirees.

Other post-employment benefits consist mostly of post-retirement healthcare plans, principally in the United States.

Post-employment benefit plans are usually funded by payments from Group companies and by employees to funds independent of the Group. Where a plan is
 unfunded, a liability for the retirement obligation is recognised in the Group’s Balance sheet. In accordance with the Accounting Policies the costs recognised for
post-employment benefits are included in Cost of goods sold, Sales and distribution costs, Research and development costs or Administrative expenses.

The following shows a five-year summary reflecting the funding of retirement obligations and the impact of historical deviations between expected and actual 
return on plan assets and actuarial adjustments on plan liabilities:

DKK million

Retirement obligations
Plan assets

Deficit/(surplus)
Unrecognised gains/(loss)

Retirement obligations recognised in the balance sheet

Actuarial (gains)/losses on plan assets
Actuarial (gains)/losses on plan liabilities 

2008

2007

2006

2005

2004

1,103
(649)

454
(35)

419

56
24

885
(566)

319
43

362

(3)
(151)

938
(495)

443
(113)

330

(3)
7

875
(435)

440
(124)

316

6
77

609
(313)

296
(46)

250

(2)
16

DKK million

2008

2007

DKK million

2008

2007

Balance sheet obligations for
Defined benefit pension plans
Post-employment medical benefits

Total retirement obligations

Change/development in the retirement 
obligations of the year
At the beginning of the year
Current service cost
Interest cost on pension obligation
Actuarial (gains)/losses
Past service costs
Benefits paid to employees
Addition regarding acquisition
Changed classification of pensions plans
Plan amendments
Other
Exchange rate adjustments

At the end of the year

Change/development in the fair value 
of plan assets of the year
At the beginning of the year
Expected return on plan assets
Actuarial gains/(losses)
Employer contributions
Benefits paid to employees
Addition regarding acquisition
Changed classification of pensions plans
Other
Exchange rate adjustments

At the end of the year

907
196

1,103

738
147

885

Weighted average asset allocation 
of funded retirement obligations
Equities
Bonds
Cash at bank
Property

885
112
41
24
1
(52)
–
17
–
3
72

1,103

566
24
(56)
81
(24)
–
11
3
44

649

938
91
32
(151)
–
(23)
31
–
3
–
(36)

885

495
18
3
68
(10)
1
–
–
(9)

566

22%
58%
15%
5%

27%
56%
12%
5%

870
(649)

221

233

(68)

36
(3)

695
(566)

129

190

2

44
(3)

The amounts recognised in the Balance sheet 
are determined as
Present value of funded obligations
Fair value of plan assets

Present value of unfunded obligations
Unrecognised actuarial gains/(losses) (net) 
on pension benefit plans
Unrecognised actuarial gains/(losses) (net) 
on post-employment medical plans
Unrecognised past service costs

Net liability in the Balance sheet

419

362

Amounts recognised in the Balance sheet for post-employment defined
 benefit pension plans and medical plans are predominantly non-current and
are reported as either long-term assets or long-term liabilities.

Change/development in the retirement 
obligations recognised in the balance sheet
Net liability at the beginning of the year
Recognised in the income statement for the year
Employer contributions
Benefit paid to employees, net
Exchange rate adjustment
Plan amendments
Addition regarding acquisition
Changed classification of pensions plans
Other

At the end of the year

362
128
(81)
(28)
28
–
–
6
4

419

330
109
(68)
(13)
(27)
3
30
–
(2)

362

Novo Nordisk Annual Report 2008     73

Consolidated financial statements   Notes – Consolidated financial statements

24  Retirement benefit obligations (continued)

DKK million

2008

2007

DKK million

2008

2007

Income statement charge for
Defined benefit pension plans
Post-employment medical benefits

Total income statement charge

92
36

128

79
30

109

The Group expects to contribute DKK 68 million to its defined benefit 
pension plans in 2009.

The weighted average assumptions used for 
computation and valuation of defined 
benefit plans and post-employment medical 
benefits are as follows
Discount rate
Projected return on plan assets
Projected future remuneration increases
Healthcare cost trend rate
Inflation rate

5%
4%
4%
6%
2%

4%
4%
3%
7%
2%

Amounts recognised in the income 
statement for the year
Current service cost
Interest cost on pension obligation
Expected return on plan assets
Actuarial (gains)/losses recognised in the year
Past service cost

Total income statement charge

Actual return on plan assets

112
41
(24)
(2)
1

128

(33)

91
32
(18)
1
3

109

21

For all major defined benefit plans actuarial computations and valuations are
performed annually.

25  Other provisions

DKK million

At the beginning of the year
Additional provisions *)
Adjustments to previous year’s provisions
Used during the year
Exchange rate adjustments

At the end of the year

Specification of other provisions:
Long-term *) 
Current

Total other provisions

Provisions
for returned
products

Provisions
for sales
rebates

Other
provisions 

2008
Total

3,640
3,975
(329)
(3,555)
55

2007
Total

3,367
3,510
(316)
(2,731)
(190)

1,303
46
(25)
(385)
(28)

911

3,786

3,640

863
48

911

863
2,923

3,786

1,239
2,401

3,640

593
236
(95)
(151)
11

594

–
594

594

1,744
3,693
(209)
(3,019)
72

2,281

–
2,281

2,281

*) DKK 339 million in 2007 relates to discontinuation of AERx ®.

Provisions for returned products:
Novo Nordisk issues credit notes for expired goods as a part of normal business. Consequently, a provision for future returns is made based on historical statistical
product returns, which represents management’s best estimate. The provision is expected to be used within the normal operating cycle.

Provisions for sales rebates:
In some countries the actual rebates depend on which customers purchase the products. Factors that complicate the rebate calculations are the identification 
of which products have been sold subject to a rebate, which customer or government price terms apply, and the estimated lag time between sale and payment of
the rebate. Please refer to notes 3 and 5 for further information on rebates deducted from sales.

Other provisions:
Other provisions consist of various types of provisions including provisions for legal disputes, which represents management’s best estimate. Please refer to 
note 36 for further information on commitments and contingencies.

74 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

26  Short-term debt and financial derivatives

28  Other adjustments for non-cash items

DKK million

2008

2007

DKK million

2008

2007

2006

Bank loans and overdrafts
Long-term debt, amounts falling due within one year
Derivative financial instruments (refer to note 35)

Total short-term debt

The debt is denominated in the following currencies:
DKK
EUR
USD
JPY
Other currencies

Total short-term debt

55
–
1,279

1,334

21
40
601
672
–

1,334

206
154
45

405

13
179
108
11
94

405

At year-end, the Group had undrawn committed credit facilities amounting 
to DKK 7,451 million (DKK 7,457 million in 2007). The undrawn committed
credit facilities consist of a EUR 400 million and a EUR 600 million facility
 committed by a number of Danish and international banks. The facilities
 mature in 2009 and 2012 respectively.

Share-based payment costs
Increase/(decrease) in provisions
(Gain)/loss from sale of property, 
plant and equipment
Change in allowances for doubtful 
trade receivables
Unrealised (gain)/loss on shares 
and bonds etc
Unrealised foreign exchange (gain)/loss
Share of (profit)/loss in associated companies
Recognised income of divestment of 
business activities in the associated 
company Harno Invest A/S
Unrealised capital gain on investments in 
associated companies
Other, including difference between average 
exchange rate and year-end exchange rate

331
221

95

69

30
24
195

130
490

140

119

54
37
300

(71)

(1,518)

–

542

(15)

(46)

113
889

134

65

(7)
(143)
244

–

16

(352)

Other adjustments for non-cash items

1,436

(309)

959

27  Other liabilities

DKK million

Employee costs payable
Taxes and duties payable
Accruals and deferred income
Amounts owed to affiliated companies
Other payables

Total other liabilities

29  Cash flows from acquisition of subsidiaries and 

business units

2008

2007

DKK million

2008

2007

2006

2,272
135
78
79
3,289

2,025
346
122
93
2,373

5,853

4,959

Intangible assets
Property, plant and equipment
Other long-term assets
Current assets
Long-term liabilities
Current liabilities

Net assets acquired

Goodwill on acquisition

Consideration paid

Acquired cash and cash equivalents

Net cash flow

Please refer to note 2 for further information.

–
–
–
–
–
–

–

–

–

–

–

44
9
18
149
(37)
(176)

7

52

(59)

–

(59)

–
–
–
–
–
–

–

–

–

–

–

30  Cash and cash equivalents

DKK million

2008

2007

2006

Cash at the end of the year
Short-term bank loans and overdrafts 
at the end of the year (refer to note 26)

8,781

4,823

3,270

(55)

(206)

(285)

Cash and cash equivalents 
at the end of the year

8,726

4,617

2,985

At the end of 2008, 2007 and 2006 there were no marketable securities with
original maturity of less than three months.

Novo Nordisk Annual Report 2008     75

Consolidated financial statements   Notes – Consolidated financial statements

31  Financial risk

Novo Nordisk has centralised the management of the Group’s financial risks.
The overall objective and policies for the company’s financial risk manage-
ment are outlined in the Treasury Policy, which is approved by the Board of
Directors. The Treasury Policy consists of the Foreign Exchange Policy, the
Investment Policy, the Financing Policy and the Policy regarding Credit Risk on
Financial Counterparts, and includes a description of allowed financial
 instruments and risk limits. 

Novo Nordisk only hedges commercial exposures and consequently does not
enter into derivative transactions for trading or speculative purposes. Novo
Nordisk uses a fully integrated Treasury Management System to manage 
all financial positions. All positions are marked-to-market based on real-time
quotes and risk is assessed using generally accepted standards.  

Foreign exchange risk
Foreign exchange risk is the principal financial risk within Novo Nordisk and as
such has a significant impact on the Income statement and the Balance sheet.

The major part of Novo Nordisk’s sales is in EUR, USD, JPY, and GBP, while 
a predominant part of production, research, and development costs is carried
in DKK. As a consequence, Novo Nordisk’s foreign exchange risk is most
 significant in USD, JPY and GBP, leaving out EUR for which the exchange rate
risk is regarded as low due to the Danish fixed-rate policy vis-à-vis the EUR. 
In addition, International Operations’ share of sales is continuously increasing
and the implied foreign exchange risk is becoming more important.

The overall objective of foreign exchange risk management is to limit the
short-term negative impact on earnings and cash flow from exchange rate
fluctuations, thereby increasing the predictability of the financial results. 

Novo Nordisk hedges existing assets and liabilities in major currencies as well
as future expected cash flows up to 24 months forward. Currency hedging is
based upon expectations of future exchange rates and takes place using
mainly foreign exchange forwards and foreign exchange options matching
the due dates of the hedged items. Expected cash flows are continuously
 assessed using historical inflows, budgets and monthly sales forecasts. Hedge
effectiveness is assessed on a regular basis. 

In 2008, financial markets have been characterised by elevated uncertainty.
As a result, volatility has been higher in all financial markets including the
 foreign exchange market. USD fluctuated significantly but ended 2008 with
an appreciation of 4.1% versus DKK. In 2007 the USD depreciated by 10.4%
versus DKK. Movements in the JPY and the GBP were likewise abnormally
high. The JPY appreciated by 30.3%, whereas the GBP depreciated by 24.6%,
both versus DKK. In 2007, the JPY depreciated by 5.5% whereas the GBP
 appreciated by 8.6%. Emerging market currencies impacting sales of Inter -
national Operations overall weakened quite significantly because of the
 financial crisis and increased risk aversion.

At year-end 2008 Novo Nordisk has covered the foreign exchange exposures
on the Balance sheet together with 15 months of expected future cash flow
in USD. For both JPY and GBP the equivalent cover was 13 months of
 expected future cash flow. At the end of 2007, the USD cover was 16 months,
and for JPY and GBP the cover was 15 months and 10 months, respectively.

A 5% change in the following currencies will have a full-year impact on 
operating profit of approximately:

DKK million

USD
JPY
GBP
CNY
CAD

Estimated 
for 
2009

Estimated
for
2008

530
150
80
80
40

470
140
85
65
35

At the end of 2008 a 5% increase in all other currencies versus EUR and DKK
would result in a decrease of the value of the net financial instruments of the
Group of approximately DKK 661 million (DKK 714 million in 2007). A 5% de-
crease in all other currencies versus EUR and DKK would result in an increase
of the value of the net financial instruments of the Group of approximately
DKK 669 million (DKK 772 million in 2007).

The financial instruments included in the foreign exchange sensitivity analysis
are the Group’s cash, accounts receivable and payable, short- and long-term
loans, short- and long-term financial investments, foreign exchange forwards,
and foreign exchange options hedging transaction exposure. Furthermore,
 interest rate swaps and cross-currency swaps are included. Not included are
anticipated currency transactions, investments, and fixed assets. Cross-
 currency swaps hedging translation exposure are excluded from the sensitivity
analysis, as the effects of changing exchange rates hereon are recognised
 directly under shareholders’ funds. 

Novo Nordisk only hedges invested equity in major foreign affiliates to a very
limited extent. Equity hedging takes place using long-term cross-currency
swaps. At the end of 2008, hedged equity made up 12% of the Group’s JPY
equity. At the end of 2007, 12% of the Group’s JPY equity was hedged.

Interest rate risk
The volatility of the financial markets also impacted interest rates. During
2008, DKK and EUR interest rates experienced high volatility and ended the
year with a significant decline. The Danish two-year interest rate swap was
3.57% at the end of 2008, down from 4.23% at the end of 2007.

Changes in the interest rates have an effect on Novo Nordisk’s financial
 instruments. At the end of 2008, an increase in the interest rate level of one
percentage point would, everything else being equal, increase the fair value
of Novo Nordisk’s financial instruments by DKK 19 million (DKK 15 million in
2007).

The financial instruments included in the sensitivity analysis consist of market -
able securities, deposits, short- and long-term loans, interest rate swaps 
and cross-currency swaps. Not included are foreign exchange forwards and
 foreign exchange options due to the limited effect that a parallel shift in
 interest rates in all currencies have on these instruments.

Liquidity risk
Novo Nordisk ensures availability of required liquidity through a combination
of cash management, highly liquid investment portfolios and uncommitted as
well as committed facilities. 

Counterparty risk
The use of derivative financial instruments and money market deposits gives
rise to counterparty exposure. To manage the credit risk on financial counter-
parties, Novo Nordisk only enters into derivative financial contracts with
 financial counterparties having a satisfactory long-term credit rating assigned
by international credit rating agencies. Money market deposits are only
 entered into with financial counterparties having a satisfactory credit rating.
The majority of all deposits are secured by Danish State guarantee until 2010.
Furthermore, maximum credit lines defined for each counterpart limit the
overall counterpart risk. 

The credit risk on bonds is limited as investments are made in highly liquid
bonds with solid credit ratings.

Credit risk on Trade and Other receivables is limited as Novo Nordisk has 
no significant concentration of credit risk, with exposure being spread over a
large number of counterparties and customers.

Capital structure
Novo Nordisk’s capital structure is characterised by a substantial equity ratio.
This is in line with the general capital structure of the pharmaceutical industry
and reflects the inherent long-term investment horizons in an industry with
typically more than 10 years’ development time for pharmaceutical products.
Novo Nordisk’s equity ratio, calculated as equity to total liabilities, was 65.2%
by the end of the year (67.4% at the end of 2007).

76 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

32  Related party transactions

Novo Nordisk A/S is controlled by Novo A/S (incorporated in Denmark), which
owns 25.5% of the shares in Novo Nordisk A/S. The remaining shares are
widely held. The ultimate parent of the Group is the Novo Nordisk Foundation
(incorporated in Denmark). Both entities are considered related parties.

Other related parties are considered to be the Novozymes Group due to joint
ownership, associated companies, the directors and officers of these entities
and management of Novo Nordisk A/S. Following the demerger of NovoZymes
in November 2000, Novo Nordisk A/S has access to certain assets of and may
 purchase certain services from Novo A/S and the Novozymes Group and vice
versa. All agreements relating to such assets and services are based on the list
prices used for sales to third parties where such list prices exist, or the price
has been set at what is regarded as market price. The main part of these
agree ments covers one year.

The Group has had the following material transactions with related parties:

DKK million

Novo Nordisk Foundation
Donations to the Group

Novo A/S
Services provided by the Group
Facilitation provided by Novo A/S
Purchase of Novo Nordisk B shares
Sale of treasury shares (related to share options)
Net balance

The Novozymes Group
Services provided by the Group
Services provided by the Novozymes Group
Net balance

Associated companies
Purchased intangible assets, fees and royalties etc 
paid to associated companies by Novo Nordisk      
Received intangible assets, fees and royalties etc 
from associated companies to Novo Nordisk 

2008
Purchase/
(sale)

2007
Purchase/
(sale)

(29)

(30)

(6)
–
1,016
(9)
1

(284)
147
33

(7)
1
2,090
(8)
3

(253)
159
14

40

(12)

63

–

There have not been any material transactions with any director or officer of
Novo Nordisk, the Novozymes Group, Novo A/S, the Novo Nordisk Foundation
or associated companies. For information on remuneration to the manage-
ment of Novo Nordisk A/S, please refer to note 34.

Apart from the balances included in the Balance sheet under Other financial
assets, Other receivables and Other liabilities, there are no material unsettled
transactions with related parties at the end of the year.

Novo Nordisk Annual Report 2008     77

Consolidated financial statements   Notes – Consolidated financial statements

Share options
Novo Nordisk had established share option schemes in 1998 –2006 with the
purpose of motivating and retaining a qualified management group and 
to ensure common goals for management and the shareholders. Each option
gives the right to purchase one Novo Nordisk B share. All share options are
hedged by treasury shares. No options were granted in 2007 and 2008 as the
future long-term incentive programme from 2007 onwards will be share
based. 

The options are exercisable three years after the issue date and will expire
 after eight years. The exercise price for options granted based on per -
formance targets for the financial years 2000 –2006 was equal to the market
price of the Novo Nordisk B share at the time when the plan was established.
The options can only be settled in shares.

Assumptions
The market value of the Novo Nordisk B share options has been calculated
 using the Black-Scholes option pricing model.

The assumptions used are shown in the table below:

Expected life of the option in years (average) 
Expected volatility 
Expected dividend per share (in DKK)
Risk-free interest rate 
(based on Danish government bonds)
Novo Nordisk B share price 
at the date of grant 
Novo Nordisk B share price 
at the end of the year

2008

2007

2006

6
29%
6.00

6
21%
4.50

6
17%
3.50

3.00%

4.25%

3.60%

N/A

N/A

195

271.0

335.0

235.5

Share options on Novozymes shares
Options granted prior to the demerger of Novozymes A/S in 2000 have been
split into one Novo Nordisk option and one Novozymes option. At the end of
the year, the Group’s outstanding Novozymes options amount to 20,117 
with an average exercise price of DKK 101 per share of DKK 10 and a market
value of DKK 6 million. These options are hedged by the Group’s holding of
Novozymes A/S B shares.

33  Share-based payment schemes

DKK million

2008

2007

2006

Total share-based payment costs 
recognised in income statement
Employee shares (DK based employees)
Employee shares (Outside DK)
Long-term share-based incentive programme 
(Senior management board)
Long-term share-based incentive programme 
(Management group below Senior 
management board) *)

156
15

55

105

–
9

43

78

–
9

46

58

Share-based payment expensed in the 
Income statement

331

130

113

*) Includes long-term share-based incentive programme for 2007 and 2008 and share 

option programme for 2003 to 2006.

Employee shares
In 2008 a general employee share program was implemented in Denmark.
Approximately 12,000 employees have purchased 1.2 million shares at a price
of DKK 150 per share. 

Outside of Denmark the program is structured as share options with the same
initial benefit per employee as in Denmark. Approximately 14,000 employees
have been granted 694,500 shares.

Long-term share-based incentive programme
For a description of the programme please refer to pages 44– 45.

