Novo Nordisk A/S – Novo Alle 1, 2880 Bagsværd, Denmark – CVR no. 24256790
ANNUAL
REPORT
2024
Novo Nordisk employees Steve Piaget and Marie Ange Gahozo from our site in Kalundborg,
Denmark, overseeing an active construction project. This project is part of our investment of
more than DKK 80 billion in new active pharmaceutical ingredient facilities. These significant
expansions aim to scale up production of life-changing treatments, including GLP-1-based
medicines, to benefit many more people living with serious chronic diseases.
MANAGEMENT REPORT
101
Consolidated financial statements
102
Income statement and Statement
of comprehensive income
103
Cash flow statement
104
Balance sheet
105
Equity statement
106
Notes to the Consolidated
financial statements
138
Statements and auditor’s reports
138
Statement by the Board of Directors
and Executive Management
139
Independent auditor’s report
141
Independent auditor’s limited assurance
report on Sustainability statement
143
Additional information
144
More information
145
Product overview
146
Financial statements of the parent company
47
General information
47
ESG performance
49
Basis for preparation of the
Sustainability statement
50
Sustainability governance
51
Interests and views of stakeholders
52
Double materiality assessment
54
Environment
54
Climate change
60
Resource use and circular economy
64
Pollution
65
Water
67
Biodiversity and ecosystems
69
EU Taxonomy
71
Social
71
Patient protection and quality of life
80
Own workforce
88
Workers in the value chain
90
Governance
90
Business conduct
95
Appendix
Annual review
Sustainability statement
Financial statements
and additional information
4
Introducing Novo Nordisk
5
Letter from the Chair and the CEO
7
Key figures
8
Purpose and strategy
9
Value creation
10
Strategic Aspirations 2025 progress
11
Strategic Aspirations
12
Purpose and sustainability
17
Innovation and therapeutic focus
26
Commercial execution
32
Financials
38
Risks
41
Management
42
Board of Directors
45
Executive Management
2
We have been committed to integrated reporting since 2004, when we
first started evaluating our performance based on social, environmental
and financial impact. This commitment was further strengthened in 2019
with the adoption of our Strategic Aspirations 2025, which cover our
financial and sustainability ambitions.
This year, in line with the CSRD, we have conducted a double materiality
assessment to identify the sustainability matters that are most important
to Novo Nordisk, considering both societal and financial implications.
The essential topics identified include patient protection and quality
of life, climate change, resource use and circular economy, and own
workforce – reflecting our aspirations of progress towards zero
environmental impact, being respected for adding value to society
and being a sustainable employer.
The outcomes of this assessment have provided us with key metrics to
track our performance across our material sustainability topics. You can
read more about our progress towards achieving our sustainability
ambitions in the Annual review on page 12, while detailed breakdowns of
our performance can be found in the Sustainability statement on page 46.
Together, these sections make up this year’s Management report.
Moreover, our commitment to sustainability is reflected in our incentive
programmes, which incorporate our Strategic Aspirations 2025 into
both individual and corporate performance targets. This highlights our
dedication to driving sustainable growth and creating long-term value
for all stakeholders.
A new chapter in our integrated reporting
The Annual Report 2024 marks a significant step in the evolution of Novo Nordisk’s integrated reporting. This year,
our Sustainability statement is for the first time prepared according to the EU Corporate Sustainability Reporting
Directive (CSRD) requirements.
Strategic Aspirations
3
§
Corporate Sustainability Reporting Directive
including a double materiality assessment
Material topics and
key metrics
INTRODUCING
NOVO NORDISK
5
Letter from the Chair and the CEO
7
Key figures
8
Purpose and strategy
9
Value creation
10 Strategic Aspirations 2025 progress
Harish Manikandan lives with obesity in Chile. Harish
maintains an active lifestyle in the bustling city of
Santiago and, amid his daily duties as head chef
at a restaurant, finds tranquility on his electric bike,
commuting to work, cycling in the city’s expansive
parks and cruising Santiago in the evenings when
the temperature cools and the traffic is light.
4
Building a healthier tomorrow
The global prevalence of serious chronic diseases is growing by the day, impacting millions
of lives and placing a heavy burden on overstretched healthcare systems. This has created
unprecedented demand for our life-changing GLP-1-based medicines. Over the past four
years, we have more than quadrupled the number of people reached with these treatments
and increased our volume market share in the GLP-1 segment to 63%. In 2024, we served
more than 45.2 million people living with serious chronic diseases, while our global sales
and operating profit both grew by 26% at constant exchange rates.
As we strive to keep pace with the growing demand for our medicines, our production
capacity has been stretched. In response, we have continued to invest heavily in scaling up
our manufacturing capabilities with capital expenditure and acquisitions amounting to more
than DKK 129 billion in 2024. The acquisition of three fill-finish sites formerly run by contract
and development manufacturer Catalent Inc., along with significant expansions of our existing
production facilities in Denmark, France, Brazil, China and the US, are testament to our
commitment to improving supply stability.
In order to meet increasing demand and ensure a stable supply of our medicines, we are also
taking steps to consolidate our product portfolio by gradually phasing out some of our older
insulin products. This will create much-needed space in our global manufacturing network as
we seek to reach millions more people with our medicines over the next decade. At the same
time, we strive not to leave existing patients without alternative treatment options, either from
Novo Nordisk or other companies, and we remain committed to working closely with local
health authorities and the medical community to enable access to affordable care.
Our belief that health is a fundamental human right drives our extensive partnership
programmes and access initiatives. In times of geopolitical instability, safeguarding access to
care for those in conflict zones and underserved areas is paramount. Our partnerships with
humanitarian organisations such as the Danish Red Cross play a crucial role in this effort,
demonstrating our dedication to making a difference where it is needed most.
2024 was a year of significant growth for Novo Nordisk, characterised by continued innovation, capacity expansions and strong
commercial execution. As we reflect on our progress, we also recognise the magnitude of the challenges that lie ahead.
Chair of the Board
of Directors,
Helge Lund (left) and
President and CEO,
Lars Fruergaard
Jørgensen (right).
5
Annual review / Introducing Novo Nordisk / Letter from the Chair and the CEO
Moreover, we are increasing our investment in preventive health measures through initiatives like
Cities for Better Health – a pioneering urban health partnership now active in 51 cities worldwide
– and our collaboration with UNICEF to prevent childhood obesity. These efforts aim to address
the root causes of serious chronic diseases, thereby reducing the global health burden and
fostering a healthier future. Our Transformational Prevention Unit complements our partnership-
driven approach, looking to develop scalable, science-based solutions that can predict and
pre-empt obesity and its consequences.
The same scientific rigour is being applied across our R&D activities, which are driving
transformative change across multiple therapy areas. Rooted in our deep understanding of
proteins and peptides and fuelled by research partnerships, AI-driven drug discovery and the
acquisition of new technology platforms, we are striving to accelerate the discovery of new
targets and optimise our clinical trials to the benefit of people living with serious chronic diseases.
Innovation remains our core contribution to society and the driving force behind our continued
growth. The past year has seen us add to the growing body of clinical evidence supporting the
broad cardiometabolic and societal benefits of semaglutide – the molecule at the heart of our
flagship GLP-1-based medicines Ozempic®, Wegovy® and Rybelsus® – and we are confident that
our pipeline has the potential to add even more value.
In obesity, we completed the first phase 3 trial of CagriSema, currently in development for the
treatment of obesity or overweight and type 2 diabetes. After 68 weeks, if all people adhered to
treatment, CagriSema demonstrated a statistically significant weight loss of 22.7% vs 2.3% with
placebo alone. This is among the highest weight reductions yet seen in a phase 3a programme
for a GLP-1 combination therapy. We intend to further explore the weight loss potential of
CagriSema in an additional study.
Earlier in our obesity pipeline, topline results from a phase 1b/2a trial of subcutaneous amycretin
have demonstrated the weight lowering potential of the unimolecular GLP-1 and amylin receptor
agonist, supporting previous data seen with the oral formulation. When evaluating the effects of
treatment if all people adhered to treatment, those receiving a 20 mg dose of amycretin experienced
an estimated average weight loss of 22.0% over 36 weeks compared to 2% weight gain with placebo.
In diabetes, the first launches of Awiqli® – the world’s first once-weekly basal insulin – exemplify
our enduring commitment to innovation in this space more than 100 years after we first started
producing insulin. Moreover, our dedication to addressing unmet needs within rare disease is
exemplified by the pending regulatory submission of Mim8 for the treatment of haemophilia A.
The growth of our business has inevitably led to an increase in our environmental footprint, and
we are stepping up efforts to mitigate this impact. We have introduced comprehensive, updated
roadmaps targeting reductions in our emissions, plastic footprint and impact on nature and
biodiversity. Achieving these ambitions will be no small feat given the increasing global demand for
our medicines, but we are rising to the challenge. Our roadmaps include measures to decouple our
environmental impact from our continued growth by incorporating the use of low-carbon materials
across our value chain, supporting our suppliers through a transition to renewable energy and
facilitating a switch from disposable to reusable injection devices for our medicines wherever possible.
Our operating environment is also becoming more complex, shaped by geopolitical tensions,
global conflicts and technological advancements. Our unique ownership structure, underpinned
by the Novo Nordisk Foundation as controlling shareholder, provides us with the stability we need
to navigate these uncertainties. This model supports our sustainable growth by allowing us to take
a long-term view on our investments and strategies; crucial in a volatile world where short-term
market pressures can often lead to reactive decision-making.
We are similarly mindful of the importance of sustainably scaling our organisation. We are now
77,349 colleagues worldwide – an increase of 20% compared to 2023 that reflects our commitment
to scaling up in the face of growing demand. Our focus is on ensuring new hires receive the
support and resources they need to fully integrate into our global workforce and connect with the
Novo Nordisk Way – the core guiding principles that underpin everything we do. This approach
also safeguards our focus on diversity and inclusion, fostering an environment where every
employee feels valued and included.
As we look forward to 2025 and beyond, we are optimistic about the opportunities that lie ahead
as we strive to serve millions more people with serious chronic diseases. However, we are also
mindful of the challenges inherent to our growth and the need to balance short-term costs with
long-term societal value.
Our purpose remains clear: driving change to defeat serious chronic diseases. By staying true
to our purpose and values, we are confident in our ability to navigate the complexities of the
ever-evolving global healthcare landscape and to continue making a meaningful difference in
the lives of millions of people worldwide.
We would like to extend our gratitude to all Novo Nordisk colleagues worldwide for their hard
work and dedication at a time of unprecedented demand for our life-changing medicines, and
to our shareholders for their continued support of our company.
Helge Lund
Chair of the Board of Directors
Lars Fruergaard Jørgensen
President and CEO
Annual review / Introducing Novo Nordisk / Letter from the Chair and the CEO
6
DKK million
2020
2021
2022
2023
2024
2023-24
Financial ratios
Change
Gross margin3
83.5%
83.2%
83.9%
84.6%
84.7%
Sales and distribution costs in
percentage of sales
25.9%
26.3%
26.1%
24.4%
21.4%
Research and development costs in
percentage of sales
12.2%
12.6%
13.6%
14.0%
16.6%
Operating margin3
42.6%
41.7%
42.3%
44.2%
44.2%
Net profit margin3
33.2%
33.9%
31.4%
36.0%
34.8%
Cash to earnings1
67.8%
61.4%
103.3%
81.6%
(14.6%)
Return on invested capital1
82.8%
69.0%
73.6%
88.5%
63.9%
Share performance and capital allocation
Basic earnings per share/ADR in DKK3
9.03
10.40
12.26
18.67
22.67
21%
Diluted earnings per share/ADR in DKK3
9.01
10.37
12.22
18.62
22.63
22%
Total number of shares (million),
end of year
4,700
4,620
4,560
4,510
4,465
(1%)
Dividend per share in DKK4
4.55
5.20
6.20
9.40
11.40
21%
Total dividend (DKK million)4
21,066
23,711
27,950
41,987
50,683
21%
Dividend payout ratio3
50.0%
49.6%
50.3%
50.2%
50.2%
Share repurchases (DKK million)
16,855
19,447
24,086
29,924
20,181
(33%)
Closing share price (DKK)
214
368
469
698
624
(11%)
DKK million
2020
2021
2022
2023
2024
2023-24
Financial performance
Change
Net sales
126,946
140,800
176,954
232,261
290,403
25%
Sales growth as reported
4.0%
10.9%
25.7%
31.3%
25.0%
Sales growth in constant
exchange rates1
6.7%
13.8%
16.4%
35.6%
25.7%
Operating profit
54,126
58,644
74,809
102,574
128,339
25%
Operating profit growth as reported
3.1%
8.3%
27.6%
37.1%
25.1%
Operating profit growth in constant
exchange rates1
6.8%
12.7%
14.6%
43.7%
26.2%
Depreciation, amortisation and
impairment losses
5,753
6,025
7,362
9,413
19,107
103%
EBITDA1,2
59,879
64,669
82,171
111,987
147,446
32%
EBITDA growth as reported
3.0%
8.0%
27.1%
36.3%
31.7%
EBITDA growth in constant
exchange rates
6.7%
12.0%
14.9%
42.4%
32.7%
Net financials
(996)
436
(5,747)
2,100
(1,148)
Profit before income taxes
53,130
59,080
69,062
104,674
127,191
22%
Effective tax rate3
20.7%
19.2%
19.6%
20.1%
20.6%
Net profit
42,138
47,757
55,525
83,683
100,988
21%
Purchase of property, plant
and equipment3
5,825
6,335
12,146
25,806
47,164
83%
Purchase of intangible assets3
16,256
1,050
2,607
13,090
4,145
(68%)
Cash used for acquisition of businesses
—
18,283
7,075
—
82,163
Free cash flow1
28,565
29,319
57,362
68,326
(14,707)
Total assets
144,922
194,508
241,257
314,486
465,795
48%
Equity
63,325
70,746
83,486
106,561
143,486
35%
Key figures
45.2
77,349
5
13
80
Novo Nordisk is a leading global healthcare company, founded in 1923 and headquartered in Denmark.
million people living with
diabetes and obesity reached
employees worldwide
countries with
R&D facilities
countries with
production facilities
countries with
affiliates
1. See Non-IFRS financial measures. 2. EBITDA is defined as ’net profit’, adjusted for ‘income taxes’, ‘financial items’, ‘depreciation and amortisation’ and ‘impairment losses and reversals’. 3. See Financial definitions and ratios.
4. Total dividend for the year including interim dividend of DKK 3.50 per share, corresponding to DKK 15,583 million, which was paid in August 2024. The remaining DKK 7.90 per share, corresponding to DKK 35,100 million,
will be paid subject to approval at the Annual General Meeting in March 2025.
7
Annual review / Introducing Novo Nordisk / Key figures
Purpose and strategy
At Novo Nordisk, our purpose is clear: driving change to defeat serious chronic diseases. Through our
life-changing innovations, we are building a healthier future for generations to come.
Diabetes
Strengthen leadership
by offering innovative
medicines and driving
patient outcomes
Rare Disease
Secure a leading position
by leveraging full portfolio and
expanding into adjacent areas
Obesity
Strengthen leadership through
market development and by
offering innovative medicines and
driving patient outcomes
Cardiovascular &
Emerging Therapy Areas
Establish position in
cardiovascular disease and
build a presence in emerging
therapy areas
N
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a
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s
i
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e
s
s
Driving change
to defeat serious
chronic diseases
We are dedicated to reinforcing our leadership in diabetes and
obesity, securing a leading position in rare diseases and establishing
ourselves as a key player in cardiovascular disease. Additionally,
we are actively building our presence in the treatment of metabolic
dysfunction-associated steatohepatitis, chronic kidney disease and
Alzheimer’s disease.
We create value on multiple fronts. Through the Novo Nordisk Way,
we ensure our employees thrive in a supportive and innovative
environment. We operate as a responsible business, striving to
address environmental and social impacts, to create value for society
and fulfil our financial commitments to shareholders, ensuring
sustainable growth and success.
Our value chain is similarly comprehensive, encompassing every
stage from the initial concept of a new treatment to its final delivery
to people living with serious chronic diseases. This includes our own
operations in R&D and manufacturing, as well as collaborations with
suppliers to source materials and distribute our treatments effectively.
8
Annual review / Introducing Novo Nordisk / Purpose and strategy
Research and development
Resources
Manufacturing
Distribution
Patients
Insights from patients,
healthcare experts and partners
Raw
materials
Diverse
talent
Financial
resources
Reached more than 45.2
million people living with
serious chronic diseases
Invested more than DKK 129 billion –
mainly in production capacity – to meet
demand for current and future products
Added 13,030 employees bringing Novo Nordisk’s
total workforce to 77,349, while supporting
job-creation amongst our suppliers
Invested more
than DKK 52
billion in R&D
Reached 8.4 million
vulnerable people
living with diabetes
Ownership structure
The Novo Nordisk Foundation awards
grants in three strategic areas: health,
sustainability and the life science
ecosystem. In 2024, more than
DKK 10 billion were awarded.
The Novo Nordisk Foundation
holds 77.3% of votes and 28.1%
of shares in Novo Nordisk A/S
through Novo Holdings A/S.
This unique ownership
structure supports sustainable
growth by allowing us to take
a long-term view on our
strategies and investments
while maintaining short-term
transparency on performance.
Paid out more
than DKK 64 billion
via dividends and
share buybacks
to shareholders,
including Novo
Holdings A/S
Value creation
We focus on creating lasting value for society and our business with a strong commitment to financial, environmental
and social responsibility. Following the Novo Nordisk Way, we are dedicated to delivering long-term value for people living
with serious chronic diseases, our employees, partners, shareholders and society at large.
9
Annual review / Introducing Novo Nordisk / Value creation
Strategic Aspirations 2025 progress
Strategic Aspirations 2025
Progress
Purpose and
sustainability
Progress towards zero environmental impact
•
Overall CO2e emissions (scope 1, 2 and full scope 3) increased by 23% compared to 2023
Being respected for adding value to society
•
Medical treatment provided to 43.0 million people living with diabetes and 2.2 million people living with obesity
•
Reached more than 64,000 children in the Changing Diabetes® in Children programme
Being recognised as a sustainable employer
•
Share of women in senior leadership positions has increased by 0.7 percentage point to 42% compared to 2023
Sustainable supply chain
•
Acquisition of Catalent by Novo Holdings and the related acquisition by Novo Nordisk of three manufacturing sites from
Novo Holdings completed
Innovation and
therapeutic focus
Further raise the innovation-bar for Diabetes treatment
•
Awiqli® approved in the EU, Japan and China
•
Complete Response Letter received for insulin icodec in the US
•
Successful completion of phase 3a programme with IcoSema
•
US approval and positive EU opinion for an update of the Ozempic® label based on the FLOW kidney trial
•
Submission of the SOUL cardiovascular outcomes trial and STRIDE functional outcomes trial in the US and EU
Develop a leading portfolio of superior treatment solutions for Obesity
•
Phase 2 trial initiated with once-weekly GIP/GLP-1 dual agonist
•
Phase 2a trial with monlunabant completed
•
CagriSema demonstrated superior weight loss in the REDEFINE 1 trial
•
Phase 3b trials, STEP UP and STEP UP T2D, with semaglutide 7.2 mg successfully completed
•
Phase 1b/2a trial with injectable amycretin successfully completed
•
Phase 1 trial with a tri-agonist (Triple) initiated
Strengthen and progress the Rare disease pipeline
•
Phase 3a trial, FRONTIER 2, with Mim8 successfully completed in people with haemophilia A
•
Successful completion of the phase 2 part (interim) of the etavopivat HIBISCUS phase 2/3 trial
•
Alhemo® (Concizumab) approved in the US and EU for the treatment of haemophilia A and B with inhibitors
•
Alhemo® submitted in the EU for the treatment of haemophilia A and B without inhibitors
Establish presence in Cardiovascular & Emerging Therapy Areas focusing
on CVD, MASH and CKD
•
Agreement to acquire Cardior Pharmaceuticals and lead asset CDR132L in phase 2 development for treatment of heart failure
•
Phase 3 development initiated with ziltivekimab in HFpEF and AMI
•
Phase 3 trial CLARION-CKD trial stopped as ocedurenone failed to meet primary endpoint
•
Successful completion of part I of phase 3 trial ESSENCE with semaglutide 2.4 mg in MASH
Commercial
execution
Strengthen Diabetes leadership – aim at global value market share of more than 1/3
•
Diabetes value market share remained unchanged at 33.7% (MAT)
More than DKK 25 billion in Obesity sales by 2025
•
Obesity care sales increased by 57% (CER) to DKK 65.1 billion
Secure a sustained growth outlook for Rare disease
•
Rare disease sales increased by 9% (CER) to DKK 18.6 billion
Financials
Deliver solid sales and operating profit growth
•
Sales growth of 26% (CER)
•
Operating profit growth of 26% (CER), negatively impacted by impairment losses related to intangible assets
Drive operational efficiencies across the value chain to enable investments in future growth assets
•
Operational leverage reflecting sales growth, when excluding impairment losses
Deliver free cash flow to enable attractive capital allocation to shareholders
•
Free cash flow of DKK (14.7) billion, negatively impacted by the Catalent transaction
•
DKK 64.3 billion returned to shareholders
10
Annual review / Introducing Novo Nordisk / Strategic Aspirations 2025 progress
STRATEGIC
ASPIRATIONS
12 Purpose and sustainability
17 Innovation and therapeutic focus
26 Commercial execution
32 Financials
Novo Nordisk employees Jayashri Seshadri and Merlin Till Witte in our laboratories in
Måløv, Denmark. Jayashri and Merlin are part of a transformational research unit working
to improve the lives of people living with serious chronic diseases through innovative
stem cell-based therapies.
11
PURPOSE AND SUSTAINABILITY
Driving change in human
and planetary health
As the global prevalence of serious chronic diseases continues to increase, overburdened healthcare
systems face growing pressure to deliver cost-effective, quality care, while millions of people lack
access to essential treatments. In 2024, we reached more than 45.2 million people with our life-
changing medicines – an increase of 3.6 million compared to 2023. As our business grows, so does
our social responsibility to support vulnerable populations, and this year we were able to reach 8.4
million vulnerable people living with diabetes – a slight decrease compared to 2023. With the aim
of addressing growing health inequities, we are broadening our access and affordability initiatives,
including programmes like Changing Diabetes® in Children. Since its inception in 2009, this
programme has provided care and support to more than 64,000 young people – keeping us on
track to achieve our ambition of reaching a total of 100,000 children by 2030.
Prevention is similarly critical to reducing the global health burden, and we are investing more in
preventive health measures than ever before. Our GLP-1-based medicines hold the potential to deliver
substantial long-term healthcare savings by improving patient outcomes and reducing the need for
more intensive treatments. Meanwhile, the 2024 expansion of our pioneering urban health initiative,
Cities for Better Health, showcases our growing ambition to drive change outside the clinic. Building
upon a decade of insights, this expanded partnership programme now includes a Childhood Obesity
Prevention Initiative (COPI) aiming to deliver measurable, community-driven interventions that
promote healthy eating and physical activity among children living in underprivileged urban
communities. Initially launching in six cities across five continents, COPI complements our existing
work with UNICEF to prevent this escalating problem.
We also prioritise environmental sustainability – including nature and biodiversity – across our value
chain and have a clear focus on decoupling our environmental impact from our growth as we progress
towards our net zero 2045 emissions target. This will be a significant challenge with emissions continuing
to rise as our business expands to keep pace with demand, but we are determined to step up to the task.
To this end, we have updated roadmaps targeting reductions in our emissions, plastic footprint and
impact on nature and biodiversity, each laying out a clear path towards creating a more sustainable
business. Key focus areas include supporting our suppliers through a transition to renewable energy,
switching to reusable injection devices for our medicines wherever possible and exploring the use of
low-impact glucose alternatives in our production processes.
Despite the scale of the challenges ahead, our commitment to improving human and planetary
health remains unwavering. We are determined to do more with less – reaching more vulnerable
people with our life-saving medicines and doing more to curb the rising prevalence of serious
chronic diseases, all while minimising our environmental impact.
Strategic Aspirations 2025
1 Progress towards zero
environmental impact
2 Being respected for adding
value to society
3 Being recognised as
a sustainable employer
In an increasingly complex and unpredictable world, the intersection
of climate change, health inequity and the rising prevalence of serious
chronic diseases presents an unprecedented risk to both human and
planetary health. Recognising the magnitude of these challenges,
we are aiming to expand the reach and societal impact of our life-
changing medicines and preventive health initiatives while striving to
reduce our CO2e emissions, plastic footprint and impact on nature.
12
Annual review / Strategic Aspirations / Purpose and sustainability
2024
2023
8.4
8.8
Vulnerable people living with
diabetes reached1
Million
1. The 2023 figure has been restated. Read more on page 75.
2023
47
51
2024
We are taking determined action to prevent serious chronic
diseases, focusing on improving urban health for vulnerable
communities and preventing childhood overweight and obesity.
These efforts are complemented by our Transformational
Prevention Unit, which aims to develop scalable and accessible
science-based solutions that can predict and pre-empt obesity
and its consequences.
Our pioneering urban health programme, Cities for Better
Health (CBH), sits at the forefront of our prevention efforts.
Now with a broadened scope that aligns with our expansion
into new therapy areas, this public-private partnership drives
action to prevent serious chronic diseases across a global
network of 51 large cities.
The Childhood Obesity Prevention Initiative (COPI) is the
latest initiative to come out of CBH. Taking aim at childhood
overweight and obesity, it seeks to deliver measurable,
community-driven interventions promoting healthy eating
and physical activity among children living in underprivileged
urban communities.
Guided by a global evidence-based framework, these measures
will target children aged between six and 13, aiming to positively
affect diet and physical activity, improve health-related quality of
life and promote healthy weight. The initiative complements our
ongoing collaboration with UNICEF to tackle childhood obesity,
where we are focusing on building healthy environments that
enable and empower children to eat well and be active.
Driving change in chronic
disease prevention
Tackling growing
health disparities
Cities reached via our Cities for
Better Health programme
Children playing in Campinas, Brazil,
one of the launch cities of COPI.
Bilguissa Balde was one of the first people
supported by CDiC. Today, she guides and
inspires younger children also living with
type 1 diabetes in Guinea.
Millions currently lack access to diabetes care due to high costs
or unavailability, often with devastating consequences.
In 2024, we reached 8.4 million vulnerable people with diabetes,
a 5% decrease from last year, mainly due to reduced tender sales of
human insulins. Despite this, our commitment to addressing health
inequity remains unwavering. We are intensifying efforts to make
care more affordable for vulnerable populations, improve supply
chains and build capacity for diagnosis and disease management.
Key initiatives include Changing Diabetes® in Children (CDiC),
which has reached over 64,000 children with type 1 diabetes
in low- and middle-income countries since 2009. Support can
include free life-saving medicine, blood glucose monitoring
equipment and medical supplies for young people under 25.
In the past year, the programme integrated new digital elements
to support access to care in vulnerable settings. This includes the
‘Diabetes Besties’ video series, which helps bridge the gap in
patient education for children living with diabetes.
Other initiatives include Partnering for Change, a collaboration
with the Danish Red Cross to address health issues in
humanitarian crises, and iCARE, an integrated business model
aimed at breaking down barriers to diabetes care in Middle Africa
and Indonesia. iCARE provides affordable insulin, trains healthcare
providers and empowers people with diabetes to improve their
health and quality of life.
13
Annual review / Strategic Aspirations / Purpose and sustainability
1. The 2023 figure has been restated; read more about this and our emissions targets on page 57.
Our commitment to delivering life-changing medicines to
millions of people worldwide compels us to responsibly manage
our use of water, energy and resources.
We have made significant progress in reducing our scope 1 and
2 emissions since 2019. However, our scope 3 emissions, which
comprise about 96% of our total emissions, continue to rise as
we grow to meet increasing demand for our medicines. To achieve
net zero emissions by 2045, we have a roadmap to reduce scope 3
emissions by 33% by 2033, using 2024 as the baseline. This
target – which covers nearly 70% of our scope 3 emissions in
accordance with Science Based Targets initiative (SBTi) provisions
– is aligned with climate science and has been submitted to the
SBTi for validation.
Key decarbonisation measures include switching to low-carbon
materials and feedstock across our production network, shifting
our distribution model to low-emissions transportation and
supporting our suppliers in transitioning to renewable energy. To
date, more than 1,800 suppliers have already committed to make
the switch. At the same time, we acknowledge that these measures
will not be enough to meet our target, and will therefore investigate
additional levers – including new technologies – to close this gap.
Additionally, we have sharpened our focus on the impact of our
operations on nature and biodiversity, setting an ambition to halt
nature loss across our value chain by 2033 and achieving nature-
positive status by 2045.
Decoupling environmental
impact from our growth
Reducing our
plastic footprint
Around the world, millions of people with serious chronic
diseases depend on medical devices. Once used, many of
these devices end up in landfills or are incinerated, wasting
tonnes of valuable materials that could be recycled. As the
number of people who rely on our medicines increases, so
does our obligation to help address the related environmental
issues – including plastic waste.
To this end, we are targeting a 30% reduction in the amount of
plastic used per patient by 2033, underpinned by the adoption
of a reduce, change and avoid approach across our diabetes
and obesity portfolio. We aim to achieve this by transitioning
from disposable to reuseable devices and by developing new
medicines designed to be administered less frequently.
In addition, we are scaling up our ReMed™ device take-back
scheme to avoid plastic waste ending up in landfills. ReMed™
is built on the success of our local take-back pilot programmes,
enabling pen users to return their used devices to give the
plastic a new life. Four years on, and more than four million
returned pens since the launch of the first pilot, the scheme is
now active in seven key markets – including Denmark, where
we collaborate with other healthcare companies to offer a
unique industry-wide solution. The same collaborative model
will be piloted in the UK in 2025.
“We are targeting a 30%
reduction in the amount
of plastic used per patient
by 2033”
0.4
0.3
0.2
0.1
0
Plastic footprint
Plastic footprint per patient, kg/patient/year
2024
2033
Plastic
Target
0.35
0.25
0
2024
2023
2,500
2,000
1,500
1,000
500
0
2045
2033
Scope 1, 2 and 3 emissions1
CO2e emissions (1,000 tonnes)
Scope 1:
Direct emissions from
owned/controlled sources
Scope 2:
Indirect emissions from
purchased energy
Scope 3:
Indirect emissions in the
value chain
Scope for 2033 target
Target
1,000
+23%
-33%
-30%
1,836
2,261
14
Annual review / Strategic Aspirations / Purpose and sustainability
We create value by
having a patient-centred
business approach.
We set ambitious goals
and are empowered to
achieve them.
We are accountable
for our financial,
environmental and
social performance.
We are curious and
innovate for the benefit
of patients and society
at large.
We build and maintain
good relations with
our stakeholders.
We value diversity
and treat everyone
with respect.
We focus on
performance and
personal development.
We have a healthy and
engaging working
environment.
We strive for agility
and simplicity in
everything we do.
We never compromise
on quality and ethics.
The extraordinary surge in demand for our life-changing medicines in recent years has led to
a substantial increase in the number of new hires as we expand our workforce to keep pace.
Last year alone, we added 13,030 employees across our global organisation, which now
comprises 77,349 colleagues worldwide.
Our focus is on sustainably scaling our organisation; ensuring it is run efficiently, our priorities
remain clear and our resources are used optimally. This approach helps safeguard the
wellbeing of our expanding workforce and bolsters our reputation as a highly engaged and
supportive place to work. Last year, we recorded an overall engagement score of 85% in our
annual company survey, which saw a record 90% of all employees participate.
To support the integration of our new colleagues, we aim to equip all new hires with the
support and resources they need to onboard and connect with our strong company culture
and purpose, which remain essential to our success.
By dedicating additional time and resources to this integration process, we also help to foster
an environment that values diverse perspectives and ensures every employee feels included.
Moreover, it is crucial that we maintain a sustainable work-life balance for all our employees.
As our business grows, we are carefully monitoring workplace stress levels, targeting a 10%
annual reduction in the number of employees reporting symptoms of stress. Although we did
not meet this target in 2024, when overall stress levels remained unchanged year-on-year at
13.8%, we will continue to implement new measures to address symptoms of stress at the
earliest opportunity.
The foundation of our commitment to supporting the wellbeing and development of our
employees is the Novo Nordisk Way; a set of guiding principles constituting the core of our
identity and operations. It bridges our company’s past, present and future, steering our
strategy, decisions and behaviours. By familiarising new employees with the 10 Essentials that
direct the decisions and actions of every Novo Nordisk colleague, we uphold our dedication to
the company’s core values of openness, accountability and respect. We employ a distinctive,
systematic approach known as facilitation – value audits – to ensure that all employees adhere
to these Essentials.
Sustainably scaling
our organisation
The Novo Nordisk Way Essentials
1
2
3
4
5
8
9
10
7
6
“Our focus is on sustainably scaling our organisation; ensuring it is run
efficiently, our priorities remain clear and our resources are used optimally”
15
Annual review / Strategic Aspirations / Purpose and sustainability
Governance structure
The shareholders of Novo Nordisk exercise their rights at the Annual General Meeting, which
is the supreme governing body of the company. The general meeting, inter alia, adopts the
company’s Articles of Association, approves the Annual Report and elects the Board of Directors.
Any shareholder has the right to raise questions at general meetings. Resolutions can generally
be passed by a simple majority. However, resolutions to amend the Articles of Association require
two-thirds of the votes cast and capital represented, unless other adoption requirements are
imposed by the Danish Companies Act.