In 2008, the allocation to the joint pool for the Senior Management Board
amounts to DKK 55 million, corresponding to 8 months’ salary. This amount
was expensed in 2008. The cash amount was converted into 171,492 Novo
Nordisk B shares of DKK 1 using a share price of DKK 318, equal to the
 average trading price for Novo Nordisk B shares on the NASDAQ OMX
Copenhagen from 31 January to 14 February 2008. Based on the split of
 participants at the establishment of the joint pool, approximately 35% 
of the pool will be allocated to the members of Executive Management and
65% to the members of the Senior Management Board. 

The shares allocated to the joint pool for 2005 (232,026 shares) were  
released to the individual participants on 29 January 2009 following the
 approval of the Annual Report 2008 by the Board of Directors.

The total number of shares in the joint pool relating to the years 2006, 2007
and 2008 now amounts to 599,284 shares split in the following way:

Year allocated to pool       

Number of shares    

Vesting

2006                         
2007                         
2008                         

261,500            
166,292             
171,492             

599,284

2010
2011
2012

For the management group below the Senior Management Board, a similar
share-based incentive programme was introduced in 2007. The allocation to
the joint pool for this group consisting of approximately 500 employees 
was DKK 135 million in 2007, corresponding to 527,665 shares. The cost of
this allocation will be amortised equally over the period 2007–2010.

For 2008, this group consisted of about 550 employees. The allocation to 
the joint pool was DKK 181 million corresponding to 570,390 shares. The 
cost of this allocation will be amortised equally over the period 2008 –2011.
Including  cancelled allocations of 7,690 shares from 2007 this pool now
 consists of 1,090,365 shares.

78 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

33  Share-based payment schemes (continued)

Outstanding share options in Novo Nordisk

Outstanding at the end of 2005

Granted in respect of 2006 (issued on 31 January 2007)
Exercised in 2006:

of 1997 Ordinary share option plan 
of 1998 Ordinary share option plan 
of 1999 Ordinary share option plan
of 2000 Ordinary share option plan
of Launch share option plan
of 2001 Ordinary share option plan
of 2002 Launch share option plan
of 2005 Employee share options *)                                                        

Cancelled in 2006
Value adjustment ***)

Outstanding at the end of 2006

Exercised in 2007:

of 1998 Ordinary share option plan
of 1999 Ordinary share option plan
of 2000 Ordinary share option plan
of 2001 Ordinary share option plan
of Launch share option plan
of 2001 Launch share option plan 
of 2002 Launch share option plan 
of 2003 Ordinary share option plan 
of 2005 Employee share options *)

Expired in 2007
Cancelled in 2007
Value adjustment ***)

Outstanding at the end of 2007

Employee share options granted 2008 **)
Exercised in 2008:

of 1999 Ordinary share option plan
of 2000 Ordinary share option plan
of 2001 Ordinary share option plan
of 2003 Ordinary share option plan
of 2004 Launch share option plan 
of 2005 Employee share options *)

Expired in 2008
Cancelled in 2008
Value adjustment ***)

Outstanding at the end of 2008

Average exercise 
price per option 
DKK

Market value
per option
DKK

Market
value
DKK million

Share options

9,951,772 

119              

2,229,084 

175              

95
(27,000)
63
(161,500)
(270,400)
99
(280,416)                   99
99
(845,880)
166
(283,600)
161
(36,000)
0
(350)
119
(179,306)

64 

45 

64
64
64
64
64
64
64
64
64

634

99

(2)
(10)
(17)
(18)
(54)
(18)
(2)
0
(11)
519

10,096,404

134

111

1,120

(73,000)
(287,434)
(306,800)
(356,280)
(138,680)
(21,528)
(16,048)
(979,010)
(840)
(17,000)
(261,036)

7,638,748

694,500

(140,500)
(159,525)
(92,700)
(225,225)
(566,516)
(156,380)
(58,070)
(16,000)

63 
99 
99
166
99
166
161
98
0
134
134

140

0

99
99
166
97.5
133.5
0
140
140

6,918,332

133

111 
111 
111
111
111
111
111
111
111
111
111

201

289

201
201
201
201
201
201
201
201

137

(8)
(32)
(34)
(40)
(15)
(2)
(2)
(109)
0
(2)
(29)
688

1,535

201

(28)
(32)
(18)
(45)
(114)
(31)
(12)
(3)
(505)

948

*)  Granted to employees in some countries outside of Denmark with a benefit equal to the employee share benefit obtained by employees under the employee share programme 

in the rest of the world.

**)  Granted to employees outside of DK under the employee share programme, with a benefit equal to the benefit obtained by the Danish based employees under the employee 

share programme.

***) The market value has been calculated using the Black-Scholes model with the parameters existing at year-end of the respective year.

Novo Nordisk Annual Report 2008     79

Consolidated financial statements   Notes – Consolidated financial statements

33  Share-based payment schemes (continued)

Exercisable and outstanding
share options in Novo Nordisk

1999 Ordinary share option plan
2000 Ordinary share option plan
2001 Ordinary share option plan
2003 Ordinary share option plan
2004 Ordinary share option plan
2005 Employee share options *)

Issued
share 
options

Exercised
share 
options

Expired

Cancelled

Outstanding/
exercisable
share options

Exercise 
price
DKK

1,375,000
1,526,000 
1,369,960
2,185,000 
1,618,832
227,080

(1,206,000) 
(1,216,155) 
(732,580)
(1,204,235) 
(566,516) 
(157,570)

(16,000)
–
–
–
–
(18,270)

(153,000)
(46,504)
(86,788)
(82,666) 
(111,000) 
(51,240)

–
263,341
550,592
898,099
941,316
–

Exercisable at the end of 2008

8,301,872 

(5,083,056) 

(34,270)

(531,198) 

2,653,348  

2005 Ordinary share option plan
2006 Ordinary share option plan
2008 Employee share option **)

1,640,468
2,229,084
694,500

–
–
–

–
–
–

(141,568) 
(157,500) 

–

1,498,900
2,071,584
694,500

Outstanding at the end of 2008 ***)

12,865,924

(5,083,056)

(34,270)

(830,266)

6,918,332

Exercise period

24/3 2003 – 23/3 2008
22/2 2004 – 21/2 2009
8/2 2005 –   7/2 2010
6/2 2007 –   5/2 2012
31/1 2008 – 30/1 2013
1/11 2008 – 31/12 2008

31/1 2009 – 30/1 2014
31/1 2010 – 30/1 2015
1/11 2011

99 
99 
166
98 
134
–

153
175
–

*)  Granted to employees in some countries outside of Denmark with a benefit of the 2005 employee share programme equal to the employee share benefit obtained by employees 

under the employee share programme in the rest of the world.

**)  Granted to employees outside of DK, with a benefit of the 2008 employee share programme equal to the benefit obtained by the Danish based employees under the employee 

share programme.

***) All stock options will vest if there is a change of control of Novo Nordisk A/S, cf note 36 Commitments and contingencies.

Average market price of Novo Nordisk B shares per trading period in 2008

31 January – 14 February
30 April – 14 May 
7 August – 21 August 
30 October – 13 November 

Total exercised options

Average
market price
DKK

318
325
306
308

Exercised
share
options

709,551
269,660
107,270
254,365

1,340,846

34  Management‘s remuneration, share options and shareholdings

For information on the Board of Directors, the members of Executive Management and other members of the Senior Management Board, please refer to 
pages 46 – 48 of this Annual Report.

Fee to the Board of Directors and the Audit Committee
In 2008 the base fee for members of the Board of Directors was DKK 400,000 (DKK 400,000 in 2007).

DKK million

Sten Scheibye (Chairman of the Board)
Göran A Ando (Vice chairman of the Board and R&D facilitator) *)
Kurt Anker Nielsen (Chairman of the Audit Committee)
Jørgen Wedel (Audit committee member)
Other Board of Directors/Audit Committee member

Total

Board of
Directors

Audit
Committee

1.0
0.6
0.4
0.4
2.8

5.2

–
–
0.5
0.2
0.1

0.8

2008
Total

1.0
0.6
0.9
0.6
2.9

6.0

Board of
Directors

Audit
Committee

1.0
0.6
0.4
0.4
2.8

5.2

–
–
0.5
0.2
0.2

0.9

2007
Total

1.0
0.6
0.9
0.6
3.0

6.1

*) In his capacity as R&D facilitator, Göran A Ando received a fee of DKK 0.3 million in 2008 (DKK 0.3 million in 2007).

80 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

34  Management‘s remuneration, share options and shareholdings (continued)

Executive Management and other members of Senior Management Board 

DKK million

2008
Executive Management:
Lars Rebien Sørensen
Jesper Brandgaard
Lise Kingo
Kåre Schultz **)
Mads Krogsgaard Thomsen

Executive Management in total

Other members of Senior Management Board in total ***)

Joint pool ****)

2007
Executive Management:
Lars Rebien Sørensen
Jesper Brandgaard
Lise Kingo
Kåre Schultz **)
Mads Krogsgaard Thomsen

Executive Management in total

Other members of Senior Management Board in total ***)

Joint pool ****)

Fixed salary

Cash bonus *)

Pensions

Car allowance
etc

Share-based
payment

Total
remuneration

6.3
3.9
3.5
4.9
3.9

22.5

55.3

6.0
3.5
3.2
5.3
3.5

21.5

48.6

2.1
1.4
1.2
1.8
1.4

7.9

2.1
1.3
1.2
1.5
1.3

7.4

17.1

17.3

2.0
1.2
1.1
1.7
1.2

7.2

2.0
1.2
1.1
1.3
1.2

6.8

17.6

14.9

0.3
0.3
0.3
0.9
0.3

2.1

8.1

0.3
0.3
0.3
1.3
0.3

2.5

7.4

–
–
–
–
–

–

–

54.5

–
–
–
–
–

–

–

42.7

10.8
6.9
6.2
9.1
6.9

39.9

97.8

54.5

10.3
6.2
5.7
9.6
6.2

38.0

88.5

42.7

*) 
**) 

Cash bonus disclosed for 2008 is the expected bonus payment in 2009 relating to performance in 2008. 
The total remuneration in 2007 and 2008 is reflecting costs in relation to Kåre Schultz’ expatriation to Switzerland. Out of the total remuneration approximately 8.9% related to 
cost compensation and associated tax effects of being expatriated.

***)  The total remuneration for 2008 includes remuneration to 26 senior vice presidents of which two resigned during the year. The total remuneration for 2007 includes remuneration

to 25 senior vice presidents of which five resigned during the year.

****)  The joint pool is locked up for three years before it is transferred to the participants employed at the end of the three-year period. The value is the cash amount of the share bonus
granted in the year using the grant date market value of Novo Nordisk B shares. Based on the split of participants at the establishment of the joint pool, approximately 35% 
of the pool will be allocated to the members of Executive Management and 65% to other members of Senior Management Board (2007: 35% and 65% respectively). In the lock-up
period the joint pool may potentially be reduced as a result of lower than planned value creation in subsequent years.

The shares allocated to the joint pool for 2005 (232,026 shares) were released to the individual participants following the approval by the Board of Directors 
on 28 January 2009. Based on the share price at the end of 2008, the value of the released shares is as follows:

Value of shares released in 2009

Executive Management:
Lars Rebien Sørensen
Jesper Brandgaard
Lise Kingo
Kåre Schultz
Mads Krogsgaard Thomsen

Executive Management in total

Other members of Senior Management Board in total **)

*)  The market value of the shares released in 2009 is based on Novo Nordisk B share price at the end of 2008 of DKK 271.
**) In addition 46,404 shares (market value: DKK 12.6 million) were released to retired members of management.

Number Market value *)
DKK million
of shares

23,208
15,468
15,468
15,468
15,468

85,080

100,542

6.3
4.2
4.2
4.2
4.2

23.1

27.2

The remuneration package for members of the Senior Management Board employed in foreign subsidiaries differs from the general package in respect of other
benefit and bonus schemes included in the package in order to ensure an attractive package compared to local conditions. In addition, Executive Management
and other members of Senior Management Board receive ordinary allowances in connection with business travelling, conferences and education etc, which are
based on reimbursement of actual costs.

In the event of termination – whether by Novo Nordisk or by the individual – due to a merger, acquisition or takeover of Novo Nordisk, members of Executive
Management are entitled to a severance payment of 36 months’ fixed base salary plus pension contribution. This equals amounts between DKK 14.0 million 
and DKK 23.8 million.

Novo Nordisk Annual Report 2008     81

Consolidated financial statements   Notes – Consolidated financial statements

34  Management‘s remuneration, share options and shareholdings (continued)

Lars Rebien Sørensen serves as a member of the Board of Directors of ZymoGenetics, Inc. and does not retain the compensation. Lars Rebien Sørensen further-
more serves as a member of the Supervisory Board of Bertelsmann AG and retains the remuneration of EUR 55,000 in 2008 (EUR 59,000 in 2007) and as a
 member of the Supervisory Board of DONG Energy and retains the remuneration of DKK 168,750 in 2008 (DKK 113,000 in 2007). Jesper Brandgaard serves as
Chairman of the Board of SimCorp A/S and retains the remuneration of DKK 442,500 in 2008 (DKK 203,000 in 2007). Lise Kingo served as a member of the 
Board of Directors of GN Store Nord A/S until March 2008 and retained the remuneration of DKK 100,000 (DKK 350,000 in 2007). Kåre Schultz serves as a
 member of the Board of Directors of Lego A/S and retains the remuneration of DKK 250,000 (DKK 171,000 in 2007). Mads Krogsgaard Thomsen serves as a
 member of the Board of Directors of Cellartis AB and DTU and retains the remuneration of SEK 50,000 (SEK 25,000 in 2007) from Cellartis AB and DKK 60,000
(DKK 60,000 in 2007) from DTU.

At the beginning
of the year

Exercised
during the year

Additions
during the year

At the end Market value *)
DKK million
of the year 

91,000 
46,500 
20,000 
34,500 
46,500 

1,000 
1,000
1,000
34,500
1,000

238,500 

38,500

–
–
–
–
–

–

90,000
45,500
19,000
–
45,500

200,000

Other members of Senior Management Board in total **)

323,900 

63,750

16,800

276,950

Total

562,400 

102,250

16,800

476,950

*)  Calculation of market values at year-end has been based on the Black-Scholes option pricing model applying the assumptions shown in note 33.
**) Additions during the year cover the holdings of share options by the Senior Management Board members appointed in 2008.

Management’s holding of Novo Nordisk shares
The internal rules for board members’, executives’ and certain employees’ trading in Novo Nordisk securities only permit trading in the 15-calendar-day period 
following each quarterly announcement. 

At the beginning
of the year

Addition
during the year

Sold/released 
during the year

At the end Market value *)
DKK million
of the year

Management’s share options

Share options in Novo Nordisk

Executive Management:
Lars Rebien Sørensen
Jesper Brandgaard
Lise Kingo
Kåre Schultz
Mads Krogsgaard Thomsen

Executive Management in total

Shares in Novo Nordisk

Board of Directors:
Sten Scheibye
Göran A Ando
Anne Marie Kverneland
Henrik Gürtler
Johnny Henriksen
Jørgen Wedel
Kurt Anker Nielsen 
Kurt Briner
Pamela J Kirby
Stig Strøbæk
Søren Thuesen Pedersen

Board of Directors in total

Executive Management:
Lars Rebien Sørensen
Jesper Brandgaard
Lise Kingo
Kåre Schultz
Mads Krogsgaard Thomsen

800
1,200
3,320
–
660
8,000
62,904
–
–
320
120

–
–
100
–
100
3,000
42,000
–
–
100
465

–
–
320
–
–
–
6,000
–
–
–
–

800
1,200
3,100
–
760
11,000
98,904
–
–
420
585

77,324 

45,765

6,320

116,769

820
320 
120 
320 
320

27,234
18,526
18,526
52,026
18,526

27,134
18,426
18,426
14,500
18,426

920
420
220
37,846
420

Executive Management in total

1,900

134,838

96,912

39,826

The Senior Management Board in total

23,036

160,824

154,410

29,450

Joint pool for Executive Management and 
other members of Senior Management Board **)

912,659

171,492

347,827 ***)    736,324

Total

1,014,919

512,919

605,469

922,369

*)  Calculation of the market value is based on the quoted share prices of DKK 271 at the end of the year.
**)  The annual allocation to the joint pool is locked up for three years before it is transferred to the participants employed at the end of each three-year period. Based on the split of 

participants at the establishment of the joint pool, between 35– 40% of the pool will be allocated to the members of Executive Management and between 60 – 65% to other 
members of the Senior Management Board. In the lock-up period, the joint pool may potentially be reduced as a result of lower than planned value creation in subsequent years.

***) Includes 94,986 shares currently assigned for five retired members of the management.

82 Novo Nordisk Annual Report 2008

13.3
6.7
3.2
–
6.7

29.9

42.0

71.9

0.2
0.3
0.8
–
0.2
3.0
26.8
–
–
0.1
0.2

31.6

0.2
0.1
0.1
10.3
0.1

10.8

8.0

199.5

250.0

Consolidated financial statements   Notes – Consolidated financial statements

35  Derivative financial instruments

Novo Nordisk uses a number of financial instruments to hedge currency exposure and, in line with the Group’s treasury policies, Novo Nordisk only hedges 
commercial exposures and consequently does not enter into derivative transactions for trading or speculative purposes. Novo Nordisk’s currency hedging activities
are categorised into hedging of forecasted transactions (cash flow hedges), hedging of assets and liabilities (fair value hedges) and hedging of net investments.

Hedging of forecasted transactions
The table below shows the fair value of cash flow hedging activities for 2008 and 2007 specified by hedging instrument and the major currencies. The fair value 
of the financial instruments qualifying for hedge accounting under IAS 39 ‘Financial instruments’ is recognised directly under equity until the hedged items 
are recognised in the Income statement. At year-end a loss of DKK 864 million is deferred via equity (a gain of DKK 691 million in 2007). The fair values of the 
financial instruments not qualifying for hedge accounting under IAS 39 are recognised directly in the Income statement.

Financial instruments hedging forecasted transactions qualifying for hedge accounting under IAS 39

2008

2007

Contract
amount
at year-end

Positive 
fair values 
at year-end

Negative
fair values
at year-end

Contract
amount
at year-end

Positive 
fair values 
at year-end

Negative
fair values
at year-end

DKK million

Forward contracts, net sales:
USD
JPY
GBP
Other

Total forward contracts

Cross currency and interest rate swaps:
EUR / EUR *)
EUR / USD *)

Total cross currency and interest rate swaps

Total hedging of forecasted transactions 
qualifying for hedge accounting under IAS 39

10,326
3,464
1,027
354

15,171

251
504

755

–
–
163
31

194

5
–

5

550
511
–
–

1,061

–
2

2

10,043
2,765
840
357

14,005

251
504

755

534
88
34
–

656

17
25

42

15,926

199

1,063

14,760

698

Financial instruments hedging forecasted transactions qualifying for hedge accounting under IAS 39, 
but for which hedge accounting is not applied

Cross currency and interest rate swaps:
DKK / DKK
EUR / EUR *)
EUR / USD *)
JPY/ DKK

Total hedging of forecasted transactions 
qualifying for hedge accounting under IAS 39, 
but for which hedge accounting is not applied

*) The contract value is disclosed only in the upper table.

310
–
–
314

624

–
–
–
40

40

15
8
32
–

55

310
–
–
314

–
–
–
101

624

101

Financial instruments hedging forecasted transactions, but not qualifying for hedge accounting under IAS 39

Currency options:
EUR / USD (purchased USD put)
EUR /JPY (purchased JPY put)

Total hedging of forecasted transactions 
not qualifying for hedge accounting under IAS 39

1,080
–

1,080

17
–

17

–
–

–

2,498
224

2,722

44
3

47

Total hedging of forecasted transactions

17,630

256

1,118

18,106

846

73

Novo Nordisk Annual Report 2008     83

–
–
–
7

7

–
–

–

7

7
8
51
–

66

–
–

–

Consolidated financial statements   Notes – Consolidated financial statements

35  Derivative financial instruments (continued)

2008

2007

The financial contracts existing at the end of the year (cash flow hedges) 
are expected to be recognised in the Income statement within the 
following number of months:
USD
JPY
GBP

The cash flows covered by the above financial contracts are expected 
to occur within the following number of months:
USD
JPY
GBP

15 months
13 months
13 months

16 months
18 months
13 months

16 months
15 months
10 months

17 months
16 months
13 months

The maturity of the swaps existing at the end of 2008 is December 2011 and December 2012 (December 2011 and December 2012 at the end of 2007).

Hedging of assets and liabilities 
The table below shows the fair value of fair value hedging activities for 2008 and 2007 specified by hedging instrument and the major currencies. All changes 
in fair values are recognised in the Income statement amounting to a loss of DKK 34 million in 2008 (a gain of DKK 221 million in 2007). As the hedges are highly 
effective the net gain or loss on the hedged items is similar to the net loss or gain on the hedging instruments.

DKK million

Forward contracts, net sales:
USD
JPY
GBP
Other

Total forward contracts

Total hedging of assets and liabilities

2008

2007

Contract
amount
at year-end

Positive 
fair values 
at year-end

Negative
fair values
at year-end

Contract
amount
at year-end

Positive 
fair values 
at year-end

Negative
fair values
at year-end

1,235
669
326
448

2,678

2,678

2
–
51
56

109

109

–
143
–
–

143

143

1,937
679
389
276

3,281

3,281

145
55
22
4

226

226

–
–
–
5

5

5

The financial contracts existing at the end of the year hedge the currency exposure on assets and liabilities in the Group’s major currencies other than DKK and 
EUR, that is assets and liabilities in USD, JPY and GBP.

84 Novo Nordisk Annual Report 2008

Consolidated financial statements   Notes – Consolidated financial statements

35  Derivative financial instruments (continued)

Hedging of net investments in foreign subsidiaries
The table below shows the fair value of hedging activities relating to net investments in foreign subsidiaries for 2008 and 2007 specified by hedging instrument
and the major currencies. All changes in fair values relating to currency are recognised directly under equity, amounting to a loss of DKK 18 million in 2008 
(an income of DKK 9 million in 2007). All changes relating to interest rates are recognised in the Income statement, amounting to DKK 1 million in 2008 
(DKK 1 million in 2007).

DKK million

Cross currency swaps:
JPY/ DKK

Total hedging of net investments in foreign subsidiaries

2008

2007

Contract
amount
at year-end

Positive 
fair values 
at year-end

Negative
fair values
at year-end

Contract
amount
at year-end

Positive 
fair values 
at year-end

Negative
fair values
at year-end

100

100

–

–

18

18

100

100

9

9

–

–

The maturity of the swap existing at the end of 2008 is October 2009 (October 2009 at the end of 2007).

The financial contracts existing at the end of the year hedge the following share of the major net investments:

DKK million

USD
JPY
GBP
EUR *)
Other

Total

2008

2007

Net investment

% covered

Net investment

% covered

2,423
1,013
153
4,301
3,782

11,672

0%
12%
0%
0%
0%

2,017
746
204
10,238
3,746

16,951

0%
12%
0%
0%
0%

*) Including subsidiaries with EUR as functional currency regardless of the local currency in the subsidiary.

Total hedging activities
The table below summarises the fair values of all the hedging activities of Novo Nordisk.

DKK million

Currency-related instruments:
Forward contracts
Currency options
Cross currency swaps

Total currency-related instruments

Interest-related instruments:
Interest rate swaps

Total interest-related instruments

Financial instruments with both positive and 
negative fair values recognised net in the balance

Total derivative financial instruments included 
in marketable securities and in short-term debt

The fair values at year-end are recognised in:
Income statement
Equity:
– Cash flow hedges
– Equity swaps (included in exchange rate adjustment 
of investments in subsidiaries)

Total fair values

2008

2007

Contract
amount
at year-end

Positive 
fair values 
at year-end

Negative
fair values
at year-end

Contract
amount
at year-end

Positive 
fair values 
at year-end

Negative
fair values
at year-end

17,849
1,080
918

19,847

561

561

303
17
40

360

5

5

1,204
–
52

1,256

23

23

17,286
2,722
918

20,926

561

561

882
47
143

1,072

9

9

20,408

365

1,279

21,487

1,081

12
–
59

71

7

7

78

–

–

–

–

(33)

(33)

20,408

365

1,279

21,487

1,048

166

199

–

365

198

1,063

18

1,279

374

698

9

1,081

45

71

7

–

78

Novo Nordisk Annual Report 2008     85

Consolidated financial statements   Notes – Consolidated financial statements

2008

2007

Contingencies

36  Commitments and contingencies

DKK million

Commitments

Operating lease commitments
The operating lease commitments below are related
to non-cancellable operating leases primarily related
to premises, company cars and office equipment.
Approximately 55% of the commitments are related
to leases outside Denmark. The lease costs for 2008
and 2007 were DKK 951 million and DKK 886 million
respectively.

Lease commitments expiring within 
the following periods as from the 
balance sheet date:
Within one year
Between one and two years
Between two and three years
Between three and four years
Between four and five years
After five years

869
788
412
298
280
870

728
609
445
355
312
719

Total

3,517

3,168

Purchase obligations

2,093

2,018

The purchase obligations primarily relate to con -
tractual obligations to investments in property, plant
and equipment as well as purchase agreements
 regarding medical equipment and consumer goods.
Novo Nordisk expects to fund these commitments
with existing cash and cash flows from operations.

Obligations relating to research and 
development projects

764

2,471

Novo Nordisk has engaged in research and develop-
ment projects with a number of external corpora-
tions. The major part of the obligations comprises
fees on the liraglutide programme.

Other guarantees

412

347

Other guarantees primarily relate to guarantees
 issued by Novo Nordisk in relation to rented property.

Security for debt

1,401

2,166

Land, buildings and equipment etc at carrying amount.

World Diabetes Foundation
At the Annual General Meeting of Novo Nordisk A/S in 2002 the shareholders
agreed on a donation to the World Diabetes Foundation, obligating Novo
Nordisk A/S for a period of 10 years from 2001 to make annual donations to
the Foundation of 0.25% of the net insulin sales of the Group in the
 preceding financial year. 

At the Annual General Meeting in 2008 a new donation in supplement to 
the existing obligation was agreed by the shareholders. According to the 
new  donation, Novo Nordisk is obliged to make annual donations to the
 foundation of 0.01% in the period 2008 –2010 and 0.125% in the period
2011–2017 of the net insulin sales of the Group in the preceding financial
year.

However, annual donations from 2008 –2010 shall not exceed the lower of
DKK 70 million or 15% of the taxable income of Novo Nordisk A/S in the
 financial year in question and from the period 2011 to 2017 the lower 
of DKK 80 million or 15% of the taxable income of Novo Nordisk A/S in the
 financial year in question.

The donation of DKK 68 million in 2008 is recognised in the Income state-
ment.

86 Novo Nordisk Annual Report 2008

See note 3 for the principles for making accounting estimates and judgments
about pending and potential future litigation outcomes.

Pending litigation against Novo Nordisk
As of January 26, 2009 Novo Nordisk Inc., along with a majority of the
 hormone therapy product manufacturers in the US, is a defendant in product
liability lawsuits related to hormone therapy products. These lawsuits cur -
rently involve a total of 50 individuals (as compared to 45 individuals in
January 2008) who allege to have used a Novo Nordisk hormone therapy
product. These products (Activella ® and Vagifem ®) have been sold and
 marketed in the US since 2000. Until July 2003, the products were sold and
marketed exclusively in the US by Pharmacia & Upjohn Company (now Pfizer
Inc.). According to information received from Pfizer, 51 individuals (as com-
pared to 27 individuals in January 2008) currently allege, in relation to similar
lawsuits against Pfizer Inc, that they also have used a Novo Nordisk hormone
therapy product. Novo Nordisk does not have any court trials scheduled for
2009 and does not presently expect to have a trial scheduled before Q3 2009.
Novo Nordisk does not expect the pending claims to have a material impact
on Novo Nordisk’s financial position.

In November 2006, Novo Nordisk A/S and its Italian affiliate Novo Nordisk
Farmaceutici s.p.a were sued by A. Menarini Industrie Farmaceutiche Riunite
s.r.l. and Laboratori Guidotti s.p.a. (‘Menarini’) in the Civil Court in Rome.
Menarini alleges that Novo Nordisk breached an alleged contract with
Menarini for the sale and distribution of insulin and insulin analogues in the
Italian market or, in the alternative, has incurred a pre-contractual or extra
contractual liability arising from negotiations between the parties. Novo
Nordisk disputes the claims made by Menarini. A hearing in the matter is
scheduled to take place on September 29, 2009. Novo Nordisk cannot predict
how long the litigation will take or when it will be able to  provide additional
information. At this point in time, Novo Nordisk does not expect the pending
claim to have a material impact on Novo Nordisk’s  financial position.

Novo Nordisk Inc is currently a defendant in four separate cases filed in the 
US alleging that Novo Nordisk and a number of other pharmaceutical com -
panies provided a false Average Wholesale Price for certain drugs covered by
Medicaid. These cases have been brought by the State of Alabama, and the
counties of Oswego, Erie, and Schenectady, New York. Novo Nordisk was
 dismissed from a similar action brought by the State of Mississippi. Further, in
2005, Novo Nordisk was dismissed in 38 similar cases brought by counties 
in the State of New York. Novo Nordisk does not expect the pending claims 
to have a material impact on Novo Nordisk’s financial position.

Pending claims against Novo Nordisk and investigations 
involving Novo Nordisk
In December 2005, the office of the US Attorney for the Eastern District 
of New York served Novo Nordisk with a subpoena calling for the production
of documents relating to the company’s US marketing and promotional
 practices. The company believes that the investigation is limited to its insulin
products. The subpoena indicates that the documents are necessary for 
the investigation of potential criminal offences relating to healthcare benefit
programmes. Novo Nordisk is cooperating with the US Attorney in this
 investigation. At this point in time, Novo Nordisk cannot determine or predict
the outcome of the investigation. In addition, Novo Nordisk cannot predict
how long the investigation will take or when the company will be able to
 provide additional information.

In February 2006, Novo Nordisk received a subpoena from the US Securities
and Exchange Commission (SEC) calling for Novo Nordisk to produce
 documents relating to the United Nations Oil-for-Food Programme. Other
companies have disclosed that they have received similar subpoenas. Novo
Nordisk has been discussing the matter with the SEC and the US Department
of Justice, and has fully cooperated with the US authorities. Further, since 
21 September 2006, the Danish Prosecutor has investigated the possibility of
disgorging profits earned under the Programme. Novo Nordisk can neither
determine or predict the outcome of these investigations, nor predict how
long they will take.

At this point in time, Novo Nordisk does not expect the pending claim to have
a material impact on Novo Nordisk’s financial position.

Consolidated financial statements   Notes – Consolidated financial statements

36  Commitments and contingencies (continued)

Other litigation proceedings
In addition to the above, the Novo Nordisk Group is engaged in certain
 litigation proceedings. In the opinion of management, settlement or
 continuation of these proceedings are not expected to have a material effect
on the financial position.

Liability for the debts and obligations of Novozymes following 
the demerger of Novozymes in 2000
Novo Nordisk A/S and Novozymes A/S are subject to joint and several liability
for any obligation which existed at the time of the announcement of the
 demerger in 2000. At the end of the year the remaining part of the joint and
several liability in Novozymes A/S amounted to DKK 557 million (DKK 557
 million in 2007). 

Debts and obligations pertaining to the period before 1 January 2000, which
are recognised after 1 January 2000 and which cannot be clearly attributed to
either Novo Nordisk A/S or Novozymes A/S, will be distributed proportionally
between the two companies according to an agreement established in con-
nection with the demerger in November 2000.

Disclosure regarding Change of Control
The EU Take-Over Directive, as partially implemented by the Danish Financial
Statements Act contains certain rules relating to listed companies on
 disclosure of information that may be of interest to the market and potential
takeover bidders, in particular in relation to disclosure of change of control
provisions.

For information on the ownership structure of Novo Nordisk, please see
‘Shares and capital structure’ on pages 49 – 50. For information on change of
control clauses in share option programmes please see pages 78 – 80 with
note 33 ‘Share-based payment schemes’, and in relation to employment
 contracts of Executive Management of Novo Nordisk, please see note 34
’Management’s remuneration, share options and shareholdings’ on pages 
80 – 82.

In addition, Novo Nordisk discloses that the company has significant agree-
ments to which the company is a party and which take effect, alter or
 terminate upon a change of control of the company following implementa-
tion of a takeover bid. If effected, a takeover could – at the discretion of 
each relevant counterparty – lead to the termination of one or more of such
agreements and a total loss of approximately 5% of Novo Nordisk’s turn over,
corresponding to approximately 4% of Novo Nordisk‘s gross profit.

Novo Nordisk Annual Report 2008     87

Consolidated financial statements   Notes – Consolidated financial statements

Financial definitions

ADRs
American Depositary Receipts.

Gross margin
Gross profit as a percentage of sales.

Basic earnings per share (EPS)
Net profit divided by the average number of shares outstanding.

Net profit margin
Net profit as a percentage of sales.

Cash to earnings
Free cash flow as a percentage of net profit.

Diluted earnings per share
Net profit divided by the sum of average number of shares outstanding
 including the dilutive effect of share options ‘in the money’ in accordance
with IAS 33. The dilutive effect of share options ‘in the money’ is calculated as
the difference between the following:
1) the number of shares that could have been acquired at fair value with
 proceeds from the exercise of the share options, and 
2) the number of shares that would have been issued assuming the exercise of
the share options. 
The difference (the dilutive effect) is added to the denominator as an issue of
shares for no consideration.

Effective tax rate
Income taxes as a percentage of profit before income taxes.

Equity ratio
Equity at year-end as a percentage of the sum of total liabilities and equity at
year-end.

Free cash flow
The sum of Cash flow from operating activities and Cash flow from investing
activities excluding Net changes in marketable securities.

Number of shares outstanding
The number of shares outstanding is the total number of shares excluding the
holding of treasury shares.

Operating profit
Earnings before tax, financial items and share of profit/loss in associated
 companies.

Operating profit margin
Operating profit as a percentage of sales.

Payout ratio
Total dividends for the year as a percentage of net profit.

ROIC (return on invested capital)
Operating profit after tax (using the effective tax rate) as a percentage of
 average inventories, receivables, property, plant and equipment as well as
 intangible assets less non-interest-bearing liabilities including provisions (the
sum of the above assets and liabilities at the beginning of the year and at
year-end divided by two).

88 Novo Nordisk Annual Report 2008

Consolidated non-financial statements   Overview of non-financial reporting

Assurance provider’s recommendations
An important element of the assurance process is the disclosure of recom-
mendations from the assurance provider. In years when there have been
 recommendations, Novo Nordisk has disclosed these in the online report.

In 2007 and 2008, the assurance provider had no significant recommenda-
tions for Novo Nordisk.

Global standards
Novo Nordisk’s non-financial reporting follows the accountability standard,
the AA1000 Framework. It states that reporting must provide a complete,
 accurate, relevant and balanced picture of the organisation’s approach to and
impact on society. In addition, Novo Nordisk’s assurance process is designed
according to the AA1000AS (2003). In October 2008, AccountAbility
launched a new version of the AA1000AS (2008). Novo Nordisk will in 2009
decide the timeline for implementing the new assurance standard.

In 2007, Novo Nordisk upgraded its reporting against the Global Reporting
Initiative’s (GRI’s) Sustainability Reporting Guidelines from the 2002 version to
the G3. Reporting on management approaches and performance against 
the list of indicators covering economic, environment, labour practices,
 human rights, society and product responsibility can be found at
annualreport2008.novonordisk.com.

Novo Nordisk reports on the GRI G3 because it is the only internationally
recognised set of indicators. By reporting on the indicators, it is possible for
stakeholders to compare Novo Nordisk’s performance to other organisations’
performance.

As a signatory to the UN Global Compact, a platform to promote good
 corporate principles and learning in the areas of human rights, labour,
 environment and anticorruption, Novo Nordisk reports on actions during
2008 to implement its 10 principles in the Communication on Progress (CoP).

With the new legislation in Denmark, effective as of 1 January 2009, Novo
Nordisk will be required to account for the company’s activities on social
 responsibility,  reporting on business strategies and activities on human rights,
labour  standards, environment and anticorruption. Companies that subscribe
to the UN Global Compact and annually submit their CoP will be in com -
pliance with the new legislation, provided that the annual report includes a
reference to where the CoP has been made  publicly available. Novo Nordisk’s
CoP 2008 can be found at annualreport2008.novonordisk.com or at 
UN Global Compact’s website at unglobalcompact.org/COP.

This is the fifth year that Novo Nordisk reports on the company’s financial and
non-financial performance in one, inclusive document, the Annual Report.
Novo Nordisk continues the process to drive integration of the financial and
non-financial perspectives to business and seeks to reflect this in the approach
to reporting. In the absence of global standards for inclusive reporting, this
approach takes its point of departure in current standards for mandatory,
 financial reporting and current guidelines for voluntary, non-financial report-
ing. The aim is to drive business performance and enhance shareholder value
by exploring the interactions between financial and non-financial objectives.
This entails alignment of key priorities, target setting and definition of key
performance indicators, in consultations that involve internal and external
stakeholders.

The annual report is prepared in respect of current best practice and 
the  principles of materiality, completeness and responsiveness. Stakeholder
 engage  ment informs the process, which also incorporates independent 
expert reviews of the company’s annual reporting. The selection of
information  included in the annual reporting reflects evolving priorities in re-
sponse to business and societal challenges.

In 2008, Novo Nordisk embarked on a process on structuring the control
 environment of non-financial reporting. The aspiration of this work is to
achieve full alignment with the control environment of the financial reporting.

Defining materiality
Ongoing stakeholder engagement and trendspotting help identify new 
issues which are or could become material to Novo Nordisk. The Novo Nordisk
 learning curve is a tool that aligns the process of defining materiality with
 integration into business practices. Emerging issues that are identified as
 relevant and potentially material are included at the bottom of the learning
curve. Following a review of its implications for Novo Nordisk’s long-term
business, a strategy is framed for those issues that are deemed material and
subsequently data, indicators and targets are identified. Once management
of the issue has been embedded in the organisation, so that it is fully inte -
grated into business processes, the strategy will be revisited as appropriate.
Moreover, issues that are included on the learning curve are monitored as part
of the integrated risk management process.

It is Novo Nordisk’s responsibility to ensure that those areas are addressed 
in which the company has significant impact or where it has a responsibility
and ability to act. Novo Nordisk has sought inspiration in AccountAbility’s
 materiality test to define what is material to Novo Nordisk, what should be
 included in the annual report and on which grounds topics should be
 excluded. Applying the materiality test as a tool, sustainability-related issues
are prioritised to be reported either in the printed annual report (most
 material; business critical), online (material, often to specific stakeholder
 interests) or not reported (not material). The same process applies for the
 assurance provider’s recommendations.

The outcomes of formal reviews, research, stakeholder engagement and
 inter  nal materiality discussions are presented as a proposal for the annual
 reporting to Executive Management and the Board of Directors, and sub -
sequently approved. In addition, Novo Nordisk’s external assurance provider 
is requested to assure whether the non-financial performance included 
in the annual report covers the material aspects. The conclusion is available 
in the Independent Assurance Report on Non-financial Reporting 2008. 
Read more about how Novo Nordisk defines materiality at 
annualreport2008.novonordisk.com.

Novo Nordisk Annual Report 2008     89

Consolidated non-financial statements   Non-financial indicators and targets

Non-financial indicators and targets

Novo Nordisk is committed to continuous improvement in the company’s
 environmental, social and economic performance. Setting ambitious
 objectives and targets and reporting on progress in meeting these targets are
core elements of the Novo Nordisk Way of Management. Against this  govern -
ance framework, targets are set to provide direction and impetus for moving

forward. The table shows the extent to which targets were met in 2008 in
terms of non-financial performance. This set of top-level Triple Bottom Line
targets and indicators links into Novo Nordisk’s Balanced Scorecard, which
also focuses on sustainable development. In addition to the non-financial
performance  targets, process targets are identified.