Novo Nordisk has a two-tier management structure consisting of the Board of Directors and
Executive Management. The governance structure and rules of Novo Nordisk are further
described in our Articles of Association and our Corporate Governance Report, both available
at: www.novonordisk.com/about/corporate-governance.html.
Foundation ownership
Novo Holdings A/S, a Danish company wholly owned by the Novo Nordisk Foundation, holds
the majority of votes at Novo Nordisk A/S’ general meetings. The combination of foundation
ownership and stock listing enables Novo Nordisk to embark on long-term sustainable
strategies while maintaining short-term transparency on performance. Our foundation
ownership supports the overarching imperative to be both commercially successful and
responsive to the wider needs of society.
The Novo Nordisk Foundation has two objectives: to provide a stable basis for the commercial
and research activities of Novo Nordisk, Novonesis and additional companies in Novo Holdings’
investment portfolio; and to support scientific, humanitarian and social causes. Please refer to
the section on value creation on page 9. For more information about the ownership structure of
Novo Nordisk, see page 36.
Corporate governance reporting
Novo Nordisk reports in accordance with the Danish Corporate Governance Recommendations,
which are implemented by Nasdaq Copenhagen in the Nordic Main Market Rulebook for Issuer
of Shares, as well as the Corporate Governance Standards of the New York Stock Exchange
applicable to foreign private issuers.
Novo Nordisk complies with the Danish Corporate Governance Recommendations as we account
for which recommendations we comply with or deviate from and explain our chosen approach.
You can find further information about our corporate governance practices and statement on our
approach to each of the Danish Corporate Governance Recommendations as well as the Corporate
Governance Standards of the New York Stock Exchange in our Corporate Governance Report,
available at: www.novonordisk.com/about/corporate-governance.html.
Remuneration
Executive remuneration is linked to financial performance as well as non-financial performance
(e.g. innovation and sustainability). Novo Nordisk has prepared a separate Remuneration Report
describing the remuneration awarded or due during 2024 to the Board of Directors and Executive
Management members registered with the Danish Business Authority. The Remuneration Report
is submitted to the Annual General Meeting for an advisory vote. The Remuneration Policy and the
Remuneration Report are available at: www.novonordisk.com/about/corporate-governance.html.
Disclosure regarding change of control provisions
It is disclosed that Novo Nordisk does not have any material contracts that take effect, alter or
terminate upon a change of control of Novo Nordisk following implementation of a takeover bid.
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 registered with the
Danish Business Authority are, in addition to the notice period, entitled to a severance payment of
24 months’ base salary plus pension contribution.
Ethics and compliance
In Novo Nordisk, we have an ethics and compliance programme which comprises of a code of
conduct (OneCode), requirements (The Ethics Navigator), processes and awareness and capability
building as stipulated in the seven elements of an effective compliance programme. Data privacy is
a key component in our ethical principles, ensuring guardrails are in place to manage and mitigate
risks, thus safeguarding our patients and society at large. We have also adopted a set of principles
for data and artificial intelligence (AI) ethics to support ethical decision-making. We have initiated
building our AI Ethics & Compliance framework, incorporating elements such as principles,
requirements and risk assessments, as well as building AI literacy training and capabilities.
You can read more about these principles, in accordance with the Danish Financial Statements
Act Section 99d, at: www.novonordisk.com/data-privacy-and-user-rights/data-ethics.html.
Corporate governance
16
Annual review / Strategic Aspirations / Purpose and sustainability
INNOVATION AND THERAPEUTIC FOCUS
Our evolution from a diabetes-centric company to an organisation with a broader focus on
metabolic and cardiovascular health requires even sharper prioritisation across our portfolio.
To do this, we have established the role, purpose and ambition level for each therapy area based
on future opportunities, while at the same time assessing our competitive strengths and the
capabilities required to unlock these opportunities.
The result is a clear set of priorities that guide our R&D and external business development
activities across therapy areas. These include significant investments in novel technological
platforms as well as strategic collaborations and acquisitions that expand our research horizons
and ensure we remain at the forefront of therapeutic innovation.
Our primary strategic focus remains on strengthening our leadership position in diabetes and
obesity. The latter is an increasingly critical area of unmet medical need, impacting more than one
billion people worldwide. Our robust pipeline underscores our ambition to develop transformative
treatment solutions. Notable advancements include the phase 3 development of CagriSema, an
innovative once-weekly combination of an amylin analogue (cagrilintide) and GLP-1 receptor agonist
(semaglutide), and successfully completing the phase 1b/2a trial with subcutaneous amycretin,
a unimolecular long-acting GLP-1 and amylin receptor agonist.
Driven by a strong focus on strategic partnerships and external innovation, our modality portfolio
has expanded significantly in recent years, and now incorporates diverse approaches including
proteins and peptides, small interfering ribonucleic acid (siRNA), small molecules, cell therapy
and gene editing. This diversification enables us to leverage multiple modalities for target biology,
enhancing our ability to address complex diseases. Ongoing projects include collaborations with
biotech firms including Heartseed (cell therapy) and Ventus Therapeutics (small molecules) to
identify novel drug candidates for the treatment of heart failure and atherosclerotic cardiovascular
disease, while the acquisition of the megaTAL technology platform from longstanding partner
2seventy bio has enhanced our in-house gene editing capabilities in haemophilia.
Artificial intelligence (AI) and human data also play a pivotal role in our R&D activities. By leveraging
real-world evidence and diverse data cohorts, we are able to enhance our early discovery processes,
while our AI-driven data mining and analyses help us mitigate risks involved in translating findings
from animal models to humans. This approach accelerates the discovery of new targets and
increases the likelihood of clinical success. Our R&D hub in the greater Boston area, a world-leading
life sciences cluster, exemplifies this forward-thinking approach, working with local partners to
leverage the power of machine learning, big data and AI to enhance our R&D capabilities.
As healthcare innovation accelerates at an unprecedented rate,
Novo Nordisk is driving transformative change across multiple therapy
areas, with a particular focus on meeting unmet patient needs in
diabetes, obesity, cardiovascular diseases and rare blood disorders.
Through strategic investments in AI-driven drug discovery, clinical trial
optimisation and new technological platforms, our ambition is to set new
standards for innovation that deliver tangible, lasting improvements to
the lives of the people we serve.
Empowering patients
with life-changing
innovations
Strategic Aspirations 2025
1 Further raise the innovation-bar for Diabetes treatment
2 Develop a leading portfolio of superior treatment
solutions for Obesity
3 Strengthen and progress the Rare disease pipeline
4 Establish presence in Cardiovascular & Emerging
Therapy Areas focusing on CVD, MASH and CKD1
1. Cardiovascular disease, metabolic dysfunction-associated steatohepatitis and chronic kidney disease.
17
Annual review / Strategic Aspirations / Innovation and therapeutic focus
Developing breakthrough
innovations in obesity
Obesity is a public health crisis impacting more than one billion people worldwide. Meeting unmet
needs in obesity is a critical focus area for Novo Nordisk, and our aim is to build a differentiated portfolio
of superior treatment solutions that go beyond weight loss to deliver meaningful improvements in
overall metabolic and cardiovascular health and physical function. Over the past year, we have
strengthened our leadership position in this dynamic and rapidly-growing space. At the forefront
of these advancements are two promising investigational therapies: CagriSema and amycretin.
CagriSema, currently in phase 3 development for the treatment of obesity or overweight and type 2
diabetes, aims to combine the proven efficacy of semaglutide with the potential complementary
benefits of cagrilintide, a novel amylin analogue. Topline results from the pivotal REDEFINE 1 phase 3a
trial demonstrated 22.7% weight loss vs 2.3% with placebo alone after 68 weeks if all people adhered to
treatment – among the highest reductions yet seen in a phase 3a programme for a GLP-1 combination
therapy. CagriSema appeared to have a safe and well-tolerated profile in the study. The most common
adverse events were gastrointestinal, and the vast majority were mild to moderate and diminished over
time, consistent with the GLP-1 receptor agonist class. With the insights obtained from the REDEFINE 1
trial, we plan to further explore the weight loss potential of CagriSema in an additional study.
Amycretin, a novel unimolecular GLP-1 and amylin receptor agonist, aims to combine the physiological
effects of these two biologies, enhancing glucose-dependent insulin secretion, inhibiting glucagon
release, slowing gastric emptying and promoting satiety. Findings from a phase 1b/2a study of
subcutaneous amycretin demonstrated a safety profile consistent with incretin-based therapies.
The most common adverse events were gastrointestinal and the vast majority were mild to moderate
in severity. When evaluating the effects of treatment if all people adhered to treatment, amycretin
demonstrated an estimated body weight loss of 9.7% on 1.25 mg (20 weeks), 16.2% on 5 mg (28 weeks)
and 22.0% on 20 mg (36 weeks). People treated with placebo experienced an estimated 1.9%, 2.3% and
2.0% body weight gain, respectively. These results support the weight lowering potential of amycretin
previously seen with the once-daily oral formulation, which demonstrated 13.1% weight loss after 12
weeks in a phase 1 study.
In addition to these developments, we successfully completed two phase 3b obesity trials with
semaglutide 7.2 mg. When evaluating the effects of treatment if all people adhered to treatment over
72 weeks, semaglutide 7.2 mg demonstrated 20.7% weight loss vs 2.4% with placebo in people with
obesity in the STEP UP study, and 14.1% weight loss vs 3.6% with placebo in people with obesity and
type 2 diabetes in the STEP UP T2D study.
We are also continuing to unpack the full data sets from our landmark SELECT trial programme, which
include samples from approximately 11,000 people collected over a five-year period. Enhanced by AI
and digital capabilities, these data can help us identify new targets and biomarkers for future projects
and predict disease progression and treatment response.
Patricio Argüelles
lives with obesity
in Mexico.
18
Annual review / Strategic Aspirations / Innovation and therapeutic focus
Pioneering transformational
treatments for diabetes
The discovery of insulin more than 100 years ago transformed diabetes from a death sentence
into a manageable disease.
Today, we are still driving change in diabetes by improving quality of life through innovative
new treatments and delivery devices. The past year has been no exception, characterised by
advancements in our diabetes pipeline that demonstrate our commitment to raising the bar
for innovation in this ever-evolving therapy area.
CagriSema is a once-weekly combination of an amylin analogue (cagrilintide) and a GLP-1
receptor agonist (semaglutide). It is currently in phase 3 development for the treatment of
type 2 diabetes in the REIMAGINE programme to assess its effects on blood glucose
regulation, body weight and broader metabolic health parameters. A separate phase 3
programme – REDEFINE – is also investigating CagriSema for the treatment of obesity.
We are also making progress in the development of a once-weekly GIP/GLP-1 receptor dual
agonist, aiming to leverage the combined benefits of two powerful incretin hormones. By
activating both GIP (gastric inhibitory polypeptide) and GLP-1 receptors, this investigational
therapy aims to enhance blood sugar control, increase insulin secretion, reduce glucagon
levels and promote weight loss.
In type 1 diabetes, our early-stage pipeline has similarly transformative potential. Key projects
include Pumpsulin, which aims to deliver a novel fast-acting insulin optimised for use in
future insulin pump-based fully closed-loop CSII (Continuous Subcutaneous Insulin Infusion)
systems, and our work on developing a glucose-sensitive insulin. Currently in phase 1 clinical
development, this cutting-edge therapy is designed to automatically respond to the body’s
glucose levels, offering a more dynamic and physiological approach to insulin treatment.
Another notable example is our DNA immunotherapy project. Targeted at individuals recently
diagnosed and at risk of developing type 1 diabetes, this investigational therapy aims to
transform the management of the disease by addressing the root cause of the immune
system’s harmful response. Administered through regular injections, it seeks to ‘retrain’ the
immune system to stop attacking insulin-producing cells in the pancreas. By doing so, the
therapy aims to preserve the body’s natural ability to produce insulin, potentially preventing
or delaying the onset of type 1 diabetes.
Novo Nordisk
employee Jacob
Sten Petersen and
his daughter Vita at
the Breakthrough
T1D Walk in the US.
Vita was diagnosed
with type 1 diabetes
at age three.
“The therapy aims to preserve the body’s natural ability to produce insulin,
potentially preventing or delaying the onset of type 1 diabetes”
19
Annual review / Strategic Aspirations / Innovation and therapeutic focus
CARDIOVASCULAR & EMERGING THERAPY AREAS
Cardiovascular disease,
the world’s biggest killer
Cardiovascular diseases (CVD) are the leading cause of death globally, taking an estimated
17.9 million lives each year. The prevalence of CVD is on the rise, driven by factors such as
ageing populations, lifestyle changes and increasing rates of obesity and diabetes. This
growing burden underscores the urgent need for innovative treatments to manage and
mitigate the impact of cardiovascular (CV) conditions.
Although CVD is a crowded, highly competitive therapy area, significant unmet needs persist.
Our GLP-1-based therapies Ozempic®, Wegovy® and Rybelsus® have all demonstrated a
reduction in risk of major adverse CV events in separate cardiovascular outcomes trials, adding
to the growing body of evidence supporting the robust cardiometabolic profile of semaglutide.
Beyond our portfolio of GLP-1-based medicines, we are also developing a pipeline of CV assets
targeting specific, underserved areas where we can leverage our expertise in metabolic
diseases. Central to these efforts is ziltivekimab, our lead CV candidate currently in phase 3
development across multiple CV indications.
Acquired as part of a business development deal to bring Boston-based biotech firm Corvidia
Therapeutics in-house back in 2020, ziltivekimab is an investigational monoclonal antibody
designed to target interleukin-6 (IL-6), a protein in the inflammation pathway linked to the
development of different CV conditions. By targeting IL-6, ziltivekimab is under investigation
to reduce inflammation and potentially improve outcomes across a spectrum of CV conditions
– including atherosclerotic cardiovascular disease, heart failure with preserved ejection
fraction, and acute myocardial infarction.
Phase 2 data demonstrated that ziltivekimab significantly lowers inflammation biomarkers
linked to atherosclerosis in individuals with advanced chronic kidney disease. With phase 3 trials
now in progress, our goal is to establish the first-in-class therapy as a foundational treatment
for high-risk cardiovascular patients, aiming to improve cardiovascular outcomes by targeting
systemic inflammation.
With the potential to improve outcomes across several indications, ziltivekimab exemplifies our
commitment to strengthening our position in the CVD space.
Greg Patterson
lives with
cardiovascular
disease in the US.
“Phase 2 data demonstrated that ziltivekimab significantly lowers
inflammation biomarkers linked to atherosclerosis in individuals with
advanced chronic kidney disease”
20
Annual review / Strategic Aspirations / Innovation and therapeutic focus
CARDIOVASCULAR & EMERGING THERAPY AREAS
Tania DaSilva works at Novo Nordisk
in the US and lives with MASH.
Semaglutide has already proven its effectiveness in enhancing
glycaemic control, promoting weight loss and reducing
cardiovascular risk. Now, it has demonstrated potential as a
treatment for metabolic dysfunction-associated steatohepatitis
(MASH), a progressive liver disease that affects more than
250 million people worldwide.
MASH is characterised by liver inflammation and damage
due to fat accumulation. If left untreated, this condition can
progress to cirrhosis and liver failure, posing a significant
health risk. Yet with only one pharmacological treatment
approved specifically for MASH, there is significant unmet
need in the space for effective therapeutic options.
According to the headline results from part one of the
ESSENCE trial, semaglutide 2.4 mg demonstrated a statistically
significant and superior improvement in liver fibrosis with
no worsening in steatohepatitis – as well as resolution of
steatohepatitis with no worsening of liver fibrosis at 72 weeks.
This initial phase of the study included 800 people with MASH
and moderate to advanced liver fibrosis.
Part two of the trial, designed to evaluate the long-term impact
of semaglutide 2.4 mg on liver-related clinical events, is set to
continue until 2029. Meanwhile, Novo Nordisk plans to file for
regulatory approval in the US and EU in the first half of 2025.
“Semaglutide 2.4 mg
demonstrated a statistically
significant and superior
improvement in liver fibrosis
with no worsening in
steatohepatitis”
“By combining AI
with high-throughput
experimentation, we have
assessed one billion virtual
molecules via computer
modelling and screened
approximately 2,500
compounds in the lab”
Emerging therapies
for MASH
We are revolutionising our R&D efforts through artificial
intelligence (AI), particularly in drug discovery, molecular design
and clinical trial optimisation.
In drug discovery, AI is playing a pivotal role in identifying
new compounds. By combining AI with high-throughput
experimentation, we have assessed one billion virtual molecules
via computer modelling and screened approximately 2,500
compounds in the lab. This led to the discovery of a highly
selective amylin compound that closely mimics the natural
hormone, requiring 50-75% fewer design rounds.
Molecular design has also advanced through AI. By leveraging
predictive pharmacology and knowledge mining, we are able
to accelerate the design cycles of new molecules, expediting
development and enhancing the precision of targeted therapies.
AI is also optimising our clinical trials by identifying subpopulations,
improving trial design and site selection and forecasting outcomes.
For example, harmonising data from around 1,600 clinical trials,
including SELECT and STEP, has provided best-in-class
cardiometabolic data, leading to improved disease insights,
patient stratification and drug target identification.
We are also enhancing our AI capabilities through strategic
partnerships. Our recently expanded collaboration with Valo
Health is a prime example of our approach, seeking to accelerate
the development of up to 20 novel drug programmes within the
cardiometabolic space by leveraging cutting-edge AI technology
and extensive human datasets.
Pioneering AI in
research and development
ARTIFICIAL INTELLIGENCE
Yogesh Shelke works in US R&D at
Novo Nordisk.
21
Annual review / Strategic Aspirations / Innovation and therapeutic focus
Pioneering new treatments
for rare blood disorders
Ebrar Oruc lives
with haemophilia A
in Turkey.
Novo Nordisk has a long-standing legacy of pioneering advancements in the treatment of rare
blood disorders, and our pipeline is primed to extend this tradition. In haemophilia A, our
investigational treatment Mim8 represents an optimised therapeutic approach that could redefine
the standard of care for patients worldwide, while a novel oral Factor VIIIa mimetic could be on
the horizon with Inno8.
Traditional treatments for haemophilia A often require intravenous infusions and cumbersome
administration procedures, posing a significant burden for patients. Mim8 offers a promising
alternative, administered subcutaneously in a weekly, bi-weekly or monthly dose. It mimics the
function of missing clotting Factor VIII (FVIII) by bridging Factor IXa and Factor X to restore the
body’s ability to form blood clots. Mim8 is currently pending submission for regulatory review.
Inno8 holds the potential to become the first-ever oral treatment for haemophilia A. Inno8 is a
small antibody fragment that – like Mim8 – mimics FVIIIa function, but the size of the molecule
is small enough to enable oral absorption. The Inno8 development programme is focused on a
fast-to-market approach with overlapping clinical trials, seeking to provide a convenient and
efficacious alternative to regular infusions.
We have also partnered with a pioneering biotech firm, 2seventy bio, to develop a groundbreaking
gene editing treatment for haemophilia A. This collaboration – which was initiated in 2019,
extended in 2022 and resulted in the acquisition of the megaTAL technology platform in 2024
– aims to correct the clotting factor deficiency in patients, potentially eliminating the need for
regular treatments.
Our efforts extend beyond haemophilia to haemoglobinopathies, a group of inherited genetic
blood disorders affecting the structure or production of the haemoglobin molecule. Here, we are
building a research portfolio to address the underlying disease pathophysiology. We are utilising
our innovative technology platforms to restore red blood cell health and reduce inflammation
and organ damage. Etavopivat, an investigational oral once-daily therapeutic developed to
improve anaemia and red blood cell health in people with sickle cell disease (SCD), is at the
forefront of our efforts in this area.
Etavopivat was acquired as part of the deal that brought Forma Therapeutics in-house back in 2022,
and is currently in a phase 3 clinical trial in adolescents and adults with SCD, and a phase 2 trial for
people with transfusion-dependent SCD and thalassemia, another hereditary haemoglobinopathy
disorder. Results from the phase 2 part of the HIBISCUS trial programme were presented at the
Annual Meeting of the American Society of Hematology in 2024, and indicate that etavopivat has
the potential to improve haemoglobin levels and reduce the incidence of vaso-occlusive crises
compared to placebo – severe pain caused when blood vessels are blocked and deprive tissues of
oxygen – in people with SCD.
22
Annual review / Strategic Aspirations / Innovation and therapeutic focus
Annual review / Strategic Aspirations / Innovation and therapeutic focus
RARE DISEASE
OBESITY
DIABETES
CARDIOVASCULAR & EMERGING THERAPY AREAS
Project
Indication Description
Phase
IcoSema
NN1535
T2D1
A combination of GLP-12 receptor
agonist semaglutide and insulin
icodec intended for once-weekly
subcutaneous treatment.
Icodec
NN1436
T1D3
and T2D
A long-acting basal insulin analogue
intended for once-weekly
subcutaneous treatment.
CagriSema
NN9388
T2D
A combination of amylin analogue
cagrilintide and GLP-1 receptor
agonist semaglutide intended for
once-weekly subcutaneous treatment.
OW GIP4/GLP-1
NN9541
T2D
A dual GLP-1/GIP receptor agonist
intended for once-weekly
subcutaneous treatment.
GELA
NN9506
T2D
A collaboration with GE Healthcare,
using ultrasound for once-monthly
treatment.
Amycretin
NN9490
T2D
A unimolecular long-acting GLP-1 and
amylin receptor agonist intended for
once-daily oral treatment and
once-weekly subcutaneous treatment.
Pumpsulin
NN1471
T1D
A novel insulin analogue for use in
closed loop pump systems.
DNA
immunotherapy
NN9041
T1D
A novel plasmid encoding
pre-proinsulin, TGF5-beta1, IL6-10 and
IL-2 intended for subcutaneous
treatment.
OW Oral
Semaglutide
NN9904
T2D
An oral version of the GLP-1 receptor
agonist intended for once-weekly
treatment.
GSI7
NN1644
T1D
An injectable glucose sensitive insulin
intended for once daily treatment.
Project
Indication Description
Phase
Oral Semaglutide
NN9932
Obesity
A long-acting GLP-1 receptor agonist,
25 mg and 50 mg, intended for
once-daily oral treatment.
Semaglutide
7.2 mg
NN9536
Obesity
A long-acting GLP-1 receptor agonist,
7.2 mg, intended for once-weekly
subcutaneous treatment.
CagriSema
NN9838
Obesity
A combination of amylin analogue
cagrilintide and GLP-1 receptor
agonist semaglutide intended for
once-weekly subcutaneous treatment.
GELA
NN9505
Obesity
A collaboration with GE Healthcare,
using ultrasound for once-monthly
treatment.
Monlunabant
NN9440
Obesity
CB-18 receptor inverse agonist
intended for once-daily oral
treatment.
Cagrilintide
NN9833
Obesity
An amylin analogue intended for
once-weekly subcutaneous treatment.
Amycretin
NN9487
Obesity
A unimolecular long-acting GLP-1 and
amylin receptor agonist intended for
once-daily oral treatment and
once-weekly subcutaneous treatment.
INV-347
NN9441
Obesity
CB-1 receptor inverse agonist
intended for once-daily oral
treatment.
OW GIP/GLP-1
NN9542
Obesity
A dual GLP-1/GIP receptor agonist
intended for once-weekly
subcutaneous treatment.
Triple
NN9662
Obesity
Tri-agonist.
Amylin 355
NN9638
Obesity
Amylin analogue developed for
once-weekly subcutaneous treatment.
Project
Indication
Description
Phase
Mim8
NN7769
Haemophilia
A w/wo
inhibitors
A next generation FVIIIa mimetic
bispecific antibody intended for
subcutaneous prophylaxis for
haemophilia A.
Etavopivat
NN7535
Sickle cell
disease
A second-generation small molecule
PKR9-activator intended for once-daily
oral treatment.
Etavopivat
NN7536
Thalassemia
A second-generation small molecule
PKR-activator intended for once-daily
oral treatment.
NDec
NN7533
Sickle cell
disease
An oral combination of decitabine and
tetrahydrouridine. The project is
developed in collaboration with
EpiDestiny.
TMPRSS2
RNAi10
Hereditary
haemo
chromatosis
Small interfering RNA intended for
once every 1 to 3 months
subcutaneous treatment.
Inno8
NN7441
Haemophilia
A w/wo
inhibitors
An antibody intended for oral
administration.
Project
Indication
Description
Phase
Ziltivekimab
NN6018
CKD11
ASCVD12
AMI13
HFpEF14
A once-monthly monoclonal antibody
intended for inhibition of IL-6 activity.
Coramitug
NN6019
CVD15
An anti-amyloid immunotherapy
intended for intravenous treatment.
CM4HF
NN9003
CVD
An investigational cell therapy
intended for restoring heart function
in people with chronic heart failure.
Anti-ANGPTL3
mAb NN6491
CVD
An ANGPTL316 neutralising sweeping
antibody intended for once-monthly
subcutaneous treatment.
Semaglutide
NN6535
Alzheimer’s
A long-acting GLP-1 receptor agonist
intended for once-daily oral or
once-weekly subcutaneous treatment.
Semaglutide
NN9931
MASH17
A long-acting GLP-1 receptor
agonist intended for once-weekly
subcutaneous treatment.
CagriSema
NN9588
MASH
A combination of amylin analogue
cagrilintide and GLP-1 analogue
semaglutide intended for once-weekly
subcutaneous treatment.
Zalfermin
NN9500
MASH
A long-acting FGF2118 analogue
intended for once-weekly
subcutaneous treatment.
CDR132L
NN6706
Heart
failure
An RNA19-based oligonucleotide
inhibitor developed for once-monthly
intravenous treatment.
LXRa20
NN6582
MASH
A siRNA21 targeting LXRa intended for
once-monthly subcutaneous treatment.
MARC122
NN6581
MASH
A siRNA molecule targeting MARC1
intended for once-monthly
subcutaneous treatment.
SC4PD
NN9001
Parkinson’s
Cryopreserved cell therapy developed
for disease modifying treatment.
DCR-XDH
NN4004
Gout
An RNA-based oligonucleotide
intended for subcutaneous treatment.
Ventus NLRP3i23
NN6022
CVD
Small molecule NLRP3 inhibitor
intended for once-daily oral treatment.
CNP HF
NN6537
Heart failure
C-type natriuretic peptide intended for
once-weekly subcutaneous treatment.
PD-L124
NN4003
Oncology
A PD-L1 GalXC™-derived lipid
conjugate intended for once-monthly
subcutaneous treatment.
STAT3
NN4002
Oncology
A GalXC™-derived lipid conjugate
one-time subcutaneous treatment.
1. T2D: Type 2 diabetes. 2. GLP-1: Glucagon-like peptide-1. 3. T1D: Type 1 diabetes. 4. GIP: Gastric inhibitory polypeptide. 5. TGF: Transforming growth factor. 6. IL: Interleukin. 7. GSI: Glucose-sensitive insulin. 8. CB-1: Cannabinoid receptor-1.
9. PKR: Pyruvate kinase-R. 10. RNAi: Ribonucleic acid interference. 11. CKD: Chronic kidney disease. 12. ASCVD: Atherosclerotic cardiovascular disease. 13. AMI: Acute miocardial infarction. 14. HFpEF: Heart failure with preserved ejection
fraction. 15. CVD: Cardiovascular disease. 16. ANGPTL3: Angiopoietin-like 3. 17. MASH: Metabolic dysfunction-associated steatohepatitis. 18. FGF21: Fibroblast growth factor 21. 19. RNA: Ribonucleic acid. 20. LXRa: Liver X receptor alpha.
21. siRNA: Small interfering RNA. 22. MARC1: Mitochondrial amidoxime-reducing component 1. 23. NLRP3i: NOD-like receptor protein 3 inhibitor. 24. PD-L1: Programmed death ligand 1.
Phase 1
Phase 2
Phase 3
Submission and/or approval
Status in 2023
Progress in 2024
Pipeline overview
23
RARE DISEASE
OBESITY
DIABETES
CARDIOVASCULAR & EMERGING THERAPY AREAS
Regulatory events
•
Awiqli®, once-weekly insulin icodec, was approved by the
EMA (European Medicines Agency) and PMDA
(Pharmaceuticals and Medical Devices Agency) for the
treatment of T2D and T1D and by the CDE (Center for
Drug Evaluation) for the treatment of T2D.
•
Icodec received a complete response letter from the FDA
(Food and Drug Administration).
•
Rybelsus® (oral semaglutide) received approval by the
EMA and the FDA for three formulation changes of
tablets (1.5 mg, 4 mg, 9 mg).
•
Ozempic® label expansion was approved by the EMA to
reflect the reduction in kidney disease related events in
people with T2D based on FLOW results.
•
FLOW results were submitted for Ozempic® (semaglutide
injection, 1 mg) to FDA, PMDA and CDE for the treatment
of chronic kidney disease in patients with T2D.
•
IcoSema was submitted to the EMA and CDE for initial
marketing authorisation for the treatment of T2D.
•
Zegalogue® (dasiglucagon) was approved by the EMA for
treating severe hypoglycaemia (low blood glucose levels)
in adults and children from 6 years.
•
DuraTouch® device has received the CE (Conformitée
Européenne) mark in all countries of the European union.
Clinical progress
•
Phase 3a trial programme, COMBINE, investigating
once-weekly IcoSema in people with T2D was completed.
•
Phase 3a trials, REIMAGINE 1 and 3, investigating
CagriSema as monotherapy and as add-on to insulin in
people with T2D respectively were initiated.
•
Phase 3b trials of the REIMAGINE programme
comparing CagriSema (2.4/2.4 mg) vs tirzepatide (15 mg)
and comparing CagriSema (1/1 mg) vs tirzepatide (5 mg)
in patients with T2D were initiated.
•
Phase 3b trials, ONWARDS 8 and 10, investigating icodec
in people with T2D were initiated.
•
Phase 3b trial, ONWARDS 9, investigating icodec in
insulin-naive people with T2D was completed.
•
Phase 3b trial, COMBINE 4, investigating IcoSema vs
glargine in a post OAD (oral anti-diabetic) population
was initiated.
•
Phase 3b CVOT (cardiovascular outcomes trial), SOUL,
investigating Rybelsus®, oral semaglutide 14 mg, on
cardiovascular outcomes in people with T2D and
established cardiovascular disease and/or chronic kidney
disease was completed.
•
Phase 3b trial, STRIDE, investigating semaglutide
subcutaneous 1.0 mg in people living with T2D and
peripheral arterial disease was completed.
•
Phase 3b outcomes trial, FLOW, investigating
semaglutide sc. 1.0 mg in people living with T2D and
chronic kidney disease was completed.
•
Phase 2 programme investigating OW GIP/GLP-1 in
people living with chronic kidney disease and a dose
finding study in people living with diabetes were initiated.
•
Phase 2 trial, a dose finding trial, investigating
subcutaneous amycretin in people living with diabetes
was initiated.
•
Phase 2 trial investigating CagriSema in people living
with T2D and chronic kidney disease was initiated.
•
Phase 1/2, a first in human dose and multiple dose trial,
investigating DNA immunotherapy in development for
T1D was completed.
•
Phase 1 trial investigating GSI in people living with T1D
was initiated.
•
Once-monthly GIP/GLP-1 developed for glycaemic
control in people with T2D was terminated.
Regulatory events
•
Wegovy® was approved by the FDA to reduce the risk of
major cardiovascular events (MACE) and EMA adopted a
positive opinion to reflect risk reduction of major
cardiovascular events in people with overweight or
obesity and established cardiovascular disease in the
label based on SELECT CVOT results.
•
Wegovy® was approved by the CDE for weight
management in people living with overweight or obesity.
•
Wegovy® label expansion was approved by the EMA to
reflect the reduction in symptoms and improved physical
limitations and exercise function in people with
obesity-related heart failure with preserved ejection
fraction (HFpEF) based on STEP-HFpEF results.
•
Wegovy® label expansion was approved by the EMA to
reflect the reduction of pain and improved physical
function related to knee osteoarthritis in people living
with obesity based on the results of the STEP 9 trial.
Clinical progress
•
Phase 3a trial, REDEFINE 1, investigating efficacy and
safety of cagrilintide (2.4 mg) in combination with
semaglutide (2.4 mg) in people with overweight or
obesity was completed. The extension study of
REDEFINE 1 is ongoing.
•
Phase 3b trial, REDEFINE 9, investigating CagriSema
(1.7 mg/1.7 mg) and CagriSema (1.0 mg/1.0 mg) effects
on weight reduction in people with overweight or
obesity was initiated.
•
Phase 3b trial, OASIS 4, investigating oral semaglutide
(25 mg) weight loss in people living with overweight with
weight-related comorbidities or obesity was completed.
•
Phase 3b trials, STEP UP and STEP UP T2D, investigating
semaglutide (7.2 mg) on weight loss were completed.
•
Phase 2a trial investigating monlunabant (INV-202) in
patients with obesity and metabolic syndrome has been
completed.
•
Phase 1 first in human dose trial investigating amylin
355 in people with overweight or obesity was initiated.
•
Phase 1 trial studying the safety and tolerability of oral
amycretin was completed.
•
Phase 1b trial, a dose-finding study investigating oral
amycretin was initiated.
•
Phase 1b/2a trial, investigating subcutaneous amycretin
was completed.
•
Phase 1 Triple first in human trial was initiated.
Regulatory events
•
Esperoct® was approved by the CDE for treatment and
prevention or reduction of number of bleeding episodes
in people with haemophilia A.
•
Alhemo® (concizumab) was approved by the EMA and
FDA for the treatment of haemophilia A and B disease
with inhibitors and by the PMDA for the treatment of
haemophilia A and B disease with and without
inhibitors.