Strategy area

Indicator

Target

Note

2008

2007

2006

Environment

Emissions to air

CO2 emissions

EIR Water

EIR Water Diabetes care

EIR Water Biopharmaceuticals

EIR Energy

EIR Energy Diabetes care

EIREnergy Biopharmaceuticals

Compliance

Breaches of regulatory limit values

Accidental releases

10% reduction by 2014
compared to 2004

10% reduction by 2010 
compared to 2005

10% reduction by 2010 
compared to 2005

10% reduction by 2010 
compared to 2005

10% reduction by 2010 
compared to 2005

50% reduction by 2010 
compared to 2005

50% reduction by 2010 
compared to 2005

Social

Living our values

Importance of social and 
environmental issues for the 
future of the company

Maintain a level of 3.5 or above 
up to 2014

Managers’ behaviour consistent 
with Novo Nordisk’s values

Maintain a level of 3.5 or above 
up to 2014

Fulfilment of action points from 
facilitations of the NNWoM

Maintain a level of 80% or above 
up to 2014

People

Engaging culture 
(employee engagement)

Maintain a level of 4.0 or above 
up to 2014

Opportunity to use and develop 
employee competences/skills

Maintain a level of 3.5 or above 
up to 2014

People from diverse backgrounds 
have equal opportunities

Maintain a level of 3.5 or above 
up to 2014

Health & safety

Frequency of occupational injuries

Continuous decrease

Fatalities

0

Access to health

LDCs where Novo Nordisk operates

Best possible pricing scheme 
in all LDCs

LDCs where Novo Nordisk sells 
insulin at or below the policy price

Best possible pricing scheme 
in all LDCs

Business ethics

Employees in sales and marketing 
trained in business ethics

90% by 2008

Company reputation

Improve (or maintain) company 
reputation with external key 
stakeholders

Improve (or maintain)  
brand score 

Quality

Number of warning letters 
and re-inspections

0

The consolidated non-financial statements on pp 93–99 present and discuss performance during 2008.

1

2

2

2

2

3

3

7

7

7

8

8

8

9

9

10

10

11

12

13

2%

12%

9%

(32%)

(10%)

(4%)

(50%)

(45%)

(36%)

(24%)

(2%)

5%

(34%)

(28%)

(17%)

(84%)

(87%)

(29%)

(13%)

1%

30%

4.5

4.3

4.4

4.2

4.3

4.1

99%

99%

99%

4.2

4.1

4.1

5.4

0

36

32

4.1

4.0

4.0

5.9

0

38

36

99%

95%

4.0

3.9

3.9

6.2

0

35

34

NA

72.4

74.0

73.8

0

0

0

90 Novo Nordisk Annual Report 2008

Consolidated non-financial statements   Notes – Accounting policies for non-financial data

Accounting policies for non-financial data

In 2008, there were no significant changes to the accounting policies for  
non-financial data. The following changes have been made to the basis for
the non-financial data compared to 2007:

•  The production site in Algeria has initiated production of approved products

for the market. The environmental impact has therefore been included 
in the corporate numbers. The production site was ISO14001 certified in
2008.

•  The accounting policy for the indicator ‘Fulfilment of action points planned
arising from facilitations of the Novo Nordisk Way of Management’ has
been specified. The specification has not resulted in changes to the scope
of performance reported.

•  Three new accounting policies have been added for the indicators

‘Business ethics’, ‘Company reputation’ and ‘Quality’. All three indicators
were reported on page 90 in Novo Nordisk’s Annual Report 2007. There
have been no changes to the scope of performance reported.

To Novo Nordisk, the AA1000AS (2003) is an essential component in creating
a generally applicable approach to assessing and strengthening the credibility
of the company’s public reporting of non-financial data. Novo Nordisk’s
 assurance process has been designed to ensure that the qualitative and
 quantitative data that document sustainability performance plus the systems
that underpin the data and performance are assured. The principles outlined
by the AA1000AS (2003) have been applied as described  below. 

1. Completeness
As a pharmaceutical company with global reach, Novo Nordisk is engaged 
in a range of activities to support sustainable development. All of these are
founded on the company’s corporate governance framework, the Novo
Nordisk Way of Management. The annual report aims to capture the
 organisation’s ‘footprint’ in terms of environmental, social and economic
 impacts on society. Hence, performance is accounted for in relation to 
targets, major achievements and key issues. The report does not provide 
full coverage of all the company’s non-financial activities, as it focuses on the
material issues. A full coverage of the company’s non-financial activities can
be found at annualreport2008.novonordisk.com. See scope of the report
below.

2. Materiality
Key issues are identified through ongoing stakeholder engagement and
 addressed by programmes or action plans with clear and measurable targets.
Stretch targets are set to guide the long-term efforts in strategic areas, such
as global access to health. The issues presented in the annual report are
deemed to have a significant impact on the company’s future business per-
formance and may support stakeholders in their decision-making and are
therefore regarded as Novo Nordisk’s material issues.

3. Responsiveness
The report reaches out to a wide range of stakeholders, each with their
 specific needs and interests. To most stakeholders, however, the annual 
report is just one single element of interaction and communication with the
company. The annual report reflects how the company has addressed stake-
holder concerns and interests in dealing with the dilemmas and issues.
Stakeholder dialogue is an invaluable part of Novo Nordisk’s efforts as a re-
sponsible business, and readers are encouraged to give their feedback.

SCOPE
Accounting policies for the non-financial data in the annual report are based
on data for Novo Nordisk A/S, including NNIT A/S, NNE Pharmaplan A/S and
subsidiaries. Environmental data covers the significant environmental impact
of the organisation’s activities at the production sites, which produce ap-
proved products for the market – 14 in total. One production site was added
in 2008 – see above. Social data covers all employees. Economic data covers
the Novo Nordisk Group. Engagements in joint ventures and contract
 licensees are not included in the report scope. However, data for animal
 testing includes testing taking place at contract research organisations.

DATA
To ensure consistency of data, all data has been defined and described 
in company guidelines. Internal control procedures have been established to
ensure that data is reported according to the definitions.

Environmental data
The environmental data covers those activities which, based on an overall
 environmental assessment, could have a significant impact on the environ-
ment.

Emissions to air
•  Emissions of CO2 from energy (total) are based on standard factors for fuel
and for energy on a three-year average of available emission factors from
the external suppliers of energy. Hence, emission factors for 2008 are the
three-year average of 2005 to 2007. The emissions are calculated according
to the GHG protocol.

•  Organic solvents cover the sum of emissions of different types of organic
solvent such as acetone, ethanol etc, and exclude emissions of ozone -
depleting substances. Data is based on measurement and  calculations.

Eco Intensity Ratios (EIRs) for water and energy
•  Environmental performance relative to production size is monitored by the

production-related KPI Eco Intensity Ratio – in short EIR – defined as:

‘EIR = Resource consumption per produced or released unit’

By using the performance indicator ‘EIR’, the total performance, measured
for water and energy, of a production facility or a business area can be
 calculated by adding the EIR ratios in standard units from each process step
or intermediary product in the process flow from, for example, fermenta-
tion to  packaging of the finished product. The consolidation of the EIR does
not account for spills, changes in stock and production of intermedia prod-
ucts for external clients.

Compliance
•  Compliance data consists of breaches of regulatory limits and accidental
 releases. Data is based on information from departments and test  results.
All breaches and accidental releases are reported to the authorities.

Resources
•  Water consumption includes consumption of drinking water, industrial
 water and steam. Data is based on meter readings and checked against
 invoices.

•  Energy consumption (direct and indirect supply) includes both direct supply
of energy (internally produced energy), for example natural gas, fuel oil and
other types, and indirect supply of external energy (externally produced
 energy), for example electricity, steam and district heat. The consumption
of fuel and externally produced energy is based on meter readings and
 invoices.

•  Raw materials and packaging materials comprise materials for production
and related processes and packaging of products. Consumption of raw
 materials and packaging is converted to tons. Data is based on registrations
in Novo Nordisk’s stock system.

Wastewater
•  Quantities of components such as COD, nitrogen and phosphorus are

 calculated based on test results or standard factors.

Waste
•  Total waste is the sum of non-hazardous and hazardous waste. The disposal

of waste is registered based on weight receipts.

•  The recycling percentage is calculated as the proportion of waste recycled
of the total waste. Waste for recycling can be both non-hazardous and
 hazardous. The remaining part of the hazardous waste is waste for special
treatment.

Novo Nordisk Annual Report 2008     91

Consolidated non-financial statements   Notes – Accounting policies for non-financial data

Accounting policies for non-financial data (continued)

Social data
The social data covers all employees included in Novo Nordisk’s headcount.

Living our values
•  Average of respondents’ answers as to whether ‘social and environmental

issues are important for the future of the company’ and whether ‘my
 manager’s behaviour is consistent with the Novo Nordisk values’ is based 
on employee feedback on the questions in the employee survey database
eVoice. The  average is a simple average calculated in the database of
 answers given by the employees.

•  The estimated number of people with diabetes trained or treated includes
people with diabetes targeted with training, awareness or treatment. The
estimated number is based on registrations by subsidiaries and corporate
functions in Novo Nordisk in the Best Practice Database of the activities
conducted within various National Changing Diabetes ® programmes. The
indicator covers all types of activities, hence it encompasses people with
 diabetes directly treated and trained in LDCs, in  developing and developed
countries. The number covers the total number Novo Nordisk has engaged
with since the National Changing Diabetes ®  programmes were initiated in
2002.

•  The percentage of fulfilment of action points arising from facilitations of
the Novo Nordisk Way of Management is calculated as the number of
 actions closed during the calendar year divided by the number of actions
that should have been closed within the year according to agreed dead-
lines.

People
•  All basic employee statistics are based on registrations in the company’s 

SAP Human Resource system. The number of employees is calculated as the
actual number of employees at year-end. 

•  Rate of absence: For employees in Denmark excluding FeF Chemicals,
 absence data is registered in the SAP Human Resource system. For
 employees outside Denmark, data for rate of absence is based on local
 registrations. Types of absence include absence due to the employee’s 
own illness, pregnancy-related sick leave, and occupational injuries and
 illnesses per total available working days in the year adjusted for national
holidays.

•  Rate of employee turnover: The rate of employee turnover is calculated as

Business ethics
•  Employees in sales and marketing trained in business ethics covers  employees

who have participated in national or  regional level training sessions for
Novo Nordisk’s business ethics policy and procedures.

Company reputation
•  Company reputation is measured by a mean brand score in four core

 markets (China, Germany, UK, US) by an independent external consultancy
firm. The mean brand score is based on company ratings collected through
individual interviews, conducted with primary and secondary care profes-
sionals (target groups). The mean brand score is benchmarked against main
competitors.

Quality
•  The number covers warning letters issued by the FDA in connection with
GMP, GCP or GLP inspections and the number of re-inspections issued 
to Novo Nordisk by any health authority globally. Warning letters and  
re-inspections are recorded by Global Quality. Warning letters from the FDA
regarding pro motional materials are not included.

the number of employees who left Novo Nordisk during the year compared
to the average number of employees in the year. 

Training costs
•  Training costs are all costs recorded in a specific account in the financial

•  Average of respondents’ answers to 10 selected questions related to

 employees’ engagement in Novo Nordisk in the employee survey database
eVoice. The average is a simple average calculated in the database of
 answers given by the employees.

•  Average of respondents’ answers as to whether ‘their work gives them an
opportunity to use and develop their competences and skills’ and whether
‘people from diverse backgrounds have equal opportunities’ is based 
on employee feedback on the questions in the employee survey database
eVoice. The average is a simple average calculated in the database of
 answers given by the employees.

Health & safety
•  The frequency of occupational injuries is the number of injuries reported 
for all employees per million working hours. An occupational injury is any
work-related injury causing at least one day of absence in addition to the
day of the injury.

 accounts. The amount covers internal and external training posted in the
 financial accounts.

Patent families
•  Patent families are the ‘number of active patent families to date’ and the

‘new patent families (first filing)’.

Animals
•  Animals purchased for testing are the number of animals purchased for 
all testing undertaken for Novo Nordisk either in-house or at Contract
Research Organisations (CROs). The number of animals purchased is based
on internal registration of purchased animals and yearly reports from CROs.

Economic data
The economic indicators are based on data from the consolidated financial
statements. See financial definitions.

R&D
•  R&D costs, investments and sales are based on Novo Nordisk’s consolidated

•  The number of fatalities is based on registrations centrally and locally in

financial statements.

subsidiaries.

Access to health
•  Novo Nordisk has formulated a pricing policy for the Least Developed

Countries (LDCs). The purpose of the policy is to offer insulin to the world’s
LDCs at or below a price of 20% of the average prices for insulin in the
Western world. The Western world is defined as Europe (EU, Switzerland,
Norway), the United States, Canada and Japan.

•  The term ‘operates in’ does not denote actual physical presence by Novo

Nordisk. It is defined as direct or indirect sales by Novo Nordisk via govern-
ment tender or private market sales to wholesalers, distributors, NGOs etc. 

•  The estimated number of healthcare professionals trained or educated

 includes healthcare professionals directly trained, educated, interacted with
or reached through awareness campaigns. The estimated number is based
on registrations by subsidiaries and corporate functions in Novo Nordisk in
the Best Practice Database of the activities conducted within various
National Changing Diabetes ® programmes. The number covers the total
number Novo Nordisk has engaged with since the National Changing
Diabetes ® programmes were initiated in 2002.

Remuneration
•  The cash value distribution is based on Novo Nordisk’s consolidated finan-

cial statements.

Corporate tax
•  All types of tax reported are based on registrations of taxes paid in

Denmark, except corporate tax as a share of sales.

Employment
•  Direct and indirect effects on the number of jobs, job income and income
tax are calculated using financial registrations and general statistics from
public sources such as Statistics Denmark, Updated Economic Multipliers
for the US Economy 2003 (Economic Policy Institute) and China Statistical
Yearbook. The indicators are an estimate of the effects created by Novo
Nordisk in Denmark and globally.

Exports
•  Novo Nordisk exports as a share of Danish exports are based on ‘Finans -

ministeriets Økonomiske Redegørelse’.

All data is documented and evidence has been submitted to the assurance
provider.

92 Novo Nordisk Annual Report 2008

Consolidated non-financial statements   Notes – Performance indicators

Environment

1   Emissions to air
Novo Nordisk’s total energy consumption decreased by 9% in 2008, which
translates into a similar 9% decrease in the energy-related emissions of CO2
from 236,000 tons in 2007 to 215,000 tons in 2008. The decrease in CO2 was
primarily due to decreased emissions from the production site in Kalundborg
in Denmark as a result of changes in production, process optimisations as 
well as realisation of energy-saving projects. The annual CO2 emission is now
close to the 2004 (210,000 tons) baseline year, only 2% above, and Novo
Nordisk is con fident that the  ambitious 10% absolute reduction target will 
be met in 2014. As planned, this will happen through a continued effort 
in the cLEAN ® programme and secondly, the highly prioritised energy-saving

CO2
Organic solvents

programme. This energy-saving programme has until now resulted in 
an  estimated 20,000 ton reduction in CO2 emissions. Thirdly, green electricity
from the offshore wind farm at Horns Rev II in Denmark will give substantial
reductions, starting in the end of 2009.

Emissions to air of organic solvents increased from 81 tons in 2007 to 93 tons
in 2008, an increase of 15%, which was primarily due to increase in emissions
of acetone and isopropanol. The organic solvents consist of ethanol (68%),
isopropanol (16%) and acetone (16%).

Unit

1,000 tons
Tons

2008

2007

2006

215
93

236
81

229
102

2   Eco Intensity Ratios (EIR)
EIR is reported for the two business areas Diabetes care and Biopharma -
ceuticals. The long-term EIR  target for 2006 –2010 is a 2% reduction in water
and energy consumption relative to production on average per year, which
corresponds to a reduction of 10% for all four EIR indicators. To get the best
foundation for the EIR, the target is based on a bottom-up process where pro-
duction has given its best estimates for water and energy consumption and

related these to the forecasted production. The EIR targets are implemented
in the Balanced Score card for Novo Nordisk. In 2008, the EIR Water and EIR Energy
improved for both Diabetes care and Bio pharma ceuticals. The EIR for water
was improved by 25% for Diabetes care and by 10% for Biopharmaceuticals.
Likewise, the EIR for energy improved by 22% and 8% for Diabetes care and
Biopharma ceuticals respectively.

EIR Water

Diabetes care
Biopharmaceuticals

EIREnergy

Diabetes care
Biopharmaceuticals

3   Compliance
Ensuring compliance with legal environmental requirements is a high priority
for Novo Nordisk. Preventive measures are beginning to show results as
 expected. However, the number of breaches of regulatory limit values in-
creased from 22 in 2007 to 28 in 2008, an increase of 27%. The main reason
being that 21 out of the 28 breaches were related to pH and temperature of
wastewater. Compared to last year this is an increase of 31% due to changes
in the  wastewater treatment. Focus will be increased on pH and temperature
in wastewater in 2009. 

In the same period, the number of accidental releases  decreased by 13% to a
total of 91, of which 66 were releases of cooling agents such as HCFCs, HFCs
and ammonia. This  decreasing number reflects parti cular efforts focused on
cooling equipment, which were initiated in 2007 and intensified in 2008. This
focus has resulted in improved knowledge of what causes the releases, and
hence which  preventive actions to implement.

Breaches of regulatory limit values
– related to pH and temperature of wastewater
Accidental releases
– releases of cooling agents

Unit

m3/ MU
m3/g API

GJ/ MU
GJ/g API

2008

2007

2006

5.5
3.7

4.0
7.3

7.3
4.1

5.1
7.9

7.8
4.8

5.5
9.2

There were no accidental releases of GMOs in 2008. 

All incidents have been reported to the authorities. Novo Nordisk has,
 together with the authorities, assessed that breaches of regulatory limit
 values and  accidental releases have had no or only a minor impact on the
 external environment. The 2010 target of a 50% reduction in the number of
breaches of  regulatory limit values is progressing according to plan with an
84% reduction so far. The long-term target of avoiding breaches of regulatory
limit  values and  accidental releases altogether has, however, not yet been
met. Preventive measures are long-term efforts, consisting of training of key
 employees, risk assessment of production sites and technical solutions to
 mitigate these risks. In 2009 and the following years, there will be continued
focus on compliance and preventive measures, which can further reduce the
number of breaches and help curb the curve of accidental releases.

Unit

Number
Number
Number
Number

2008

2007

2006

28
21
91
66

22
16
105
82

123
119
135
82

Novo Nordisk Annual Report 2008     93

Consolidated non-financial statements   Notes – Performance indicators

Environment (continued)

4   Resources
The consumption of water and energy both decreased from 2007 to 2008.
Energy decreased by 9% and water consumption by 17%. The decrease is
partly due to changes in production at the production facility in Kalundborg,
Denmark, the cLEAN ® programme as well as realisation of energy- and   
water-saving projects. The performance is as expected.

Water consumption
Energy consumption
Raw materials and packaging materials

The consumption of materials decreased by 13%. This decrease is as expected
and was mainly due to production optimisation at site Kalundborg in
Denmark.

Unit

1,000 m3
1,000 GJ
1,000 tons

2008

2,684
2,533
132

2007

3,231
2,784
152

2006

2,995
2,712
142

5   Wastewater
The total volume of wastewater decreased by 8% from 2007 to 2008 as
 expected. In the same period, the discharged quantity of COD increased from
813 tons to 891 tons, corresponding to a 10% increase primarily due to an
extraordinary discharge of ethanol and glucose from a pilot plant in Bagsværd
in Denmark. The quantity of nitrogen decreased from 107 tons to 95 tons,

corresponding to a 11% decrease as expected. The discharged quantity of
phosphorus increased from 14 tons to 15 tons, corresponding to an  increase
of 7% primarily due to changes in production at site Chartres in France.