Clinical progress
•
Phase 3a trials, FRONTIER 2 and 5, investigating
once-weekly to once-monthly subcutaneous Mim8 in
people aged 12 or older with haemophilia A were
completed.
•
Phase 3a trial, HIBISCUS 2, investigating etavopivat in
adolescents and adults living with sickle cell disease was
initiated.
•
Phase 2 trial investigating etavopivat on cerebral
haemodynamic response in children with sickle cell
disease was initiated.
•
Phase 2 trials investigating etavopivat for the treatment
of myelodysplastic syndromes (MDS) have been closed.
The MDS programme was terminated.
•
Phase 1 first in human trial investigating Inno8 was
initiated.
•
Phase 1 trial investigating TMPRSS6 RNAi in people
living with hereditary haemochromatosis was initiated.
Clinical progress
•
Phase 3a trial, ESSENCE, investigating semaglutide
subcutaneous 2.4 mg efficacy and safety in people with
MASH completed its primary interim data readout, the
trial is continuing to investigate the effect on outcomes
in people with MASH.
•
Phase 3a trial, CLARION-CKD, investigating ocedureone
in patients with uncontrolled hypertension and
advanced chronic kidney disease was terminated. The
ocedureone programme was terminated.
•
Phase 3a CVOT, ARTEMIS, investigating the effect of
ziltivekimab on outcomes in people with acute
myocardial infarction was initiated.
•
Phase 3a trial, ATHENA, investigating the effect of
ziltivekimab on functional outcomes in HFpEF patients
was initiated (SPA).
•
Novo Nordisk acquired Cardior with lead asset CDR132L.
•
Phase 1 trial investigating VAP-1i, a GLP-1/GIP receptor
agonist for people living with MASH was terminated.
•
Phase 1 first in human trial investigating Ventus NRLP31
was completed.
•
Phase 1 trial investigating DCR-XHD in people living with
refractory gout was initiated.
•
Phase 1 first in human and single ascending dose trial
investigating CNP HF was initiated.
•
Phase 1 trial, investigating safety and tolerability of
PD-L1 in adult oncology patients with solid tumours
refractory to standard therapy was initiated.
Research and development progress
24
Annual review / Strategic Aspirations / Innovation and therapeutic focus
1. This overview does not include products whose sales represent less than 0.5% of Novo Nordisk’s total sales. 2. Patent status varies from country to country. The figures in the table are based on Germany.
3. For Ozempic® in Canada, regulatory data protection applies until 2026. 4. Modern insulins are NovoRapid® (NovoLog®), NovoMix® 30 (NovoLog® Mix 70/30) and Levemir®. 5. Formulation patent; active ingredient patent has expired.
Patent status for products with marketing authorisation
Product
US
China
Japan
Europe2
Ozempic®3
2032
2026
2031
2031
Human insulin
and Modern
insulins4
Expired
Expired
Expired
Expired
Rybelsus®
2032
2026
2031
2031
Tresiba®
2029
Expired
2027
2028
Victoza®
Expired
Expired
Expired
Expired
Ryzodeg®
2029
Expired
Expired
2028
Xultophy®
2029
Expired
Expired
2028
Fiasp®
20305
20305
20305
20305
Product
US
China
Japan
Europe2
Wegovy®
2032
2026
2031
2031
Saxenda®
Expired
Expired
Expired
Expired
Product
US
China
Japan
Europe2
NovoSeven®
Expired
Expired
Expired
Expired
Norditropin®
(SimpleXx®)
Expired
Expired
Expired
Expired
Esperoct®
2032
2029
2034
2034
The patent expiry dates for products with marketing
authorisation1 are shown in the tables on the right.
The dates provided are for expiry in the US, China, Japan
and Europe of patents on the active ingredient, unless
otherwise indicated, and include actual and estimated
extensions of patent term, when applicable. For several
products, in addition to the active ingredient patent, Novo
Nordisk holds other patents on manufacturing processes,
formulations or uses that may be relevant for exclusivity
beyond the expiration of the active ingredient patent.
Furthermore, regulatory data protection and/or orphan
exclusivity may apply.
25
Annual review / Strategic Aspirations / Innovation and therapeutic focus
COMMERCIAL EXECUTION
Safeguarding supply and
improving access across
expanding markets
Balancing the growing needs of our patients with effective management of our resources
is key to how we operate. As global demand increases we have refined our portfolio
strategy to maximise the reach and impact of our treatments. This includes efforts to
optimise our diabetes portfolio by gradually phasing out some of our older insulin products
to free up manufacturing capacity and resources across our supply chain. By doing so, we
can dedicate more space in our manufacturing network to innovative, scalable solutions
– and ultimately expand the reach of our life-changing innovations to millions more
patients over the next decade.
At the same time, we are striving to provide those who are impacted by the changes to
our portfolio with access to alternative treatment options, either from Novo Nordisk or
other companies. We are working closely with local health authorities and the medical
community in affected markets to develop new access initiatives for at-risk individuals.
Furthermore, our extensive range of partnership programmes – including iCARE and our
Access to Insulin Commitment – continue to provide access to affordable care for
vulnerable populations living in low- and middle-income countries.
We are also increasing our production capacity through site expansions and acquisitions.
A significant milestone in 2024 was the acquisition of three fill-finish sites previously
run by the global contract manufacturing and development organisation Catalent Inc.
This move will enable us to expand our manufacturing capacity and provide future
optionality and flexibility for our existing supply network, while complementing our
significant ongoing internal supply chain expansions.
The unprecedented scale of our capital expenditure, which includes record investments
in the expansion of existing production sites, underscores our commitment to meeting
the growing demand for our medicines. In 2024, work continued on major expansions of
our production sites in Denmark, France, Brazil, China and the US – investments that will
ultimately enable us to reach millions more people worldwide with our innovations.
Ensuring uninterrupted access to treatment options for people already using Novo Nordisk
medicines also remains a top priority. By adopting clear prioritisation principles, we are
focusing on the responsible and equitable launch and distribution of new and existing
products across geographies and patient groups. This includes allocating a proportion of
Wegovy® volumes in every new launch market for people with a high medical need and
low socioeconomic status.
Amid escalating diabetes and obesity crises, Novo Nordisk is
experiencing unprecedented global demand for our life-changing
medicines. With mounting evidence of the broad systemic impact
and societal value of our GLP-1-based treatments, we have developed
innovative commercial strategies to safeguard patient access and
strengthen supply chain resilience worldwide.
Strategic Aspirations 2025
1 Strengthen Diabetes leadership
– aim at global value market
share of more than 1/3
2 More than DKK 25 billion
in Obesity sales by 2025
3 Secure a sustained growth
outlook for Rare disease
26
Annual review / Strategic Aspirations / Commercial execution
60
50
40
30
20
29.9%
43.3%
52.8%
31.8%
44.2%
54.9%
33.7%
33.7%
43.6%
43.3%
54.8%
55.1%
2021
2023
2024
2022
250
200
150
100
50
0
2024
2021
2023
2022
20%
13%
29%
14%
Ozempic® sales uptake further
strengthens our leadership in
diabetes care
Demand for Novo Nordisk’s GLP-1-based medicines, particularly Ozempic®, continued to soar
throughout 2024, reflecting the growing global prevalence of diabetes.
Administered as a once-weekly injection for the treatment of type 2 diabetes, Ozempic® maintains
its position as the world’s biggest-selling diabetes medicine, backed by its proven efficacy in
controlling blood sugar and reducing body weight, as well as a growing body of evidence
demonstrating broader cardiometabolic benefits. Over the past year alone, the clinical profile of
Ozempic® has been further boosted by data demonstrating a reduction in the risk of kidney disease
progression in people with type 2 diabetes and chronic kidney disease, as well as functional
improvements in people with type 2 diabetes and symptomatic peripheral artery disease vs placebo.
Now available in more than 70 markets, Ozempic® sales have been central to the continued growth
in sales of our diabetes products. Our strategic aspiration to secure a value market share of at least
one-third by 2025 has already been achieved, and the continued uptake of Ozempic® across launch
markets has enabled us to maintain a value market share of 33.7% in 2024. This demand has been
fuelled by a broader acceptance and understanding of the importance of GLP-1-based therapies
among healthcare professionals, patients and payers as a cornerstone of effective diabetes care
and management.
Novo Nordisk is not the only healthcare company investing in the growth and development of
the GLP-1 segment, and competition has increased significantly over the past year. Nevertheless,
we remain the market leader in the diabetes GLP-1 space with a value share of 55.1%, a slight
increase compared to 2023 when our value share stood at 54.8%.
Despite the sales penetration of Ozempic®, high demand has also posed challenges, necessitating
strategic decisions to prioritise distribution to regions and patient groups with the most pressing
needs. We have also continued to invest heavily in expanding production capacity, seeking to stabilise
supply and ensure that Ozempic® remains accessible to the growing number of patients who have
already initiated treatment.
Through our industry-leading portfolio, relentless focus on innovation and robust pipeline of
next-generation treatments, we remain well-positioned to maintain and enhance our leadership
position in diabetes care.
Diabetes value
market share
(%)
GLP-1
Insulin
Total diabetes
Source: IQVIA MAT,
Nov 2024.
Diabetes sales
(DKK billion)
Sales as reported
Growth at CER
“Demand has been fuelled by a broader acceptance and understanding of
the importance of GLP-1-based therapies”
27
Annual review / Strategic Aspirations / Commercial execution
Awiqli® approval underscores
our continuing commitment
to insulin
Our company is built upon a century-long legacy of innovation in diabetes care, and we are
still pushing boundaries as we search for new breakthroughs in this ever-evolving space.
These efforts are exemplified by the launch of Awiqli® – the world’s first once-weekly basal
insulin – in China, Germany and Canada.
Awiqli® represents a critical and innovative addition to our diabetes portfolio and a key
milestone for patients seeking to reduce some of the challenges of diabetes management –
particularly the burden of multiple injections. Its approval in the EU was based on phase 3a
clinical trial results demonstrating superior blood sugar reduction and superior time in range
(time spent within the recommended blood sugar range), compared with daily basal insulin in
people living with type 2 diabetes not previously treated with insulin. Trial data also showed low
rates of clinically significant or severe hypoglycaemia – less than one event per patient-year of
exposure – with no statistically significant difference compared to daily basal insulin in insulin
naïve people living with type 2 diabetes.
However, the therapy’s journey to market in the US has been more challenging, with the US
Food and Drug Administration (FDA) issuing a Complete Response Letter (CRL) in July 2024.
This followed a meeting of the FDA Endocrinologic and Metabolic Drugs Advisory Committee
in May 2024, where a panel of independent scientific experts discussed the benefit-risk of
once-weekly insulin icodec in type 1 diabetes. The panel determined that the data available
were not sufficient to conclude on a positive benefit-risk in type 1 diabetes.
In the CRL, the FDA requests more information relating to the manufacturing process and
the type 1 diabetes indication before the review of the application can be completed. The CRL
did not mention the use of once-weekly insulin icodec in type 2 diabetes. Novo Nordisk is
evaluating the content of the CRL and will work closely with the FDA to fulfil the requests.
Despite this setback in the US, the rollout of Awiqli® in other major markets underscores our
continuing commitment to insulin innovation more than 100 years after our founders first
commercialised production of this life-saving medicine.
Kyle Sam lives with
type 2 diabetes
and is part of the
DUDES Club, a
brotherhood to
support men’s health
and wellbeing in
British Columbia,
Canada.
“Awiqli® represents a critical and innovative addition to our diabetes portfolio
and a key milestone for patients seeking to reduce some of the challenges of
diabetes management”
28
Annual review / Strategic Aspirations / Commercial execution
80
60
40
20
0
2021
2023
2024
2022
55%
154%
57%
84%
2020
2025
2035
2030
60
50
40
30
20
Wegovy® maintains
market-leading position in
increasingly dynamic sector
The past year has been transformative for the burgeoning obesity market, marked by
increasing competition and soaring demand for GLP-1 receptor agonists and other
incretin-based therapies. Wegovy®, our flagship obesity therapy, has been at the forefront
of this competitive landscape, maintaining its market-leading position despite new entrants
to the segment.
Following its initial launch in the US, Wegovy® is now available in more than 15 markets
worldwide. As the obesity market continues to grow worldwide, so does the demand for
Wegovy®. This is driven by the rising global prevalence of obesity – which has more than
tripled over the past 50 years – and a broader shift in the perception of treatment. Once
considered a lifestyle issue, obesity is now widely recognised as a serious chronic disease
that requires medical intervention.
We have responded by investing heavily in scaling up our production capacity and carefully
prioritising launches and distribution. Our expanding global production network is operating
around the clock to ensure a stable and consistent supply of Wegovy® and a proportion of
Wegovy® volumes is being allocated in every launch market for people with a high medical
need and low socioeconomic status.
The continued success of Wegovy® is underpinned by its clinical profile as the world’s
first weight management therapy also approved to reduce the risk of major adverse
cardiovascular events – a key differentiator in an increasingly competitive segment. This
has enabled us to capture much of the growth to date in a rapidly-expanding and dynamic
market, helping us to build on our position of strength and reputation as first-movers in
the space following the success of our first-generation GLP-1-based therapy, Saxenda®.
Despite advancements in treatment and growing acceptance of obesity as a serious chronic
disease, significant unmet needs remain. Many people living with obesity still lack access to
effective therapies, and there is a clear need for continued innovation to develop treatments
that can deliver greater efficacy and additional benefits. Moreover, there is a need for more
holistic, preventive approaches that can address the multifaceted nature of obesity – including
behavioural, psychological and environmental factors.
Novo Nordisk is dedicated to addressing these unmet needs through a steadfast commitment
to innovation. Our obesity pipeline includes numerous promising candidates aiming to further
reduce the burden of obesity and related conditions on patients and healthcare systems alike.
By leveraging our expertise in GLP-1-based therapies and exploring new therapeutic avenues,
we are well-placed to continue leading the way in obesity treatment.
Adults with
overweight or
obesity as a
proportion of all
adults globally
(%)
Obesity
Source: World
Obesity Atlas 2024.
Obesity sales
(DKK billion)
Sales as reported
Growth at CER
42%
50%
54%
46%
29
Annual review / Strategic Aspirations / Commercial execution
Elroy ‘Spoonface’ Powell lives with
obesity in the UK.
The robust clinical profile of our market-leading weight loss
therapy, Wegovy®, has been further validated after regulatory
bodies approved label expansions acknowledging its efficacy
in mitigating cardiovascular risks. These updates highlight the
extensive cardiometabolic benefits of our market-leading
GLP-1-based therapy, extending beyond weight reduction.
The new indications are based on robust clinical evidence
from key trial programmes SELECT and STEP HFpEF. Data
from SELECT demonstrated that Wegovy® reduced the risk
of major adverse cardiovascular events in people with
overweight or obesity and established cardiovascular disease,
on top of cardiovascular standard of care treatments vs
placebo. Findings from the STEP HFpEF trials, meanwhile,
showed that Wegovy® reduced symptoms of heart failure and
physical limitations in people with obesity and heart failure
with preserved ejection fraction (HFpEF) vs placebo.
These data add to a growing body of evidence showcasing
semaglutide’s potential to address critical unmet needs in
cardiovascular health.
By broadening the approved uses of Wegovy® and helping
to differentiate the treatment in an increasingly competitive
market, we are aspiring to both strengthen our leadership
position in obesity and enhance our impact on broader
public health.
Wegovy® label expansions underscore
broader cardiometabolic benefits
2024 has been a year of significant progress in our rare
disease portfolio, building on our strong legacy of innovation
in rare blood and endocrine disorders. With the pending
submission of Mim8, first launches of Alhemo® and continued
rollout of Sogroya®, we are building on a return to growth for
our Rare Disease franchise following a positive year in which
overall sales increased 9% at constant exchange rates (CER).
Sales of our rare endocrine disorder products increased by
31% at CER over the course of the year, mainly driven by the
rollout of Sogroya® – the world’s first once-weekly treatment
for both children and adults with growth hormone deficiency.
Sogroya® is now available in seven countries, including the US.
In rare blood disorders, phase 3 clinical trials have
demonstrated the transformative potential of Mim8 in
reducing bleeds. The investigational therapy is designed
to mimic the activity of Factor VIIIa, the clotting protein
missing or defective in people with haemophilia A.
Alhemo® addresses significant unmet needs in haemophilia
A and B with inhibitors – the latter being an area with very
limited treatment options. Administered once-daily by
subcutaneous injection, the therapy offers routine treatment
to prevent bleeding in a prefilled pen device. Alhemo® is now
approved in several markets worldwide, including the US and EU.
Gearing up for new launches
in our rare disease portfolio
2021
2022
2023
2024
25
20
15
10
5
0
Rare disease sales
(DKK billion)
4%
-15%
9%
1%
Sales as reported
Growth at CER
“Alhemo® addresses significant
unmet needs in haemophilia A
and B with inhibitors – the
latter being an area with very
limited treatment options”
“These data add to a growing
body of evidence showcasing
semaglutide’s potential to
address critical unmet needs
in cardiovascular health”
30
Annual review / Strategic Aspirations / Commercial execution
2021
2024
20
15
10
5
0
2021
2023
2024
2022
150
125
100
75
50
25
0
4%
7%
45%
11%
Unprecedented investment
in production lays foundation
for continued growth
Over the past four years, we have more than quadrupled the global reach of our GLP-1-based medicines,
increasing our volume market share in the GLP-1 segment to 63% over the same period. With demand
still growing, we continued to expand our production network throughout 2024, making significant
investments in capital expenditure (CapEx) and acquisitions totalling more than DKK 129 billion.
Through the targeted acquisitions of brownfield sites, the strategic expansion of existing facilities, the
establishment of new sites and the upscaling of our global production workforce, we are equipping
ourselves to support the launch of multiple next-generation therapies and meet the needs of millions
more people worldwide.
The scope of these investments is measured not only in financial terms, but also by the increased
volume of active pharmaceutical ingredients (API) and the number of devices we can produce.
By investing in state-of-the-art, multi-product facilities designed to accommodate current and future
products, we are laying a foundation for sustainable long-term growth.
The ongoing expansions of our production sites across the globe exemplify our approach to scaling
up. We are investing more than DKK 80 billion into expanding our API production capacity, including
the construction of a new 170,000 square metre, multi-product API facility in Kalundborg, Denmark.
Alongside additional expansions of sites in Denmark, France, Brazil, China and the US, these efforts
will significantly enhance our ability to meet future demand across our portfolio.
Our acquisition of three new fill-finish sites at the turn of the year complements the ongoing
expansion of our internal supply chain, enabling us to expand our manufacturing capacity and
provide future optionality and flexibility for our existing supply network. The three former Catalent
sites were acquired as part of a transaction that saw Novo Holdings – the holding and investment
company responsible for managing the wealth and assets of the Novo Nordisk Foundation – acquire
the US-based contract manufacturing and development organisation. Approximately 3,200 highly
skilled Catalent employees became part of Novo Nordisk under the terms of the agreement, which
will ensure that existing obligations towards other customers currently being served by the three
sites will be honoured.
Removing bottlenecks in our existing supply chain also remains a top priority as we seek to keep
pace with demand. The consolidation of our insulin portfolio will free up vital capacity and resources
for production of our next-generation innovations, while our transition towards reusable devices
and once-weekly rather than once-daily formulations continues.
Investments in CapEx
and acquisitions
related to expansion of
production capacity
(DKK billion)
CapEx
Acquisitions
CapEx and acquisitions
to sales ratio
People with diabetes
and obesity reached with
GLP-1-based medicines
(Million)
Novo Nordisk1
Others2
Volume market share (%)
Source: IQVIA R3M, Nov 2024.
1. Includes liraglutide and
semaglutide. 2. Includes
beinaglutide, biosimilar
liraglutide, biosimilar
semaglutide, dulaglutide,
exenatide, lixisenatide,
peg-loxenatide and tirzepatide.
PRODUCTION
63%
55%
“We are investing more than DKK 80 billion into expanding our API production
capacity, including the construction of a new 170,000 square metre, multi-product
API facility in Kalundborg, Denmark”
4x
31
Annual review / Strategic Aspirations / Commercial execution
FINANCIALS
Financial performance
Sales increased by 25% measured in Danish kroner and by 26% at CER to DKK 290,403 million in
2024. Novo Nordisk’s 2024 sales and operating profit performance measured at CER were within
the ranges provided in November 2024. The effective tax rate, capital expenditure as well as
depreciation, amortisation and impairment losses were all in line with the guidance. The free cash
flow in 2024 was realised at DKK -14.7 billion, mainly impacted by the USD 11.7 billion acquisition
price related to the three Catalent manufacturing sites.
Geographic sales development
Sales in North America Operations increased by 30% in both Danish kroner and at CER.
Sales in International Operations increased by 17% measured in Danish kroner and by 19% at
CER. Sales in EMEA increased by 19% in both Danish kroner and at CER. Sales in Region China
increased by 11% measured in Danish kroner and by 13% at CER. Sales in Rest of World
increased by 19% measured in Danish kroner and by 23% at CER.
Sales development across therapeutic areas
Sales in Diabetes care increased by 19% measured in Danish kroner and by 20% at CER. Sales of
Obesity care products, Wegovy® and Saxenda®, increased by 56% measured in Danish kroner and
by 57% at CER. Sales of Rare disease products increased by 9% in both Danish kroner and at CER.
In the following sections, unless otherwise noted, market data are based on moving annual total
(MAT) from November 2023 and November 2024 provided by the independent data provider IQVIA.
2024 performance
and 2025 outlook
2022
2021
2021
2023
2022
2024
2023
2024
Financial performance
(DKK billion)
Sales by therapeutic area
(DKK billion)
North America Operations net sales
International Operations net sales
Growth at CER
Diabetes care
Obesity care
Rare disease
Growth at CER
300
250
200
150
100
50
0
300
250
200
150
100
50
0
14%
14%
16%
16%
36%
26%
36%
26%
Strategic Aspirations 2025
1 Deliver solid sales and operating
profit growth
2 Drive operational efficiencies across
the value chain to enable investments
in future growth assets
3 Deliver free cash flow to enable attractive
capital allocation to shareholders
32
Annual review / Strategic Aspirations / Financials
at CER to DKK 4,993 million. Novo Nordisk is working on gradually re-establishing supply of rare
endocrine disorder products following a reduction of manufacturing output. Sogroya® has been
launched in six countries, and the initial feedback from patients and physicians is encouraging.
Rare blood disorders
Sales of Rare blood disorder products increased by 3% in both Danish kroner and at CER to DKK
12,138 million mainly driven by increased haemophilia B sales.
Development in costs and operating profit
The cost of goods sold increased by 24% measured in Danish kroner and by 25% at CER
to DKK 44,522 million, resulting in a gross margin of 84.7% measured in Danish kroner,
compared with 84.6% 2023. The increase in gross margin mainly reflects a positive product
mix driven by increased sales of GLP-1-based treatments and a positive price impact due to
gross-to-net sales adjustments in the US. This is partially countered by costs related to ongoing
capacity expansions.
Sales and distribution costs increased by 9% measured in Danish kroner and by 10% at CER
to DKK 62,101 million. The increase in costs is driven by both North America Operations and
International Operations. In North America Operations, the cost increase is mainly driven by
promotional activities related to Wegovy®. In International Operations, the increase is mainly
related to Obesity care market development activities and Wegovy® launch activities as well as
promotional activities for GLP-1 diabetes products. The increase in sales and distribution costs
is negatively impacted by adjustments to legal provisions in 2023. Sales and distribution costs
amounted to 21.4% as a percentage of sales.
Research and development costs increased
by 48% in both Danish kroner and at CER to
DKK 48,062 million compared to 2023, mainly
reflecting increased late-stage clinical trial
activity, increased early research activities as
well as impairment losses related to intangible
assets. Research and development costs
amounted to 16.6% as a percentage of sales.
Administration costs increased by 9% in both
Danish kroner and at CER to DKK 5,276 million.
Other operating income and expenses (net)
showed a loss of DKK 2,103 million compared
to an income of DKK 119 million in 2023.
Diabetes care
Sales in Diabetes care increased by 19% measured in Danish kroner and by 20% at CER to DKK
206,618 million driven by growth of GLP-1-based products and insulins. Novo Nordisk’s global
diabetes value market share remains unchanged over the last 12 months at 33.7%.
The market share was driven by market share gains in North America Operations, offset by a
market share decline in International Operations.
GLP-1-based therapy for type 2 diabetes
Sales of GLP-1-based products for type 2 diabetes (Rybelsus®, Ozempic® and Victoza®) increased by
21% measured in Danish kroner and by 22% at CER to DKK 149,125 million. The estimated global
GLP-1 share of total diabetes prescriptions has increased to 6.7% compared with 6.0% 12 months
ago. Novo Nordisk is the global market leader in the GLP-1 segment with a 55.1% value market share.
Ozempic® sales increased by 26% in both Danish kroner and at CER to DKK 120,342 million.
Sales growth was driven by both North America Operations and International Operations. Sales
growth has resulted in periodic supply constraints and related drug shortage notifications across
geographies.
Rybelsus® sales increased by 24% measured in Danish kroner and by 26% at CER to DKK 23,301
million. Sales growth was driven by EMEA and Rest of World.
Victoza® sales decreased by 37% measured in Danish kroner and by 36% at CER to DKK 5,482
million. The decline was driven by the GLP-1 diabetes market moving towards once-weekly
treatments in both North America Operations and International Operations.
Insulin sales
Sales of insulin increased by 15% measured in Danish kroner and by 17% at CER to DKK 55,373 million.
Obesity care
Sales of Obesity care products, Wegovy® and Saxenda®, increased by 56% measured in Danish kroner
and by 57% at CER to DKK 65,146 million. Sales growth was driven by both North America Operations
and International Operations. The volume growth of the global branded obesity market was 119%.
Novo Nordisk is the global market leader with a volume market share of 70.4%.
Rare disease
Rare disease sales increased by 9% in both Danish kroner and at CER to DKK 18,639 million.
Rare endocrine disorders
Sales of Rare endocrine disorder products increased by 30% measured in Danish kroner and by 31%
Operating profit and margin
(DKK billion)
Operating profit (left axis)
Operating profit margin (right axis)
Growth at CER
2021
2022
2023
2024
150
120
90
60
30
0
100%
80%
60%
40%
20%
0%
13%
15%
44%
26%
Annual review / Strategic Aspirations / Financials
33
1. Expectations
for 2025.
The loss is mainly reflecting impairments related to a partnership agreement of a company
previously acquired by Novo Nordisk and transaction costs related to the Catalent transaction.
Operating profit increased by 25% measured in Danish kroner and by 26% at CER to DKK
128,339 million, reflecting the sales growth and impairments related to intangible assets.
EBITDA increased by 32% measured in Danish kroner and by 33% at CER.
Financial items (net) and tax
Financial items (net) showed a net loss of DKK 1,148 million compared with a net gain of DKK
2,100 million in 2023. This primarily reflects losses on non-hedged currencies.
In line with Novo Nordisk’s treasury policy, the most significant foreign exchange risks for Novo
Nordisk have been hedged, primarily through foreign exchange forward contracts. The foreign
exchange result was a net loss of DKK 1,023 million compared with a net gain of DKK 1,652 million
in 2023.
As per the end of December 2024, a negative market value of financial contracts of approximately
DKK 5.8 billion has been deferred for recognition in 2025.
The effective tax rate was 20.6% in 2024 compared with an effective tax rate of 20.1% in 2023.
Net profit increased by 21% to DKK 100,988 million and diluted earnings per share increased
by 22% to DKK 22.63. Net profit and diluted earnings per share are impacted by impairments
related to intangible assets.
Cash flow and capital allocation
Free cash flow in 2024 was realised at DKK
-14.7 billion compared to DKK 68.3 billion in
2023. The lower free cash flow in 2024 is
mainly impacted by the USD 11.7 billion
acquisition price related to the three Catalent
manufacturing sites. Free cash flow is also
impacted by increasing capital expenditure,
partially countered by net cash generated
from operating activities.
Capital expenditure for property, plant and
equipment was DKK 47.2 billion compared
with DKK 25.8 billion in 2023, primarily
reflecting investments in additional capacity
for active pharmaceutical ingredient (API) production and fill-finish capacity for both current and
future injectable and oral products. Capital expenditure related to intangible assets was DKK 4.1
billion in 2024 compared with DKK 13.1 billion in 2023 reflecting business development activities.
Income under the 340B Program has been partially recognised.
2025 outlook
Sales growth is expected to be 16% to 24% at CER. Given the current exchange rates versus the
Danish krone, sales growth reported in DKK is expected to be 3 percentage points higher than at CER.
The guidance reflects expectations for sales growth in both North America Operations and
International Operations, mainly driven by volume growth of GLP-1-based treatments for Obesity
and Diabetes care. Intensifying competition and continued pricing pressure within Diabetes and
Obesity care is included in the guidance.
Following higher-than-expected volume growth in recent years, including GLP-1-based products
such as Ozempic® and Wegovy®, combined with the expectation of continued volume growth and
capacity limitations at some manufacturing sites, the outlook also reflects expected continued
periodic supply constraints and related drug shortage notifications across a number of products
and geographies. Novo Nordisk is investing in internal and external capacity to increase supply
both short and long-term.
Operating profit growth is expected to be 19% to 27% at CER. Given the current exchange rates
versus the Danish krone, growth reported in DKK is expected to be 5 percentage points higher
than at CER. The expectation for operating profit growth primarily reflects the sales growth outlook
and continued investments in future and current growth drivers within Research, Development,
Commercial and Manufacturing. Within R&D, investments are related to the continued expansion
and progression of the early and late-stage pipeline. Commercial investments are mainly related to
Obesity care market development and activities as well as investments within GLP-1 diabetes care.
Within Manufacturing, investments are mainly related to ongoing scaling of capacity efforts, and a
negative mid-single-digit operating profit growth impact related to the acquisition of the three
Catalent manufacturing sites is also included in the guidance.
Novo Nordisk expects financial items (net) for 2025 to amount to a loss of around DKK 9 billion.
This is driven by expected losses on hedged currencies, primarily the US dollar due to the increased
USD/DKK rate, and increased interest expenses related to funding of the Catalent transaction, as
the acquisition is mainly debt-financed.
The effective tax rate for 2025 is expected to be in the range of 21-23%. The increase compared to
2024 is mainly driven by country and therapy sales mix.
2022
2023
2024
2025E1
Cash flow and capital allocation
(DKK billion)
Dividend for prior year
Interim dividend
Share repurchases
70
60
50
40
30
20
10
0
Annual review / Strategic Aspirations / Financials
34
Expectations are as reported, if not otherwise stated
Expectations 5 February 2025
Sales growth
at CER
16% to 24%
as reported
Around 3 percentage points higher than at CER
Operating profit growth
at CER
19% and 27%
as reported
Around 5 percentage points higher than at CER
Financial items (net)
Loss of around 9 bDKK
Effective tax rate
21% to 23%
Capital expenditure (PP&E)
Around 65 bDKK
Depreciation, amortisation and impairment losses
Around DKK 17 billion
Free cash flow (excluding impact from business development)
Between 75 and 85 bDKK
Capital expenditure is expected to be around 65 billion DKK in 2025, reflecting expansion of
the global supply chain. The investments will create additional capacity across the supply
chain, including manufacturing of active pharmaceutical ingredients (API), additional aseptic
production and finished production processes as well as packaging capacity. In the coming
years, the capital expenditure to sales ratio is still expected to be low double-digit.
Depreciation, amortisation and impairment losses are expected to be around DKK 17 billion,
and include depreciations and amortisations related to the Catalent transaction.
The free cash flow is expected to be DKK 75-85 billion reflecting the sales growth, a favourable
impact from rebates in the US, countered by increased investments in capital expenditure.
All of the above expectations are based on assumptions that the global or regional
macroeconomic and political environment will not significantly change business conditions
for Novo Nordisk during 2025, including energy and supply chain disruptions, the potential
implications from major healthcare reforms and legislative changes, taxation changes, including
changes in tariffs and duties, as well as outcome of legal cases including litigations related to
the 340B Drug Pricing Program in the US, and that the currency exchange rates, especially the
US dollar, will remain at the current level versus the Danish krone. The guidance is also based on
assumptions in relation to the estimation of gross-to-net developments in the US gross sales.
Finally, the guidance does not include the financial implications of any new significant business
development transactions and significant impairments of intangible assets during 2025.
Novo Nordisk has hedged expected net cash flows in a number of invoicing currencies, and,
all other things being equal, movements in key invoicing currencies will impact Novo Nordisk’s
operating profit as outlined in note 4.4 on Financial risks.
Forward-looking statements
Novo Nordisk’s statutory Annual Report 2024, Form 20-F, any quarterly financial reports, and
written information released, shown, or oral statements made, to the public in the future by
or on behalf of Novo Nordisk, may contain certain forward-looking statements relating to the
operating, financial and sustainability performance and results of Novo Nordisk and/or the
industry in which it operates. Forward-looking statements can be identified by the fact that they
do not relate to historical or current facts and include guidance. Words such as ‘believe’, ‘expect’,
‘may’, ‘will’, ‘plan’, ‘strategy’, ‘transition plan’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’,
‘can’, ‘intend’, ‘target’ and other words and terms of similar meaning in connection with any
discussion of future operating, financial or sustainability performance identify forward-looking
statements. Examples of such forward-looking statements include, but are not limited to:
• Statements of targets, future guidance, (transition) plans, objectives or goals for future
operations, including those related to operating, financial and sustainability matters,
Novo Nordisk’s products, product research, product development, product introductions
and product approvals as well as cooperation in relation thereto;
• Statements containing projections of or targets for revenues, costs, income (or loss),
earnings per share, capital expenditures, dividends, capital structure, net financials and
other financial measures;
• Statements regarding future economic performance, future actions and outcome of
contingencies, such as legal proceedings; and
• Statements regarding the assumptions underlying or relating to such statements.
These statements are based on current plans, estimates, opinions, views and projections.
Although Novo Nordisk believes that the expectation reflected in such forward-looking
statements are reasonable, there can be no assurance that such expectation will prove to
be correct. By their very nature, forward-looking statements involve risks, uncertainties and
assumptions, both general and specific, and actual results may differ materially from those
contemplated, expressed or implied by any forward-looking statement.
Factors that may affect future results include, but are not limited to, global as well as local
political, economic and environmental conditions, such as interest rate and currency exchange
rate fluctuations or climate change, delay or failure of projects related to research and/or
development, unplanned loss of patents, interruptions of supplies and production, including
as a result of interruptions or delays affecting supply chains on which Novo Nordisk relies,
shortages of supplies, including energy supplies, product recalls, unexpected contract breaches
or terminations, government-mandated or market-driven price decreases for Novo Nordisk’s
products, introduction of competing products, reliance on information technology including the
risk of cybersecurity breaches, Novo Nordisk’s ability to successfully market current and new
products, exposure to product liability and legal proceedings and investigations, changes in
Annual review / Strategic Aspirations / Financials
35
Novo Holding A/S
A shares
1,075m shares
24.07% of capital and
76.02% of votes
B shares
3,390m shares
75.93% of capital and
23.98% of votes
Novo Nordisk A/S
22.72%
of votes
71.95%
of capital
77.28%
of votes
28.05%
of capital
100%
Novo Nordisk
Foundation
Institutional and
private investors
governmental laws and related interpretation thereof, including on reimbursement,
intellectual property protection and regulatory controls on testing, approval, manufacturing
and marketing, and taxation changes, including changes in tariffs and duties, 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, strikes and other
labour market disputes, failure to recruit and retain the right employees, failure to maintain a
culture of compliance, epidemics, pandemics or other public health crises, effects of domestic
or international crises, civil unrest, war or other conflict and factors related to the foregoing
matters and other factors not specifically identified herein.
For an overview of some, but not all, of the risks that could adversely affect Novo Nordisk’s
results or the accuracy of forward-looking statements in this Annual Report 2024, reference is
made to the overview of risk factors in ‘Risks’ of this Annual Report 2024.
None of Novo Nordisk or its subsidiaries or any such person’s officers, or employees accept any
responsibility for the future accuracy of the opinions and forward-looking statements expressed
in the Annual Report 2024, Form 20-F, any quarterly financial reports, and written information
released, shown, or oral statements made, to the public in the future by or on behalf of Novo
Nordisk or the actual occurrence of the forecasted developments.
Unless required by law, Novo Nordisk has no duty and undertakes no obligation to update or revise
any forward-looking statement, whether as a result of new information, future events, or otherwise.
Shares and capital structure
Through open and proactive communication, Novo Nordisk aims to provide the basis for fair and
efficient pricing of our shares.
Share capital and ownership
Novo Nordisk’s share capital of DKK 446.5 million is divided into A and B share capital. The A and
B shares are calculated in units of DKK 0.10, amounting to 4.5 billion shares. The A share capital,
consisting of 1,075 million shares, has a nominal value of DKK 107,487,200 and the B share capital,
consisting of 3,390 million shares, has a nominal value of DKK 339,012,800. Each A share carries
100 votes and each B share carries 10 votes. Novo Nordisk’s B shares are listed on Nasdaq
Copenhagen and on the New York Stock Exchange (NYSE) as American Depository Receipts (ADRs).
The general meeting has authorised the Board of Directors to distribute extraordinary dividends,
issue new shares in accordance with the Articles of Association and repurchase shares in
accordance with authorisations granted.
Ownership structure2
The company’s A shares are not listed and are
held by Novo Holdings A/S3, a Danish public
limited liability company wholly owned by the
Novo Nordisk Foundation. According to the
Articles of Association of the Foundation, the A
shares cannot be divested. Special rights attached
to A shares include pre-emptive subscription
rights in the event of an increase in the A share
capital and pre-emptive purchase rights in the
event of a sale of A shares, while B shares take
priority for liquidation proceedings. A shares take
priority for dividends below 0.5%, and B shares
take priority for dividends between 0.5 and 5%.
However, in practice, A and B shares receive the
same amount of dividend per share.
Geographical split of shareholders4
(% of share capital)
Denmark
North America
UK
Other
38
31
28
3
4. Split of
shareholders
is denoted
according to the
location of legal
deposit-owners.
2. Treasury shares
are included;
however, voting
rights of treasury
shares cannot be
exercised.
3. Novo Holdings
A/S’s registered
address is Tuborg
Havnevej 19,
DK-2900 Hellerup,
Denmark.
Annual review / Strategic Aspirations / Financials
36
As of 31 December 2024, Novo Holdings A/S held a B share capital of nominally DKK 17,756,050.
Together with the A shares, Novo Holdings A/S’s total ownership amounted to nominally DKK
125,243,250. Novo Holdings A/S ownership is reflected in the ‘Ownership structure’ chart.
There is no complete record of all shareholders; however, based on available sources of
information, as of 31 December 2024 it is estimated that shares were geographically distributed
as shown in the ‘Geographical split of shareholders’ chart. As of 31 December 2024, the free float
of listed B shares was 94.06% (of which approximately 13.82% are listed as ADRs), excluding
Novo Holdings A/S and Novo Nordisk’s holding of shares. As of 31 December 2024, Novo
Holdings A/S and Novo Nordisk’s holding of B shares equalled 201,220,032 shares and had a
nominal value of DKK 20,122,003. For details about the share capital, see note 4.3 to the
Consolidated financial statements.
Capital structure
Novo Nordisk’s Board of Directors and Executive Management consider that the current capital
and share structure of Novo Nordisk serve the interests of the shareholders and the company
well. Novo Nordisk’s capital structure strategy offers a balance between long-term shareholder
value creation and competitive shareholder return in the short term.
In 2024, Novo Nordisk issued Eurobonds totaling EUR 4.65 billion. The total outstanding
Eurobonds as of the end of 2024 amounted to 6.8 billion.
Dividend policy
The company’s dividend policy applies a pharmaceutical industry benchmark to ensure a
competitive payout ratio for dividend payments, may be complemented by share repurchase
programmes. The final dividend for 2023 paid in March 2024 was equal to DKK 6.40 per A and B
share of DKK 0.10 as well as for ADRs. The total dividend for 2023 was DKK 9.40 per A and B
share of DKK 0.10, corresponding to a payout ratio of 50.2%. The 2023 pharma peer group
average was 53.0%.
In August 2024, an interim dividend was paid equalling DKK 3.50 per A and B share of DKK 0.10
as well as for ADRs. For 2024, the Board of Directors will propose a final dividend of DKK 7.90 to
be paid in March 2025, equivalent to a total dividend for 2024 of DKK 11.40 and a payout ratio
of 50.2%. The company expects to distribute an interim dividend in August 2025. Further
information regarding this interim dividend will be announced in connection with the financial
report for the first six months of 2025. Dividends are paid from distributable reserves. Novo
Nordisk does not pay a dividend on its holding of treasury shares.
Annual General Meeting 2025
27 Mar 2025
Ex-dividend, B shares
28 Mar 2025
Ex-dividend, ADRs
31 Mar 2025
Record date, B-shares and ADRs
31 Mar 2025
Payment, B shares
1 Apr 2025
Payment, ADRs
8 Apr 2025
Financial statement for the first three months of 2025
7 May 2025
Financial statement for the first six months of 2025
6 Aug 2025
Ex-dividend, B-shares
14 Aug 2025
Ex-dividend, ADRs
18 Aug 2025
Record date, B-shares and ADRs
18 Aug 2025
Payment, B shares
19 Aug 2025
Payment, ADRs
26 Aug 2025
Financial statements for the first nine months of 2025
5 Nov 2025
Financial statement for 2025 and Annual Report 2025
4 Feb 2026
DKK
Jan
Apr
May
Jun
Aug
Sep
Nov
Feb
Mar
Jul
Oct
Dec
Share repurchase programme for 2024/2025
During the twelve-month period beginning 6 February 2024, Novo Nordisk repurchased
shares worth DKK 20 billion. The share repurchase programme has primarily been
conducted in accordance with the safe harbour rules in the EU Market Abuse Regulation
(MAR). Novo Nordisk’s capital allocation priorities focus on internal growth investments,
including supply chain expansions, dividends as well as external growth opportunities,
including acquiring the three Catalent manufacturing sites. Consequently, Novo Nordisk
is not expecting to initiate a share buyback programme in 2025.
Share price development
Since end of December 2023 until end of December 2024, Novo Nordisk’s share price
decreased from DKK 698 to DKK 624, a decrease of 10.6%. The total market value of
Novo Nordisk’s B shares, excluding treasury shares and Novo Holdings A/S shares, was
DKK 1,990,516,353,626 as of 30 December 2024.
5. OMXC25 and
pharmaceutical
industry
development
have been
rebased to Novo
Nordisk share
price in January
2024.
6. AstraZeneca,
Bristol-Meyers,
Eli Lilly,
GlaxoSmithKline,
Lundbeck, Merck,
Novartis, Pfizer,
Roche and Sanofi.
Share price performance 2024
Novo Nordisk share price and indexed peers5 (%)
2024 financial calendar
Novo Nordisk OMXC25 Peer group6
1,100
1,000
900
800
700
600
500
Annual review / Strategic Aspirations / Financials
37
RISKS
39 Risk management
40 Key operational risks
Participants at the 2024 World Panna Championships in Copenhagen, Denmark. ‘Panna’ is an
increasingly popular type of street football, and the Pannahouse organisation champions physical
and mental health, cultural understanding and robust communities within urban youth culture.
Photo: UP MEDIA.
38
Rigorous and systematic risk management is essential. The current risk landscape is impacted by elevated
geopolitical uncertainties and market dynamics in the segments in which we operate.
We apply a dual-lensed approach to risk management. This means that we aim to identify and mitigate both
operational risks that pose a threat to our short- to medium-term plans, and strategic risks that could reduce
our ability to realise our corporate strategy over the long term.
Addressing risks in our strategic planning
Scenario and risk-thinking exercises are part of our strategic planning. These exercises involve analysing
market trends and considering the effects of socioeconomic, environmental, geopolitical and political
changes that could pose risks to, or create opportunities for, our business. Annually, Executive Management
and the Board of Directors review and discuss a strategic risk profile. Further, strategic risks and the
conclusions from our double materiality assessment in the Sustainability statement are compared to better
integrate sustainability risks in our risk outlooks and strategic direction. The main strategic risks are:
Innovation and competition
Novo Nordisk faces a concentration risk with multiple brands being dependent on the semaglutide
compound as the active pharmaceutical ingredient. To remain competitive in the long term and thereby
mitigate the innovation risk, we invest in internal and external pipeline opportunities as well as effectively
attracting talent to continue providing patients with innovative treatments.
Production capacity and supply chain risks
Demand fluctuations, resource shortages, geopolitical instability, trade disputes and local manufacturing
requirements are all factors that can pressure global supply chains. Furthermore, expanding production
capacity is complex and associated with a long lead times. Therefore, planning and management of our
production capacity and supply chain are key to mitigate this risk.
Access and affordability
Access to affordable care is a global issue as healthcare systems struggle to provide quality care at a
sustainable cost, while the burden of chronic diseases keeps rising. Ensuring access and affordability is a
risk and responsibility Novo Nordisk shares with all stakeholders involved in healthcare. We continue to
scale our capacity to meet patient demand and thereby broaden access to medicines and to meet our
social responsibilities.
Healthcare reform
Some governments are adopting changes to their pharmaceutical frameworks that introduce further
complexity in healthcare systems and uncertainties in the regulatory environment. This may lead to additional
price pressure, potentially impacting our profitability. We continuously educate healthcare providers about
the value and benefits of our products as well as engage in a dialogue with policymakers and stakeholders,
communicating potential consequences of healthcare reform to the innovative life science environment.
Digital disruption
New digital technologies could provide an opportunity to deliver more value to our stakeholders and help
patients live a life with fewer limitations. We recognise that there is also a risk of digital disruption leading
to increased competition through accelerated and enhanced drug discovery and development. To ensure
we remain competitive, we continuously innovate and integrate these technologies into our processes.
Environmental impact
Novo Nordisk’s current expansion efforts, including scaling of production capacity, significantly increases
our current and projected greenhouse gas emissions. We are addressing this challenge through our Circular
for Zero strategy. This includes an increased focus on our global emissions, also encompassing scope 3
emissions, as well as assessing, monitoring and mitigating environmental risks across the value chain.
Geopolitical uncertainty
Ongoing conflicts, geopolitical tensions and social unrest represent a volatile landscape which has led to
governments introducing trade restrictions and tariffs. If escalating tensions persist, there is a risk that
further tariffs may be imposed. Most notably, the new US administration considers to impose a range of trade
actions on all articles imported into the US. We navigate this elevated degree of geopolitical uncertainty by
monitoring geopolitical developments, actively engaging in policy making and diversifying our supply chain.
Ethics and compliance
Our commitment to ethics and compliance remains at the forefront of all our operations. Any inability to
uphold our ethical standards could lead to reputational implications, with potential effects on market access
and pricing negotiations. Our values, encapsulated in the Novo Nordisk Way, guide every decision we make.
OneCode, our code of conduct, further empowers us to conduct our operations responsibly. These guidelines
help us to maintain integrity, thereby enabling us to fulfil our purpose effectively.
Operational risk management process
In the short- to medium-term, we are exposed to risks throughout our value chain. Some risks are inherent in
the pharmaceutical industry, such as delays or failures of potential late-stage medicines in the R&D pipeline.
Other risks, such as geopolitical instability, supply disruptions and competition, are common amongst
manufacturing companies with global production. We will not compromise on product quality, patient safety
and business ethics: these are front and centre of our enterprise-wide risk management set-up. We assess
risks with regard to their corresponding likelihood of financial loss or reputational damage.
Executive Management, the Board of Directors and the Audit Committee review a risk grid of our biggest
operational risks every three months. This grid is based on insights from management teams across the
organisation and includes all types of risks that could cause significant disruptions to the business over a
three-year horizon, including potential environmental, social and governance risks. An overview of our key
operational risks, along with detailed descriptions, is provided on the next page. For more information, see
our Corporate Governance Report available at: www.novonordisk.com/about/corporate-governance.html.
Risk management
39
Annual review / Risks / Risk management
1
2
3
4
5
6
High
Low
High
Impact
Likelihood
1. Risk is also captured as part of the double materiality assessment conclusions in the Sustainability statement; read more on page 52.
Key operational risks (illustrative)
Risk area
Description
Impact
Mitigating actions
1
Research and
clinical pipeline
risks1
Findings in clinical activities, regulatory
processes or misjudging of commercial
potential, leading to delays or failure of
products in the pipeline.
•
Patients would not be provided with innovative treatment options.
•
Could have an adverse impact on sales, profits and market position.
•
Pre-clinical and clinical activities to demonstrate safety and
efficacy.
•
Consultations with regulators to review pre-clinical and
clinical findings and obtain guidance on development path.
2
Product supply,
quality and
safety risks
Higher-than-expected demand or
disruption of product supply due to, e.g.
geopolitical instability or quality issues,
may compromise product availability,
ultimately impacting patients and
representing a lost commercial
opportunity. In addition, there could be
risks related to safety and product liability.
•
Product shortages could have potential implications for patients.
•
Could jeopardise reputation and license to operate if regulatory compliance is not
ensured.
•
Compromised patient safety and exposure to product liability legal proceedings.
•
Could diminish trust in Novo Nordisk, impacting our reputation.
•
Could have an adverse impact on sales, profits and market position.
•
Significantly expanding global production with multiple
facilities and safety stock to reduce supply risk.
•
Planning and management of supply chain.
•
Regular quality audits of internal units and suppliers to
document Good Manufacturing Practice (GMP) compliance.
•
Identification and correction of root causes when issues are
identified. If necessary, products are recalled.
3
Commercialisation
risks1
Competitive pressures, as well as market
dynamics and geopolitical, macroeconomic
or healthcare crises (e.g. pandemics)
leading to reduced payer ability and
willingness to pay.
•
Market dynamics could impact price levels and patient access.
•
Could have an adverse impact on sales, profits and market position.
•
Innovation of novel products, clinical trial data and real-world
evidence demonstrate added value of new products.
•
Payer negotiations to ensure improved patient access.
•
Increased and new access and affordability initiatives.
4
IT security
risks
Disruption to IT systems, such as
cyber-attacks or infrastructure failure,
resulting in business disruption or breach
of data confidentiality.
•
Could limit our ability to produce and safeguard product quality.
•
Could compromise patients’ or other individuals’ privacy.
•
Could limit our ability to maintain operations or limit future business opportunities
if proprietary information is lost.
•
Could have an adverse impact on sales, profits and market position.
•
Proactive company-wide information security awareness
initiatives.
•
Continuity plans for non-availability of IT systems.
•
Company-wide internal audit of IT security controls.
•
Detection and protection mechanisms in IT systems and
business processes.
5
Financial
risks
Exchange rate fluctuations (mainly in USD,
CNY, JPY, CAD and BRL), geopolitical risks
(e.g. tariffs), disputes with tax authorities
and changes to tax legislation and
interpretation.
•
Could lead to tax adjustments, fines and higher-than-expected tax level.
•
Could have an adverse impact on sales and profits.
•
Geopolitical actions could lead to an increase in corporate taxes and duties.
•
Hedging for selected currencies.
•
Integrated treasury management.
•
Applicable taxes paid in jurisdictions where business activity
generates profits and multi-year Advance Pricing Agreements
with tax authorities.
6
Legal, patents
and compliance
risks1
Breach of legislation, industry codes or
company policies. Competitors asserting
patents against Novo Nordisk or
challenging patents critical for protection
of commercial product and pipeline
candidates.
•
Potential exposure to investigations, criminal and civil sanctions and other penalties.
•
Could compromise our reputation and the rights and integrity of individuals
involved.
•
Could lead to unexpected loss of exclusivity for, or injunctions against, existing and
pipeline products.
•
Could have an adverse impact on sales, profits and market position.
•
Code of Conduct integrated in our business.
•
Compliance Hotline in place.
•
Legal review of key activities and internal audit of compliance
with business ethics standards.
•
Internal controls to minimise vulnerability to patent
infringement and invalidity actions.
Key operational risks
40
Annual review / Risks / Key operational risks
MANAGEMENT
42 Board of Directors
45 Executive Management
Zilda Maria da Silva was terrified when diagnosed with type 2 diabetes
age 19, especially given her father’s early death from diabetes complications.
15 years later, Zilda started insulin treatment to prolong her life. Today, she
lives in São Paulo, Brazil, and is training for a marathon at 71 years old.
41
Board of Directors
Danish. Born September 1967. Male.
Member since 2021. Term 2025. Chair
of the Remuneration Committee and
member of the Audit Committee and
the Chair Committee.
Positions and management duties
Chair of the supervisory board, chair
of the people & culture committee and
member of the remuneration committee
of Carlsberg A/S. Chair of the board of
directors and chair of the nomination
& remuneration committee of Faerch
A/S. Member of the board of directors
of Novo Holdings A/S. Member of the
supervisory board of Bertelsmann
SE & Co. KGaA. Senior advisor to
A.P. Møller Holding A/S.
Competences
Global corporate leadership;
finance and accounting; business
development, M&A and external
innovation sourcing; human capital
management; environmental, social
and governance (ESG).
Norwegian. Born October 1962. Male.
Member since 20171. Term 2025.
Chair of the People and Governance
Committee and the Chair Committee.
Positions and management duties
Chair of the board of directors and chair
of the people, culture and governance
committee of BP p.l.c. Chair of the board
of directors of Inkerman AS. Chair of the
board of directors of Stiftelsen Værekraft.
Member of the board of directors and
member of the remuneration committee
of Belron SA. Member of the board of
directors of P/F Tjaldur. Member of the
board of trustees of the International
Crisis Group. Operating advisor to
Clayton Dubilier & Rice.
Competences
Global corporate leadership;
healthcare and pharma industry;
finance and accounting; business
development, M&A and external
innovation sourcing; human capital
management; environmental, social
and governance (ESG).
Danish. Born November 1965. Female.
Member since 2022. Term 2026.
Employee representative. Member
of the Remuneration Committee.
Positions and management duties
Full-time union representative at
Novo Nordisk A/S.
Competences
Not mapped for employee
representatives.
French. Born July 1969. Female.
Member since 2019. Term 2025. Chair
of the Audit Committee and member
of the Remuneration Committee.
Positions and management duties
Member of the board of directors, chair
of the audit committee and member of
the ESG committee of Exor N.V. Member
of the supervisory board and chair of the
audit committee of Randstad N.V. Member
of the board of directors of Institut
Mérieux, HEC Paris Business School and
Kite Insights Limited (the Climate School).
Competences
Global corporate leadership;
healthcare and pharma industry;
finance and accounting; business
development, M&A and external
innovation sourcing; human capital
management; environmental, social
and governance (ESG).
German. Born February 1962. Male.
Member since 2018. Term 2025.
Member of the Research & Development
Committee.
Positions and management duties
Member of the board of directors of
Indigo Agriculture Inc., Evodiabio ApS
and ExlService Holdings, Inc. Honorary
director of the German American
Chamber of Commerce.
Competences
Global corporate leadership; healthcare
and pharma industry; technology, data
and digital; finance and accounting;
business development, M&A and
external innovation sourcing; human
capital management; environmental,
social and governance (ESG).
Canadian and American. Born
November 1961. Female. Member
since 2015. Term 2025. Member of
the Audit Committee, the Research
& Development Committee and the
People and Governance Committee.
Positions and management duties
Co-founder and member of the board
of directors of CervoMed, Inc. Chair
of the board of directors of Abivax SA.
Member of the board of directors of
F2G Ltd. Advisor to the Soffinova
Telethon Fund.
Competences
Global corporate leadership; healthcare
and pharma industry; medicine and
science; finance and accounting;
business development, M&A and
external innovation sourcing; human
capital management.
Helge Lund
Chair
Henrik Poulsen
Vice chair
Elisabeth Dahl
Christensen
Laurence
Debroux
Andreas
Fibig
Sylvie
Grégoire
1. Helge Lund was also a member of the Board of Directors for a one-year term from 2014-2015.
42
Annual review / Management / Board of Directors
Board of Directors (continued)
Danish. Born December 1975. Female.
Member since 2018. Term 2026.
Employee representative. Member
of the Audit Committee.
Positions and management duties
Wash & Sterilisation specialist in
Product Supply, Novo Nordisk A/S.
Competences
Not mapped for employee
representatives.
Danish. Born January 1966. Female.
Member since 20222. Term 2026.
Employee representative. Member
of the Research & Development
Committee.
Positions and management duties
Chief patient officer and principal vice
president of Patient Voice Strategy &
Alliances, Novo Nordisk A/S. Member
of the board of directors of TriSalus
Life Sciences.
Competences
Not mapped for employee
representatives.
British. Born May 1965. Male. Member
since 2017. Term 2025. Member of the
People and Governance Committee and
the Research & Development Committee.
Positions and management duties
CEO of Novo Holdings A/S. Member
of the board of directors and member
of the nomination and remuneration
committee of Novonesis A/S.
Competences
Global corporate leadership; healthcare
and pharma industry; finance and
accounting; business development,
M&A and external innovation sourcing;
human capital management.
Chinese. Born January 1967. Female.
Member since 2022. Term 2025.
Member of the Audit Committee.
Positions and management duties
Group CEO of Raintree Group of
Companies. Member of the board of
directors of Raintree Group Limited,
Raintree Investment Pte Ltd. and Air
Liquide S.A. Member of the board of
directors of La Fondation des Champions.
Member of the board of directors and
chair of the development committee of
National Gallery Singapore.
Competences
Global corporate leadership; technology,
data and digital; business development,
M&A and external innovation sourcing;
human capital management.
American and British. Born April 1956.
Male. Member since 2018. Term 2025.
Chair of the Research & Development
Committee and member of the
Remuneration Committee.
Positions and management duties
Co-founder and non-executive chair of
the board of directors of Rallybio LLC.
Member of the board of directors and
member of the science and technology
committee and the responsible animal
use committee of Charles River
Laboratories International, Inc. Member
of the board of directors and member
of the compensation committee and
research and development committee of
SpringWorks Therapeutics, Inc. Scientific
advisor at Pivotal BioVenture Partners.
Member of the external advisory board
of Boston Children’s Hospital.
Competences
Global corporate leadership; healthcare
and pharma industry; medicine and
science; technology, data and digital;
business development, M&A and
external innovation sourcing; human
capital management.
Danish. Born March 1972. Male.
Member since 2018. Term 2026.
Employee representative. Member of
the People and Governance Committee.
Positions and management duties
Lead auditor, Internal Audits,
Novo Nordisk A/S.
Competences
Not mapped for employee
representatives.
Liselotte
Hyveled
Mette Bøjer
Jensen
Kasim
Kutay
Christina
Law
Martin
Mackay
Thomas
Rantzau
2. Liselotte Hyveled was also an employee-elected member of the Board of Directors for one four-year term from 2014-2018.
43
Annual review / Management / Board of Directors
Meeting attendance in 20243
Name
Independence4
Board of
Directors
Chair
Committee
Audit
Committee10
People and Governance
Committee
Remuneration
Committee
R&D
Committee
Helge Lund
Independent
9/9
8/8
3/3
Henrik Poulsen
Not independent5, 6, 7, 8
9/9
8/8
5/5
6/6
Elisabeth Dahl Christensen
Not independent9
9/9
5/6
Laurence Debroux
Independent6, 7, 8
9/9
5/5
6/6
Andreas Fibig
Independent
8/9
5/6
Sylvie Grégoire
Independent6
9/9
5/5
3/3
6/6
Liselotte Hyveled
Not independent9
8/9
6/6
Mette Bøjer Jensen
Not independent6, 9
9/9
5/5
Kasim Kutay
Not independent5
8/911
3/3
5/6
Christina Law
Independent6
9/9
5/5
Martin Mackay
Independent
9/9
6/6
6/6
Thomas Rantzau
Not independent9
9/9
3/3
3. Number of meetings attended by each Board member out of the total number of meetings within the member’s term. 4. In accordance with recommendation 3.2.1 of the Danish Corporate Governance Recommendations. 5. Member of the board of directors or executive
management of Novo Holdings A/S. 6. Pursuant to the US Securities Exchange Act, Laurence Debroux, Sylvie Grégoire and Christina Law qualify as independent Audit Committee members, while Mette Bøjer Jensen and Henrik Poulsen rely on an exemption from the independence
requirements. 7. Laurence Debroux and Henrik Poulsen possess the qualifications within accounting and auditing required under part 8 of the Danish Act on Approved Auditors and Audit Firms. 8. Designated as financial experts as defined by the US Securities and Exchange
Commission (SEC). 9. Elected by employees of Novo Nordisk. 10. Collectively, the members have relevant industry expertise. 11. Kasim Kutay was recused from an extraordinary meeting of the Board of Directors due to a conflict of interest.
Independence and meeting attendance overview
44
Annual review / Management / Board of Directors
Executive Vice President. International
Operations. Born August 1970. Male.
Other positions and management duties
Member of the board of directors and the
personnel and remuneration committee of
Orion Corporation.
President and Chief Executive Officer (CEO).
Born November 1966. Male.
Other positions and management duties
President of the European Federation of
Pharmaceutical Industries and Associations
(EFPIA). Member of the board of directors at
Danmarks Nationalbank (the Danish central bank).
Executive Vice President. Rare Disease.
Born July 1974. Male.
Other positions and management duties
President of the Novo Nordisk Haemophilia
Foundation Council.
Executive Vice President. Chief Financial
Officer (CFO). Born December 1971. Male.
Other positions and management duties
Member of the board of directors and chair of
the audit committee of Hempel A/S. Member of
the board of directors, chair of the audit & ESG
committee of 3Shape Holding A/S.
Lars Fruergaard
Jørgensen1
Executive Vice President. US Operations &
Business Development. Born January 1974. Male.
Other positions and management duties
Member of the board of directors of
Novasenta Inc.
David
Moore
Maziar Mike
Doustdar
Ludovic
Helfgott
Karsten Munk
Knudsen1
Executive Vice President. Global People &
Organisation. Born July 1977. Female.
Other positions and management duties
No other management positions.
Executive Vice President. Research & Early
Development and Chief Scientific Officer (CSO).
Born September 1966. Male.
Other positions and management duties
Adjunct Professor of Pharmacology at
the University of Gothenburg.
Executive Vice President. Commercial Strategy &
Corporate Affairs. Born November 1972. Female.
Other positions and management duties
Member of the board of directors of Danish
Crown A/S and Argenx SE.
Executive Vice President. Product Supply,
Quality & IT. Born November 1970. Male.
Other positions and management duties
Member of the board of directors of
Grundfos Holding A/S.
Tania
Sabroe
Marcus
Schindler
Camilla
Sylvest
Henrik
Wulff
Executive Vice President. Development.
Born October 1970. Male.
Other positions and management duties
Member of the board of directors of
Pharmacosmos A/S.
Martin Holst
Lange
Executive Management
1. Lars Fruergaard Jørgensen and Karsten Munk Knudsen are registered as executives with the Danish Business Authority. The other members of Executive Management are not registered as executives with the Danish Business Authority.
45
Annual review / Management / Executive Management
SUSTAINABILITY
STATEMENT
47 General information
54 Environment
71 Social
90 Governance
95 Appendix
Aida Diop lives with type 2 diabetes. Together with her close friend Buosso, Aida committed to helping other people living with
diabetes. Before Buosso passed away, Aida promised her friend that she would continue educating and motivating others by
sharing their experiences. To this day, Aida remains a community leader in Senegal, empowering others living with diabetes.
46
1. General information
1.1 ESG performance
Novo Nordisk strives to conduct its activities in a financially, environmentally,
and socially responsible way. The year 2024 marks an important milestone for
Novo Nordisk’s sustainability reporting. This is our first Sustainability statement
prepared in accordance with the EU Corporate Sustainability Reporting Directive
(CSRD). Through our disclosures, we endeavour to ensure transparency across
all sustainability matters deemed material to Novo Nordisk, including the ways
in which we impact people and society as a pharmaceutical company, both
positively and negatively.
The Sustainability statement covers our essential sustainability topics, aligned
with our strategic aspirations as highlighted in the Annual review, which are
the sustainability topics found to be material from both an impact and financial
perspective. The statement also covers other important sustainability topics,
deemed material due to our commitment to being transparent regarding our
impacts. The Sustainability statement includes information on relevant
processes, policies, actions, performance metrics and targets in accordance
with the requirements of the European Sustainability Reporting Standards
(ESRS) for each sustainability topic.
In this first CSRD implementation year, we have focused on ensuring a concise
Sustainability statement, in line with our financial reporting. In addition, we
have strived to translate the sector-agnostic CSRD requirements into relevant
information to Novo Nordisk. In particular, we have ensured that the standard
for consumers and end-users reflects our reality of serving patients. We remain
committed to continuing to improve the standardisation and transparency of
sustainability information, while also doing our part to ensure our sustainability
reporting is relevant and clear to all stakeholders. In parallel to implementing the
new reporting requirements, we have accelerated on our strategic ambitions to
further progress on sustainability in 2024.
To help serve people living with serious chronic diseases, we reached a total
number of 45.2 million people with Diabetes and Obesity care treatment in 2024
(41.6 million in 2023). The growth in demand has resulted in further investments
to expand capacity to be able to serve many more patients in the future.
"To help serve people living with serious chronic diseases, we
reached a total number of 45.2 million people with Diabetes
and Obesity care treatment in 2024."
We acknowledge that, as we continue to reach more patients, our social
responsibility to improve access and affordability for vulnerable populations also
grows. The number of vulnerable patients reached with our Diabetes products was
8.4 million, a decrease of 5% compared to 2023 due to reduced reach with human
insulin tender sales. We remain committed to our broader access and affordability
efforts to help address global health inequities while adhering to high quality
standards. In regards to our target on reaching more children through our
Changing Diabetes
® programme, we have reached 64,743 children since its start in
2009, which is in line with our target of reaching 100,000 children by 2030.
Our prevention initiatives continue to be core to our social responsibility, and we
broadened their scope with the relaunch of Cities for Better Health and our new
Childhood Obesity Prevention Initiative, focusing on childhood overweight and
obesity in underprivileged urban communities.
In 2024, we strengthened our Circular for Zero ambition by setting a target,
aligned with climate science, of a 33% reduction of our absolute scope 3
emissions by 2033
1 compared to a 2024 baseline. In addition, we have a scope 1
and 2 emissions target of zero CO2e by 2030 and overall net zero emissions by
2045. Due to our rapid growth, in 2024 scope 1 and 2 emissions increased by 9%
Strategic aspiration
ESG metric
Unit
Target
Base year
Target year
Being respected for adding value to society
Children reached via Changing Diabetes
® in Children
Number
100,000
2009
2030
Progress towards zero
environmental impact
Scope 1 and 2 (market-based) GHG emissions
1,000 tonnes CO2e
0
–
2030
Scope 3 GHG emissions
%
(33%)
2024
2033
Total GHG emissions (net zero)
1,000 tonnes CO2e
0
–
2045
Plastic footprint per patient
%
(30%)
2024
2033
Being respected as a sustainable employer
Gender in senior leadership positions
% men:women
min. 45%
–
2025
1. The target covers nearly 70% of our scope 3 emissions in accordance with SBTi provisions.
Read more on page 57.
and scope 3 emissions by 24%, underlining the importance of our updated
decarbonisation roadmap to decouple emissions from future growth.