COD
Nitrogen
Phosphorus

Unit

Tons
Tons
Tons

2008

2007

891
95
15

813
107
14

2006

1,000
107
19

6   Waste
In 2008, there was an increase in the total waste of 16% compared to 2007.
This was due to a 2% increase in the quantity of hazardous waste and a 23%
increase in the quantity of non-hazardous waste. The recycling  percentage in-
creased to 51%, from 38% in 2007.

The 2% increase in hazardous waste was mainly due to an increase in
 contaminated soil and organic compounds. The relative amounts of ethanol
waste and medicine waste were reduced.

The increase in non-hazardous waste can be explained by an increase in
 quantity of gland residue and quantity of wastewater. The wastewater is sent
for special treatment at a hazardous waste treatment facility for  precautionary
reasons. There was a decrease in non-hazardous waste for  incineration and
landfill.

Total waste
– Non-hazardous waste

Recycled
Incinerated *)
Landfill
Special treatment
– Hazardous waste

Recycled ethanol **)
Incinerated ethanol ***)

Recycling percentage

Unit

Tons
Tons
%
%
%
%
Tons
%
%
%

2008

2007

2006

20,346
14,240
57
20
6
17
6,106
38
19
51

17,576
11,604
48
26
13
13
5,972
18
40
38

24,165
10,594
39
33
10
18
13,571
17
48
35

*) 
99.6% with energy recovery (in previous years this figure was 98%).
**)  Ethanol recycled in for example biogas or wastewater treatment plants.
***) Incinerated at combined heat and power plants or at plants for special treatment of hazardous waste with energy recovery.

94 Novo Nordisk Annual Report 2008

Consolidated non-financial statements   Notes – Performance indicators

Social

7   Living our values
Novo Nordisk’s performance improved or remained at a high level for all pa -
rameters in the area of ’living our values’. In the annual climate survey, eVoice,
the average of respondents’ answers as to whether ‘social and environmental
issues are important for the future of the company’ improved by 0.1 to 4.5 
(on a scale from 1–5, with 5 being the highest). Also in eVoice, the  average of
respondents’ answers as to whether ‘my manager’s behaviour is consistent
with Novo Nordisk’s values’ increased by 0.1 to 4.3. Both are 
above the target of >_3.5.

There was 99% fulfilment of action points arising from facilitations, thus
 exceeding the target of 80% fulfilment. At the end of the year all but two 
action points that should have been closed, were closed. Closure of these is
actively pursued. In total, 210 action points should have been closed in 2008.
This is 15% below 2007. Based on the facilitations conducted in 2007/2008 it
is the opinion of the facilitators that Novo Nordisk is in com pliance with the
Novo Nordisk Way of Management.

Unit

2008

2007

2006

Importance of social and environmental issues for the future of the company *)
Managers’ behaviour consistent with Novo Nordisk’s values *)
Fulfilment of action points planned arising from facilitations of the NNWoM

Scale 1–5
Scale 1–5
%

4.5
4.3
99

4.4
4.2
99

4.3
4.1
99

*) On a scale from 1–5, with 5 being the highest.

8   People
By the end of 2008, Novo Nordisk employed 27,068 persons, an increase of
4% compared to 2007. The continued increase in the number of employees
follows Novo Nordisk’s strategy for expansion. This number equals a full-time
equivalent (FTE) of 26,575. It reflects increased activities in all business areas,
particularly in sales & marketing. The ratio between men and women has
changed  slightly; at the end of 2008, 50.4% of the employees were men, as
compared with 50.6% at the end of 2007. The rate of absence was slightly
lower than in 2007 with a performance of 2.2. Employee turn over increased
to 12.1% from 11.6%. One of Novo Nordisk’s key risks, as described on pp
24 –25, is an inability to attract and retain the right talent.

The average answers of 10 equally weighted questions in the annual survey,
eVoice, are used to calculate the level of ‘engaging culture’. In 2008, the con-
solidated score was 4.2, up 0.1 from 2007. The target is to remain at a level of
4.0 or above on a scale from 1–5, with 5 being the highest. The average of re-
spondents’ answers as to whether ‘my work gives me an  opportunity to use
and develop my competences/skills’ increased from 4.0 to 4.1, and the aver-
age of respondents’ answers as to whether ‘people from  diverse backgrounds
have equal opportunities’ increased from 4.0 to 4.1; both were above the tar-
get of >_3.5.

Employees (total)
– Female
– Male
Rate of absence
Rate of employee turnover
Engaging culture (employee engagement) *)
Opportunity to use and develop competences/skills *)
People from diverse backgrounds have equal opportunities *)

*) On a scale from 1–5, with 5 being the highest.

Unit

Number
%
%
%
%
Scale 1–5
Scale 1–5
Scale 1–5

2008

2007

2006

27,068
49.6
50.4
2.2
12.1
4.2
4.1
4.1

26,008
49.4
50.6
2.7
11.6
4.1
4.0
4.0

23,613
49.2
50.8
3.0
10.0
4.0
3.9
3.9

9   Health & safety
Performance on the health & safety indicator ‘frequency of occupational
 injuries’ was satisfactory, as the frequency decreased from 5.9 to 5.4 in 2008,
meeting the target of a continuous decrease. There were no fatalities in 
2008. There is a continued focus on ensuring high health & safety standards

for employees in Novo Nordisk. In 2008, adoption of a health & safety man-
agement system certifiable according to OHSAS 18001 continued for Novo
Nordisk in Denmark and Product Supply globally. All units in Product Supply
were  certified according to the OHSAS18001 in 2008.

Frequency of occupational injuries
Fatalities

No/million work hrs
Number

5.4
0

5.9
0

6.2
0

Unit

2008

2007

2006

Novo Nordisk Annual Report 2008     95

Consolidated non-financial statements   Notes – Performance indicators

Social (continued)

10   Access to health
For 2008, Novo Nordisk offered its best possible pricing scheme, as part 
of the global health initiatives, to all 50 Least Developed Countries (LDCs) as
 defined by the United Nations. During 2008 Novo Nordisk sold insulin to
 either govern ments or to the private market in 32 of the LDCs at or below a
price of 20% of the average prices for insulin in the Western world, compared
to 36 in 2007. In 14 countries Novo Nordisk is not selling insulin at all, for
 various reasons. The four LDCs in which Novo Nordisk did not sell insulin at
the policy price were Afghanistan, Cambodia, Nepal and Samoa. The public
 authorities in all countries have been offered the  opportunity to buy insulin 
at the policy price. The insulin sold in Afghanistan, Cambodia and Nepal 
in 2008 was to the private market. In several cases, the government has not
 responded to the offer, there are no private wholesalers or other partners 
with whom to work, or wars or political unrest sometimes make it impossible
to do business. While Novo Nordisk prefers to sell  insulin at the preferential
price through government tenders, the company is willing to sell to private

LDCs where Novo Nordisk operates
LDCs where Novo Nordisk sells insulin at or below the policy price
Healthcare professionals trained or educated
People with diabetes trained or treated

 distributors and agents. The target is to offer the best possible pricing scheme
to the governments of all LDCs. Unfortunately, there is no way to guarantee
that the price at which Novo Nordisk sells the insulin will be  reflected in the
 final price on the pharmacist’s shelf. Wholesalers and  pharmacies may mark
up the drug  before selling it to the consumer.

A measure of the company’s contribution to global health is the number of
healthcare professionals directly trained, educated, interacted with or reached
through awareness campaigns, and the number of people with diabetes
 targeted with training, awareness or treatment. The aim is to continue
 activities to educate healthcare professionals and to train and treat people
with diabetes. Since 2002, 380,000 healthcare professionals have been
trained or educated and 1,854,000 people with diabetes have been trained 
or treated.

Unit

Number
Number
1,000
1,000

2008

36
32
380
1,854

2007

38
36
336
1,260

2006

35
34
297
1,060

11   Business ethics
In 2008, 99% of relevant employees in sales and marketing were trained in
local binding business ethics rules. In total, 30% of Novo Nordisk’s employees
were trained. All employees were trained in the updated version of the

 standard operating procedure for business ethics. The number of employees
trained was, as expected, above the target of 90%.

Employees in sales and marketing trained in business ethics

Unit

%

2008

99

2007

95

2006

NA

12   Company reputation
The goal of Novo Nordisk is to improve (or maintain) the company reputation
as measured by the mean brand score or at least be the leader in seven out of
eight target groups. In 2008, this goal was achieved despite a slight decrease

of the mean brand score of 1.6 from 74.0 to 72.4, because the company is
leading in seven out of eight target groups. This confirms the leadership
 position in diabetes in the four core markets (China, Germany, UK and US).

Improve (or maintain) company reputation with external key stakeholders

Scale 0 –100

Unit

2008

72.4

2007

74.0

2006

73.8

13   Quality
In 2008, no warning letters were issued to Novo Nordisk by the FDA in con-
nection with GMP, GCP or GLP inspections. Nor were any re-inspections
 issued to Novo Nordisk. The target of no warning letters and no re-inspections

has therefore been met. In total, 95 inspections were conducted in 2008. This
performance is as expected.

Warning letters and re-inspections

Unit

Number

2008

2007

2006

0

0

0

96 Novo Nordisk Annual Report 2008

Consolidated non-financial statements   Notes – Performance indicators

Social (continued)

14   Training costs
In 2008, the annual spending on training, measured as average spent per
 employee, increased by 0.5%, which is almost the same level as in 2007,
 reflecting the company’s strategic prioritisation of talent and leadership devel-
opment, and of lifelong learning offered to all employees. The average spent
per  employee does not reflect the complete investments in training in Novo
Nordisk, since on-the-job training, internal seminars and other activities 

are not included. The increase in training cost per employee is not nearly as
high as from 2006 to 2007, when the increase was 16%. The reason for the
 significant increase of 16% was due to extensive hiring in 2007 (10%). The
level of new employees joining Novo Nordisk in 2008 and thus requiring
 additional training was not as high in 2008 (4%), explaining why the amount
spent is almost unchanged.

Annual training costs per employee

Unit

DKK

2008

2007

2006

13,192

13,130

11,293

15   Patent families
The number of Novo Nordisk patent families developed as expected in 2008.
The number of active patent families to date decreased by 11%. The  number
of new patent families (first filing) decreased from 116 in 2007 to 71 in 
2008 – a decrease of 39%. Both decreases were due to the refocus in the

R&D area in 2008, when the closure of R&D activities in oral anti diabetic
agents,  pulmonary insulin and cancer resulted in fewer active patent  families
and fewer applications for new patents.

Active patent families to date
New patent families (first filing)

Unit

Number
Number

2008

890
71

2007

1,003
116

2006

913
149

16   Animals
Novo Nordisk sets goals to reduce, refine and replace experiments on animals
and to improve animal welfare. In line with a higher activity level in the
 discovery phase in 2008, there was a slight increase of 5% in the number of
purchased animals, from a total of 54,675 in 2007 to 57,253 in 2008, of

which 95% were mice and rats. Overall the numbers of purchased animals
have been at the same level since 2005. 75% of the animals have been used
at Novo Nordisk facilities in Denmark and 25% have been used at external
collaborators.

Animals purchased

Unit

Number

2008

2007

2006

57,253

54,675

56,533

Novo Nordisk Annual Report 2008     97

Consolidated non-financial statements   Notes – Performance indicators

Economics

17   Economics
The development in the economic indicators was as expected. 

Expenditure on R&D is an important capacity builder for society and a source
of innovation creating future profitability for Novo Nordisk. The ratio of  
R&D costs to tangible investments (4.3:1) reflects the continued increasing
 importance of R&D for Novo Nordisk. In the period 2004 –2008 this ratio
 varied from 1.4:1 to 4.3:1. The stabilisation in the share of R&D as a share of
sales on 16.5% reflects the fact that R&D expenditure rose by 4.4% and sales
rose by 9%. The wage share of R&D (40.4%) is an indication of the company’s
impact as a capacity builder in the community.

Most production facilities, 48% of the full-time employees and 79% of
 tangible assets are in Denmark. The level and location of the absolute invest-
ment is a measure of the company’s economic capacity in the near future 
and reflects its aim to supply the market with products and to continue its
 globalisation. In 2008, Novo Nordisk invested DKK 1.7 billion primarily in
Denmark (66%), but also in production facilities globally (in the US, Brazil,
China and France), down from DKK 2.3 billion in 2007.

Remuneration constituted 49% of the cash added value, mainly in the
 developed world, and particularly in Denmark where 57% of wages are paid
and 48% of Novo Nordisk’s workforce is located. However, the share of full-
time positions in International Operations increased 19% in 2007 to 21% in
2008. Sales per employee is DKK 1.7 million up from DKK 1.6 million in 2007,
and the cash added value per  employee is DKK 1.1 million, up from DKK 1 mil-
lion in 2007, indicating a high and increasing pro ductivity of Novo Nordisk’s
 employees.

In 2008, Novo Nordisk created 1,059 new positions globally and had 26,575
full-time positions; measured as full-time equivalents (FTE). These jobs
 translate into 61,925 indirect global jobs in the supply chain from production
needs and employees’ private consumption. The majority relate to production
(44,025) but the effect of private consumption by Novo Nordisk  employees is
also significant (17,900).

Measured by sales in 2008, Novo Nordisk is the ninth largest company in
Denmark, as in 2007. In terms of R&D costs Novo Nordisk is the largest Danish
company and ranks as number 28 on a European scale (in 2007  numbers), up
from number 30. Among European pharmaceutical companies Novo Nordisk
ranks as number 6 by sales and R&D costs, down from number 5 in 2006.

In 2008, total corporate taxes constituted 6.7% of sales. In Denmark, 13% 
of corporate taxes are paid as local taxes and 87% as state taxes. In 2008,
Novo Nordisk accounted for an estimated 2.9% of Danish corporate taxes.
Novo Nordisk employees accounted for an estimated 0.6% of total Danish
 income taxes and an estimated 0.6% of employment in Denmark. In total,
Novo Nordisk’s income taxes in Denmark for the year amounted to DKK 
1,031 million.

Novo Nordisk’s sales in 2008 accounted for 2.6% measured as a share of
Danish GDP, up from 2.4% in 2007, and 2.7% of Danish exports compared to
3.4% in 2007.

R&D expenditure to tangible investments *)
R&D as share of sales *)
Remuneration as share of cash received
Employment impact worldwide (direct and indirect) 
Total corporate tax as share of sales
Novo Nordisk exports as share of Danish exports (estimated)

*) R&D costs adjusted for costs related to discontinuation of all pulmonary diabetes projects.

Unit

Ratio
%
%
Number of jobs
%
%

2008

2007

2006

4.3:1
16.5
31
88,500
6.7
2.7

3.2:1
17.2
32
81,600
5.9
3.4

2.3:1
16.3
33
82,700
7.0
4.0

To ensure transparency, more details on reported data and additional non-financial reporting are available online at annualreport2008.novonordisk.com.

98 Novo Nordisk Annual Report 2008

Consolidated non-ﬁ nancial statements   Novo Nordisk’s economic stakeholder model

Novo Nordisk’s economic
stakeholder model
This model illustrates Novo Nordisk, its economic stakeholders 
and the interactions that drive economic growth in well-
developed societies. When, for instance, investors provide risk 
capital so that Novo Nordisk can develop new products, this 
will beneﬁ t patients, customers, employees and suppliers. For 
patients, in turn, the products from Novo Nordisk improve their 
ability to contribute to society. When employees, suppliers and 
investors spend their income on goods and services and make 
investments, they, too, contribute to wealth generation in 
society. And in their capacity as citizens in the local and global 
community, all economic actors pay taxes to the public sector 
in return for services. Novo Nordisk’s sustainable business 
practices are mechanisms that improve the outcome of the 
market economy model. The interactions and multiplier effects 
are illustrated by the blue circle linking the stakeholders.

Investors/funders
Risk capital for 
development and 
production of new 
products is rewarded 
through dividends and 
share prices (50% are 
non-Danish investors).

(cid:119)

    C

Society
As a business, Novo Nordisk generates 
wealth for society and contributes to 
socioeconomic development through its 
sustainable business practices, investment, 
employment (estimated direct and indirect 
impact amounting to 88,500 jobs globally), 
and contribution to Denmark’s GDP is 
2.6%, and 2.7% of Danish exports.

As a pharmaceutical company, Novo 
Nordisk provides knowledge, R&D and 
healthcare products and outreach through 
improved awareness, diagnosis or treatment 
of diabetes for at least 113 million people.

R

a

p

e

t

it
al 

u

r

n

a

n

o

d

 f

n

 i

n

u

v

e

n

d

s

s

t

m

e

n

t   

(cid:120)

(cid:119)    Remuneration

Productivity   (cid:120)

Novo Nordisk
provides products to the healthcare sector 
and quality of life to patients, dividends and 
return on investment to investors, income 
and proﬁ t to suppliers, wage income to 
employees and taxes to the public sector.

(cid:119)    Sales

Products   (cid:120)

Employees
27,068 employees’ 
knowledge and 
productivity are a 
major part of the 
company’s intangible 
value. 52% of 
employees work 
outside Denmark. 
31% of cash received 
is remuneration.

Customers and patients
Novo Nordisk’s products 
are sold to hospitals, 
doctors and healthcare 
professionals for treatment 
of their patients. Novo 
Nordisk has a 52% market 
share of the global insulin 
market (by volume) and 
23% of the global diabetes 
care market (by value).

M aterials    (cid:120)
(cid:119)     Pay m ents

Suppliers
Suppliers proﬁ t from the location 
of Novo Nordisk in their local 
community and from the 
company’s need for long-term 
stable supply partnerships 
globally. An estimated 28,700 
jobs are created at suppliers in 
Denmark and 44,025 globally.

(cid:119)

    S

e

T

a

x

e

r
vic
s   

e

s

(cid:120)

Public sector
Tax payments fund services offered by the 
public sector. Novo Nordisk’s tax payments 
are an estimated 2.9% of corporate taxes 
in Denmark. Novo Nordisk’s employees in 
Denmark pay an estimated 0.6% of the 
country’s total income tax. In total, Novo 
Nordisk’s income taxes in Denmark for the 
year amounted to DKK 1,031 million.

Cash value distribution (2008) 

DKK million 

Cash received 

Cash added value

Customers 
Suppliers 
Company cash 

Cash received for products and services (from sales) 
Cash payments for materials, facilities and services *) 
Cash added value (cash received minus cash payments) 

Employees 
Investors/funders 
Public sector 
Management 

Remuneration 
Dividends, share repurchase and interest payments 
Taxes 
Future growth 

45,064 
16,151 
28,913 

14,141 
7,617 
3,172 
3,983 

100%
36%

31% 
17% 
7% 
9% 

*) Cash payments outside Novo Nordisk. The ﬁ gure includes cash received from licence fees, realised exchange rate gains and interest income.