In 2024, we also set a global target to reduce our plastic footprint per
patient by 30% by 2033. This will be achieved through circular product
design, innovating treatment methods and efforts to convert to reusable
devices. Furthermore, we developed a new nature roadmap with the
overarching ambition of halting the loss of nature in our value chain by
2033 and becoming nature positive by 2045.
To remain respected as a sustainable employer, we maintain a focus on diversity and
inclusion and continue to work towards a balanced gender representation across all
managerial levels globally. In 2024, we reached 42% female representation in senior
leadership positions, and we are aiming for a minimum of 45% women and 45%
men in senior leadership positions by the end of 2025.
To improve safety, physical and mental wellbeing of our workforce, we monitor
short-term targets to reduce the number of accidents, as well as number of
employees experiencing physical pain and symptoms of stress. In 2024, our year-
on-year reduction targets were not met, due to different factors including the
scaling of our organisation. A number of actions have been initiated in 2024 as we
remain committed to protecting the health, safety and wellbeing of our workforce.
The table below shows selected targets related to our strategic priorities, with
key performance metrics disclosed on the following page. A complete list of all
metrics is placed under relevant topical chapters.
Sustainability statement / General information / 1.1 ESG performance
47
Key ESG performance metrics for the year ended 31 December
As a result of our double materiality assessment (see section 1.5 'Double materiality assessment' on page 52), we identified
four essential sustainability topics with both financial and impact materiality which are closely aligned with our strategic
sustainability aspirations described in the Annual review: patient protection and quality of life, climate change, resource
use and circular economy, and own workforce. Other important sustainability topics have been identified, which are only
impact material. Listed below are selected performance metrics for both essential and important sustainability topics.
Essential sustainability topics
Unit
Table
2024
2023
2022
Important sustainability topics
Unit
Table
2024
2023
2022
Patient protection and quality of life
Business conduct
Patients reached with Diabetes and Obesity care products
Number in millions
3.1.1
45.2
41.6
36.9
Substantiated cases reported within accounting issues, fraud
Number
4.1.4
242
221
227
Vulnerable patients reached with Diabetes care products
2
Number in millions
3.1.1
8.4
8.8
-
and business ethics matters via the Compliance Hotline
6
Children reached through the Changing Diabetes
® in
Children programme (cumulative)
Number
3.1.2
64,743
52,249
41,033
Animals purchased for research
Number
4.1.8
49,284
56,508
79,750
Water
Product recalls
Number
3.1.4
3
2
3
Total water consumption
1,000 m
3
2.4.1
630
-
-
Failed inspections
Number
3.1.4
0
0
0
Pollution
Climate change
Total amount of substances of very high concern that leave facilities
Tonnes
2.3.1
1
-
-
Scope 1 GHG emissions
1,000 tonnes CO2e
2.1.1
85
78
76
Total amount of substances of concern that leave facilities
Tonnes
2.3.1
10
-
-
Scope 2 GHG emissions (market-based)
1,000 tonnes CO2e
2.1.1
16
15
16
Scope 3 GHG emissions
3
1,000 tonnes CO2e
2.1.1
2,160
1,743
-
Resource use and circular economy
Plastic footprint (absolute)
Tonnes
2.2.2
15,654
-
-
Plastic footprint per patient
kg/patient
2.2.2
0.35
-
-
Own workforce
Employees (headcount)
4
Number
3.2.3
74,156
64,319
55,185
Gender in senior leadership positions
% men:women
3.2.7
58:42
59:41
61:39
Rate of recordable work-related accidents for own workforce
5 Accidents per million
hours worked
3.2.6
1.2
1.3
1.3
Employees reporting symptoms of stress
%
3.2.6
13.8
13.8
13.8
Employees reporting symptoms of work-related physical pain
%
3.2.6
6.8
7.1
7.8
2. 2023 figure has been restated. For more information, please see section 3.1 'Patient protection and quality of life' on page 75.
3. 2023 figure has been restated. For more information, please see section 2.1 'Climate change' on page 58.
4. Total headcount of 77,349 cf. note 2.4 in the Consolidated financial statements. The variance of 3,193 employees is due to Catalent employees not being included.
5. 2023 and 2022 figures have been restated. For more information, please see section 3.2 'Own workforce' on page 84.
6. 2023 and 2022 figures have been restated. For more information, please see section 4.1 'Business conduct' on page 92.
S4
E1
E3
E5
E2
G1
S1
Performance of ESG ratings and rankings
Novo Nordisk aims to adhere to relevant reporting standards and guidelines. Our performance and management of
sustainability practices continue to be recognised by various global ESG rating agencies, and we support engagement
on an ongoing basis.
Novo Nordisk welcomes the global call for ESG data standardisation to address the variance in rating methodologies,
as well as the new EU regulation on ESG rating activities, fostering increased transparency of rating methodology and
outcomes. Listed below are some of our latest recognitions from ESG rating agencies received in 2024.7
7. Disclaimer statements to the use of logos can be found at: www.novonordisk.com/investors/esg.html.
8. The general release of the 2024 CDP scores to all companies is planned for 6 February 2025. Novo Nordisk’s 2024 CDP scores will be available
at: www.novonordisk.com/investors/esg.html.
62
Among the 100 most
sustainable companies
Corporate Knights
Global 100
12
Out of 20 largest
pharma companies
Access to Medicine
Index
AAA
On a scale of
AAA-CCC
MSCI ESG ratings
23.2
Risk rating from
0 to >40
Morningstar
Sustainalytics
CDP
Released 6 Feb 20258
From A to D on
Climate and Water
48
Sustainability statement / General information / 1.1 ESG performance
1.2 Basis for preparation of the
Sustainability statement
General reporting standards and principles
Our Sustainability statement has been prepared in accordance with the ESRS
as required by the Danish Financial Statement Act. Information derived from
other EU legislations is listed in section 5, table 1.
Certain disclosures have been prepared taking other sustainability reporting
standards and guidelines into account, such as the Greenhouse Gas (GHG)
Protocol, Science Based Targets initiative (SBTi), Science Based Targets
Network (SBTN), Taskforce on Climate-related Financial Disclosures (TCFD),
the Global Reporting Initiative Standards and the Danish Financial Statements
Act’s sections 99d and 107d (see pages 16 and 85-87). The International
Sustainability Standards Board (ISSB) recently issued IFRS S1 and IFRS S2,
making them effective, but voluntary, for annual reporting beginning on
or after 1 January 2024. While we are not required to follow these standards
and have not adopted the rules, we took them into account during the
preparation of the Sustainability statement.
The time horizons considered for the preparation of the Sustainability statement
are in line with those advised by the CSRD, and specifically up to one year as
short-term, from one to five years as medium-term and more than five years
for long-term.
We have not opted to omit information corresponding to intellectual property,
know-how, results of innovation, impending developments or matters in the
course of negotiation, but in this first year of preparation of the Sustainability
statement we opted to use the phase-in provisions listed in ESRS 1 Appendix C
applicable to Novo Nordisk. Similarly, all voluntary disclosures that we consider
required for a fair representation have been included. Table 2 in section 5
includes an index of all the ESRS requirements we comply with.
Scope of consolidation
The organisational boundaries applied to Novo Nordisk’s consolidated
Environmental, Social, and Governance (ESG) reporting align with those of
the Consolidated financial statements. For disclosures on GHG emissions and
pollution, we considered operational control when determining the consolidation
scope. For policies, actions and targets related to 'Own workforce', NNE is
excluded, as the subsidiary has its own processes in place.
On 18 December 2024, Novo Nordisk acquired three fill-finish sites located in
the US, Belgium and Italy from Novo Holdings, upon completion of its acquisition
of Catalent Inc., a global contract development and manufacturing organisation.
The impact of the acquisition has been deemed immaterial for sustainability
reporting and is not included in our Sustainability statement, including the
additional headcount, explaining the difference with Annual review and
Consolidated financial statements.
The Sustainability statement addresses the material impacts, risks and
opportunities (IROs) of both our own operations and our upstream and
downstream value chain. For a visualisation of our value chain, please refer
to page 9. The extent to which our policies, actions and targets include our
value chain depends on our double materiality assessment. We have applied
transitional provisions relating to some value chain information; please refer
to the topical sections for additional information.
Sources of estimation and outcome uncertainty
The use of estimates for performance metrics, including when upstream
and downstream value chain data is included, is described in the individual
accounting policies. Overall, metrics related to our own operations have a
higher amount of primary data, while value chain metrics are often estimated
and therefore have a higher level of measurement uncertainty. All assumptions
and potential uncertainties are documented in the accounting policies. Forward-
looking information, such as targets, are uncertain in nature and we refer to the
section 'Forward-looking statements' on page 35 for further details.
Changes in preparation, presentation or due to specific circumstances
Restatements of historical data due to reporting errors in previous periods,
and/or changes to accounting policies, are only performed if the materiality
threshold defined in our restatement guidelines is exceeded. Management
provides the specific disclosures required by CSRD unless the information
is not applicable or is considered immaterial to the decision-making of the
primary users of the Sustainability statement. Restatements are primarily due
to improvements in calculation methodology or new scientific evidence as we
continuously work to improve the accuracy of our sustainability reporting. In
2024, the organisational scope of some metrics was expanded to include all
entities, but this has not resulted in any restatements.
In 2024, the following metrics have been restated due to improved calculation
methodology: the comparative figures for total scope 3 GHG emissions and its
categories 1 (Purchased goods and services), 2 (Capital goods), 4 (Upstream
transportation and distribution) and 6 (Business travel), vulnerable patients
reached with Diabetes care products, rate of recordable work-related accidents
for own workforce, and number of substantiated cases reported within accounting
issues, fraud and business ethics matters via the Compliance Hotline. For more
information, see sections 2.1 'Climate change', 3.1 'Patient protection and quality
of life', 3.2 'Own workforce' and 4.1 'Business conduct'.
Comparative figures
Comparative figures are provided for metrics that have been disclosed in one or
more prior periods, where their definition and scope were aligned with the ESRS
requirements or required only minor adjustments. In accordance with the ESRS
transitional provision, no comparative figures are disclosed for new metrics
introduced in 2024.
Incorporation by reference
An overview of all incorporation by references used within the Sustainability
statement is listed in section 5, table 3.
Statement on sustainability due diligence
Novo Nordisk performs due diligence activities relating to people and the
environment. The table below outlines the specific processes and their location
in the Sustainability statement.
Core elements of environmental
and social due diligence
Pages
a)
Embedding due diligence in governance,
strategy and business model
50-55, 60, 64, 65, 67,
68, 71, 80, 88, 90
b)
Engaging with affected stakeholders in
all key steps of the due diligence
50-52, 60, 66, 68, 72, 80,
86, 88, 90, 91, 94, 95
c)
Identifying and assessing adverse impacts
52-55, 60, 64, 65, 67, 71, 80, 88, 90
d)
Taking actions to address those
adverse impacts
55, 56, 60-61, 64, 66, 68, 72-74,
76-79, 81-82, 84, 86, 89, 90-92, 94
e)
Tracking effectiveness of these efforts
and communicating
55-59, 62-68, 74,
75, 82-87, 91-93
49
Sustainability statement / General information / 1.2 Basis for preparation of the Sustainability statement
1.3 Sustainability governance
The role of the Board of Directors and Executive Management
Sustainability matters are addressed in relevant governance bodies across
the organisation to ensure integration into Novo Nordisk's strategy and
core business.
Our sustainability governance is anchored with the Board of Directors, which
has the overall responsibility of providing oversight and advice on sustainability
matters, including the strategic direction and ambition level as set by Executive
Management. In addition, the Audit Committee assists the Board with oversight
of financial and sustainability reporting while the Remuneration Committee
and the People and Governance Committee assist the Board in ensuring
integration of sustainability into our executive remuneration and board
competency assessment, respectively. The oversight and relevant reporting
lines are outlined in the visualisation on the right, including approval of our
sustainability reporting of material impacts, risks and opportunities, target
performance and variable remuneration components. The mandates outlined
are addressed in relevant governance documents pertaining to each of the
governance bodies.
Strategy and targets are set by Executive Management, who is responsible for
material sustainability matters in the day-to-day management of Novo Nordisk.
In March 2024, the Board of Directors and Executive Management attended an
educational session on sustainability trends and key topics, which included a
discussion of the double materiality assessment and a deep-dive on nature
and biodiversity, to increase their expertise with regards to specific impacts,
risks and opportunities.
Operational decisions are delegated to management level, with the Sustainable
Business Execution Steering Group – comprising senior representatives from
across the business – providing guidance on implementation of our environmental,
social and governance-related disclosure initiatives. In addition to the dedicated
sustainability steering groups, sustainability is also integrated into existing
governance structures, such as our product governance, where we aim to
integrate social and environmental considerations across product lifecycles.
Oversees strategic
direction and advises
on ambition level.
Decides on strategic
direction, ambition level,
targets, roadmaps and
central funding, as well as
financial and ESG reporting.
Takes operational decisions to implement
Executive Management’s decisions regarding
core sustainable business priorities.
Drive social initiatives, related
to global health equity, business
ethics and others.
Board of
Directors
Executive
Management
Sustainable Business
Execution Steering Group
Social steering
groups
Drive environmental initiatives,
related to product circularity
and decarbonisation.
Environmental
steering groups
Provides guidance on ESG reporting,
including implementation of new
regulatory requirements.
ESG Reporting
Steering Group
Oversees financial and
sustainability reporting.
Assesses the competencies
of the Board of Directors,
including within ESG.
Audit
Committee
People and
Governance
Committee
Determines executive
remuneration structure,
including based on
sustainability targets.
Remuneration
Committee
Provides non-binding recommendations
on our Strategic Aspirations regarding
purpose and sustainability. Composed
of external experts.
Sustainability
Advisory Council
50
Sustainability statement / General information / 1.3 Sustainability governance
We actively seek external input through our Sustainability Advisory Council,
an independent body offering perspectives that challenge us to improve
our sustainability efforts continuously. See more about the council and its
members at: www.novonordisk.com/sustainable-business/esg-portal.html.
Reward structures at Novo Nordisk are designed to support our strategy and
motivate our executives to deliver sustainable growth and successful outcomes
in relation to our strategic aspirations. Both the short- and long-term incentive
programmes include sustainability-related metrics, such as our target on GHG
emissions, aligning with Novo Nordisk's sustainability-related objectives.
For further details on sustainability governance and remuneration of the
Board of Directors and Executive Management, we refer to the incorporation
by reference table 3 in section 5, on page 96.
Risk management and internal controls over sustainability reporting
At Novo Nordisk, risks and controls over sustainability reporting are assessed
annually. We assess risks associated with incomplete or inconsistent sustainability
reporting, including risks related to the accuracy of data and manual errors when
consolidating data from different systems. We use a centralised, online repository
to document our financial and sustainability-related risks and controls and focus
on the highest risks. With regards to the double materiality assessment, we
performed controls on the process for identifying material impacts, risks and
opportunities and underlying documentation.
Novo Nordisk’s lines of business and responsible data owners assess the
risks associated with sustainability data and implement appropriate controls.
A headquarter function maintains an overall risk assessment of sustainability
reporting and determines the level of internal controls required for each
process, depending on the materiality of the risks. Group Internal Audit
conducts independent audits to assess the design and operating effectiveness
of the risk and control processes.
Executive Management is responsible for the overall internal control framework.
The Disclosure Committee – a management committee established by Executive
Management – reviews changes to sustainability reporting in the Company
Announcement on a quarterly basis. The Audit Committee oversees financial
and sustainability reporting and is informed about actions and progress on
essential sustainability metrics and targets on a quarterly basis.
1.4 Interests and views of stakeholders
Novo Nordisk strives to understand and reflect the interests and views of
patients (gathered via engagement with patient organisations), employees,
and other key stakeholders across the value chain, through our standard due
diligence processes, as we deliver on our sustainability priorities and our double
materiality assessment. We ensure that the interests and views are taken into
account in the strategic direction of Novo Nordisk by informing Executive
Stakeholder group
Purpose and engagement channels
Examples of how outcomes are taken into account
Patient organisations,
healthcare professionals
and healthcare
organisations
We ensure a patient-centred business approach to improve prevention, detection,
treatment and access to quality care for people living with serious chronic diseases,
through research collaboration and trials, conferences, and scientific and medical
communications.
• Development of new treatments and product
improvements.
• Efforts to strengthen the resilience of healthcare
systems, for example through prevention efforts.
Employees
We strive to improve health, safety and wellbeing of our employees. Talent attraction and
retention, driving innovation and providing employees with equitable opportunities to
realise their potential, are essential to our strategy. We enable this via our annual employee
survey, Evolve, individual career development and training, workers’ councils, ongoing social
dialogue, and investing in onboarding of new employees.
• Novo Nordisk Way facilitations to live up to our cultural
commitments.
• Fostering a culture of safety with attention to increase
employee health and total wellbeing.
• Improving employee benefits, for example parental
leave.
Suppliers and third-
party representatives
Our Responsible Sourcing Programme, human rights due diligence and established
contracting and engagement processes drive our supplier and third-party engagement.
We leverage this when purchasing goods and services to manufacture or distribute
pharmaceutical products and partnering with third-party representatives, for example
on filling or assembling final products or performing clinical trials.
• Renewable electricity commitments in our supply chain.
• Informed supplier and third-party representative
selection.
Public officials and
regulators
To advocate for improvement of public health and meet current and future regulatory
requirements we organise and sponsor events, engage with industry associations, drive
bilateral dialogues with local, national and international agencies and authorities.
• Enable new innovation.
• Improve existing healthcare to the benefit of patients.
Partners and peers
We seek perspectives from partners and peers to advance on many of our
commitments, especially when it comes to our access and prevention efforts. Example
of such collaborations include our Sustainability Advisory Council, Cities for Better
Health, and other industry partnerships.
• Advance our environmental commitments, for example
through Sustainable Marine Fuels (SMF) and lower
carbon plastics.
• Prevent childhood overweight and obesity through
UNICEF partnership and the Childhood Obesity
Prevention Initiative with partners such as city
governments and academic institutions.
• Provide input to sustainability strategies and targets.
Investors
We strive to provide timely, accurate and transparent information to our investors
through engagements such as Capital Markets Day, the annual general meeting, ESG
raters and rankers, and recurring engagement in response to investor queries.
• Strengthened sustainability performance, reporting and
communication efforts.
Management and the Board of Directors on an ongoing basis as per our
sustainability governance.
We continuously measure the extent to which we live up to societies’
expectations through our company reputation score. Novo Nordisk has
maintained its 'Excellent' reputation in 2024, achieving a global reputation
score of 81.6 (on a 100-scale) across 20 tracked markets and five stakeholder
groups, in line with the performance of 2023.
51
Sustainability statement / General information / 1.4 Interests and views of stakeholders
1.5 Double materiality assessment
Processes to identify and assess material impacts, risks and opportunities
In 2024, we completed a double materiality assessment in accordance with
the requirements of ESRS 1 to determine material sustainability topics for
the entire Novo Nordisk Group. The assessment considered both the impacts
of our business on society and the environment (impact materiality) and
how sustainability topics affect the Group in the form of business risks
and opportunities (financial materiality). In addition, we considered the
implementation guidance provided by EFRAG
1 (EFRAG IG 1), including how
to set qualitative and quantitative thresholds, and previous materiality
analyses. Results will be reviewed annually.
The double materiality assessment was initiated combining the list of sub-sub-
topics as per ESRS 1 with additional entity-specific sustainability matters, in
consideration of Novo Nordisk’s industry, using screening tools and existing
voluntary standards. Furthermore, an outside-in perspective was considered,
by consulting our stakeholders and actors in the value chain. All identified
topics have followed a four-phase process: 1) input from internal subject
matter experts; 2) engagement with external stakeholders; 3) calibration by
internal leaders including discussion by senior management; and 4) Audit
Committee review and approval.
Subject matter experts in our workforce provided initial input by scoring
relevant topics related to their areas of expertise, through a survey covering
the full scope of the Novo Nordisk Group. The scores were accompanied by
qualitative rationales that included considerations of specific geographies,
processes, due diligence findings and actors across the value chain to identify
material IROs.
By using an average scoring approach, impacts were assessed based on their
scale, scope, irremediability (in the case of negative impacts) and likelihood;
and risks and opportunities on their magnitude, likelihood and type of financial
effect. Likelihood was assessed only for potential IROs.
The methodology to determine impact materiality was largely aligned with
EFRAG's implementation guideline, assessing scale, scope and irremediability
against qualitative criteria. For scale, we assessed the size of the impact to the
environment and people; for scope its reach or geographical span and, where
1. European Financial Reporting Advisory Group, a private association providing technical advice
to the European Commission on both financial and sustainability reporting standards.
applicable, irremediability scores considered how difficult it would be to
remedy our negative impacts.
The methodology to determine financial materiality was largely aligned
with Novo Nordisk’s enterprise risk management framework, including the
quantitative and qualitative scales and the different types of the financial
effects: classified as monetary, reputational, ethical or quality-related. The main
differences to the enterprise risk management framework include longer time
horizons and the risks being assessed before mitigating actions in accordance
with ESRS 1. We will continue to assess how sustainability is considered in our
overall risk profile, to strengthen our integrated risk management process.
External stakeholder groups were involved through surveys of: a selection of
international patient organisations (serving as proxy for our patients’ interests
across different therapy areas), a selection of our top 20 investors by ownership
size; and a selection of Tier 1 suppliers across different sourcing categories.
Affected communities were not directly consulted. Other consultations are
specified in relevant sections of the Sustainability statement. Additionally,
we used a data analysis tool to reflect the perspectives of wider society, using
sources such as peers’ public reports, regulatory guidance and news.
The preliminary results were aggregated, discussed and calibrated at
workshops with sustainability leaders from various functions in the Group
and by senior management. This was to include a top-down perspective,
prevent subjective bias and ensure consistency across the sustainability topics.
IRO conclusions were determined against our pre-defined thresholds. For
impact materiality, all sustainability topics classified as critical, significant and
important and considered current or likely/very likely to occur, were deemed
material (see double materiality assessment illustration on the next page). For
risks and opportunities, a sustainability topic was considered financially material
with scores categorised as critical and significant if either current or likely/very
likely to occur. The thresholds for impact materiality were set lower than those
for financial materiality, reflecting our commitment to transparency of our
impacts on and contributions to society and the planet. The results of the
double materiality assessment and material IROs were reviewed and approved
by the Audit Committee.
We have mapped the material IROs to the applicable ESRS data points and
further assessed their materiality, to determine whether they were relevant
for our business model and/or for the decision-making needs of the users
of the Sustainability statement. This analysis determined the material
sustainability information disclosed in this Sustainability statement.
Interaction with strategy and business model
The results of our double materiality assessment reflect Novo Nordisk's
sustainability strategy and business model. Our positive, social impacts associated
with providing access to life-saving medicines without compromising safety or
quality, help to improve quality of life and healthcare systems for people around
the world. For an overview of our products, see section 'Innovation and therapeutic
focus' on pages 17-25. To remain a relevant and attractive workplace, we depend on
people's wellbeing, within and outside our operations, to contribute to continued
innovation to society. The results also underscore our negative environmental
impact when manufacturing medicine, including associated carbon emissions and
plastic footprint. Coupled with our dependence on nature-based resources, our
environmental strategy strives to limit any such negative impacts. We acknowledge
the impacts of our business conduct, and of upholding the highest ethical
standards in order to continue to be respected for our societal contributions..
To assess the resilience of Novo Nordisk's strategy and business model,
sustainability is included in our annual strategy review. Executive Management
and the Board of Directors meet annually to discuss strategic risks and
opportunities within and beyond the next five years to ensure that we continue
to meet society’s needs. Discussions include sustainability impacts such as how we
reach more vulnerable patients while striving to minimise environmental impacts.
Resilience discussions are based on input and recommendations from across
the organisation with a focus on the topics that are most likely to impact our
long-term strategy and forward-looking trend analyses, resulting in adjustments
to the strategy if necessary. Sustainability is therefore integrated in relevant
functional strategies and sustainability strategies are discussed on an ongoing
basis with Executive Management. Descriptions of topic-specific resilience
analysis are included where relevant in the topical sections. For more on our
strategy that relates to sustainability matters, see section 'Purpose and
sustainability' on pages 12-16.
52
Sustainability statement / General information / 1.5 Double materiality assessment
Outcomes of the double materiality assessment
The illustration to the right provides an overview of the material IROs associated
with each material sustainability topic and where the IROs are in our business
model across time horizons.
Climate change, resource use and circular economy, patient protection and
quality of life, and own workforce are all essential sustainability topics to Novo
Nordisk, reflecting our focus of managing the associated impacts, risks and
opportunities through our strategic priorities. Furthermore, water, pollution,
biodiversity, workers in the value chain and business conduct are all important
sustainability topics where Novo Nordisk has impacts, but is not materially
affected by related risks or opportunities. A detailed description of the material
IROs is given in the topical sections of this Sustainability statement.
We focus on setting strategic targets for our essential topics as these are
considered our top sustainability priorities. For other important sustainability
topics we measure progress against relevant metrics or project KPIs as specified
for relevant actions in each topical section.
Short-term
Medium-term
Long-term
Negative impact
Positive impact
Opportunity
Risk
+
!
S4
S1
E1
E5
G1
S2
E3
E4
E2
Financial materiality
Impact materiality
Low
High
High
Essential topics
Non-material topics
Important topics
Non-material topics
- Pollution of air (E2)
- Pollution of water (E2)
- Pollution of soil (E2)
- Pollution of living organisms
and food resources (E2)
- Microplastics (E2)
- Water discharge in oceans (E3)
- Extraction of marine resources (E3)
- Invasive alien species (E4)
- Desertification (E4)
- Soil sealing (E4)
- Other (E4)
- Employment with disabilities
(S1 and S2)
- Adequate housing (S1 and S2)
- Diversity (S2)
- Gender equality (S2)
- Water and sanitation (S2)
- Work-life balance (S2)
- Affected communities (S3)
UPSTREAM
OWN OPERATIONS
DOWNSTREAM
2. Entity-specific topics.
DMA topics
Category
Resources
R&D
Manufacturing
Distribution
Patients
Time horizon
Page
E1
Climate change
CO2e emissions across our operations and value chain contribute to climate change
54
!
Potential reputational risks associated with rising CO2e emissions
54
Potential weather-related hazards impacting safety at our sites and in our value chain
54
E5
Resource use and circular economy
Resource use and waste associated with manufacturing and products
60
!
Potential reputational risks associated with resource consumption
60
E2
Pollution
Chemicals affecting human health or ecosystems
64
E3
Water
Availability and deterioration of water resources
65
E4
Biodiversity and ecosystems
Reliance on natural resources and ecosystem services
67
Reliance on vulnerable species in research
67
S4
Patient protection and quality of life
+
Improving quality of life through medicines
71
Innovation2
Potential new discoveries to serve patient needs
71
Prevention2
+
Reducing and preventing serious chronic diseases
71
+
Health equity in clinical trials
Health equity for vulnerable patients
71
Safe clinical trials
Product quality and safety
71
Falsified medicines2
Protection against falsified medicines
71
Protecting clinical
trial information
Protecting patient information
71
!
Potential reputational and regulatory risks
71
S1
Own workforce
+
Employee benefits and flexible working conditions
80
Potential human rights incidents
80
Healthy and safe work environment
80
+
Equal opportunities fostering innovation
80
!
Attracting talent to enable continued innovation
80
S2
Workers in the value chain
Protecting working
conditions and human rights
Protecting working conditions and human rights
88
G1
Business conduct
+
Ethical working culture through Novo Nordisk Way
90
Interacting with all stakeholders in accordance with our business ethics standards
90
+
Promoting public health
90
Bioethics2
+
Upholding high bioethical standards
90
Reliance on animals in research
90
53
Sustainability statement / General information / 1.5 Double materiality assessment
2. Environment
2.1 Climate change
As a global company with sourcing, manufacturing, and distribution to reach
patients across the world, Novo Nordisk has impacts on climate change and the
environment. We address these impacts through the execution of our Circular
for Zero strategy, including decarbonising our own operations and working
with our suppliers to reduce GHG emissions across our value chain.
Material impacts, risks and opportunities (IROs)
Identified IRO
Category
Value chain
CO2e emissions across our operations and value
chain contribute to climate change
• Upstream
• Own operations
• Downstream
Potential reputational risks associated with rising
CO2e emissions
• Upstream
• Own operations
• Downstream
The majority (96%) of Novo Nordisk’s GHG emissions originate in our upstream
and downstream value chain, from sourcing and services to distributing
our products (scope 3). GHG emissions from our own operations (scopes 1 and 2)
have a relatively lower impact (4%). Our emissions have a negative impact on global
warming, while material transition risks of our climate change mitigation efforts
include potential reputational risks associated with an increase in GHG emissions.
Identified IRO
Category
Value chain
Potential weather-related hazards impacting safety at
our sites and in our value chain
• Upstream
• Own operations
• Downstream
Weather-related hazards could potentially have negative impacts on the
protection of employees or workers in the value chain, as well as on patients'
health and wellbeing if access to treatments is disrupted. The worst impacts
from climate-related weather hazards will likely materialise in the medium- and
Positive impact
Negative impact
Opportunity
Risk
long-term and are currently not considered financially material to Novo Nordisk.
However, we continuously assess physical climate risks and the extent to which
they could impact our operations and value chain, as described in this section.
Based on our climate adaptation efforts and decarbonisation initiatives
throughout our value chain, we assess that our strategy is resilient in relation to
climate change. This assessment was made based on the processes described
below, including a high-level climate scenario analysis conducted in 2024.
Processes to identify impacts, risks and opportunities
To identify our climate impacts, we track our GHG emissions by monitoring our
direct emissions and energy consumption across sites, as well as emissions in
our upstream and downstream value chain through supplier data, activity data
and financial data. We screen our activities to assess actual and potential climate
impacts in line with our corporate strategy and decarbonisation roadmap.
Climate-related risks are identified and assessed as part of Novo Nordisk’s
risk management process and systems (see section ‘Risk management’ on page
39 with regards to the main strategic risk 'environmental impact'). Short- and
medium-term climate risks are assessed across business areas, while long-term
risks are assessed as part of our company-wide strategic risk identification
process. When identifying material climate risks, the same time horizons have
been applied as for the double materiality assessment, with climate-related
risks expected to materialise in the long-term (beyond 5 years). We use natural
hazard screening for all relevant physical hazards at our production sites and in
our supply chain, excluding warehouses, on an annual basis and as part of our
sourcing due diligence process. Transition risks are assessed qualitatively in
accordance with the double materiality assessment methodology.
In 2024, we conducted a forward-looking, high-level assessment of physical
and transition climate-related risk, considering a 4°C and a 1.5°C scenario to
capture how ‘business as usual’ and rapid decarbonisation pathways would each
impact our business. For physical risks, the analysis was performed under high
emission Representative Concentration Pathway (RCP) 8.5 and a low emissions
RCP 2.6. pathway across 2030- and 2050-time horizons, focusing on selected
raw materials and on acute and chronic hazards. This was done using an
external meteorological database, as well as asset information and geospatial
coordinates for production sites. Transition risks were modelled using an
Integrated Assessment Model (IAM) scenario analysis tool to account for sector-
and region-specific macroeconomic shifts and considering energy supply, raw
material pricing, labour cost, and revenue changes. No aspects of our business
were identified as incompatible with a transition to a climate-neutral economy.
Purchased goods
and services
1,215 ktCO₂e
Fuel and energy
related activities
74 ktCO₂e
Upstream
transportation
and distribution
101 ktCO₂e
Downstream
transportation
and distribution
57 ktCO₂e
End-of-life
treatment of
sold products
2 ktCO₂e
Waste generated
in operations
6 ktCO₂e
Business travel
188 ktCO₂e
Employee
commuting
52 ktCO₂e
Emissions and energy
use in own operations
101 ktCO₂e
Capital goods
465 ktCO₂e
CO2e emissions across Novo Nordisk’s value chain
Negative impact
Positive impact
Opportunity
Risk
54
Sustainability statement / Environment / 2.1 Climate change
Mitigation, adaptation and energy
Policies
Policy
Environmental policy
Purpose
Guides action across material environmental topics
Scope
All of Novo Nordisk's global activities
Most senior level
accountable
Executive Management
Availability
Externally available:
Our environmental policy
Applicability across
Sustainability statement
• Climate change, page 54
• Resource use and circular economy, page 60
• Pollution, page 64
• Water, page 65
• Biodiversity and ecosystems, page 67
Novo Nordisk’s environmental policy states our commitment to ensuring
treatment for people living with serious chronic diseases with the lowest
possible impact on the environment, by reducing our GHG emissions in line
with the Science Based Targets initiative (SBTi). As such, the policy sets out a
key objective of mitigating our climate impact through energy efficiency
measures, deployment of renewable energy, and other decarbonisation levers
as detailed further in this section. The policy also states our commitment to
protecting the business through evaluating climate-related risks and taking
measures to adapt to climate change.
Implementation of the environmental policy is ensured by management teams
across the business and by on-site environmental partners at all production
facilities globally, who safeguard compliance and continuous improvements.
Our production facilities are ISO 14001 certified for environmental management
to ensure continuous improvements and mitigate, control and prevent negative
environmental impacts.
Actions and transition plan for climate change mitigation
To mitigate our impacts on climate change, Novo Nordisk is committed to reaching
net zero emissions across scope 1, scope 2 (market-based) and scope 3 GHG
emissions by 2045 in alignment with the Corporate Net-Zero Standard from the
SBTi. In addition, we have targets of zero scope 1 and scope 2 (market-based)
CO2e emissions by 2030, and a new target of 33% absolute reduction of scope
3 CO2e emissions by 2033 compared to our base-year of 2024
1. The targets have
been approved by our Board of Directors and Executive Management. Our new
scope 3 target is not 1.5℃ aligned, but is consistent with SBTi’s well-below 2.0℃
pathway. We will start executing the transition plan in 2025 to achieve our scope
3 target by 2033. However, many of our scope 3 decarbonisation levers will not
materialise until at least 2030. With the projected growth and the delayed effect
of our decarbonisation levers, we anticipate an overall growth in GHG emissions
until 2030 compared to the baseline.
We have made progress in reducing our environmental impact since the launch
of our Circular for Zero strategy in 2019, including converting to renewable
electricity in our own operations and among suppliers, and curbing the climate
impact from transportation. In 2024, we updated our scope 3 decarbonisation
roadmap, expanding the scope of our target from operations and transportation
to cover our operations and value chain globally. The roadmap is aligned with
Novo Nordisk's overall business strategy, taking into account our projected
growth. Our growth increases the challenges of decarbonising and thus
underscores the importance of decoupling our ability to serve more patients
from our climate impact, to lower GHG emissions. The expected reductions
2,
including anticipated growth in emissions, are currently estimated at 2,200
thousand tonnes of CO2e across scope 3 by 2033. This includes initiatives
already identified, estimated at 1,500 thousand tonnes CO2e, and therefore a
gap towards our target of an estimated 700 thousand tonnes of CO2. We will
address these remaining emissions as we progress with implementing the
roadmap and assess the scalability and effectiveness of identified initiatives,
while investigating additional levers such as potential new technological
advancements. Furthermore, we estimate 131 thousand tonnes of CO2e of
expected reductions across scope 1 and 2 by 2030. The expected GHG emission
reduction pathway is illustrated on page 57.
1. The target covers nearly 70% of our scope 3 emissions in accordance with SBTi provisions.
Read more on page 57.
2. Expected reductions is defined as the overall quantitative contribution to achieve the GHG emission
reduction targets from all decarbonisation levers, including expected growth projections.
Emission reduction efforts in our own operations (scope 1 and 2) are focused
on switching to renewable energy sources and increased energy efficiency.
Within our upstream and downstream value chain (scope 3), which generates
96% of our total GHG emissions, key levers include converting to lower carbon
materials, requiring that our tier 1 suppliers convert to renewable energy, and
lowering the emissions from our distribution, as detailed in the table on the
next page. Beyond 2033, Novo Nordisk expects to use carbon removals to
neutralise residual CO2e emissions of up to 10% of the baseline emissions
towards our net zero 2045 target, in line with SBTi requirements and guidance
from the Intergovernmental Panel on Climate Change (IPCC). We are exploring
opportunities for removing and storing GHG involving both nature- and
technology-based solutions. Our potential locked-in GHG emissions are limited
but relevant in relation to our partially fossil-fuel-powered production sites,
which we are working to convert to electric and renewable energy.
We strive to expand our production capacity in a sustainable way, and in
2024 we aligned a proportion of the buildings in two of our capacity expansion
projects to the EU Taxonomy, resulting in 6% aligned CapEx in 2024 (3%
including Catalent), thus contributing to climate change mitigation
3. See
section 2.6 'EU Taxonomy' on page 69 for more information on our approach
and ambitions to align future capacity expansion projects where feasible.
We continuously invest in integrating our Circular for Zero priorities across our
business as part of how we operate, from working with suppliers and designing
our manufacturing processes to reducing the end-of-life impact of our products.
Further, we will commit additional resources to accelerate the implementation
of our updated environmental roadmaps developed in 2024 across climate,
plastic and nature. In addition, extended value is created through grants to health,
sustainability and the life science ecosystem, via our unique ownership structure,
by the Novo Nordisk Foundation, our majority shareholder through Novo
Holdings A/S. We also expect to update our incentive programmes, described in
our Remuneration report as referenced in Table 3 on page 96, to reflect our new
decarbonisation roadmap.
3. Novo Nordisk is not excluded from the EU Paris-aligned Benchmarks.
55
Sustainability statement / Environment / 2.1 Climate change
Key action to address
climate change
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we track effectiveness
Energy efficiency
and optimisation
(scope 1 and 2)
Sites and processes are optimised through our energy savings programme, rethinking the
design of our site infrastructure to ensure a resource-efficient energy supply, for example
through the construction of a district cooling ring at site Kalundborg, Denmark, to be completed
in 2026. Energy efficiency and optimisation across sites is an ongoing action until at least 2030.
Own operations globally
Yes
• Progressed with the construction of district cooling ring at site Kalundborg, Denmark,
with expected energy savings of over 20,000 MWh/year after completion in 2026.
• In 2024, energy savings initiatives across sites resulted in total energy reduction of
13,740 MWh.
Switching to renewable
electricity (scope 2)
Reach 100% renewable electricity for Novo Nordisk’s own production sites and affiliates,
continuously striving for best practice solutions. Action is ongoing until at least 2030.
Own operations globally
Yes
• Maintained 100% of Novo Nordisk’s electricity consumption procured from renewable
energy sources at all production sites.
• Continued the transition towards renewable electricity at our affiliates,
reaching 99% coverage.
Reducing emissions
from heat and steam
(scope 1 and 2)
To reach zero CO2e emissions from production, we are converting steam and heat in our
production processes towards renewable energy sources by electrifying processes and covering
natural gas consumption by biogas certificates. Action is ongoing until at least 2030.
Own operations globally
Yes
• Progressed plans to electrify heat and steam production where possible and to cover the
natural gas consumption of sites in the US with biogas (renewable natural gas) certificates.
• Energy consumption from renewable resources accounted for 54% of total energy
consumption (excluding steam and heat derived from biomass).
Remaining scope 1 and
2 emissions reductions
Main reductions from remaining scope 1 and 2 GHG emissions will come from lowering
emissions from refrigerants, back-up systems and transitioning fossil-based vehicles in own
operations to battery electric or plug-in hybrid vehicles. Action is ongoing until at least 2030.
Own operations globally
Yes
• Continued the transition away from fossil-based vehicles with market-specific guidance
based on local infrastructure conditions.
Reducing emissions
from high impact
sourcing categories
(scope 3, category
1 and 2)
Reducing emissions from high impact sourcing categories through three focus areas:
1) converting to lower carbon raw materials and feedstocks for our device and drug
manufacturing, as well as lower carbon construction materials; 2) process optimisations
to lower material use; 3) renewable energy for tier 1 suppliers. Action to be implemented
from 2025-2033.
Supply chain globally
Yes
• To date, more than 1,800 suppliers have committed to transitioning to renewable power.
• In 2024, initiatives were identified together with suppliers and relevant business units across
Novo Nordisk, which are expected to account for the majority of scope 3 emission reductions.
• Effectiveness is assessed on a quarterly basis through tracking estimated GHG emissions.
Reducing emissions
from product
distribution (scope 3,
category 4 and 9)
Lower distribution emissions by air, sea, and road: 1) by air, converting additional upstream
air freight to sea freight, while securing Sustainable Aviation Fuel (SAF) via long-term off-take
agreements; 2) by sea, securing Sustainable Marine Fuel (SMF) in upstream distribution; 3) by
road, through low-carbon road freight solutions upstream and downstream. Action to be
completed by 2033.
Upstream and
downstream distribution
globally
Yes
• Initiatives identified together with suppliers and relevant business units across Novo Nordisk.
• Effectiveness is assessed on a quarterly basis through tracking estimated GHG emissions.
Climate adaptation
To address physical climate risks faced by some of our sites in the medium and long term, all
medium- and high-risk sites are covered by mitigation plans, including procedures in cases of
a temporary production shutdown and safety rooms for employees, as well as leak detection,
drainage, and protection against storm surge. The natural hazard exposure of our 400 most
critical suppliers is reviewed as part of our comprehensive supply chain risk assessment.
Own production sites and
suppliers
No
• Conducted an updated assessment based on new tools and data, including several new
suppliers and acquisition sites, in addition to own sites.
• Effectiveness of actions are tracked through an annual NatCat report, distributed to own sites
to ensure cross-site learning and best practice.
56
Sustainability statement / Environment / 2.1 Climate change
Performance
GHG emissions targets
We set GHG emission reduction targets across scope 1 and 2 (market-based)
and scope 3. The base year is 2024, which is considered representative of
Novo Nordisk's business activities. Our scope 3 target covers nearly 70% of our
scope 3 emissions, in accordance with the SBTi’s provision of postponing up to
one third of base year GHG emissions associated with the highest estimation
uncertainty and lowest abatement potential. Hence, categories 3, 5, 7, 12, and
a part of category 1 and 2 are not included in the scope of the 2033 target
5.
The target is derived using a sectoral decarbonisation pathway and has been
submitted for validation by SBTi. Our 2045 net zero target covers all emissions
across scope 1, 2 and 3.
5. Categories 1 - Purchased goods and services, 2 - Capital goods, 3 - Fuel- and energy-related activities,
5 - Waste generated in operations, 7 - Employee commuting, 12 End-of-life treatment of sold products.
In setting the scope 3 target, we estimated projected emissions based on the
most ambitious growth forecasts aligned with expected production volumes
and expansion projects between 2024 and 2033. To identify and assess the
feasibility of decarbonisation levers, we engaged with selected suppliers and
with business units across Novo Nordisk. Achieving our targets depends in
part on the availability of lower carbon technologies and materials that meet
our quality standards as part of the general transition to a lower carbon
economy. We will monitor the effectiveness of our targets starting in 2025.
Progress on GHG emissions
In 2024, during the process of developing a new scope 3 target, we have
updated our methodology to provide a more reliable data foundation for
our target baseline. The current methodology has been reviewed and
adjusted across the most material scope 3 categories as follows:
• Purchased goods and services (category 1) updates include a combination
of transferring contract manufacturing categories from spend- to activity-
based accounting, adjustment of emission factors and volume conversions.
• Capital goods (category 2) updates include adjusting existing spend-based
factors, using supplier-specific information when available, and developing
new spend-based factors from bills of material.
• Emission factors of Upstream transportation and distribution (category 4),
and Business travel (category 6) have been updated.
The review indicated that categories 1 and 2 were previously overstated due
to the inherent uncertainty of spend-based emission factors. We have therefore
restated scope 3 GHG emissions for 2023. Our efforts to enhance the accuracy
of our scope 3 inventory will continue with a further focus on the less material
categories. The inherent uncertainties in scope 3 calculation methodologies,
together with ongoing scientific advancements, mean that the risk of future
restatements will continue to be present for this metric. In 2024, approximately
12% of scope 3 emissions were calculated using primary data.
In 2024, Novo Nordisk’s gross scope 1 and 2 (market-based) emissions grew
by 9% and 7% respectively due to the increase in natural gas consumption in
our US production and at our newly acquired site in Ireland, Athlone; and the
increased consumption of fossil-based steam in China. Scope 3 emissions
increased by 24% due to substantial investments in production capacity and
increase in supply chain activities to serve more patients. Combined categories
1 (Purchased goods and services) and 2 (Capital goods) account for almost 80%
of total scope 3 emissions. These categories are part of our efforts to increase
supply to reach more patients and responsible for the majority of the increase
in scope 3 emissions in 2024. Our efforts to decarbonise categories 4 (Upstream
distribution) and 6 (Business travel) have been challenged by the growth of
the company. The procurement of sustainable aviation fuel (SAF) and
sustainable marine fuels (SMF) have helped to curb the growth.
In 2024, we disclosed for the first time our biogenic emissions, which amounted
to 110,000 tonnes CO2e. Biogenic emissions, sometimes referred to as out-of-
scope emissions, originate primarily from the procurement of biogas and bio-
based steam, and the combustion of bio-based fuels (wood).
-33%
(Scope 3)
-100%
(Scope 3)
-100%
(Scope 1+2)
Main decarbonisation levers for our scope 1+2 target (0 by 2030), scope 3 target (-33% by 2033) and net-zero target (2045)4
Target year 2033
Decarbonisation
levers
Decarbonisation
levers
Growth
Full scope 3
2024: 2,160
1,000 tCO2e
Target year 2045
Base year 2024
1,493
101
1,500
1,000
Removals
Scope 1+2 incl. gap
Scope 3
Scope 3 gap
Scope 3 excluded from 2033 target
4. The figure represents the main decarbonisation levers and their estimated overall quantitative contributions to achieve GHG emission reduction targets, including expected growth projections.
Does not include future acquisitions. Target year for scope 1+2 is 2030.
131
Scope 3
levers:
2,200
700
57
Sustainability statement / Environment / 2.1 Climate change
2.1.1 Scope 1, 2 and 3 GHG emissions
6
Unit
2024
2023
2022
% change
Scope 1 GHG emissions
1,000 tCO2e
85
78
76
9%
Percentage of scope 1 GHG emissions from regulated emission trading schemes
%
0.3
–
–
–
Biogenic emissions (Out-of-scope emissions) scope 1
1,000 tCO2
37
–
–
–
Scope 2 GHG emissions – location-based
1,000 tCO2e
174
–
–
–
Scope 2 GHG emissions – market-based
1,000 tCO2e
16
15
16
7%
Biogenic emissions (Out-of-scope emissions) scope 2
1,000 tCO2
73
–
–
–
Scope 1 and 2 (market-based) GHG emissions
1,000 tCO2e
101
93
92
9%
Scope 3 GHG emissions
1,000 tCO2e
2,160
1,743
–
24%
• Category 1: Purchased goods and services
7
1,000 tCO2e
1,215
1,018
–
19%
• Category 2: Capital goods
7
1,000 tCO2e
465
303
–
53%
• Category 3: Fuel- and energy-related activities
1,000 tCO2e
74
56
–
32%
• Category 4: Upstream transportation and distribution
7
1,000 tCO2e
101
108
–
(6%)
• Category 5: Waste generated in operations
1,000 tCO2e
6
6
–
0%
• Category 6: Business travel
7
1,000 tCO2e
188
154
–
22%
• Category 7: Employee commuting
1,000 tCO2e
52
43
–
21%
• Category 9: Downstream transportation and distribution
1,000 tCO2e
57
52
–
10%
• Category 12: End-of-life treatment of sold products
1,000 tCO2e
2
3
–
(33%)
Percentage of scope 3 GHG emissions calculated using primary data
%
12.3
–
–
-
Total GHG emissions – location-based
1,000 tCO2e
2,419
–
–
-
GHG emission intensity, location-based (total GHG emissions per net revenue
8)
tCO2e/mDKK
8.3
–
–
-
Total GHG emissions – market-based
1,000 tCO2e
2,261
1,836
–
23%
GHG emission intensity, market-based (total GHG emissions per net revenue
8)
tCO2e/mDKK
7.8
–
–
-
6. Operational control = financial control approach. 7. 2023 figures have been restated for categories 1, 2, 4 and 6 from 2,067; 1,315; 113 and 83 thousand tonnes CO2e, respectively, as disclosed in the Annual
Report 2023. 8. Please see note 2.1 'Net sales and rebates' on page 107 in the Consolidated financial statements.
2.1.2 Scope 1, 2 and 3 GHG emissions targets
Unit
2024
9
2030
2033
2045
Average annual
reduction
Target type
Target
Scope 1 and 2 (market-based) GHG emissions
1,000 tCO2e
101
0
0
0
17%
Absolute
(100%)
Scope 3 GHG emissions
10
1,000 tCO2e
1,493
–
1,000
0
11
4%
Absolute
(33%)
9. Base year. 10. The target covers nearly 70% of our scope 3 emissions in accordance with SBTi provisions. Read more on page 57. 11. Novo Nordisk estimates residual emissions after the decarbonisation
levers to be 150 thousand tonnes CO2e.
Progress on energy consumption
In 2024, energy consumption from own operations increased by 33%.
More than half of this increase is due to the inclusion of car fuel in the
metric, that was previously not included. The remaining increase is due to
higher consumption of steam, electricity and natural gas. In line with our
major decarbonisation levers, we continued working with energy-saving
and optimisation projects during 2024, as detailed in the table of key actions
on page 56.
Total energy consumption from contractual renewable sources – primarily
renewable electricity and biogas – accounted for 54% of total energy
consumption. The remaining 46% of energy consumption originated from
fossil and other sources, of which fossil sources accounted for approximately
474 thousand MWh and non-contractual biomass for further 173 thousand
MWh. We adopt a conservative approach when differentiating between
renewable and non-renewable sources for electricity, steam, and heat. Only
energy specified as renewable in the supplier's contractual agreement is
classified as renewable energy. Due to this conservative approach, steam
and heat derived from biomass are not included under renewable sources.
In 2024, almost all of Novo Nordisk’s electricity consumption was procured from
renewable electricity. Since 2020, Novo Nordisk has transitioned to sourcing
renewable electricity for all production sites with a range of solutions, primarily
Power Purchase Agreements (PPA), Renewable Electricity Certificates (REC), and
Guarantees of Origin (GO). All our production sites now source renewable
electricity, as do the majority of our offices and laboratories.
2.1.3 Energy consumption and mix
Unit
2024
2023
2022
Total energy consumption related to
own operations
12
MWh
1,400,228 1,051,111
1,021,389
Percentage of fossil sources in total
energy consumption
%
46%
–
–
Percentage of renewable sources in
total energy consumption
%
54%
–
–
Energy intensity (total energy
consumption per net revenue
13)
MWh/
mDKK
4.82
–
–
12. Equals to total energy consumption from activities in high climate impact sectors.
13. Please see note 2.1 'Net sales and rebates' on page 107 in the Consolidated financial statements.
58
Sustainability statement / Environment / 2.1 Climate change
ACCOUNTING POLICIES
Scope 1 GHG emissions
The reporting of scope 1 and 2 CO2e emissions follows the ESRS and GHG
Protocol Guidance. Includes CO2e emissions from fuels, as well as fugitive
emissions of purchased refrigerants. Production sites report all leaks of more
than 1 kg refrigerant from cooling systems with a filling of more than 1 kg.
Emission factors for the respective energy types are the most recent available
from third parties, such as the US Environmental Protection Agency and the UK
Government GHG Conversion Factors for Company Reporting. GHG removals,
carbon credits and avoided emissions are not included. N2O and CH4 emissions
from the consumption of biofuels are included in scope 1 and 2, while bio-based
CO₂ emission are assumed to be zero and are not included but disclosed
separately under biogenic emissions. Biogenic emissions refer to out of scope
emissions of CO2 from the combustion of biomass- based primary fuels (scope
1) and biomass-derived electricity, steam and district heating (scope 2). Biogenic
emissions from our fermentation process are not included due to high
calculation uncertainty but we will investigate potential estimation methodology
going forward.
Percentage of scope 1 GHG emissions from regulated emission trading schemes
The share of emissions controlled and managed within the framework of the
EU ETS scheme of the total scope 1. Other national and non-EU ETS are not
assessed applicable to Novo Nordisk.
Scope 2 emissions
Indirect GHG emissions from electricity, heat and steam, purchased and
consumed by Novo Nordisk. Location-based emissions are based on national
grid average emission factors for defined locations. Market-based scope 2
emissions refer to indirect GHG emissions associated with purchased electricity,
heat and steam through procurement of contractual instruments such as
Energy Attribute Certificates, Power Purchase Agreements and Guarantees of
Origin from sources such as wind, hydro, solar and biomass. For sites without
such contractual agreements and for other scope 2 energy types in the absence
of supplier specific emission factors and / or residual mix emission factors, the
national average emission factor has been applied.
Scope 3 emissions
Indirect GHG emissions that originate from our value chain. Novo Nordisk
has identified nine categories of scope 3 emissions out of the fifteen defined
by the GHG Protocol as significant. The remaining six categories are not
reported on separately, as they are either not applicable to Novo Nordisk or
have been included in the other emission categories. Accounting policies are
detailed only for the two most material categories of scope 3 – category 1 and 2.
Our calculation methods for remaining categories 3, 4, 5, 6, 7, 9 and 12 are in
line with the GHG Protocol and include the supplier-specific method, distance-
based approach, average-activity method, average spend-based method and
other hybrid method. In general, major sources of emission factors include
DEFRA, EXIOBASE, GaBi and other industry databases and standards.
Category 1: Purchased goods and services
Emissions related to all spend from external suppliers, except for investment
spend and travel categories, which are included in other scope 3 categories.
Purchased goods and services mainly comprise raw materials for products,
marketing, packaging materials and consumables for laboratory and IT office
equipment. Direct spend is converted into CO2e emissions using the average
data method. Material weights are matched with CO2e factors depending on
data availability. A spend-based factor is applied for direct spend data where
no weight can be obtained. Indirect spend is converted into CO2e using a
spend-based method.
Category 2: Capital goods
Emissions related to all indirect investment spend from external suppliers,
mainly production utilities and equipment. Indirect spend is converted into
CO2e emissions via the average spend-based method.
Percentage of GHG scope 3 calculated using primary data
Scope 3 emissions where primary data from suppliers or other value chain
partners have been utilised in the calculation. This includes all of category 3,
parts of category 4 emissions from inter-site distribution and the distribution
of finished products (provided directly by an external supplier managing the
transportation and distribution processes), business flights (part of category
6) and two materials of category 1.
Total energy consumption from fossil sources under Novo Nordisk control
Primary energy consumption from coal, crude oil, petroleum products, and
natural gas, as well as consumption of externally purchased secondary non-
renewable energy such as electricity, heat, steam and cooling; and non-
contractual biomass energy. Energy consumption is based on meter readings
and/or invoices. In line with the ESRS requirements, we have enlarged the scope
of the total energy consumption metric to include all entities under operational
control, including fuel consumption in leased vehicles.
Total energy consumption from renewable sources
Wood, biogas and externally purchased electricity from renewable sources,
such as wind, solar, hydropower, biomass or biogas, as defined in the
contractual agreements. Due to the conservative accounting approach
requirement, steam and heat derived from biomass are not included under
renewable sources. Consumption is based on meter readings and/or invoices
and complemented with data on renewable energy certificates for each site. The
previously reported metric ‘Share of renewable power for production sites’ was
adjusted in scope to fully reflect the ESRS requirement.
Energy intensity/GHG intensity
Total energy consumption/total GHG emissions per net revenue. For energy
intensity this corresponds to energy intensity from activities in high climate
impact sectors. It is assumed that all activities of the Novo Nordisk Group are
in a high climate impact sector (NACE code C21). Net revenue refers to total
net sales generated by Novo Nordisk.
Crude oil and petroleum
Natural gas
Electricity, heat and steam from fossil sources
Electricity, heat and steam from non-contractual biomass
Renewable sources, including biofuels
Electricity, heat and steam from renewable sources
Renewable
sources: 752,820
Fossil and other
sources: 647,408
187,881
195,773
90,665
173,089
153,779
599,041
2.1.3 Energy consumption and mix
(MWh)
Total:
1,400,228
59
Sustainability statement / Environment / 2.1 Climate change
2.2 Resource use and circular economy
At the core of our Circular for Zero strategy is our commitment to decoupling
resource use and waste from our ability to serve patients. The urgency of
innovation in this regard is heightened by the stringent regulatory standards
for the pharmaceutical industry, for example restriction of the use of recycled
materials in our medicines and devices. Similarly, while many materials in
our products are theoretically recyclable individually, the lack of established
recycling infrastructure for pharmaceutical products makes this difficult to
be achieved in practice. We also recognise the challenges related to the
inflow of materials and resources into our construction projects within
the upstream value chain.
Material impacts, risks and opportunities (IROs)
Identified IRO
Category
Value chain
Resource use and waste associated with
manufacturing and products
• Upstream
• Own operations
• Downstream
Potential reputational risks related to resource
consumption
• Upstream
• Own operations
• Downstream
When manufacturing our products, we use materials and rely on natural
resources, while also generating waste through our production processes
or during our products’ end-of-life cycle; all of which contribute to negative
environmental impacts. Plastic components and plastic raw materials are
among our top purchasing categories by weight, together with biological
materials such as agricultural commodities and packaging materials, as well
as various technical materials used in our manufacturing processes. The impact
of sourcing these raw materials has increased in recent years due to our high
growth rate, a trend we are working to address by decoupling environmental
impact from growth as part of our Circular for Zero strategy. As our devices are
core to our business, reputational risks related to our resource consumption
are also considered material.
Positive impact
Negative impact
Opportunity
Risk
Processes to identify impacts, risks and opportunities
To assess impacts, risks and opportunities related to our resource inflows
and outflows, including waste, we consulted suppliers, investors and patient
organisations. We continuously assess impacts and risks through environmental
assessments, annually at each production site, and as part of all product
development processes. The primary business areas in Novo Nordisk associated
with resource use and circular economy are production, supply and sourcing
units; however, our efforts to achieve our Circular for Zero ambitions affect all
of Novo Nordisk and are core to our operations across the business.
Resource inflow, resource outflow and waste
Policies
Circularity is the foundation of Novo Nordisk’s Circular for Zero strategy
and is anchored in our environmental policy, which states our commitment
to designing out waste and pollution and keeping materials in loops, thus
addressing our material impacts and risks related to resource use and circular
economy. Our environmental policy states our commitment to promoting low
impact products and processes, when possible, for example by finding ways to
use waste from one process as a resource in another process, including in our
downstream value chain through our ReMed
TM programme.
We also strive to source reused, recycled, and renewable biological materials,
while always considering patient safety and the stringent regulatory
requirements applicable to the pharmaceutical sector.
As stated in our environmental policy, Novo Nordisk works systematically
with third-party-validated life cycle assessments to better understand and
reduce the environmental impact of our products. We prioritise the avoidance
and reduction of waste over waste treatment where possible. As such, our
environmental policy and associated actions related to products and production
processes address all levels of the waste hierarchy, from prevention and reuse
to recycling, energy recovery and disposal. For information on our reuse of
chemicals and treatment of chemical waste and water, see sections
2.3 'Pollution' and 2.4 'Water' on pages 64 and 65, respectively.
Actions
Novo Nordisk continuously takes action to reduce resource use, increase
circularity, and minimise waste across product design and development,
manufacturing, and product end-of-life. To further strengthen these efforts,
in 2024 we set new targets for reducing our plastic footprint per patient in
addition to our target addressing landfill waste, as detailed further under
Performance in this section. The key actions to reach these targets and our
wider Circular for Zero objectives are listed in the table on the next page.
Resource inflows
Resource outflows
Reusable devices
Biological and
technical materials
Reuse of water, energy,
and ethanol in production
Reduced
plastic use
Circular
design
ReMedTM
Waste from
production
and product
end-of-life
Optimising resource inflows and outflows and reducing waste
Negative impact
Positive impact
Opportunity
Risk
60
Sustainability statement / Environment / 2.2 Resource use and circular economy
Key action to address
resource use and
circular economy
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we track effectiveness
Lower-carbon plastics
Industrial partnership to buy e-methanol to produce a lower-carbon alternative to one of
Novo Nordisk's top two plastic types. Production is expected to start in 2025 and continue
on an ongoing basis, pending completion of plant construction.
Global, injection devices
No
• Partnership launched in 2024.
• Tracking to be established in connection with receipt of first batch of materials.
ReMed
TM: recycling
of used pens
Take-back scheme to recycle injection pens launched in 2020 in Denmark, and subsequently
in six other markets. These seven markets represent approximately 20% of injection pens
currently supplied in the market. An industry-wide scheme was launched in Denmark in 2023
with three other pharmaceutical companies as part of our ongoing efforts to address the
lack of recycling infrastructures in our industry. Collected pens are recycled by an external
recycling partner.
Denmark, Brazil, France,
Italy, UK, Japan, Germany
No
• ReMed
TM initiatives launched in Italy, Japan and Germany.
• Return rate of 32% achieved for all injection devices in Danish industry scheme. Recycling
rate for returned pens increased from 50% in early 2024 to 70% by end of 2024.
• Effectiveness is tracked through monitoring return rates across markets in scope. We work
continuously on making patients, society and partners aware of the scheme to drive up return
rates and increase recycled volumes.
Converting to reusable
devices
Converting from single and multi-use devices to reusable devices, to lower the lifetime
environmental impact per product, including developing a cost-efficient reusable
pen with a competitive environmental profile across our injection pen portfolio as part of
our recurring efforts to increase circularity and reduce our plastic footprint per patient.
Global
Yes
• Plastic footprint of 0.35 kg/patient in 2024.
• Development of new reusable device, planned for launch in 2026.
• Future plans include delivering the majority of daily insulins in reusable devices.
• Strengthened implementation of circular design framework through organisational
anchoring and tools.
• Awiqli
® entered the market for the first time.
Circular design
guidelines
Guidelines tailored to our devices and packaging and applied to every design process,
which consider 1) design for expected lifetime; 2) design for sustainable materials; 3) no
unnecessary waste in production; and 4) recyclability after use. This is a recurring action.
Global
Innovating treatment
methods
Optimising our material use through Awiqli
®, the world’s first once-weekly basal insulin, as
part of our efforts to reduce our plastic footprint towards 2033. Going from daily to weekly
injection reduces the plastic footprint of the treatment by approximately two thirds (compared
to once-daily treatment).
Canada, Germany,
and China
Making production
processes more circular
Circular production processes, including internal reuse of ethanol at our two
largest API production sites, as a recurring action. At site Kalundborg, Denmark, most
remaining ethanol waste together with yeast slurry is turned into energy and fertiliser for local
farmers as part of the Kalundborg Symbiosis.
API production in
Denmark and US
No
• Resource use is monitored at site level to track our levels of circularity and resource efficiency
across production processes, thus enabling the ongoing identification of improvement areas.
For example, the reuse of ethanol reduces use of new ethanol by almost 90%.
Eliminating
landfill waste
Divert waste from landfill to either incineration, other recovery operations or recycling by
2030 to avoid harmful environmental impacts from landfill waste.
Production sites globally
Yes
• Waste to landfill reduced at site Clayton, US, most of it via waste-to-energy, leading to a
significant reduction of landfill waste.
61
Sustainability statement / Environment / 2.2 Resource use and circular economy
Performance
Targets on plastic footprint per patient and zero landfill
To track the effectiveness of our actions, we have set a global target to reduce
our plastic footprint per patient from Diabetes and Obesity products by 30%
by 2033, compared to our baseline of 0.35 kg/patient in 2024. This target
addresses both resource inflows and outflows, including the minimisation of
primary raw materials, thus preventing plastic waste via efforts to convert to
reusable devices, circular product design, and innovating treatment methods.
The scope of the target includes plastic in devices and primary packaging for
Diabetes and Obesity products, and internal experts across areas were involved
in setting it.
To address our waste impact, we also have a global target of zero landfill from
production sites by 2030, thus seeking to redirect waste to incineration or recycling.
In 2024, the total volume of production waste directed to landfill was 94 tonnes,
hereby we achieved a 92% reduction compared to our baseline (2019).
Progress on resource inflows
In 2024, the overall total weight of products and technical and biological
materials used for the manufacture of our medicines amounted to 226
thousand tonnes, with approximately two thirds being technical materials
and one third biological components. We do not currently procure certified
sustainably sourced biological materials, leading us to report their share as 0%.
In 2024, the total weight of reused or recycled materials was 3 tonnes, primarily
from the sourcing of gowning, and recycled pallet shippers and shipper boxes.
In addition to plastic components, the main products and materials sourced
that relate to resource inflows include biological materials, such as agricultural
commodities (for example glucose) and printed packaging, as well as technical
materials, such as acids and bases, and solvents. While we do not directly
purchase critical raw materials and rare earths, some purchased items include
critical raw materials such as magnesium, manganese, and phosphorus.
Resource outflows leaving Novo Nordisk’s facilities include medicines, injection
devices, packaging materials, and waste.
Progress on resource outflows
The durability of our prefilled devices is determined by the shelf-life of the
medicine and the number of doses it contains. Durability is estimated between 24
and 36 months and approximately 7 uses, depending on the medical substance.
Reusable devices have a durability of 60 months, which is at the higher end of
the industry range.
2.2.1 Resource inflows
Unit
2024
2023
2022
Overall total weight of products and technical and biological materials used during the reporting period
1,000 tonnes
226
–
–
Percentage of biological materials (and biofuels used for non-energy purposes) that are sustainably sourced
%
0
–
–
Absolute weight of secondary reused or recycled components, secondary intermediary products and secondary
materials used to manufacture the undertaking’s products and services (including packaging)
1,000 tonnes
3
–
–
Percentage of secondary reused or recycled components, secondary intermediary products and secondary materials
%
1
–
–
2.2.2 Resource outflows
Unit
Novo Nordisk
2024
Industry
2024
Novo Nordisk
2023
Industry
2023
Novo Nordisk
2022
Industry
2022
Expected durability of unopened prefilled devices
Months
24-36
12-36
–
–
–
–
• Prefilled devices for single use
Number of uses
1
1
–
–
–
–
• Prefilled devices for multiple use
Number of uses
7
7
–
–
–
–
Expected durability of reusable devices
Months
60
12-72
–
–
–
–
Recyclable content in products
%
0
–
–
–
–
–
Recyclable content in products packaging
%
28
–
–
–
–
–
Plastic footprint (absolute)
Tonnes
15,654
N/A
Plastic footprint per patient
kg/patient
0.35
N/A
Target
2024
2033
Plastic footprint per patient
% reduction from 2024
N/A
(30%)
While many components of our devices can be recycled individually, there
is no established recycling infrastructure for pharmaceutical waste in many
of our markets, and hence we conservatively assume zero recyclable content
in products.