100%

49%
26%
11%
14%

Novo Nordisk Annual Report 2008     99

 
 
Consolidated financial statements   Companies in the Novo Nordisk Group

Country

Year of  
incorporation /
acquisition

Issued share capital /
paid-in capital

Percentage
of shares
owned

Activity

l

t
n
e
m
p
o
e
v
e
d
d
n
a
h
c
r
a
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s
e
R

•

s
t
n
e
m

t
s
e
v
n
I
/
s
e
c
i
v
r
e
S

•

g
n
i
t
e
k
r
a
m
d
n
a

l

s
e
a
S

•

n
o
i
t
c
u
d
o
r
P

•

Parent company
Novo Nordisk A/S 

Subsidiaries by region

Denmark 

1931 

DKK 

634,000,000 

–

•

•

•

•

Austria 
Belgium 
Bulgaria 
Croatia 
Czech Republic 
Denmark 
Finland 
France 
France 
Germany 
Greece 
Hungary 
Ireland 
Italy 
Lithuania 
Macedonia 
Netherlands 
Norway 
Poland 

Europe
1974 
Novo Nordisk Pharma GmbH 
1974 
S.A. Novo Nordisk Pharma N.V. 
2005 
Novo Nordisk Pharma EAD 
2004 
Novo Nordisk Hrvatska d.o.o. 
1997 
Novo Nordisk s.r.o. 
2002 
Novo Nordisk Region Europe A/S 
1972 
Novo Nordisk Farma OY 
2003 
Novo Nordisk Pharmaceutique SAS  
1959 
Novo Nordisk Production SAS 
1973 
Novo Nordisk Pharma GmbH 
1979 
Novo Nordisk Hellas Epe 
1996 
Novo Nordisk Hungary Sales and Trading Ltd. 
1978 
Novo Nordisk Limited  
1980 
Novo Nordisk Farmaceutici S.P.A. 
2005 
UAB Novo Nordisk Pharma 
2006 
Novo Nordisk Farma dooel 
1983 
Novo Nordisk B.V. 
1965 
Novo Nordisk Scandinavia AS 
1996 
Novo Nordisk Pharma Sp. z o.o. 
1984 
Novo Nordisk Comércio Produtos Farmace˜ uticos Limitada  Portugal 
Romania 
Novo Nordisk Farma S.R.L. 
2005 
Serbia & Montenegro  2005 
Novo Nordisk Pharma d.o.o. Belgrade (Serbia) 
2007 
Slovakia 
Novo Nordisk Slovakia s.r.o. 
2006 
Slovenia 
Novo Nordisk, trzˇenje farmacevtskih izdelkov d.o.o. 
1978 
Spain 
Novo Nordisk Pharma S.A. 
1971 
Sweden 
Novo Nordisk Scandinavia AB 
2003 
Switzerland 
Novo Nordisk FemCare AG 
2000 
Switzerland 
Novo Nordisk Health Care AG 
1968 
Switzerland 
Novo Nordisk Pharma AG 
1977 
United Kingdom 
Novo Nordisk Holding Limited 
1978 
United Kingdom 
Novo Nordisk Limited 

North America
Novo Nordisk Canada Inc. 
Novo Nordisk Region North America A/S 
Novo Nordisk Delivery Technologies Inc. 
Novo Nordisk US Holdings Inc. 
Novo Nordisk Pharmaceutical Industries Inc. 
Novo Nordisk Inc. 

Japan & Oceania
Novo Nordisk Pharmaceuticals Pty. Ltd. 
Novo Nordisk Region Japan & Oceania A/S 
Novo Nordisk Pharma Ltd. 
Novo Nordisk Pharmaceuticals Limited 

Canada 
Denmark 
United States 
United States 
United States 
United States 

Australia 
Denmark 
Japan 
New Zealand 

1983 
2003 
2005 
2007 
1991 
1982 

1985 
2002 
1980 
1990 

EUR 
EUR 
BGN 
HRK 
CZK 
DKK 
EUR 
EUR 
EUR 
EUR 
EUR 
HUF 
EUR 
EUR 
LTL 
MKD 
EUR 
NOK 
PLN 
EUR 
RON 
EUR 
SKK 
EUR 
EUR 
SEK 
CHF 
CHF 
CHF 
GBP 
GBP 

CAD 
DKK 
USD 
USD 
USD 
USD 

36,336 
69,000 
5,880,000 
5,000,000 
14,500,000 
108,370,500 
420,500 
5,821,140 
57,710,220 
614,062 
1,050,000 
371,000,000 
635 
516,500 
2,150,000 
14,068,285 
61,155 
250,000 
29,021,000 
250,000 
2,795,000 
640,000 
8,000,000 
2,679,286 
1,502,500 
100,000 
1,100,000 
159,325,000 
50,000 
2,802,132 
2,350,000 

200 
500,000 
20,001,000 
50,000 
55,000,000 
283,837,600 

AUD 
DKK 
JPY 
NZD 

500,001 
15,500,000 
2,104,000,000 
1,000,000 

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

100
100
100
100
100
100

100
100
100
100

•
•
•
•
•

•
•

•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

•

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•

•

•
•

•

•

•

•

•
•

•

•

•

•
•

100 Novo Nordisk Annual Report 2008

 
 
 
 
Consolidated financial statements   Companies in the Novo Nordisk Group

International Operations
Aldaph SpA 
Novo Nordisk Pharma Argentina S.A. 
Novo Nordisk Pharma (Private) Limited 
Novo Nordisk Produção Farmacêutica do Brasil Ltda. 
Novo Nordisk Farmacêutica do Brasil Ltda. 
Novo Nordisk Farmacêutica Limitada 
Novo Nordisk (China) Pharmaceuticals Co., Ltd. 
Beijing Novo Nordisk Pharmaceuticals Science & 
Technology Co., Ltd. 
Novo Nordisk Region International Operation A/S 
Novo Nordisk Egypt, LLC 
Novo Nordisk Hong Kong Limited 
Novo Nordisk India Private Limited 
PT Novo Nordisk Indonesia 
Novo Nordisk Pars 
Novo Nordisk Ltd 
Novo Nordisk Lebanon s.a.r.l 
Novo Nordisk Pharma (Malaysia) Sdn Bhd 
Novo Nordisk Mexico S.A. de C.V. 
Novo Nordisk Pharma SAS 
Novo Nordisk Pharma Limited 
Novo Nordisk Pharma (Private) Limited 
Novo Nordisk Pharmaceuticals (Philippines) Inc 
Novo Nordisk Limited Liability Company 
Novo Investment Pte Ltd. 
Novo Nordisk Pharma (Singapore) Pte Ltd. 
Novo Nordisk (Pty) Ltd 
Novo Nordisk Pharma Korea Ltd 
Novo Nordisk Pharma (Taiwan) Ltd 
Novo Nordisk Pharma (Thailand) Ltd. 
Novo Nordisk Tunisie SARL 
Novo Nordisk Saglik Ürünleri Tic. Ltd. Sti.  
Novo Nordisk Pharma Gulf FZ-LLC 
Novo Nordisk Venezuela Casa de Representación C.A. 

Other subsidiaries
FeF Chemicals A/S 
NNIT A/S *) 
NNE Pharmaplan A/S *) 
Steno Diabetes Center A/S 

Associated companies
Harno Invest A/S 
Innate Pharma SA 
ZymoGenetics, Inc.  

Country

Algeria 
Argentina 
Bangladesh 
Brazil 
Brazil 
Chile 
China 

China 
Denmark 
Egypt 
Hong Kong 
India 
Indonesia 
Iran 
Israel 
Lebanon 
Malaysia 
Mexico 
Morocco 
Nigeria 
Pakistan 
Philippines 
Russia 
Singapore 
Singapore 
South Africa 
South Korea 
Taiwan 
Thailand 
Tunisia 
Turkey 
United Arab Emirates 
Venezuela 

Denmark 
Denmark 
Denmark 
Denmark 

Denmark 
France 
United States 

*) In addition to the listed companies, NNIT A/S and NNE Pharmaplan A/S have own subsidiaries.

Year of  
incorporation /
acquisition

Issued share capital /
paid-in capital

Percentage
of shares
owned

1994 
1997 
2007 
2002 
1990 
2006 
1994 

2006 
2002 
2004 
2001 
1994 
2003 
2005 
1997 
2007 
1992 
2004 
2006 
2006 
2005 
1999 
2003 
1994 
1997 
1959 
1994 
1990 
1983 
2004 
1993 
2005 
2004 

1989 
1998 
1989 
2008 

1992 
2006 
1988 

DZD 
ARS 
BDT 
BRL 
BRL 
CLP 
USD 

1,742,650,000 
7,465,150 
17,500,000 
896,834,727 
84,727,136 
758,271,200 
83,800,000 

2,000,000 
USD 
113,303,310 
DKK 
50,000 
EGP 
500,000 
HKD 
265,000,000 
INR 
827,900,000 
IDR 
10,000,000 
IRR 
100 
ILS 
600,000,000 
LBP 
200,000 
MYR 
239,491,127 
MXN 
2,597,000 
MAD 
10,000,000 
NGN 
10,000,000 
PKR 
50,000,000 
PHP 
188,243,360 
RUB 
12,000,000 
SGD 
200,000 
SGD 
ZAR 
8,000 
KRW  6,108,400,000 
9,000,000 
TWD 
15,500,000 
THB 
400,000 
TND 
25,296,300 
TRY 
AED 
100,000 
2,250,000,000 
VEB 

DKK 
DKK 
DKK 
DKK 

DKK 
EUR 
USD 

10,000,000 
1,000,000 
500,000 
500,000 

70,419,910 
1,295,600 
781,505,000 

100
100
100
100
100
100
100

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
49
100
100
100
100

100
100
100
100

30
18
30

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Novo Nordisk Annual Report 2008     101

 
 
 
 
Consolidated financial statements   Summary of financial data 2004 – 2008

DKK million

Sales

Sales by business segments:

Modern insulins (insulin analogues)
Human insulins 
Insulin-related sales
Oral antidiabetic products (OAD)

Diabetes care total

Haemostasis management
Growth hormone therapy
Hormone replacement therapy
Other products

Biopharmaceuticals total

Sales by geographical segments:

Europe *)
North America
International Operations *)
Japan & Oceania

Licence fees and other operating income (net)
Operating profit
Operating profit (excl AERx ®) **)
Net financials
Profit before income taxes
Income taxes
Net profit

Total assets
Total current liabilities
Total long-term liabilities
Equity

Investments in property, plant and equipment (net)
Investments in intangible assets and long-term financial assets (net) 
Free cash flow ***)
Net cash flow

Ratios

Sales in percent:

Modern insulins (insulin analogues)
Human insulins 
Insulin-related sales
Oral antidiabetic products (OAD)
Diabetes care total

Haemostasis management
Growth hormone therapy
Hormone replacement therapy
Other products
Biopharmaceuticals total

Sales outside Denmark as a percentage of sales
Gross margin ***)
Sales and distribution costs as a percentage of sales
Research and development costs as a percentage of sales
Research and development costs as a percentage of sales (excl AERx ®) **)
Administrative expenses as a percentage of sales

Net profit margin ***)
Effective tax rate ***)
Equity ratio ***)
Payout ratio ***)
Payout ratio adjusted for impact of Dako and discontinuation of AERx ® projects

Long-term financial targets
Operating profit margin ***)
Operating profit margin (excl AERx ®) **)
Growth in operating profit ***)
Growth in operating profit (excl AERx ®) **)
Growth in operating profit, three-year average ***)
ROIC ***)
Cash to earnings ***)
Cash to earnings, three-year average ***)

102 Novo Nordisk Annual Report 2008

2004

2005

2006

2007

2008

29,031

33,760

38,743

41,831

45,553

4,507
13,033
1,350
1,643

7,298
13,543
1,463
1,708

10,825
13,451
1,606
1,984

14,008
12,572
1,749
2,149

20,533

24,012

27,866

30,478

17,317
11,804
1,844
2,391

33,356

6,396
3,865
1,612
324

5,635
3,309
1,607
326

5,865 
3,511 
1,668 
309 

10,877

11,353 

12,197

15,300
12,280
6,494
4,669

272
9,119
–
45
9,164
2,712
6,452

44,692
10,157
4,413
30,122

2,787
244
4,707
463

27.9%
34.7%
4.2%
5.1%
71.9%

14.5%
8.6%
4.2%
0.8%
28.1%

99.2%
75.3%
30.0%
16.3%
–
6.2%

16.7%
29.6%
67.4%
34.4%
–

23.5%
–
12.7%
–
12.4%
25.8%
73.0%
80.2%

16,350 
13,746 
7,295 
4,440 

321
8,942
10,267
2,029
10,971
2,449
8,522

47,731
10,641
4,908
32,182

2,268
118
9,012
1,638

33.5%
30.1%
4.2%
5.1%
72.9%

14.0%
8.4%
4.0%
0.7%
27.1%

99.2%
76.6%
29.6%
20.4%
17.2%
6.0%

20.4%
22.3%
67.4%
32.8%
34.9%

17,219
15,154
8,425
4,755

286
12,373
12,698
322
12,695
3,050
9,645

50,603
12,958
4,666
32,979

1,754
264
11,015
4,111

38.0%
25.9%
4.0%
5.3%
73.2%

14.0%
8.5%
3.6%
0.7%
26.8%

99.2%
77.8%
28.2%
17.2%
16.5%
5.8%

21.2%
24.0%
65.2%
37.8%
–

21.4%
24.5%
(1.9%)
12.6%
8.9%
27.2%
105.7%
87.0%

27.2%
27.9%
38.4%
23.7%
16.4%
37.4%
114.2%
97.6%

4,359
2,317
1,488
334

8,498

12,887
7,478
4,368
4,298

575
6,980
–
477
7,457
2,444
5,013

37,433
7,280
3,649
26,504

2,999
312
4,278
2,136

15.5%
44.9%
4.6%
5.7%
70.7%

15.0%
8.0%
5.1%
1.2%
29.3%

99.3%
72.3%
28.5%
15.0%
–
6.7%

17.3%
32.8%
70.8%
31.8%
–

24.0%
–
8.7%
–
8.9%
21.5%
85.3%
59.0%

5,064
2,781
1,565
338

9,748

14,020
9,532
5,497
4,711

403
8,088
–
146
8,234
2,370
5,864

41,960
10,581
3,745
27,634

3,665
(136)
4,833
(634)

21.6%
40.1%
4.3%
5.1%
71.1%

15.0%
8.2%
4.6%
1.0%
28.9%

99.2%
72.8%
28.7%
15.1%
–
6.3%

17.4%
28.8%
65.9%
33.2%
–

24.0%
–
15.9%
–
11.0%
24.7%
82.4%
82.4%

Consolidated financial statements   Summary of financial data 2004 – 2008  – Supplementary information in EUR (unaudited)

EUR million

Sales

Sales by business segments:

Modern insulins (insulin analogues)
Human insulins
Insulin-related sales
Oral antidiabetic products (OAD)

Diabetes care total

Haemostasis management
Growth hormone therapy
Hormone replacement therapy
Other products

Biopharmaceuticals total

Sales by geographical segments:

Europe *)
North America
International Operations *)
Japan & Oceania

Licence fees and other operating income (net)
Operating profit
Operating profit (excl AERx ®) **)
Net financials
Profit before income taxes
Income taxes
Net profit

Total assets
Total current liabilities
Total long-term liabilities
Equity

Investments in property, plant and equipment (net) 
Investments in intangible assets and long-term financial assets (net)
Free cash flow ***)
Net cash flow

Share data ****)

Basic earnings per share in DKK ***)
Diluted earnings per share in DKK ***)
Dividend per share in DKK

Number of shares at year-end (million)
Number of shares outstanding at year-end (million) ***)
Average number of shares outstanding (million) ***)
Average number of shares outstanding incl. dilutive effect 
of options ‘in the money’ (million)

Employees

Total full-time employees at year-end

Denmark
Rest of Europe
North America
International Operations
Japan & Oceania

2004

3,902

606
1,752
181
221 

2,760 

586 
311 
200 
45 

2005

4,531

979
1,819
196
229

3,223

680
373
210
45

2006

5,194

1,451
1,804
215
266

3,736

755
444
215
44

2007

5,614

1,880
1,687
235
288

4,090

788
471
224
41

2008

6,109

2,323
1,583
247
321

4,474

858
518
216
43

1,142 

1,308

1,458

1,524

1,635

1,732 
1,005 
587 
578 

77 
938 
–
64 
1,002 
328 
674 

5,033 
979 
491 
3,563 

403
42 
575 
287 

7.45 
7.42 
2.40 

709.4 
664.2 
673.2 

676.2

1,882
1,279
738
632

54
1,085
–
20
1,105
318
787

5,624
1,418
502
3,704

492
(18)
649
(85)

8.95
8.92
3.00

709.4
647.4
655.4

657.9

2,051
1,646
871
626

36
1,223
–
6
1,229
364
865

5,994
1,362
592
4,040

374
33
631
62

10.05
10.00
3.50

674.0
634.4
641.9

645.4

2,194
1,845
979
596

43
1,200
1,378
272
1,472
328
1,144

6,401
1,427
658
4,316

304
16
1,210
220

13.49
13.39
4.50

647.0
621.1
631.8

636.4

2,309
2,032
1,130
638

38
1,660
1,704
43
1,703
409
1,294

6,792
1,739
625
4,426

235
35
1,478
552

15.66
15.54
6.00

634.0
608.2
615.8

620.7

20,285
11,839 
2,454 
1,949 
3,104 
939 

22,007 
12,160
2,702
2,465
3,746
934

23,172
12,214
2,944
2,846
4,188
980

25,516
12,401
3,281
3,935
4,882
1,017

26,575
12,728
3,539
3,722
5,561
1,025

*) 

Comparative figures from 2004 –2006 have been adjusted in order to reflect a changed organisational structure from 1 January 2007 which transfers 8 countries, incl. Bulgaria 
and Romania, from International Operations to Europe.
Excluding costs related to discontinuation of all pulmonary diabetes projects.

**) 
***)  For definitions, please refer to page 88.
****) In 2007 there was a stock split of the company’s A and B shares. The trade unit was changed from DKK 2 to DKK 1. The comparative figures for 2004 to 2006 have been updated 

accordingly.

Key figures are translated into EUR as supplementary information – the translation of income statement items is based on the average exchange rate in 2008 (EUR 1 = DKK 7.45593) 
and the translation of balance sheet items is based on the exchange rate at the end of 2008 (EUR 1 = DKK 7.45060). The figures in DKK reflect the economic substance of the underlying
events and circumstances of the Group.

Novo Nordisk Annual Report 2008     103

Consolidated financial statements   Quarterly figures 2007 and 2008 (unaudited)

DKK million

Sales

Sales by business segments:

Modern insulins (insulin analogues)
Human insulins 
Insulin-related sales
Oral antidiabetic products (OAD)

2007

2008

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

9,818

10,563

10,504

10,946

10,614

11,110

11,246

12,583

3,065
3,136
419
523

3,464
3,222
437
529

3,568
3,098
445
585

3,911 
3,116 
448 
512 

3,821
2,939
443
640

4,103
2,966
460
478

4,365
2,806
464
671

5,028
3,093
477
602

Diabetes care total

7,143

7,652

7,696

7,987 

7,843

8,007

8,306

9,200

Haemostasis management
Growth hormone therapy
Hormone replacement therapy
Other products

1,411
784
406
74

1,508
924
411
68

1,427
878
414
89

1,519 
925 
437 
78 

1,440
878
385
68

1,648
986
391
78

1,534
941
394
71

1,774
1,060
442
107

Biopharmaceuticals total

2,675

2,911

2,808

2,959 

2,771

3,103

2,940

3,383

Sales by geographical segments:

Europe 
North America
International Operations 
Japan & Oceania

Gross profit
Sales and distribution costs
Research and development costs
Research and development costs (excl AERx ®) *)
Administrative expenses
Licence fees and other operating income (net)
Operating profit
Operating profit (excl AERx ®) *)

Net financials
Profit before taxation
Income taxes

Net profit

3,931
3,214
1,696
977

7,498
3,048
1,647
–
614
138
2,327
–

47
2,374
665

4,035
3,424
1,953
1,151

8,205
3,110
1,754
–
594
60
2,807
–

1,587
4,394
742

4,036
3,500
1,870
1,098

7,990
2,993
1,724
–
623
31
2,681
–

175
2,856
672

4,348 
3,608 
1,776 
1,214 

8,345
3,220
3,413
2,088
677
92
1,127
2,452

220
1,347
370

4,061
3,450
2,096
1,007

8,201
2,975
1,858
1,638
627
88
2,829
3,049

39
2,868
688

4,400
3,467
2,069
1,174

8,556
3,178
1,980
1,825
626
74
2,846
3,001

405
3,251
780

4,305
3,759
2,074
1,108

8,640
3,155
1,579
1,629
633
51
3,324
3,274

182
3,506
842

4,453
4,478
2,186
1,466

10,047
3,558
2,439
2,439
749
73
3,374
–

(304)
3,070
740

1,709

3,652

2,184

977

2,180

2,471

2,664

2,330

Depreciation, amortisation and impairment losses
Depreciation, amortisation and impairment losses (excl AERx ®) *)

509
–

516
–

586
–

1,396
526

563
–

567
–

560
–

752
699

Total equity
Total assets

Ratios

Gross margin
Sales and distribution costs as a percentage of sales
Research and development costs as a percentage of sales
Research and development costs as a percentage of sales (excl AERx ®) *)
Administrative expenses as a percentage of sales  
Operating profit margin
Operating profit margin (excl AERx ®) *)
Equity ratio

Share data **)

Basic earnings per share/ADR (in DKK)
Diluted earnings per share/ADR (in DKK)

Average number of shares outstanding (million) – basic
Average number of shares outstanding (million) – diluted 

Employees

29,676
44,742

33,475
48,300

33,161
48,423

32,182
47,731

31,251
47,534

33,046
48,478

32,173
48,990

32,979
50,603

76.4% 77.7% 76.1% 76.2%
31.0% 29.4% 28.5% 29.4%
16.8% 16.6% 16.4% 31.2%
19.1%
6.2%
23.7% 26.6% 25.5% 10.3%
22.4%
66.3% 69.3% 68.5% 67.4%

–
5.9%

–
6.3%

–
5.6%

–

–

–

77.3% 77.0% 76.8% 79.8%
28.0% 28.6% 28.1% 28.3%
17.5% 17.8% 14.0% 19.4%
15.4% 16.4% 14.5% 19.4%
6.0%
26.7% 25.6% 29.6% 26.8%
28.7% 27.0% 29.1% 26.8%
65.7% 68.2% 65.7% 65.2%

5.9%

5.6%

5.6%

2.69
2.68

635.0
639.4

5.75
5.71

635.8
640.2

3.46
3.43

632.0
636.4

1.56
1.55

624.4
629.6

3.51
3.48

620.9
626.3

3.99
3.96

618.6
623.5

4.34
4.30

614.2
618.6

3.82
3.80

609.3
614.4

Number of full-time employees at the end of the period

24,045

24,729

25,206

25,516

25,765

26,060

26,360

26,575

*)  Excluding costs related to discontinuation of all pulmonary diabetes projects.
**) In December 2007 there was a stock split of the company’s A and B shares. The trade unit was changed from DKK 2 to DKK 1. The comparative figures have been updated accordingly.