A conservative estimate of recyclable content in our products' packaging is
28%, reflecting the lowest share of recyclable content according to our product
lifecycle assessments. The full range is 28-88%, with the difference being due
to varying packaging compositions across our core products and three key
geographies (Europe, US and Japan). Data on total packaging weights by
geography have not been available for 2024, but it is a priority to establish the
data foundation for reporting recyclable packaging across all key products as
weighted average in 2025.
Progress on resource outflows – waste
Novo Nordisk’s largest waste streams in terms of volume are the generation
of organic residue (for example yeast slurry), water waste (waste fraction with
a high water content treated as waste) and ethanol waste. The majority of
organic residues is diverted from disposal through recycling and other recovery
operations. Total waste increased by 21% in 2024, mainly due to increased
production volumes (19% increase in waste generated in production) and the
inclusion of non-production entities in the total waste metric (2%). 15% of the
total waste was directed to disposal and therefore non-recycled, while 85% was
recycled, recovered or prepared for reuse. Hazardous waste accounted for 23%
of the total, with equal split between further recycling/recovery operations and
waste directed to disposal through incineration.
62
Sustainability statement / Environment / 2.2 Resource use and circular economy
2.2.3 Resource outflow – Waste
Unit
2024
2023
2022
Total waste generated
Tonnes
229,690
189,091
213,505
Non-recycled waste
Tonnes
34,132
–
–
Percentage of non-recycled waste
%
15%
–
–
Total amount of radioactive waste
kg
87
1
–
–
Waste to landfill
Tonnes
120
638
906
Progress on target
2024
2030
Waste to landfill (production)
Tonnes
94
0
1. 20kg Isotope 125-I solid, 15kg Isotope 125-I Liquid, 15kg Isotope 3-H, solid, and 37kg Isotope 3-H, solid.
ACCOUNTING POLICIES
Overall total weight of technical and biological products and materials
Total amount of materials used in our operations. Technical materials cannot
be processed by the biological cycle, while biological materials can. Total weight
includes all raw materials, associated process materials and semi-manufactured
goods or parts sourced into production. Approximately 3% of the total cannot
be categorised into biological or technical material but is still included in the
total. No material was included in both categories to avoid double-counting.
Percentage of biological materials that are sustainably sourced
Proportion of biologically sourced materials deemed sustainable, according to our
internally approved list of eco-labels (including those from the Forest Stewardship
Council (FSC), Programme for the Endorsement of Forest Certification (PEFC), and
Rainforest Alliance), in the total materials used.
Absolute weight of secondary reused or recycled components
Total weight of previously used or recycled materials used in the production
process, such as gowning, recycled pallet shippers and shipper boxes. Internal
re-use and multiple re-use within Novo Nordisk are not included in the metric, for
example the reuse of ethanol and pallets.
Percentage of secondary reused or recycled components
The weight of secondary reused and recycled materials, components and products
divided by the total weight of all materials used.
Recyclable content in products and packaging
Share of recyclable materials used. Novo Nordisk's definition of recyclable content
reflects practical recyclability in line with the Ellen McArthur Foundation’s definition
and the EU Packaging and Packaging Waste Regulation. For recyclable content in
product packaging, data on total packaging weights by geography have not been
available and the metric shows the shows the lower end of the range of recyclable
content across markets and not the weighted average.
The expected durability of products
For reusable devices technical durability of the device. For prefilled devices,
expected number of uses and anticipated shelf-life for unopened medicines, with
shelf-life referring to the expected ability of the products to maintain their stability,
efficacy, and quality over a specified period under recommended storage
conditions. The metric is a minimum to maximum range per product category for
both Novo Nordisk products placed on the market and the industry average
available from market research, industry reports, regulatory guidelines, supply
chain data and external certifications. Novo Nordisk’s product range is included in
the industry average. Number of uses for multi-use prefilled devices is based on the
most sold device-medicine combination and the daily dose defined by the WHO.
Plastic footprint
Absolute plastic footprint is defined as the total amount of plastic placed on the
market by Novo Nordisk in connection with Diabetes and Obesity products,
including plastic from Novo Nordisk devices (pens and needles) and primary
packaging (cartridges, vials, blister packs and tablet bottles). The metric does
not capture additional plastic used in the process. Plastic footprint per patient
refers to the absolute volume divided by patients reached.
Total waste generated by Novo Nordisk
Waste collected by a certified waste management company and waste intended
for collection. It is measured by weight receipts or other data from the waste
management company, including all waste fractions and disposal methods.
December data was estimated. Waste data for offices and affiliates outside
Denmark are extrapolated based on headcount data available for their Danish
counterparts. All waste subcategories are split between hazardous and non-
hazardous waste according to the EU’s Waste Framework Directive. Radioactive
waste is reported separately and not included in the total.
Hazardous and non-hazardous waste diverted from disposal due to preparation for
reuse, recycling or other recovery operations
All waste directed for reuse without any further processing and waste directed
for recycling or any other recovery operation, excluding energy recovery by
incineration. We estimate the preparation for reuse to be negligible.
Hazardous and non-hazardous waste directed to disposal by incineration,
landfill and other disposal operations
All waste directed to disposal by incineration, both with and without energy
recovery, and by landfill at designated landfill sites.
Percentage of non-recycled waste
Share of all waste directed to disposal out of total waste.
Total amount of radioactive waste
Total amount of waste materials that contain radioactive substances generated
at Novo Nordisk and transferred to a radioactive waste management facility. We
handle radioactive waste in compliance with applicable regulations.
14,099
26,022
12,614
Preparation for reuse
Recycling
Other recovery operations
Incineration
Landfil
Other disposal operations
Waste directed to disposal: 7,863
Waste diverted
from disposal: 168,845
149,853
18,952
7,743
Non-hazardous:
176,708 tonnes
Hazardous:
52,982 tonnes
2.2.3 Resource outflow – Waste
(tonnes)
Waste directed to
disposal: 26,269
Waste diverted from
disposal: 26,713
40
120
247
63
Sustainability statement / Environment / 2.2 Resource use and circular economy
2.3 Pollution
Novo Nordisk relies on both biological processes and chemicals to produce
medicines, devices and packaging materials. As a pharmaceutical company,
chemical substances have particular relevance to our business, and we comply
with and report in accordance with all relevant regulations to prevent and
control all types of pollution.
Material impacts, risks and opportunities (IROs)
Identified IRO
Category
Value chain
Chemicals affecting human health or ecosystems
• Upstream
• Own operations
• Downstream
While chemicals are an essential component in the production of medicines,
some Substances of Concern (SCs) and Substances of Very High Concern
(SVHCs)
1 can potentially have a negative impact on health or the environment.
Material impacts related to SCs and SVHCs concern both substances procured or
used in production, and substances that leave our facilities in products or as
emissions (see illustration on the right hand side).
Processes to identify impacts, risks and opportunities
To identify pollution-related impacts, Novo Nordisk conducts annual environmental
assessments at all production sites, covering air emissions, waste, noise, water
withdrawal and water discharge, soil and ground water. We screen for harmful
chemicals, including those covered by relevant regulations such as REACH during
the product development process, and we use the EU Commission’s definition of
Most Harmful Substances when defining chemicals in scope.
Positive impact
Negative impact
Opportunity
Risk
1. SVHCs are chemicals that have serious irreversible effects on human health or the environment, in
accordance with REACH. SCs are additional chemicals that have harmful effects.
Substances of concern and very high concern
Policies
Novo Nordisk’s environmental policy states our commitment to handling
chemicals safely and striving to avoid the use of harmful chemicals, when
developing or designing new products and processes. Our screening of
harmful chemicals applies to both in-house and outsourced product
development processes. For treatments already on the market, we strive to
minimise the use of these chemicals and substitute them where possible.
All of Novo Nordisk’s production facilities are ISO 14001 certified for environmental
management and thus mitigate, control, and prevent negative environmental
impacts, including pollution-related incidents and emergency situations. We reuse
chemicals where possible and ensure the best possible handling of hazardous
waste and emissions. We also ensure compliance with the terms of the
environmental permit for each production site. In case of breaches of regulatory
terms, we register an environmental non-conformity, investigate, and implement
corrective actions.
Actions
We work with several innovation projects in both our own and outsourced
production processes to reduce the environmental impacts of our products
on an ongoing basis, as described in the table below.
Key action to address
chemical pollution
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we
track effectiveness
Reducing chemicals
in production and
medicines
Recurring action to minimise the use of specific
chemicals in production processes through
substitution or purification for reuse, and to
optimise efficacy of medicines with lower
chemical use.
In-house and
outsourced
production
processes
No
• The use of relevant chemicals is tracked through
environmental assessments at production sites and
during product design and development processes
to monitor effectiveness.
Performance
We continuously track our use of chemicals through various internal KPIs and
environmental assessments to ensure that we mitigate negative impacts
on the environment or human health.
A total of 2,304 tonnes of SCs and SVHCs were procured in 2024. Most of their
use is linked to solvents used in the production of our API. We are seeking to
reduce the use of these chemicals through substitution initiatives or purification
for reuse, as described in the key action below. During the production process,
almost all of SCs and SVHCs are collected as waste and handled safely in
accordance with our policies and any relevant regulations.
The remaining substances, leaving Novo Nordisk in the form of emissions or as
part of products, were estimated to be 11 tonnes of SCs and SVHCs during 2024.
SCs leaving our facilities as part of our products make up 5 tonnes, and originate
primarily from one substance used as an excipient in extremely low concentrations
to preserve our medicines. The remaining SCs and SVHCs leave our facilities as
emissions to air and water. In 2024, this amounted to approximately 5 tonnes of
SCs and 1 tonne of SVHCs, primarily linked to the production of API. The reported
volumes of SCs and SVHCs leaving our facilities are within regulatory limits.
In addition to the disclosures above, we also report in accordance with the
European Pollutant Release and Transfer Register.
Novo Nordisk
Emissions to air and water
Procured substances
of (very high) concern
Products / part of products
Waste
Negative impact
Positive impact
Opportunity
Risk
64
Sustainability statement / Environment / 2.3 Pollution
2.3.1 Substances of Concern and Substances of Very High Concern
2
Substances of concern
Substances of very high concern
Unit
2024
2023
2022
2024
2023
2022
Substances procured
Tonnes
445
–
–
1,859
–
–
• Human health hazard
Tonnes
355
–
–
N/A
–
–
• Environmental hazard
Tonnes
111
–
–
N/A
–
–
• Physical hazard
Tonnes
0
–
–
N/A
–
–
Substances leaving facilities as emissions, as products, or as part of products
Tonnes
10
–
–
1
–
–
Substances leaving facilities as emissions
Tonnes
5
–
–
1
–
–
• Human health hazard
Tonnes
5
–
–
N/A
–
–
• Environmental hazard
Tonnes
0
–
–
N/A
–
–
• Physical hazard
Tonnes
0
–
–
N/A
–
–
Substances leaving facilities as products, or part of products
Tonnes
5
–
–
0.003
–
–
• Human health hazard
Tonnes
5
–
–
N/A
–
–
• Environmental hazard
Tonnes
0
–
–
N/A
–
–
• Physical hazard
Tonnes
0
–
–
N/A
–
–
2. If a material belongs to more than one main hazard class, the weight of the substance is reported in both hazard classes. Consequently, the sum of the sub-categories exceeds the total.
ACCOUNTING POLICIES
The figures reported in Table 2.3.1 are manually calculated from the available data
and are subject to significant uncertainty. The weight of substances is calculated
according to their concentration in the material. If information on concentration is
not available, the assumption is that 100% of the material consists of substance(s)
in scope. Consequently, certain metrics might be overestimated. The scoping of
the materials included in the calculations may not be exhaustive.
Main hazard classes (human health, environmental and physical)
Defined by chemical subject matter experts, based on the specific hazards they
present and includes following hazard class codes: Human health hazard (hazard
class code H3xx or EUH3xx), environmental hazard (hazard class code H4xx or
EUH4xx or EUH059) and physical hazard (hazard class code H2xx or EUH2xx).
If a material belongs to more than one main hazard class (human health and
environmental hazard) the weight of the substance is reported in both hazard
classes. Consequently, the sum of the sub-categories exceeds the total. Main
hazard classes are not applicable to SVHCs.
Total weight of substances of concern/ substances of very high concern
Comprise the total weight of substances procured into production, categorised
into main hazard classes. Data sources include receipts of materials and
purchase orders mapped against a chemical database indicating hazard class.
Amount of substances of concern and substances of very high concern
that leave facilities as emissions
Total weight of SCs and SVHCs that leave production sites as emissions to air
or water, split into main hazard classes. The estimated volumes of substances
are based on available data for our API production and estimated for Chemistry,
Manufacturing and Control (CMC) processes. Laboratories were deemed
immaterial and are not in scope. Novo Nordisk Pharmatech A/S will be
included from 2025.
Amount of substances of concern that leave facilities as products or part of products
Total weight of SCs and SVHCs that leave Novo Nordisk as products or part of
products split into main hazard classes. Products or parts of products are
defined as either excipients or devices. Data sources include production data
(with final product quantities), bills of materials and purchase orders mapped
against a chemical database indicating hazard class.
2.4 Water
Water is an essential natural resource in the manufacturing of Novo Nordisk’s
pharmaceutical products and a key input to many commodities in our supply
chain. Hence, water management is key to both our own operations and to our
value chain, where we as part of our new nature roadmap, further described on
page 68, are expanding actions and engaging suppliers to mitigate our negative
impacts on water resources.
Material impacts, risks and opportunities (IROs)
Identified IRO
Category
Value chain
Availability and deterioration of water resources
• Upstream
• Own operations
• Downstream
Negative impacts on water availability occur when we source water for
production purposes, especially in water-stressed areas, and at the end-stage
of production, when water is discharged to water treatment plants, which can
impact water quality. Resilience is assessed as part of our nature and biodiversity
efforts and is further described in the transition plan in section 2.5 'Biodiversity
and ecosystems' on page 68.
Processes to identify impacts, risks and opportunities
To assess water-related impacts, risks, and opportunities, we conduct screenings
of our production sites for areas of water stress and risk using the tool Aqueduct
4.0 from the World Resource Institute (WRI). As part of our engagement in water
stewardship, in 2024 we conducted stakeholder engagements with water
management authorities and other industrial water users at our sites in Montes
Claros, Brazil, and Hillerød, Denmark, and at our largest API production sites:
Clayton, US, and Kalundborg, Denmark.
Positive impact
Negative impact
Opportunity
Risk
Negative impact
Positive impact
Opportunity
Risk
65
Sustainability statement / Environment / 2.4 Water
Water withdrawal, consumption and discharge
Policies
Novo Nordisk’s environmental policy addresses water management and sets out
our ambition to design less water-intensive processes by reusing and recycling
water. We treat production-related water discharge onsite and/or offsite and
avoid water pollution by discharging water in accordance with local regulations,
and in case of any breaches, we take corrective actions.
Key action to
address water
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we track
effectiveness
Water withdrawal
savings programme
Efficiency projects at production sites in scope,
including optimisation of water use, creating
systems for single and multiple reuse and recycling.
We systematically map opportunities for water
savings to create detailed savings plans, and the
programme is planned to run until 2033.
Production sites
with high water
withdrawals and/
or high water-
risk/stress area
No
• To track the effectiveness, sites in scope forecast
expected water withdrawals and implement water
savings initiatives. Water savings are registered per
initiative via an internal dashboard.
• Total water savings in 2024 amounted to 105,600 m
3,
of which 51,000 m
3 was in areas of high water-stress
and/or water risk.
Engaging priority
suppliers
Engaging priority suppliers on their water impacts
through a capability-building programme. Planned
for 2025-2033
Key suppliers to
be identified
No
• Action to be initiated in 2025, when processes for
tracking effectiveness will be established.
Taking actions outside
of sites
Enhancing water quantity and quality outside of
our sites, including replenishing water. Planned
for 2025-2033.
Upstream value
chain
No
• Action to be initiated in 2025, when processes for
tracking effectiveness will be established.
Saving water through
the establishment of
district cooling in
Kalundborg
Establishment of district cooling at our largest
production site in Kalundborg, Denmark, which
accounts for half of our total water withdrawals,
including phasing out the use of water from Lake Tissø.
Industrial collaboration with the Kalundborg Symbiosis,
Kalundborg Utility, and Novonesis. Expected
completion of construction during 2026.
Production site in
Kalundborg,
Denmark
No
• Progressed with the construction process, which is
expected to be finalised during 2026, with
surrounding factories connected from 2026
onwards.
• Expected annual water withdrawal savings upon
completion estimated at 400,000 m
3.
Doubling wastewater
treatment capacity in
Kalundborg
Expansion of on-site wastewater treatment
operated by Novonesis, doubling the industrial
wastewater and biomass treatment capacity.
Energy is recovered in the treatment process as
part of the Kalundborg Symbiosis. To be completed
in 2026.
Production site in
Kalundborg,
Denmark
No
• Project launched and construction has started.
In addition, our environmental policy also addresses our special focus on
water withdrawal in areas of high water-stress or risk, both at our own sites
and with suppliers of key commodities, for example through our water
withdrawal savings programme and planned efforts to engage priority suppliers.
The policy also addresses our support of water stewardship principles and
collective actions in water basins that are under pressure, for example in our
current efforts to establish district cooling in Kalundborg and planned efforts to
enhance water quantity and quality as detailed in the key actions below.
Actions
We implemented and planned several actions in 2024 to mitigate our impacts on
water, as part of our Circular for Zero strategy and our new nature roadmap,
described further on page 68. Key actions to mitigate negative impacts on water
are listed in the table on this page.
Performance
We have not set external targets on water, but systematically track water
withdrawals and water savings as part of our water withdrawal savings
programme, as described in the table of key actions. In 2024, we experienced an
increase in water withdrawal of 26% compared to 2023 due to our growth. Most of
the increase is due to increased API production, as well as water used in expansion
and construction projects. In 2024, the organisational scope of water withdrawal
expanded to also include water withdrawals for offices and research facilities
outside of Denmark, which increased the total water withdrawal by further 3%.
Most of water drawn into the boundaries of Novo Nordisk is used for cooling
and the fermentation process, and is subsequently discharged, making the
actual water consumption relatively low. The largest share of water consumed
comes from evaporation, water waste (sludge) and water in our products. We
estimate that, in 2024, over 400 thousand m
3 of water were reused or recycled
at our production facilities.
Production sites in China (Tianjin), US (Clayton and Durham), Iran (Tehran) and
Algeria (Blida) are located in areas with high or extremely high water-stress
and/or water risk. These sites account for approximately 23% of the total water
withdrawal, with the biggest withdrawal occurring in the US and China.
2.4.1 Water consumption
Unit
2024
2023
2022
Total water consumption
1,000 m
3
630
–
–
• Water withdrawal
1
1,000 m
3
5,213
4,150
3,918
• Water discharge
1,000 m
3
4,583
–
–
Total water consumption in areas at water
risk, including areas of high water stress
1,000 m
3
191
–
–
• Water withdrawal
1,000 m
3
1,217
–
–
Total water recycled and reused
1,000 m
3
416
–
–
Water intensity ratio
m
3/mDKK
2.17
–
–
1. Water withdrawal was previously reported as 'Water consumption'.
66
Sustainability statement / Environment / 2.4 Water
ACCOUNTING POLICIES
Water withdrawal
Includes all types of water such as drinking water, industrial water, steam, rain
water and water from remediation wells and rainwater. Data is based on meter
readings and invoices. Data for offices and affiliates outside Denmark are
extrapolated based on data available for their Danish counterparts (approximately
97% of the total is based on primary data).
Water discharge
Includes discharge of process- and sanitary water and discharge from storm
water to outside Novo Nordisk’s boundaries, and water discharge used for
irrigation. For offices where discharge data are not available, it has been
assumed that water discharge equals water withdrawal.
Water consumption
Water drawn into Novo Nordisk’s boundaries but not discharged, calculated
as the balance between total water withdrawal and total water discharge.
Total water consumed in areas at water risk, including areas of high-water stress
Total water consumed by sites located in areas at water risk, including areas of
high water stress. The identification of production sites in scope is performed
using the Aqueduct 4.0 Water Risk Atlas tool provided by the World Resource
Institute using two indicators: baseline water stress and overall water risk. 'High'
means high or extremely high ratings in Aqueduct 4.0. The data reported are
based on primary data.
Total water recycled and reused
Total quantity of water and water discharge (treated or untreated) that has
been used more than once at the production sites before being discharged.
The volume is estimated based on key indicators for specific water treatment
equipment and technologies available at the sites. This includes steam
condensate returned to steam generator, reverse osmosis water treatment,
and water discharge from water treatment for irrigation. The metric is estimated
with a conservative approach.
Water intensity ratio
Total water consumption (as outlined above) per DKK million in net revenue,
defined as total net sales generated by Novo Nordisk.
2.5 Biodiversity and ecosystems
We rely on natural resources in our production of pharmaceutical products,
primarily agricultural (glucose), forestry (paper), fossil-based (plastic)
commodities, and water. In 2024, we developed a new nature roadmap
to accelerate our efforts to address these impacts.
Material impacts, risks and opportunities (IROs)
Identified IRO
Category
Value chain
Reliance on natural resources and ecosystem services
• Upstream
• Own operations
Our resource use in production processes leads to negative impacts on nature.
Such impacts can also occur due to land-use change when establishing new
production sites impacting local ecosystems and contributing to the loss of
natural habitats. Along our value chain, the sourcing of raw materials that require
fresh-water or land-use change also have impacts on nature, especially agricultural
production or deforestation for wood-based materials, where pollution, for example
from pesticides used for agricultural purposes, can exacerbate negative impacts.
Identified IRO
Category
Value chain
Reliance on vulnerable species in research
• Upstream
• Own operations
Novo Nordisk's material impact on vulnerable species includes our reliance on
horseshoe crab blood for endotoxin testing, which is required to ensure the safety
of our medicines. Extraction of horseshoe crab blood can harm survival rates of
the animals even though they are released back into their natural habitats. We no
longer use products from endangered horseshoe crab species, and are working
to phase out the use of lysate from vulnerable horseshoe crab species.
Positive impact
Negative impact
Opportunity
Risk
Processes to identify impacts, risks and opportunities
To assess Novo Nordisk's impacts on biodiversity and ecosystems, we undertook
an assessment aligned with the Science Based Targets Network (SBTN)
methodology, covering our direct operations and upstream value chain and
using primary activity data and lifecycle assessment (LCA) databases, along with
data on the state of nature. Furthermore, we screened our value chain for high-
impact commodities that cause an increased pressure on nature.
Dependencies on nature were assessed across our value chain using the
ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) tool
to evaluate relevant sub-industries, based on the areas most likely to disrupt
Novo Nordisk in terms of raw material inputs, production processes, and
testing. Physical and transition risks were assessed separately using the
World Wildlife Fund Biodiversity Risk Filter and through a qualitative scenario
analysis. Systemic risks were not considered, and consultations with affected
communities were not conducted. As we have not yet been able to develop
a methodology to assess whether our operational sites are having negative
impacts on biodiversity sensitive areas, we do not currently have mitigation
measures in place.
Biodiversity loss, conditions of and dependencies
on ecosystems and state of species
Policies
Novo Nordisk's environmental policy is aligned with our nature roadmap and
it covers the key drivers of biodiversity loss such as water- and land-use,
over-exploitation, pollution, and climate change, to mitigate material nature-
related impacts. Its scope covers all our owned, leased, or managed operational
sites, including those near biodiversity sensitive areas.
The policy sets out our commitment to protecting and restoring nature and
biodiversity, as well as our ambition to work with suppliers to create solutions
with less impact on water-, forest-, and land-use, for example, through
regenerative agriculture. We will also work with partners on restoration
activities beyond our value chain. As such, the policy relates to both our impacts
and dependencies on nature, as described in this section. The policy does not
address social consequences of biodiversity and ecosystems-related impacts.
In addition to the provisions in our environmental policy, Novo Nordisk adheres
to all local regulations related to nature and biodiversity in the establishment of
new sites and in our production sourcing and processes.
Negative impact
Positive impact
Opportunity
Risk
67
Sustainability statement / Environment / 2.5 Biodiversity and ecosystems
Actions and transition plan for nature
Novo Nordisk's nature roadmap, formalised in 2024, has an overarching
aspiration to halt the loss of nature in our value chain by 2033, and become
nature positive by 2045. This will be achieved by reducing our impact on
land, water, and biodiversity, while driving positive impacts through restoration
and transformative actions. In pursuing our ambition, we seek to mitigate the
risks nature loss poses to our business and drive action for nature in line
with global policy frameworks, including the Kunming-Montreal Biodiversity
Framework and the EU Biodiversity Strategy for 2030. The nature roadmap has
been approved by Executive Management and Board of Directors. The key actions
to address our impacts and deliver on our nature roadmap are outlined in the
table to the right, including actions incorporating nature-based solutions, such
as restoration projects. Local and indigenous knowledge will be incorporated into
the development of restoration projects where appropriate, and we do not use
biodiversity offsets as part of our nature roadmap.
To inform the development of our nature roadmap in 2024, we conducted a
high-level resilience analysis of the exposure of our current business model
to ecosystem-related risks. The analysis considered one scenario where we
meet our nature roadmap ambitions and one in which we do not. The results
indicated that implementation of the roadmap could decrease Novo Nordisk’s
exposure to nature-related risks related to raw material shortage and emerging
deforestation regulation and highlighted the need for continued focus on water
management. In conducting the analysis, it was assumed that high nature
degradation would continue along the current trajectory towards 2030 and
2050. The scope included the upstream value chain of strategically significant
raw materials in selected geographies, water withdrawal at key sites in our own
operations, and chemicals in water discharge in the downstream value chain.
External stakeholders were not involved in the analysis.
Performance
As part of our nature roadmap, we are continuously working to understand and
measure our impacts and dependencies, and will continue this effort as we begin
implementing the roadmap in 2025, also establishing processes to track the
effectiveness of our actions.
Key action to
address biodiversity
and ecosystems
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we
track effectiveness
Reduce impact on water
Reduced impact on water through water
withdrawal savings at production sites in scope,
together with other actions as detailed in section
2.4 'Water' on page 66.
Own operations
and key suppliers
No
• Water withdrawals and water savings are tracked.
• For more details, see section 2.4 'Water'.
• Process to track effectiveness of supplier
engagement to be established during roadmap
implementation in 2025.
Reduce impact on
land by addressing
deforestation, soil
degradation and
pollution in
supply chain
Avoid degradation of land in our supply chain
by ensuring a deforestation free paper and
cardboard supply chain, and strive for all glucose
to be sourced from regenerative agriculture.
Supply chain
No
• Novo Nordisk’s nature roadmap was endorsed in
2024 and will be implemented from 2025 onwards,
during which processes to track effectiveness will be
established.
Reduce impact on
biodiversity
Restore biodiversity at key sites, ensuring
positive impacts by 2033. Avoid impacts on
endangered species.
Own production
sites
Restoration projects
Initiate restoration projects near key sites
by 2033. Develop a global restoration plan linked
to our value chain by 2026 to become nature
positive by 2045.
Own value chain
and beyond
Transformation
Through transformative approaches, optimise and
replace glucose in API production to bring our
glucose land footprint close to zero by 2045.
Own operations
Minimise and phase out
the use of biological
products from
vulnerable and
endangered species
Minimise and phase out the use of horseshoe crab
materials, Tachypleus amebocyte lysate, TAL, and
Limulus amebocyte lysate, LAL. The use of lysate
from the endangered Chinese horseshoe crab, TAL,
has been phased out, and the remaining phase-out
of LAL from the vulnerable American horseshoe crab
is tentatively expected between 2025 and 2035, with
the majority of testing expected to be phased out by
2027. The complete discontinuation depends on
regulatory approvals of alternative testing methods.
Own operations
No
• Phase-out of TAL has been completed as of 2023.
• Use of LAL in our research areas was discontinued in
2024, and we continue working to phase out use for
remaining testing of samples. The recent acceptance
by the European Pharmacopoeia and the USP
Microbiology Expert Committee of the use of
recombinant reagents for relevant testing marked
an important milestone towards this goal.
68
Sustainability statement / Environment / 2.5 Biodiversity and ecosystems
2.6 EU Taxonomy
The EU Taxonomy provides a classification system that defines which economic
activities are environmentally sustainable, while meeting standards for human
rights, anti-corruption, fair competition and taxation. Novo Nordisk welcomes
the introduction of comparable sustainability definitions and is working to
incorporate relevant EU Taxonomy criteria into our operations to support
our sustainability ambitions.
The Taxonomy-related disclosure process can be broken down into three
major steps.
• The first step is a screening of potentially eligible economic activities (screening
in accordance with the technical annexes of the Climate Delegated Act: Annex 1
on Climate change mitigation and Annex 2 on Climate change adaptation and a
screening of the Environmental Delegated Act: Annex I on Sustainable use and
protection of water and marine resources, Annex II on Transition to a circular
economy, Annex III on Pollution prevention and control and Annex IV on
Protection and restoration of biodiversity and ecosystems), which results in an
already shortened list.
• In the next step, each of the economic activities are assessed against how
Novo Nordisk performs the activity, considering a financial and strategic
materiality. This is followed by the detailed assessment of the alignment of
identified economic activities, comprising substantial contribution, 'Do No
Significant Harm' (DNSH) and minimum safeguards.
• Finally, the KPIs required for Taxonomy reporting are extracted (see Novo
Nordisk adjusted tabular overview on the next page and the detailed
mandatory reporting templates in section 5, tables 4 a-c on pages 97-99).
Taxonomy-eligibility
Based on our annual review process and materiality considerations, the
following economic activities defined in the EU Taxonomy have been identified
as relevant to Novo Nordisk:
• P1.2: Manufacture of medicinal products (environmental objective Pollution
prevention and control) - relevant for the Turnover, CapEx and OpEx KPIs
(eligibility).
• CCM7.1: Construction of new buildings (environmental objective
Climate change mitigation) - relevant for CapEx (eligibility and alignment).
• CCM7.2: Renovation of existing buildings (environmental objective
Climate change mitigation) - relevant for CapEx (eligibility).
Taxonomy-alignment – Substantial contribution and 'Do No Significant
Harm' (DNSH)
Novo Nordisk has assessed the technical screening criteria for eligible economic
activities deemed material and has conducted an internal analysis of the
feasibility of Taxonomy-alignment. This leads to the following result for 2024:
• 7.1 Construction of new buildings: An evaluation of the Climate Delegated Act
Annex 1 on climate change mitigation has been conducted, leading to the
conclusion that alignment of new building construction can be claimed following
a positive gap analysis. A proportion of two major ongoing construction projects
in Hillerød and Kalundborg, Denmark, have met the requirements of Taxonomy-
alignment. These projects demonstrate compliance with a substantial number of
the technical screening criteria for 2024. Certain criteria are yet to be fulfilled
because the relevant construction phase has not been reached. We assume
fulfilment of these on the basis of pre-calculations in the design phases, robust
processes, and controls throughout the entire construction process. We thereby
claim alignment based on the expectations that our construction continues to
follow our plans. As part of Novo Nordisk's commitment to expanding
production capacity in a sustainable way, future building projects will
incorporate alignment criteria when feasible in the upcoming years.
• 7.2 Renovation of existing buildings: This economic activity represents the
second phase in implementing Taxonomy-alignment within our construction
and real estate activities. No alignment is reported for this activity in 2024.
• 1.2 Manufacture of medicinal products: We are also conducting an initial
assessment of alignment criteria focused on our Danish manufacturing sites
for Ozempic
® and Wegovy
® for economic activity 1.2. We currently meet many
of the criteria, such as using readily biodegradable ingredients in our
medicinal products and managing emissions of pollutants to air, water, and
soil. However, we have encountered challenges in obtaining evidence for, or
addressing the practical aspects of, meeting some of the criteria, which will
require further consideration in alignment with our Circular for Zero strategy.
Taxonomy-alignment – Minimum safeguards
Operating as a responsible business is a core value for Novo Nordisk, including
meeting the minimum safeguards defined in the EU Taxonomy through the
following practices:
• Commitment to respecting human rights across our value chain. Our human
rights due diligence process is aligned with the UN Guiding Principles on
Business and Human Rights and the OECD Guidelines for Multinational
Enterprises (see section 3.3 'Workers in the value chain' on page 89).
• Strict prohibition of bribery and corruption, and adherence to relevant
laws and industry codes. Our robust anti-corruption programme comprises
internal audits, training for employees and business partners as well as due
diligence around third-party representatives (see section 4.1 'Business
conduct' on page 91).
• Managing our tax affairs responsibly, while complying with both the letter
and spirit of the law. We are committed to tax transparency and comply with
applicable tax regulations.
• Valuing fair competition and complying with laws governing relationships
with suppliers, customers, and competitors. Employee awareness of
competition laws is promoted, and all business practices are aligned with
these regulations.
69
Sustainability statement / Environment / 2.6 EU Taxonomy
Novo Nordisk adjusted EU Taxonomy overview
1
(see section 5, tables 4 a-c for the mandatory reporting templates)
Turnover
CapEx
1
OpEx
2024
2024
2024
Environmental objective
Economic activity
(mDKK)
(%)
(mDKK)
(%)
(mDKK)
(%)
Total Turnover, CapEx, OpEx
290,403
100
57,720
100
39,933
100
Taxonomy-non-eligible activities
0
0
18,698
32
38,014
95
Climate change mitigation
7.1 Construction of new buildings
0
0
13,050
23
0
0
7.2 Renovation of existing buildings
0
0
2,336
4
0
0
Pollution prevention and control
1.2 Manufacture of medicinal products
290,403
100
20,142
35
1,919
5
Eligible not aligned
290,403
100
35,528
62
1,919
5
Eligible and aligned
7.1 Construction of new buildings (in Hillerød and
Kalundborg, Denmark)
0
0
3,494
6
0
0
1. Excluding impact of Catalent acquisition. With the inclusion of Catalent, total CapEx would have been DKK 123,972 million, eligible not aligned CapEx 29% and eligible and aligned CapEx 3%.