104 Novo Nordisk Annual Report 2008

Financial statements of the parent company

Financial 
statements 
of the parent 
company, 
Novo Nordisk A/S, 
for 2008

Novo Nordisk Annual Report 2008     105

Financial statements of the Parent company Novo Nordisk A/S   Income statement

DKK million

Sales 
Cost of goods sold

Gross profit

Sales and distribution costs
Research and development costs
Administrative expenses
Licence fees and other operating income (net)

Operating profit

Profit in subsidiaries
Share of profit in associated companies
Financial income
Financial expenses

Profit before income taxes

Income taxes

Net profit

Proposed appropriation of net profit:
Dividends
Net revaluation reserve according to the equity method
Retained earnings

Note

2
3

3
3
3, 4

9
9
5
5

6

2008

2007

27,145
8,069

19,076

7,654
5,633
1,243
409

4,955

5,318
71
1,098
635

10,807

1,165

9,642

26,023
9,871

16,152

5,754
7,142
1,187
478

2,547

5,415
1,490
1,351
871

9,932

1,414

8,518

3,650
(5,422)
11,414

9,642

2,795
5,883
(160)

8,518

106 Novo Nordisk Annual Report 2008

DKK million

Assets

Intangible assets
Property, plant and equipment
Financial assets

Total long-term assets

Inventories
Trade receivables
Amounts owed by affiliated companies
Tax receivables 
Other receivables
Marketable securities and financial derivatives
Cash at bank and in hand

Total current assets

Total assets

Equity and liabilities

Share capital
Net revaluation reserve according to the equity method
Retained earnings
Exchange rate adjustments

Total equity

Long-term debt
Deferred income tax liabilities
Amounts owed to affiliated companies
Other provisions

Total long-term liabilities

Short-term debt and financial derivatives
Trade payables
Amounts owed to affiliated companies
Tax payables
Other liabilities
Other provisions

Total current liabilities

Total liabilities

Total equity and liabilities

Financial statements of the Parent company Novo Nordisk A/S   Balance sheet

Note

31 Dec 2008 31 Dec 2007

7
8
9

10

11

12
13

14

14

543
14,512
11,313

26,368

8,908
945
5,541
535
631
1,375
8,299

430
15,242
16,014

31,686

8,146
889
6,840
–
499
2,547
4,460

26,234

23,381

52,602

55,067

634
16,393
16,183
(256)

32,954

980
906
14
163

647
21,815
9,489
209

32,160

961
768
82
342

2,063

2,153

1,279
1,262
11,903
1
2,715
425

17,585

19,648

270
956
15,781
172
3,085
490

20,754

22,907

52,602

55,067

Novo Nordisk Annual Report 2008     107

Financial statements of the Parent company Novo Nordisk A/S   Notes – Income statement

To the extent it exceeds declared dividends from such companies, net revalua-
tion of investments in subsidiaries and associated companies is transferred to
net revaluation reserve according to the equity method under equity.

Average number of full-time 
employees in Novo Nordisk A/S

3  Employee costs

DKK million

Wages and salaries
Share-based payment costs
Pensions
Other contributions to social security
Other employee costs

Total employee costs

Included in the Balance sheet as change 
in employee costs included in inventories

2008

2007

5,521
257
504
95
338

5,200
75
471
147
261

6,715

6,154

87

143

For information regarding remuneration to the Board of Directors and
Executive Management please refer to consolidated accounts note 34, page
80–81. Reference is furthermore made to consolidated accounts note 33,
page 78, and consolidated accounts note 34, page 81–82, for information
 regarding share-based payment schemes to the Board of Directors, Executive
Management and the Senior Management Board.

2008

2007

10,693

10,412

2008

2007

17

7

21

8

4  Fees to statutory auditors

DKK million

PricewaterhouseCoopers

of which statutory audit fee to PricewaterhouseCoopers

5  Financial income and Financial expenses

DKK million

2008

2007

Interest income relating to subsidiaries 
included in Financial income

Interest expenses relating to subsidiaries 
included in Financial expenses

2008

2007

Foreign exchange loss (net) recognised 
in the Income statement 

164

162

410

608

68

51

26,802
343

25,316
707

27,145

26,023

10,535
7,520
5,880
3,210

10,972
6,482
5,631
2,938

27,145

26,023

6 

Income taxes

Of the total tax payment of DKK 3,172 million by the Group in 2008, the
Parent company’s share of paid taxes relating to current year amounts to 
DKK 1,633  million. 

In 2007 the total tax payment by the Group amounted to DKK 2,607 million
of which the Parent company’s share of paid taxes relating to current year
amounted to DKK 1,381 million.

1  Accounting policies

The Parent company’s financial statements have been prepared in accordance
with the Danish Financial Statements Act (Class D), and other accounting
 regulations for companies listed on NASDAQ OMX Copenhagen. 

The accounting policies for the Parent company are unchanged compared to
last financial year and are the same as for the Group with the following
 additions. For a description of the accounting policies of the Group please see
note 1 – Summary of significant accounting policies, page 56 – 60.

Supplementary accounting policies for the Parent company

Financial assets
In the financial statements of the Parent company investments in subsidiaries
and associated companies are recorded under the equity method, that is 
at the respective share of the net asset values in subsidiaries and associated
companies. Any cost in excess of net assets in the acquired company is
 capitalised in the Parent company under Financial assets as part of invest-
ments in subsidiaries (‘Goodwill’). Amortisation of goodwill is provided under
the straight-line method over a period not exceeding 20 years, based on
 estimated useful life. 

Net profit of subsidiaries less unrealised intercompany profits is recorded in
the Income statement of the Parent company.

Fair value adjustments of financial assets categorised as ‘Available for sale’ are
recognised in the Parent company in the Income statement.

The presentation of profit in subsidiaries is now shown as profit after tax.
Comparable figures for 2007 have been changed accordingly. The reclassifica-
tion has no impact on the net profit or equity.

Tax
The Parent company is assessed jointly for Danish tax purposes with its
 domestic subsidiaries. The Danish jointly taxed companies are included in a
Danish on-account tax payment scheme for Danish corporate income tax. 
All current taxes under the scheme are recorded in the individual companies.

Cash flow statement
No separate cash flow statement has been prepared for the Parent company –
please see the Consolidated cash flow statement and financial resources in
this Annual Report, page 54.

2  Sales

DKK million

Sales by business segments *)
Diabetes care total
Biopharmaceuticals total

Total sales

Sales by geographical regions *)
Europe
North America
International Operations
Japan & Oceania

Total sales

Sales are attributed to geographical areas based on location of the customer.

*) For definitions of the segments please refer to consolidated accounts note 4, page 62.

108 Novo Nordisk Annual Report 2008

Financial statements of the Parent company Novo Nordisk A/S   Notes – Balance sheet

7 

Intangible assets

DKK million

Cost at the beginning of the year
Additions during the year
Disposals during the year

Cost at the end of the year

Amortisation at the beginning of the year
Amortisation during the year
Impairment losses for the year *)
Depreciation reversed on disposals during the year

Amortisation at the end of the year

Carrying amount at the end of the year

*) Impairment losses of DKK 117 million in 2007 relates to discontinuation of AERx ®.

8  Property, plant and equipment

DKK million

Cost at the beginning of the year
Additions during the year
Disposals during the year
Transfer from/(to) other items

Cost at the end of the year

Depreciation and impairment losses at the beginning of the year
Depreciation for the year
Impairment losses for the year *)
Depreciation reversed on disposals during the year

Depreciation and impairment losses at the end of the year

Goodwill

Patents and
licences

Software

51
–
–

51

51
–
–
–

51

0

418
172
–

590

147
8
50
–

205

385

362
30
–

392

203
23
8
–

234

158

2008
Total

831
202
–

1,033

401
31
58
–

490

543

2007
Total

800
80
(49)

831

296
26
117
(38)

401

430

Land and
buildings

Plant and
machinery

Other
equipment

Payments
on account
and assets
in course of
construction

2008
Total

2007
Total

9,312
33
(259)
334

13,066
78
(292)
308

9,420

13,160

2,873
359
6
(235)

3,003

6,298
1,161
90
(268)

7,281

1,400
64
(41)
273

1,696

842
152
3
(32)

965

731

1,477
976
(53)
(915)

25,255
1,151
(645)
–

25,186
1,452
(1,383)
–

1,485

25,761

25,255

–
–
53
(53)

–

10,013
1,672
152
(588)

9,625
1,549
58
(1,219)

11,249

10,013

1,485

14,512

15,242

Carrying amount at the end of the year

6,417

5,879

*) Impairment losses of DKK 53 million relates to discontinuation of all pulmonary diabetes projects in 2008.

The latest valuation of properties of the parent company for property tax purposes amounts to a total of DKK 2,443 million (DKK 2,447 million in 2007). 
Cost of property not officially valued amounts to DKK 355 million (DKK 658 million in 2007).

Novo Nordisk Annual Report 2008     109

Financial statements of the Parent company Novo Nordisk A/S   Notes – Balance sheet

9  Financial assets

DKK million

Cost at the beginning of the year
Additions during the year
Disposals during the year

Cost at the end of the year

Value adjustments at the beginning of the year
Profit/(loss) before tax
Income taxes on profit for the year
Amortisation and impairment of goodwill
Dividends received
Disposals during the year
Exchange rate adjustments
Other adjustments

Value adjustments at the end of the year

Offset against amounts owed by subsidiaries 
at the beginning of the year
Additions during the year

At the end of the year

Unrealised internal profit at the beginning of the year
Change for the year
Exchange rate adjustments

At the end of the year

Investments
in subsidiaries

Amounts
owed by
affiliated
companies

Investments
in associated
companies

Other
securities
and
investments

2008
Total

2007
Total

6,443
1,750
–

8,193

21,152
7,965
(1,885)
–
(11,502)
–
455
(561)

15,624

164
(103)

61

(12,190)
(762)
(322)

(13,274)

73
36
(26)

83

–
–
–
–
–
–
–
–

–

–
–

–

–
–
–

–

295
318
(12)

601

(16)
71
–
(3)
(178)
–
–
10

(116)

–
–

–

–
–
–

–

376
93
(6)

463

(283)
–
–
–
–
–
–
(39)

(322)

–
–

–

–
–
–

–

7,187
2,197
(44)

9,340

20,853
8,036
(1,885)
(3)
(11,680)
–
455
(590)

7,216
41
(70)

7,187

15,232
8,562
(1,035)
(4)
(1,620)
–
(93)
(189)

15,186

20,853

164
(103)

61

(12,190)
(762)
(322)

11
153

164

(8,447)
(4,015)
272

(13,274)

(12,190)

Carrying amount at the end of the year

10,604

83

485

141

11,313

16,014

Carrying amount of investments in subsidiaries does not include capitalised goodwill at the end of the year. No additions or disposals were made during the year.

Carrying amount of investments in associated companies includes net capitalised goodwill of DKK 61 million at the end of the year (DKK 65 million in 2007).

A list of companies in the Novo Nordisk Group is included on pages 100 to 101.

10  Inventories

DKK million

Raw materials and consumables
Work in progress
Finished goods

Total inventories

Indirect production costs included in work in progress and finished goods

Amount of write-down of inventories recognised as expense during the year
Amount of reversal of write-down of inventories during the year

2008

1,160
6,683
1,065

8,908

2007

1,077
6,048
1,021

8,146

4,536

4,027

733
48

188
81

110 Novo Nordisk Annual Report 2008

Financial statements of the Parent company Novo Nordisk A/S   Notes – Balance sheet

11  Statement of changes in equity

DKK million

Balance at the beginning of the year
Appropriated from net profit for the year
Proposed dividends
Appropriated from net profit for the year to net 
revaluation reserve according to the equity method
Purchase of treasury shares
Sale of treasury shares
Share-based payments
Reduction of the B share capital
Dividends
Exchange rate adjustment of investments in subsidiaries 
Deferred (gain)/loss on cash flow hedges at the beginning 
of the year recognised in the Income statement
Deferred gain/(loss) on cash flow hedges at the end of the year
Other adjustments

Share
capital

Net
revaluation
reserve

647

21,815

(5,422)

(13)

Retained
earnings

9,489
11,414
3,650

(4,717)
295
331
13
(2,795)

(615)
(940)
58

Exchange
rate
adjustments

209

(473)

8

2008
Total

2007
Total

32,160
11,414
3,650

(5,422)
(4,717)
295
331
–
(2,795)
(473)

(615)
(940)
66

30,104
(160)
2,795

5,883
(4,835)
241
75
–
(2,221)
53

(420)
691
(46)

Balance at the end of the year

634

16,393

16,183

(256)

32,954

32,160

Regarding average number of shares please refer to note 13, page 65.
Regarding total number of A and B shares in Novo Nordisk A/S and treasury shares please refer to note 21, page 71.

12  Long-term debt

DKK million

Mortgage debt
Other long-term debt

Total long-term debt

Long-term debt falling due after more than five years from the balance sheet date amounts to 

At the end of 2008 none of the long-term debt was falling due within one year.

13  Deferred income tax liabilities

DKK million

The deferred tax assets and liabilities are allocated to the various balance sheet items as follows:
Property, plant and equipment
Indirect production costs
Unrealised profit on intercompany sales
Other

Total income tax liabilities

The deferred income tax has been calculated using a tax rate of 25%.

2008

2007

504
476

980

462

504
457

961

504

2008

2007

1,305
1,134
(1,541)
8

1,274
1,007
(1,270)
(243)

906

768

Novo Nordisk Annual Report 2008     111

Financial statements of the Parent company Novo Nordisk A/S   Notes – Balance sheet

14  Other provisions

DKK million

At the beginning of the year
Additional provisions
Adjustments to previous year’s provisions
Used during the year

At the end of the year

Specification of provisions:
Long-term
Current

Total other provisions

Provisions
for returned
products

Other
provisions

490
174
(160)
(79)

425

–
425

425

342
21
–
(200)

163

163
–

163

2008
Total

832
195
(160)
(279)

588

163
425

588

2007
Total

689
396
(171)
(82)

832

342
490

832

15  Commitments and contingencies

16  Related party transactions

DKK million

2008

2007

For information on transactions with related parties please refer to note 32,
page 77.

17  Financial risk

For information on financial risk please refer to note 31, page 76.

Commitments
Lease commitments
Contractual obligations relating to 
investments in property, plant and equipment
Guaranties given for subsidiaries
Obligations related to research and 
development projects
Other guarantees and commitments

Leasing commitments expiring 
within the following periods 
as from the balance sheet date
Within one year
Between one and five years
After five years

Total lease commitments

600

612

99
2,184

764
1,793

84
1,515

2,471
1,478

109
247
244

600

107
254
251

612

The lease costs for 2008 and 2007 were DKK 223 million and DKK 233 million
respectively.

Security for debt
Land, buildings and equipment etc at carrying amount

1,255

1,989

For information on pending litigation and other contingencies please refer to
note 36, page 86.

112 Novo Nordisk Annual Report 2008

Consolidated financial statements   Management statement

The Annual Report has the below Management Statement and Independent Auditor’s reports as provided on page 114 –115.

Statement by the Board of Directors and Executive Management on the Annual Report

Today, the Board of Directors and Executive Management approved the Annual Report of Novo Nordisk A/S for the year 2008. The Consolidated financial
 statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB),
and with International Financial Reporting Standards as adopted by the EU, and the Financial Statements of the Parent company, Novo Nordisk A/S, have been
prepared in accordance with the Danish Financial Statements Act. Further, the Annual Report has been prepared in accordance with the additional Danish annual
report requirements for listed companies. In our opinion, the accounting policies used are appropriate and the Annual Report gives a true and fair view of the
Group’s and the Parent company’s assets, liabilities, equity, financial position and results, and the consolidated cash flows, together with a description of the
 material risk and uncertainties the group faces.

Novo Nordisk’s non-financial statements have been prepared in accordance with the non-financial reporting principles of materiality, completeness and
 responsiveness of AA1000AS (2003). It represents a balanced and reasonable presentation of the organisation’s economic, environmental and social performance.

Gladsaxe, 28 January 2009

Executive Management:

Lars Rebien Sørensen
President and CEO

Jesper Brandgaard
CFO

Lise Kingo

Kåre Schultz

Mads Krogsgaard Thomsen

Board of Directors:

Sten Scheibye
Chairman

Göran A Ando
Vice chairman

Kurt Briner

Henrik Gürtler

Johnny Henriksen

Pamela J Kirby

Anne Marie Kverneland

Kurt Anker Nielsen
Chairman
of the Audit Committee

Søren Thuesen Pedersen

Stig Strøbæk

Jørgen Wedel
Audit Committee member

Novo Nordisk Annual Report 2008     113

Independent Auditor’s report

Independent Auditor’s report on the Annual Report for 2008

To the Shareholders of Novo Nordisk A/S 
We have audited the Annual Report of Novo Nordisk A/S for the financial 
year 2008, which comprises Management Statement, Management Report,
 significant accounting policies, income statement, balance sheet, statement
of changes in equity and notes for the Group as well as for the Parent 
Com pany and consolidated cash flow statement (page 2– 88, 100 –102 
and 105 –113). The Consolidated Financial Statements are prepared in
 accordance with International Financial Reporting Standards as issued by the
International Accounting Standards Board, and with International Financial
Reporting Standards as adopted by the EU, and the Parent Company Financial
State ments are prepared in accordance with the Danish Financial Statements
Act. Further, the Annual Report is prepared in accordance with additional
Danish disclosure requirements for annual reports of listed companies.

Management’s Responsibility for the Annual Report
Management is responsible for the preparation and fair presentation of the
Annual Report in accordance with the said legislation and accounting
 standards. This responsibility includes: designing, implementing and main-
taining internal control relevant to the preparation and fair presentation of 
an Annual Report that is free from material misstatement, whether due to
fraud or error; selecting and applying appropriate accounting policies; 
and making accounting estimates that are reasonable in the circumstances. 

Auditor’s Responsibility
Our responsibility is to express an opinion on the Annual Report based on our
audit. We conducted our audit in accordance with International and Danish
Auditing Standards. Those Standards require that we comply with ethical
 requirements and plan and perform the audit to obtain reasonable assurance
that the Annual Report is free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the Annual Report. The procedures selected
 depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the Annual Report, whether due to fraud or error. In
making those risk assessments, the auditor considers internal control relevant
to the Company’s preparation and fair presentation of the Annual Report in
order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by Management,
as well as evaluating the overall presentation of the Annual Report. We
 believe that the audit evidence we have obtained is sufficient and  appropriate
to provide a basis for our audit opinion.

Our audit has not resulted in any qualification.

Opinion
In our opinion, the Annual Report gives a true and fair view of the financial
position at 31 December 2008 of the Group and of the results of the Group
operations and consolidated cash flows for the financial year 2008 in
 accordance with International Financial Reporting Standards as issued by the
International Accounting Standards Board, and with International Financial
Reporting Standards as adopted by the EU, and additional Danish disclosure
requirements for annual reports of listed companies.

In addition, in our opinion, the Annual Report gives a true and fair view of 
the financial position at 31 December 2008 of the Parent Company and 
of the  results of the Parent Company operations for the financial year 2008 in
 accordance with the Danish Financial Statements Act and additional Danish
disclosure requirements for annual reports of listed companies.

Gladsaxe, 28 January 2009

PricewaterhouseCoopers
Statsautoriseret Revisionsaktieselskab

Mogens Nørgaard Mogensen
Danish State Authorised Public Accountant

114 Novo Nordisk Annual Report 2008

Independent Auditor’s reports

Independent Assurance Report on the Non-financial Reporting 2008

Subject, responsibilities, objective and scope of assurance statement
We have reviewed the non-financial information in the Annual Report of
Novo Nordisk A/S for the financial year 2008, which comprises the Manage -
ment Statement, the Management Report, the Non-financial accounting
 policies and the Consolidated non-financial statements on page 2– 50, 89–99
and 113 (the ‘Non-financial Reporting’). Our review has been  performed with
a view to express a conclusion on the Non-financial Reporting against the
principles of materiality, completeness and responsiveness of the AA1000
Assurance Standard (AA1000AS (2003)) and to express a conclusion on
whether the Non-financial Reporting is free of material misstatements and
has been presented in accordance with the non-financial accounting policies.

•  the Annual Report includes significant non-financial information material 

to Novo Nordisk’s corporate stakeholders;

•  the inclusion of information is aligned with robust and well-functioning
governance and risk management structures and processes as well as
 regular, formal and informal stakeholder engagement and systematic trend
spotting activities ensuring attention to key corporate stakeholders’
 concerns and expectations.

Completeness
Nothing has come to our attention that would cause us not to believe that:

Management’s responsibility
Management is responsible for collecting and presenting the non-financial
 information in the Non-financial Reporting.

Basis of conclusion
Our work was undertaken to perform an evaluation of the Non-financial
Reporting against the principles of materiality, completeness and respons -
iveness of the AA1000AS (2003). Moreover, we planned and performed our
work in accordance with the International Standard on Assurance Engage -
ments (ISAE) 3000, ‘Assurance Engagements other than Audits or Review of
Historical Financial Information’, to obtain limited assurance that the Non-
 financial Reporting is free of material misstatements and that the information
has been presented in accordance with the non-financial accounting policies.

Based on an assessment of materiality and risk, our work included, on a
 sample basis, a review of management systems, reporting structures and
boundaries. The assurance obtained is limited, as our work compared to that
of an engagement with reasonable assurance has been limited principally 
to inquiries, interviews and analytical procedures related to registration and
communication systems, data and underlying documentation. We reviewed
whether data and the underlying components are accounted for in such a
way as to fulfil the assertions of materiality and completeness in accordance
with the non-financial accounting policies. In addition, our work comprised
an assessment of stakeholder engagement and of the materiality of reporting
against peer-reporting, media reports and industry knowledge. Our work 
also included an assessment of significant estimates made by Management.

We believe that the work performed provides a reasonable basis for our
 conclusion.

Conclusion
Based on the work performed, we state our conclusion in relation to each 
of the key principles of the AA1000 Assurance Standard (2003): materiality,
completeness and responsiveness.

Materiality
Nothing has come to our attention that would cause us not to believe that:

•  the Non-financial Reporting presents a fair and balanced representation of
Novo Nordisk’s material corporate non-financial performance and impacts;

•  the reported non-financial targets and indicators in general are used in

strategic and operational decision-making, and some of these are included
in top management, management and business units’ Balanced Scorecard;

•  Novo Nordisk can identify and understand material aspects of its corporate

non-financial performance as well as significant impacts outside the
 boundaries of which it has direct management control, including upstream
and downstream issues such as social and environmental performance 
of suppliers, the animal health practices of contract research organisations,
carbon emissions of energy suppliers, training of healthcare professionals,
and accessibility for less developed countries to medicine at reduced prices;

•  Novo Nordisk has an effective process in place at corporate level for

 identifying, exploring and defining its approach to material impacts while
an equally effective approach is not mirrored in some local levels of the
 organisation.

Responsiveness
Nothing has come to our attention that would cause us not to believe that:

•  through the Non-financial Reporting and other communications, Novo

Nordisk is responsive to significant issues raised by corporate stakeholders
in an accessible manner;

•  Novo Nordisk has an effective process and relevant governance structures 

in place for defining its response to corporate stakeholders as well as
processes to promote the integration of such responses into management
and business processes. In some areas, such as responsible purchasing,
 additional controls could be put in place to ensure consistent and effective
implementation of responses;

•  Novo Nordisk has corporate policies, programmes and procedures to

 address material stakeholder concerns in key pharmaceutical industry areas
such as business ethics and marketing practices, bioethics (including clinical
trials and animal welfare), access to health, and advocacy.

Based on our review, nothing has come to our attention that causes us not to
believe that the non-financial information in the Annual Report of Novo
Nordisk for the financial year 2008 is free of material misstatements and has
been presented in accordance with the non-financial accounting policies.

Commentary
According to AA1000AS (2003), we are required to include recom-
mendations for improvements in relation to environmental and social
 responsibility. The recommendations, as well as our statement of
 independence and  competences, are stated in ‘How we are accountable’ 
at annualreport2008.novonordisk.com. Our recommendations do not 
affect the above-stated conclusion.

Gladsaxe, 28 January 2009

PricewaterhouseCoopers
Statsautoriseret Revisionsaktieselskab

Mogens Nørgaard Mogensen
Danish State Authorised Public Accountant

Novo Nordisk Annual Report 2008     115

Additional information   Index

Index

This index might be of help if you are looking for speciﬁ c information. It includes topics covered in this Annual Report and additional 
information available online at novonordisk.com.

Topic of interest 

Covered in this report  Online information

About Novo Nordisk 

pp 6–7 

annualreport2008.novonordisk.com /who-we-are/about-novo-nordisk.asp

Access to health 

Accountability 

Advocacy 

Animal welfare 

pp 36–37, 96 

annualreport2008.novonordisk.com /how-we-perform/access-to-health/default.asp

pp 89, 91 

pp 34–35 

pp 26, 97 

annualreport2008.novonordisk.com/how-we-are-accountable/default.asp

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/advocacy/default.asp

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/bioethics/animal-welfare.asp

Audit and assurance 

pp 44, 89, 91–92, 114–115 annualreport2008.novonordisk.com/how-we-are-accountable/audit-assurance.asp

Awards and recognitions 

– 

annualreport2008.novonordisk.com/who-we-are/awards-and-recognition.asp

Biopharmaceuticals 

Board of Directors 

pp 38–41 

pp 46–47 

novonordisk.com/about_us

novonordisk.com/about_us/management/board_of_directors.asp

Brand and reputation management  pp 90, 96 

novonordisk.com/about_us/changing-diabetes/default.asp

Business ethics 

Business strategy 

Capital structure 

Changing Diabetes® 

Climate change 

Clinical trials 

pp 26, 90, 96 

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/business-ethics.asp

pp 22–23 

pp 49–50 

pp 34–35 

pp 28–29, 93 

pp 18–19, 26 

annualreport2008.novonordisk.com/who-we-are/vision-and-strategy.asp

novonordisk.com/about_us/ownership/ownership.asp

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/advocacy/changing-diabetes.asp

annualreport2008.novonordisk.com/how-we-perform/environment-health-and-safety/environmental-management/climate-change.asp

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/bioethics/clinical-trials.asp

Community engagement 

p 35 

annualreport2008.novonordisk.com/how-we-perform/people-and-communities/community-engagement.asp

Compliance 

Corporate governance 

Deﬁ nitions 

Diabetes care 

Diversity 

Donations 

Economic footprint 

Environment 

Executive Management 

Financial performance 

Gene technology 

Global Compact 

pp 26, 93 

pp 42–43 

pp 88, 91–92 

pp 30–37 

pp 27, 90, 95 

pp 37, 41 

p 99 

annualreport2008.novonordisk.com/who-we-are/governance/compliance.asp

annualreport2008.novonordisk.com/who-we-are/governance/corporate-governance.asp

annualreport2008.novonordisk.com/how-we-are-accountable/default.asp

novonordisk.com/diabetes/public/default.asp

annualreport2008.novonordisk.com/how-we-perform/people-and-communities/people/diversity.asp

annualreport2008.novonordisk.com/how-we-perform/people-and-communities/community-engagement/donations.asp

annualreport2008.novonordisk.com/how-we-perform/people-and-communities/socio-economics.asp

pp 28–29, 93–94 

annualreport2008.novonordisk.com/how-we-perform/environment-health-and-safety/environmental-management/default.asp

p 48 

pp 8–14 

p 93 

novonordisk.com/about_us/management/executive_management.asp

annualreport2008.novonordisk.com/how-we-perform/ﬁ nancial-performance/default.asp

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/bioethics/gene-technology.asp

pp 26, 36, 89 

annualreport2008.novonordisk.com/how-we-perform/un-global-compact/default.asp

Global Reporting Initiative (GRI) 

p 89 

annualreport2008.novonordisk.com/how-we-perform/gri/default.asp

Health and safety 

Human rights 

Legal issues 

Materiality 

Memberships 

pp 29, 95 

p 26 

annualreport2008.novonordisk.com/how-we-perform/environment-health-and-safety/health-and-safety.asp

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/advocacy/default.asp

pp 26, 86–87 

annualreport2008.novonordisk.com/how-we-perform/ﬁ nancial-performance/legal-issues.asp

p 89 

– 

annualreport2008.novonordisk.com/how-we-are-accountable/materiality.asp

annualreport2008.novonordisk.com/who-we-are/memberships.asp

Novo Nordisk Way of Management  p 20 

annualreport2008.novonordisk.com/who-we-are/nn-way-of-management.asp

Partnerships 

People strategy 

Pipeline 

Product stewardship 

Quality 

Remuneration 

Responsible sourcing 

Risk management 

Share information 

Social responsibility 

Socioeconomics 

Stakeholder engagement 

Stem cells 

Sustainability 

pp 34–37 

p 27 

pp 18–19 

– 

annualreport2008.novonordisk.com/who-we-are/partnerships.asp

annualreport2008.novonordisk.com/how-we-perform/people-and-communities/people/people-strategy.asp

novonordisk.com/investors/rd_pipeline/rd_pipeline.asp

annualreport2008.novonordisk.com/how-we-perform/environment-health-and-safety/environmental-management/product-stewardship.asp

pp 25, 90, 96 

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/quality.asp

pp 44–45 

p 26 

pp 24–25 

p 49 

annualreport2008.novonordisk.com/how-we-perform/people-and-communities/people/wages-and-beneﬁ ts.asp

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/responsible-sourcing.asp

annualreport2008.novonordisk.com/who-we-are/governance/risk-management.asp

novonordisk.com/investors/share_information/share_information.asp

pp 20–21, 95–97 

novonordisk.com/sustainability/sustainability_in_short/default.asp

pp 98–99 

annualreport2008.novonordisk.com/how-we-perform/people-and-communities/socio-economics.asp

p 91 

– 

annualreport2008.novonordisk.com/who-we-are/stakeholder-engagement/default.asp

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/bioethics/stem-cells.asp

pp 20, 89 

novonordisk.com/sustainability/default.asp

Talent development 

pp 29, 90, 95 

annualreport2008.novonordisk.com/how-we-perform/people-and-communities/people/talent-development.asp

Tax  

Triple Bottom Line 

Workplace quality 

pp 12, 98 

annualreport2008.novonordisk.com/how-we-perform/responsible-business-practices/tax.asp

pp 20–21, 89–99 

annualreport2008.novonordisk.com/who-we-are/triple-bottom-line.asp

pp 95–97 

annualreport2008.novonordisk.com/how-we-perform/people-and-communities/people/default.asp

116     Novo Nordisk Annual Report 2008

Additional information   Contacts

Transfer agents
Shareholders’ enquiries concerning 
dividend payments, transfer of share 
certiﬁ cates, consolidation of shareholder 
accounts and tracking of lost shares 
should be addressed to Novo Nordisk’s 
transfer agents:

Danske Bank
Holmens Kanal 2–12
1092 Copenhagen K
Denmark
Tel +45 3344 0000

In North America:
JP Morgan Chase Bank
PO Box 3408
South Hackensack, NJ 07606
USA
Tel +1 800 990 1135
Tel +1 201 680 6630 for enquiries 
from outside the United States

Produced by
Global Triple Bottom Line Management, 
February 2009

Contributing writer
Amy Brown

Translation
Anne Nielsen and Corporate
Communications

Photos
Anders Bøggild, DONG Energy,
Ulrik Jantzen, Novo Nordisk and
Jesper Westley

Design and production
ADtomic Communications

Accounts and notes production
Team2graphics

Printed in Denmark by Bording A/S
(DS/EN ISO14001:1996)

Chen Kai, Area Business Manager of Western China Region, centre, led a team of Novo Nordisk employees 
who delivered food and medical supplies to areas of China affected by the May 2008 earthquake.

2

3

4

5

6

Contacts

Novo Nordisk values stakeholders’ 
reviews of the company’s reporting 
and welcomes any questions or com-
ments concerning the report or the 
company’s performance.

Visit the corporate website at 
novonordisk.com.

This report is about how we do business. 
When it comes to building relations, that is 
what Novo Nordisk people across the globe 
do every day. If reading the report inspires 
you to learn more or to get involved in 
some of the work, please get in touch.

Headquarters

Novo Nordisk A/S
Novo Allé
2880 Bagsværd
Denmark
Tel +45 4444 8888
webmaster@novonordisk.com

Media

Corporate Communications
Novo Nordisk A/S
Novo Allé
2880 Bagsværd
Denmark

Mike Rulis
Tel +45 4442 3573
E-mail: mike@novonordisk.com

Investor Relations

Mads Veggerby Lausten
Tel +45 4443 7919
E-mail: mlau@novonordisk.com

Kasper Roseeuw Poulsen
Tel +45 4442 4471
E-mail: krop@novonordisk.com

In North America:
Hans Rommer
Tel +1 609 919 7937
E-mail: hrmm@novonordisk.com

References

1   Garber A, Henry R, Ratner R et al.

Liraglutide as compared to glimepiride
monotherapy in a 52-week, phase 3
study of subjects with type 2 diabetes:
LEAD-3 (mono). Lancet. 2008.

2   King, A B, et al. A randomized, cross-

over, double-blind comparison of insulin
detemir and insulin glargine daily blood
glucose proﬁ les in subjects with type 2
diabetes. Presented at the American
Diabetes Association, June 2008.

3   Hanaire, A B, et al. Insulin-naïve

 patients with type 2 diabetes and
higher BMI experience weight loss
when initiated onto insulin detemir:
12-week, 26-week and 52-week follow-
up data from PREDICTIVE™. Presented
at the European Association for the
Study of Diabetes, September 2008.

4   Shaban, J, Hansen J B, Yang W Y.
NovoMix®30 (BIAsp 30) Improves
Glycemic Control in Type 2 Diabetes:
Results from the IMPROVE™ Study.
American Diabetes Association. 68th
Scientiﬁ c Sessions; 2008 June 7–10; San
Francisco, CA. Abstract Number: 2108.

5   Estimated number of patients using

FlexPen®, based on worldwide sales in
numbers of packs sold, IMS worldwide
data Q2’08 and Daily Deﬁ ned Dosage
(DDD) for insulin as issued by WHO.

6   Innovation in Health Care: The  Economics
of Diabetes. Study conducted by The
Lewin Group®, commissioned by the
National Changing Diabetes Program®,
a program of Novo Nordisk, Inc.

Novo Nordisk sponsored a ﬁ ve km run as part of the 2008 
meeting of the European Association for the Study of Diabetes.

Novo Nordisk’s key products

This report makes reference to European product trade names. The list below provides an overview of European 
trade names with accompanying generic names. Trade and generic names may differ in the US and Japan. For a 
complete overview of country-speciﬁ c product names, please visit novonordisk.com Click: Your COUNTRY.

Therapeutic area 

Trade name 

Generic name

Diabetes care 

Modern insulins

Levemir® 

NovoRapid® 

NovoMix® 

Human insulins

Insulatard® 

Actrapid® 

Diabetes devices

FlexPen® 

NovoPen® 4 

InnoLet® 

NovoFine® 

GlucaGen®  

Insulin detemir

Insulin aspart

Biphasic insulin aspart

Insulin human

Insulin human

Preﬁ lled insulin delivery system

Durable insulin delivery system

Preﬁ lled insulin delivery system

Needle

Glucagon

Oral antidiabetic agent

NovoNorm® 

PrandiMet® 

Repaglinide

Repaglinide/metformin

Biopharmaceuticals 

Haemostasis

NovoSeven® 

Recombinant factor VIIa

NovoSeven RT™ 

Recombinant factor VIIa

Human growth hormone

Norditropin® 

NordiFlex® 

Somatropin (rDNA origin)

Preﬁ lled multidose delivery system

NordiFlex PenMate® 

Automatic needle insertion accessory

NordiPen® 

Preﬁ lled multidose delivery system

NordiPenMate® 

Preﬁ lled multidose delivery system

NordiLet® 

HRT

Activelle® 

Estrofem®  

Novofem® 

Vagifem® 

Preﬁ lled multidose delivery system

Estradiol/norethisterone acetate

Estradiol

Estradiol/norethisterone acetate

Estradiol hemihydrate

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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8

Our focus is
our strength

Javier Viguera, 24, a top-ranked tennis player from Spain believes that 
diabetes has been a positive force in his life. He was ﬁ ve years old 
when he was diagnosed with type 1 diabetes but his parents taught 
him that it would not stand in the way of a normal life, or even an 
extraordinary life. Today, in addition to excelling at his chosen sport, 
Javier is studying for a law degree at the University of Seville.

“Diabetes has helped me be more responsible and demanding with 
myself,” he says.

It was diabetes, in fact, that led him to pick up a tennis racket at the 
age of seven. “Sport came to play an important role in my life, since 
exercise is essential to stabilise levels of glucose,” he explains.

At age 12 Javier Viguera became the best player in his region of Spain, 
which led to the opportunity to be trained by Juan Carlos Ferrero, 
former number-one player in the world. Javier has consistently ranked 
among the best players of his age in Spain. He was ranked among the 
100 best players in his age group worldwide when he was 16.

With law and tennis, he is pursuing all the dreams he had as a boy and 
hopes that his example will inspire others.

For more than 85 years, Novo Nordisk has been committed to improv-
ing diabetes care for people like Javier Viguera.

Novo Nordisk A/S
Novo Allé
2880 Bagsværd
Denmark

CVR number 24 25 67 90

novonordisk.com

Printed on paper from recycled ﬁ ber, well-
managed forests and controlled sources.