Contextual information about the KPIs
In 2024, no additional economic activities were added to the reporting scope
and no changes were made to the data collection process. As a result of our
Taxonomy screening process:
• Turnover in 2024 was 100% Taxonomy-eligible, but 0% Taxonomy-aligned.
• CapEx in 2024 was 68% Taxonomy-eligible (32% including Catalent), hereof
6% eligible and aligned (3% including Catalent) under economic activity 7.1
'Construction of new buildings'.
• OpEx in 2024 was 5% Taxonomy-eligible, but 0% Taxonomy-aligned.
We consider all Novo Nordisk’s turnover Taxonomy-eligible under economic
activity 1.2. Taxonomy-eligible CapEx includes only CapEx directly associated
with the manufacturing process or related to construction or renovation of
buildings; intangible assets are therefore excluded. This is the main reason
for reported Taxonomy-eligibility under economic activity 1.2 being less than
100%. Eligible CapEx mainly relates to the expansion of production capacity
and additions to property, plant and equipment, as per note 3.2 'Property,
plant and equipment' on page 115 in the Consolidated financial statements.
Eligible OpEx includes R&D directly linked to the manufacturing processes.
As a result, only R&D costs from Chemistry, Manufacturing and Control
Development & Scaling (CMC) are counted as Taxonomy-eligible OpEx.
Taxonomy reporting templates in accordance with Article 8 of Commission
Delegated Regulation (EU) 2021/2178, as amended by the Taxonomy
Environmental Delegated Act (Commission Delegated Regulation (EU)
2023/2486) can be found in section 5, tables 4 a-c.
We do not carry out any activities relating to the generation of nuclear energy
and fossil gas as per delegated regulation 2022/1214 and hence consider these
economic activities not applicable. Novo Nordisk purchases fossil gas for own
production processes (see section 2.1 'Climate change' for further details).
Moreover, the EU Taxonomy Regulation and the related Delegated Acts contain
formulations and terms that are still subject to considerable interpretation
uncertainty and for which clarifications have not yet been published in every case.
Due to the inherent risk that undefined legal terms can be interpreted differently,
the legal compliance of the interpretation is subject to uncertainty (we refer to the
section 'Forward-looking statements' on page 35 for further details).
ACCOUNTING POLICIES
The Taxonomy KPIs include all fully consolidated companies of the Novo Nordisk
Group. The CapEx resulting from the acquisition of Catalent in December 2024
(see section 1.2 ‘Basis for preparation of the Sustainability statement’ on page
49) is recognised accordingly in the Taxonomy tables in section 5 in order to
reconcile this with the financial reporting.
Total Turnover
Total revenue from sale of goods, as defined under IFRS Accounting Standards
(see note 2.1 'Net sales and rebates' on page 107 in the Consolidated financial
statements). The turnover KPI is defined as Taxonomy-eligible turnover divided
by total turnover.
Capital expenditures (CapEx)
Additions to fixed assets (including finance leases) and intangible assets.
Additions resulting from business combinations are also included. Goodwill is
not included in CapEx as it is not defined as an intangible asset in accordance
with IAS 38. The CapEx KPI is defined as Taxonomy-eligible CapEx divided by
total CapEx (see notes 3.1 'Intangible assets' on page 113 and 3.2 'Property,
plant and equipment' on page 115 in the Consolidated financial statements).
Operating expenses (OpEx)
Direct non-capitalised costs that relate to R&D (see note 2.3 'Research and
development costs' on page 110 in the Consolidated financial statements),
building renovation, short-term leases, maintenance and repairs, and any
other direct expenditures relating to the day-to-day servicing of property,
plant and equipment. OpEx excludes amortisations and impairments. The
OpEx KPI is defined as Taxonomy-eligible OpEx divided by total OpEx.
None of our activities contribute to multiple environmental objectives, and so
no disaggregation of KPIs is required. For the allocation of Turnover, CapEx
and OpEx we have identified the relevant income, purchases and measures,
and we have identified the primary related economic activities in the Climate
Delegated Act. In this way, we ensure that no activity is double-counted. We are
adjusting the R&D cost for amortisations. This is in order not to double count
these costs, as the amortisation would have been part of CapEx in prior years.
Moreover, there are no updates or restatements performed in 2024 for the
information reported in 2023.
70
Sustainability statement / Environment / 2.6 EU Taxonomy
3. Social
3.1 Patient protection and quality of life
1
Novo Nordisk's purpose is to drive change to defeat serious chronic diseases,
and our efforts to make our innovative medicines accessible to patients
throughout the world are associated with material impacts, risks and
opportunities.
Material impacts, risks and opportunities (IROs)
Identified IRO
Category
Value chain
Improving quality of life through medicines
• Downstream
Potential new discoveries to serve patient needs
• Own operations
• Downstream
From discovery and clinical trials through to the production and sale of our
innovative products, Novo Nordisk has material positive impacts on the lives of
patients. With our investments to become a broader cardiometabolic-focused
company, our efforts to further raise the innovation bar to tackle global health
challenges creates potential new opportunities to help patients.
Identified IRO
Category
Value chain
Reducing and preventing serious chronic diseases
• Downstream
To live up to our purpose, our social sustainability roadmap includes prevention
efforts to help reduce the global health burden, with potential positive impacts
when improving urban health for vulnerable communities. We especially focus
on children to bend the obesity and diabetes curves, with the aim of having
long-term health impacts and improving the resiliency of healthcare systems.
Positive impact
Negative impact
Opportunity
Risk
1. Includes ESRS topics related to S4: ‘Consumers and end-users’ and entity-specific topics such as
prevention of serious chronic diseases and falsified medicines.
Identified IRO
Category
Value chain
Health equity for vulnerable patients and in
clinical trials
• Own operations
• Downstream
Potential reputational risks related to access efforts
• Own operations
As part of our social sustainability roadmap, Novo Nordisk has a positive impact
when we help tackle growing health disparities, by strengthening capacity and
increasing access to affordable care globally. We focus our efforts on vulnerable
patients and children with serious chronic diseases, especially in low- and middle-
income countries. In addition, we support accessibility through our clinical trials
efforts. Global access and affordability challenges persist, which is considered a
material reputational risk to Novo Nordisk. Due to different healthcare systems,
medicines to which patients have access and the price they are charged vary
significantly. We continue to collaborate with relevant stakeholders to ensure
widespread, affordable access.
Identified IRO
Category
Value chain
Safe clinical trials and product quality and safety
• Own operations
• Downstream
Protection against falsified medicines
• Downstream
Ensuring safe clinical trials and the efficacy, safety and optimal use of our
products is fundamental to everything we do. Patient safety is therefore a top
priority, in order to mitigate any adverse health impacts and risks related to
our products or clinical trials. In addition, we fight against falsified medicines
related to our products in the market, in order to keep patients safe against
any serious adverse health effects that may be caused by using illegally
manufactured products.
Identified IRO
Category
Value chain
Protecting clinical trial and patient information
• Own operations
• Downstream
We strive to protect clinical trial and patient information, ensuring patient privacy,
responsible product communication and correct labelling of our medicines or
devices, to mitigate any adverse health-related consequences for our patients.
We consider insights from patients and patient organisations to be vital for the
continued improvement of products, treatment and care, and adhere to applicable
laws and human rights governing these interactions to limit any negative impacts.
Identified IRO
Category
Value chain
Potential reputational and regulatory risks
• Own operations
Any failure to protect patients is not only a material negative impact, but also a
risk to Novo Nordisk's business and reputation. We therefore do not
compromise on product quality or patient safety.
Prevention
of serious chronic
diseases
p. 73
Innovation
Core contribution to society
p. 72
Information-related impacts
Labelling and product communication
p. 79
Social inclusion
of patients
Access and affordability
p. 73
Patient safety
Quality and safety of products and
clinical trials, incl. falsified medicines
p. 76
Social sustainability roadmaps
Efforts linked to ensuring patient protection and quality of life
Negative impact
Positive impact
Opportunity
Risk
71
Sustainability statement / Social / 3.1 Patient protection and quality of life
General process for patient engagement
The exchange of information and insights with patients and patient organisations is
vital for Novo Nordisk’s continued improvement of research, products, treatments,
and care. We support patient empowerment, guided by our Patient Voice Strategy,
and collaborate with patient organisations to improve prevention, treatment, and
access to quality care for people living with serious chronic diseases. Our Patient
Voice Strategy aims to directly benefit our trial participants and patients, while
also informing our corporate and therapy area strategies. We are currently
implementing our Patient Voice Strategy across all product development projects.
Patient engagement takes place either directly with individual patients or
with their caregivers, healthcare professionals, experts and relevant patient
organisations as their legitimate representatives, in compliance with relevant
laws and regulation. Engagement occurs before, during and after the launch
of our products, with the frequency of engagement dependent on the stage
of development and the type of treatment or product. Relevant patient
populations are selected based on the insights needed and various channels
are used for our patients to express thoughts and concerns, for example
through patient advisory boards, workshops, and surveys.
The engagement process is owned by our two chief patient officers, who have
overall responsibility for ensuring that the needs and perspectives of patients
and care partners are incorporated into our decision-making processes.
Channels to raise patient safety concerns
We routinely monitor the safety and quality of all our products by reviewing
safety data from clinical trials, reported side effects and quality complaints.
By monitoring the quality and safety of our products, we can take timely and
appropriate actions to safeguard patient safety and fulfil our reporting
obligations to health authorities under relevant legislation.
Patients can use our publicly available portals for any issues in relation to Novo
Nordisk products, including product complaints or if they wish to report a side
effect or falsified products. In addition, all affiliates have call centres operated in
the local language where patients and healthcare professionals can get help in
relation to a Novo Nordisk product.
The channels are tracked by our Customer Complaints Department and Global
Safety Department, which records, investigates and responds to customer
complaints globally concerning the quality, labelling, durability, reliability,
effectiveness, safety, performance or malfunction of Novo Nordisk’s products
and reports these to health authorities in accordance with applicable legislation.
Depending on the nature of the information received, there are strict timelines
for when to escalate the matters for further investigation. All personal
information related to the reporting of a product complaint or side effect is
processed in accordance with data protection legislation.
When necessary, we recall products affected by a safety or quality issue, update
labels for marketed products, or communicate directly with affected patients,
healthcare professionals or health authorities, informing them about product
safety risks.
Innovation
Policies
Novo Nordisk's purpose is to bring innovative medicines to help the millions
of people worldwide living with serious chronic diseases. Our decades-long
commitment to the development of GLP-1-based medications is not only
reshaping diabetes and obesity management but also opening potential new
avenues of treatment for cardiovascular, kidney, liver, and Alzheimer's diseases.
Our innovations help improve quality of life for patients and at the same time,
reduce the cost of hospitalisations for healthcare systems.
To ensure that we impact society positively through our innovations, patients
are at the centre of everything we do. Many of our policies therefore encompass
our patient-related efforts. Our OneCode policy outlines the key requirements
with respect to how we act across all our policies and standard operating
procedures, including how we provide medicines in a responsible way, engage
with all patients and adhere to high quality standards to advance the quality of
care. Every year, all employees must confirm they have read and understood
OneCode. We respect the human rights of patients, in accordance with our
Human Rights Commitment further described in section 3.3 ‘Workers in the
value chain’ on page 88.
Key action to address
sustainability-related
innovation
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and
how we track effectiveness
Integration of
sustainability in
product development
Ongoing integration of sustainability in product
development and product-related governance. The
framework assesses the social and environmental
profile across the product's lifecycle to support
development decisions and identify areas of
improvement across product portfolio.
40+ products,
including R&D
pipeline and
marketed
products
No
• Piloted in five products across five different product
development stages and five different therapy areas
to test the robustness and applicability of the
framework.
• Rolled out the framework for +80% of the products in
scope and will continue the implementation in 2025.
Policy
OneCode
Purpose
Guide on how to act as a company and as individuals
Scope
Everyone employed by or working on behalf of
Novo Nordisk
Most senior level
accountable
Executive Management
Availability
Externally available: OneCode
Applicability across
Sustainability statement
• Patient protection and quality of life, page 71
• Own workforce, page 80
• Business conduct, page 90
Supporting policy
documentation
• Position papers (Access to diabetes care and
medicine pricing, clinical trials ethics, falsified
medicines)
• Principles (Data and Al ethics, processing of
personal data)
• Standard operating procedure
Actions
For an overview of opportunities to accelerate healthcare innovation across
Obesity, Diabetes, Rare Diseases and Cardiovascular & Emerging Therapy Areas,
see section 'Innovation and therapeutic focus' on page 17. The action table
provides an overview of other, sustainability-linked innovation efforts. We will
continuously assess relevant sustainability performance indicators to include in
future disclosures.
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Sustainability statement / Social / 3.1 Patient protection and quality of life
Prevention of serious chronic diseases
Policies
Novo Nordisk invests in primary prevention of serious chronic diseases, with
a focus on early prevention in childhood and targeting vulnerable populations
such as socially disadvantaged communities. As a gateway to other chronic
diseases, we have a specific focus on prevention of obesity.
While we do not have a formal policy related to prevention, we
have integrated our prevention activities into our therapy area strategies,
as part of our social responsibility.
Actions
To implement our social responsibility within primary prevention, we take a
multi-level approach through partnerships, working in urban environments
to address issues such as nutrition, education and physical activity. We will
continuously assess relevant sustainability performance indicators to include
in future disclosures.
Sustainability-related costs are integrated in our ongoing business. In addition we
set aside further dedicated funding across our social sustainability roadmaps
related to both prevention and access to deliver on our global health equity
ambitions (see also next section). Combined, we have further committed DKK
1.3 billion in investments in 2024 and 2025, excluding donations and other
contributions that we report on in table 3.1.3. We will continuously assess
needed investments as part of our financial planning processes. Extended value
is also created through grants to health, sustainability and the life science
ecosystem, via our unique ownership structure, by the Novo Nordisk
Foundation, our majority shareholder through Novo Holdings A/S.
Social inclusion of patients
ACCESS TO MEDICINES
Policies
Health inequity is a global challenge, with overburdened healthcare systems
facing growing pressure to deliver quality care while managing costs,
disproportionately affecting people in resource-poor settings. To help drive
positive impacts for our patients, Novo Nordisk has a commitment to help
improve patient access and affordability. Our publicly available position papers
further detail how we work with our social responsibility.
Key actions to
address prevention
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we
track effectiveness
Partnership with UNICEF
Partnership with UNICEF to prevent childhood
overweight and obesity by building healthy
environments that enable and empower children to
eat well and be active. Partnership runs until 2026.
Primary focus is
on Brazil,
Colombia,
Mexico,
and Indonesia
No
• Roll-out of programmatic activities by UNICEF,
for example strengthening nutrition education in
schools and promoting use of food labelling.
• UNICEF evaluates effectiveness against KPIs
covering both indirect and direct impacts of the
programmatic activities and report these in a
publicly available report.
Cities for Better Health
Global network of prevention partnerships at city
level, addressing three core challenges to drive
better health in cities: healthy food, physical activity
and sustainable financing models to ensure ongoing
funding.
51 cities across
the world
No
• In 2024, a new childhood obesity prevention
initiative, The Childhood Obesity Prevention Initiative
(COPI), was launched in six cities across Brazil,
Canada, France, Japan, South Africa and Spain to
accelerate the prevention of childhood obesity in
disadvantaged urban communities.
• In addition, 15 affiliates received technical and
financial support to start local prevention initiatives.
• A monitoring and evaluation framework is used to
assess improved health-related outcomes.
Transformational
Prevention Unit (TPU)
Develop scientific and scalable commercial solutions
that predict and pre-empt obesity and its
consequences for those at greatest risk. Established
in 2023, the TPU is committed to building multi-
sector partnerships with the ambition to support
overall prevention efforts with substantial societal
value, including socially disadvantaged groups.
Individuals
globally with
higher risk of
obesity
No
• Combining scientific insights with clinical, as well as
public health data, with the aim to develop tailored
and targeted interventions that meet specific
individual and societal needs.
• The tailored approach aims to enable earlier and more
accessible prediction of health and disease, improving
patient outcomes and minimising unnecessary
treatments and reducing healthcare costs.
Our position on access to diabetes care advocates for equal rights and accessibility
to healthcare for all, as stated in the UN Universal Declaration of Human Rights. The
position outlines our commitment to overcoming the barriers to effective diabetes
care in low- and middle-income countries, including limited healthcare capacity and
unreliable supply of medicine and equipment.
Our position on medicine pricing outlines how pricing should reflect the
medicine's value to patients, society and the healthcare system. This includes
multiple factors such as the medical need the product meets for clinicians and
patients and how the clinical profile improves the patients' short- and long-term
health outcomes and quality of life. Other factors include contracting, pricing
and reimbursement system of a given country. Each country has its own
healthcare system, which can provide patients with different medicines at
different costs. We acknowledge global affordability challenges, including in
high income countries, and collaborate with policymakers and health authorities
to help develop solutions to ensure affordable access for all patients.
Actions
In support of our position statements, several action plans are underway,
as outlined in the table, in order to overcome barriers to effective care for
vulnerable patients, including collaborating with external partners to improve
access and affordability, enhancing supply chains and improve healthcare
capacity. In the US, Novo Nordisk provides rebates and sales discounts to
insurance companies and other payers to secure coverage for commercially and
government-insured patients. For vulnerable patient populations, we offer low-
cost or no-cost programmes. Unless otherwise indicated, actions are considered
recurring. Across all actions, patients reached is considered a key performance
indicator to ensure progress and effectiveness of our efforts.
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Sustainability statement / Social / 3.1 Patient protection and quality of life
Key actions to address
access to medicines
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we track effectiveness
Ringfenced volumes
Wegovy
®
A proportion of Wegovy
® volumes in each launch market is ringfenced for access pathways
such as public reimbursement, public institution purchase or other patient access and support
programmes. The focus is to improve health equity and provide affordable care.
People with high medical
need and low
socioeconomic status
No
• Seven countries have agreements in place for access pathways such as public reimbursement,
individual reimbursement or private insurance: UK, Japan, Switzerland, Qatar, Iceland, Norway,
and Canada.
Access to Insulin
Commitment
A ceiling price of USD 3 per vial in low- and middle-income countries around the world and
USD 2 per vial for organisations providing relief in humanitarian settings.
77 low- and middle-
income countries
No
• The patients reached through the Commitment are a part of the overall metric on vulnerable
patients with diabetes reached through Novo Nordisk Diabetes care products in 2024.
Changing Diabetes
®
in Children
Public-private partnership founded in 2009 to provide diabetes care to children and youth with
type 1 diabetes living in low and middle-income countries. This includes free life-saving medicine,
blood glucose monitoring equipment and medical supplies for young people under the age of 25.
30 countries across
Africa, Middle East, Asia
and South America
Yes
• An accumulate 64,743 children and youth have been reached through Changing Diabetes
®
in Children.
• Patient education and healthcare capacity-building supported across more than 500 clinics.
iCARE business model
Improve access to diabetes care to vulnerable populations. Implementation is integrated in
affiliates' business strategies and targets through four main building blocks of health equity
focused diabetes management: capacity, affordability, reach, and empowerment.
49 countries in Sub-
Saharan Africa, and
Indonesia
No
• Expansion of iCARE business model to Indonesia.
• Served 433 thousand people with diabetes with insulin and trained 3,778 healthcare
professionals through capacity building programmes through partnerships.
• We assess effectiveness together with our partners.
Human Thermal Solution
(HITS)
New flexible storage options for two Novo Nordisk human insulin products: Actrapid
® and
Insulatard
®, making Novo Nordisk the first insulin manufacturer to introduce flexible storage
options for people with diabetes in settings where refrigeration is a challenge.
All countries where
Actrapid
® and Insulatard
®
are launched
No
• 38 countries have received approvals of label update.
• Expanding to all countries where Actrapid
® and Insulatard
® are launched depends on country
approvals.
Access Innovation
Incubator
Identification of new and innovative solutions to support people with diabetes. Solutions include
a global partnership with MedtronicLABS to scale a digital patient pathway for diabetes
management in three African countries. Our Senselet partnership in Ethiopia strengthens supply
chain capacity through higher education and on-the-job training.
Ghana, Kenya, Rwanda,
Ethiopia
No
• To date, the MedtronicLABS partnership has supported the enrolment of approximately 22,380
patients across 27 reference centres in three African countries.
• To date, Senselet has supported more than 1,000 front-line workers and 900 academics to
receive training in healthcare supply chain management.
• From 2025 onwards, these initiatives will be transitioned and integrated into the iCARE business
model to ensure alignment with local and regional strategies and activities.
Collaboration with World
Diabetes Foundation
Donations to the independent and non-profit foundation, World Diabetes Foundation (WDF), to
improve diabetes care by strengthening national health systems as well as primary prevention.
Low and middle-income
countries
No
• In 2024, donations to World Diabetes Foundation (WDF) reached DKK 120 million.
Partnering for Change
programme
Public-private knowledge-partnership between the International Committee of the Red Cross,
London School of Hygiene & Tropical Medicine and the Danish Red Cross to address the growing
need for chronic disease treatment for people in humanitarian crisis areas.
Lebanon and Iraq
No
• 11 peer-reviewed research publications, informing humanitarian efforts.
• Support handbook with guidance to patients in times of crises where continuity in care is
disrupted.
• The partnership is ending in 2024 but the Red Cross is staying on the ground despite the
escalating crises in Lebanon. New commitment is in development.
Affordability
programmes in the US
Creating comprehensive, affordable patient access by focusing our efforts on key levers:
• Ensure affordable access to Novo Nordisk products to address challenges within the complex
US healthcare system.
• Increase product access among low-income population and/or individuals with disabilities
through Medicaid.
• Continue to offer programmes to maintain insulin affordability.
• Support vulnerable patient populations with free products across Diabetes and Rare Disease
portfolios through Novo Nordisk’s patient assistance programmes.
United States
No
• In 2024, 80% of US patients with insurance coverage for Ozempic
® or Wegovy
® paid USD 25 or
less for each prescription, and almost 90% of US patients paid USD 50 or less.
• Substantially increased access to Wegovy
® for Medicaid eligible patients with lower incomes and/
or disabilities, which now accounts for 10% of Novo Nordisk’s US Wegovy
® sales.
• Upheld 5+ year commitment to provide diverse insulin affordability support options, including
MyInsulinRx™ programme, unbranded biologic and human insulin treatment options.
• Continued commitment of long-standing patient assistance programme to support eligible patients.
• Visit novocare.com for more information on our affordability programmes.
74
Sustainability statement / Social / 3.1 Patient protection and quality of life
Performance
Performance on patients reached
To track our impact worldwide we monitor the number of patients reached
with Novo Nordisk's Diabetes and Obesity care products. The total number of
patients treated with our Diabetes products increased 6% from 40.5 million
in 2023 to 43 million in 2024. The development was primarily driven by the
increase in Diabetes GLP-1-based products. We also increased the number of
patients reached with Obesity treatments from 1.1 million in 2023 to 2.2 million
in 2024. The 100% increase was primarily driven by the launch of Wegovy
® in
+10 further countries in 2024. In addition to acquiring production sites in 2024,
we are currently expanding and expect to see the effect of this on the number of
patients reached in the future.
Moreover, in 2024 we applied a new methodology to the number of vulnerable
patients reached with Novo Nordisk's Diabetes care products. Due to different
methodologies applied, vulnerable patients reached with Diabetes care
products are not fully to be considered a portion of overall patients reached.
In 2024, the number of vulnerable patients treated with our Diabetes care
products decreased 5% from 8.8 million in 2023 to 8.4 million in 2024. This
decrease was driven by fewer vulnerable patients reached through human
insulin tender sales and access and affordability initiatives.
Performance on children reached through Changing Diabetes
® in Children
To track progress on our programme Changing Diabetes
® in Children (CDiC),
we have a target to reach 100,000 children and young people living with type 1
diabetes by 2030, starting from the inception of the programme in 2009. By the
end of 2024, a total number of 64,743 children were reached. The countries in
scope that contribute to reaching the target are the 30 partner countries of
CDiC. The target was set by using international estimations, from the
International Diabetes Federation (IDF), of number of children living with type 1
diabetes in low and middle-income countries. As part of the partnership
agreements with local implementing partners, project milestones are set with
the aim to improve diabetes care. The progress to reach the target is monitored
quarterly and through annual reports received from local implementing
partners.
Performance on donations
We have slightly increased our donations and other contributions to the World
Diabetes Foundation in accordance with the donation agreement. With regards to
the Novo Nordisk Haemophilia Foundation, we have increased our donation from
DKK 19 million in 2023 to DKK 26 million in 2024 to support ongoing projects.
3.1.1 Patients reached with Novo
Nordisk's products
Unit
2024
2023
2022
Patients reached with Novo
Nordisk's Diabetes and Obesity
care products
Number in
millions
45.2
41.6
36.9
Patients reached with Novo Nordisk's
Diabetes care products
Number in
millions
43.0
40.5
36.3
Patients reached with Novo Nordisk's
Obesity care products
Number in
millions
2.2
1.1
0.6
Vulnerable patients reached with
Diabetes care products
1
Number in
millions
8.4
8.8
–
1. 2023 figure for Vulnerable patients reached with Diabetes care products has been restated from
6.7 millions.
3.1.2 Changing Diabetes
® in children
Unit
2024
2023
2022
Children reached through the
Changing Diabetes
® in children
programme
Number
64,743
52,249
41,033
2030 target
Number
100,000
3.1.3. Donations and other contributions
Unit
2024
2023
2022
Total donations and other contributions
mDKK
146
138
126
World Diabetes Foundation (WDF)
mDKK
120
119
93
Novo Nordisk Haemophilia Foundation
(NNHF)
mDKK
26
19
33
ACCOUNTING POLICIES
Patients reached with Novo Nordisk's Diabetes and Obesity care products
Estimated by dividing Novo Nordisk's annual sales, samples and donations
volume by the annual usage dose per patient for each product class, as defined
by the WHO (for Diabetes) or in accordance with the dose strength of the
product (for Obesity). Devices are excluded. Methodology has been changed
compared to previous years as samples and donations have been added in
2024. The impact on the comparative figures is deemed immaterial and hence
no restatement has been made.
Vulnerable patients reached with Novo Nordisk's Diabetes care products
Defined as a patient who received Novo Nordisk Diabetes care products either
through products sold under local affordability thresholds, based on World Bank
data and local healthcare expenditures, or public tenders in low-, lower middle-
or upper middle- income countries (LMICs) as defined by the World Bank, or
through specific diabetes access and affordability programmes or humanitarian
donations. Vulnerable patients are estimated by using two methods: firstly,
reach of one vulnerable patient is defined as sales volume in LMICs
corresponding to an annual drug usage dose per patient as defined by WHO
through public tender sales, products sold under affordability thresholds, or
humanitarian donations and for vulnerable patients reached in the US through
products supplied in select programmes. Secondly, for US access and
affordability programmes, reach of one vulnerable patients is defined at the
time of enrolment based on patient programme reports.
Children reached through the Changing Diabetes
® in Children programme
Estimated as the total accumulated number of children and youth enrolled since
the initiation of the partnership in 2009. Children participating for multiple years
are only included once in the year of enrolment. Children and youth are defined
as 0-25 years old and living in poverty as defined by the World Bank.
Donations and other contributions
The monetary donations from Novo Nordisk to the World Diabetes Foundation
(WDF) and the Novo Nordisk Haemophilia Foundation (NNHF) are recognised
when the donation or contribution is paid out.
75
Sustainability statement / Social / 3.1 Patient protection and quality of life
ACCESS TO CLINICAL TRIALS
Policies
In accordance with our OneCode policy, we believe health equity is central to
the development of new treatments, as everyone should have access to medical
products regardless of demographics, underlying diseases or social factors.
We focus our efforts on promoting diversity, equity and inclusion (DE&I) in
clinical trial conduct to ensure that scientific data are representative of the
patient population and have internal procedures in place to support such
efforts. We acknowledge that accomplishing this demands tailored solutions
specific to each trial programme.
Actions
To further advance our health equity efforts in clinical trial conduct, we focus our
efforts on implementing DE&I considerations and decentralised trial elements
(DCT) as outlined in the table. Unless otherwise indicated, actions are considered
recurring.
Global efforts to enhance DE&I in clinical trials are led by an expert function in our
Global Clinical operations area. Local efforts focusing on US activities are driven by
our North American Organisation. However, DE&I efforts impact all functions across
the value chain involved in the design, planning and execution of clinical trials. We
will continuously assess relevant sustainability performance indicators to include in
future disclosures.
Key action to address
access to clinical trials
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we
track effectiveness
Promotion of DE&I in
clinical trials
Framework for integrating DE&I in clinical trial
planning and execution to ensure that clinical trial
participants are representative of the patient
population.
Global trials on a
fit-for-purpose
basis
No
• Current focus has primarily been on US population.
• Global actions include launch of a training
programme in order to upskill relevant staff.
• We participate in a public-private partnership (IHI
READI) that aims to improve representation and
inclusion in clinical research.
• Overall effectiveness is assessed on an ongoing basis
and we continuously assess how to optimise internal
processes, including technology and data capture.
Integration of
decentralised trials
(DCT) elements
Integrating DCT elements to help improve access
to clinical trials, a more diverse pool of participants
and a higher retention rate, for example by
allowing assessments to be conducted at patients’
preferred location.
Global trials on a
fit-for-purpose
basis
No
• In 2024, over two thirds of our active phase 2-3 clinical
trials included one or more DCT elements.
• We actively engage with regulatory bodies, clinical
research sites and patient advocacy groups to
address the various barriers for implementing DCT
elements in clinical studies.
Patient safety
PRODUCT QUALITY AND SAFETY
Policies
Every day, people rely on the quality and safety of our products. Various systems
and standard operating procedures help us to safeguard this, including Novo
Nordisk’s quality management system, which ensures we adhere to the highest
quality standards and mitigate negative impacts and risks related to the safety of
patients, for our authorised medical products and devices.
Furthermore, our global pharmacovigilance system collates all safety
information to monitor the safety of our products and devices and ensure that
we meet all regulatory requirements to protect the safety of patients and clinical
trial participants. The pharmacovigilance system has three key processes:
1) safety data collection, 2) data analysis and evaluation, and 3) routine
reporting to health authorities and communication with relevant parties.
The Global Head of Safety is responsible for the global pharmacovigilance system,
ensuring that all relevant safety data reported to Novo Nordisk on investigational,
authorised, and that marketed pharmaceutical products and medical devices are
recorded, evaluated, and collated for surveillance and reporting.
CLINICAL TRIAL SAFETY
Policies
All Novo Nordisk’s clinical trials and clinical research activities are governed
by national laws and international conventions
2 as described in our publicly
available position on clinical trials ethics and are integrated into our standard
operating procedures to ensure safe global clinical research activities.
Special consideration is given to vulnerable patient populations, including
children and the elderly. If clinical research involves vulnerable patients, it is
always evaluated whether the study should have an external Data Safety
Monitoring Board to ensure independent safety review of the study. To ensure
that our medicinal products and formulations are safe and effective for a
paediatric population, we develop paediatric plans as required by the
European Medicines Agency, the UK Medicines & Healthcare Products
Regulatory Agency, and the FDA and Good Clinical Practice Guidelines. We
conduct paediatric clinical trials with minimal disruption and interference with
the children’s and their families’ daily lives.
2. Including The Declaration of Helsinki, the International Conference on Harmonisation Guideline for
Good Clinical Practice, Good Pharmacoepidemiology Practices, the Nuremberg Code, the UN Guiding
Principles on Business and Human Rights, the Belmont Report and UNESCO’s Universal Declaration on
Bioethics and Human Rights.
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Sustainability statement / Social / 3.1 Patient protection and quality of life
Our internal, multidisciplinary Paediatric Expert Group offers guidance to aid
such principles. Additionally, processes for seeking informed consent from a
minor or their legally authorised representative must take place in accordance
with local regulations and Novo Nordisk’s instructions.
Actions
The safety and quality of our products and clinical trials are prerequisites to Novo
Nordisk's operating model. We routinely monitor the safety and quality by adhering
to all relevant procedures and regulations.
Patient safety is managed through our quality management and pharmacovigilance
systems with the involvement of various internal functions. The pharmacovigilance
system is owned and operated by the Global Patient Safety Department. There is
close cooperation and alignment with the regions and affiliates, each responsible
for managing matters related to local pharmacovigilance. Our quality management
system is operated by the Global Quality organisation with the system applicable
throughout the product development process, from R&D activities to production
sites and across affiliates.
Key actions to address
quality and safety
Description and year of completion
Scope of action
Target in
place
Overall progress in 2024 and how we
track effectiveness
Mitigating risks related
to product safety and
quality signals
Monitoring and using safety information from
patients to take timely and appropriate action to
improve product quality and safety. Outcomes are
monitored in our risk management system and a
risk management plan is prepared in accordance
with regulatory requirements.
All Novo Nordisk
products with
marketing
authorisation
and products in
Novo Nordisk
sponsored
clinical trials
No
• A safety committee with members from all relevant
functional areas is established prior to any clinical
investigation of a new pharmaceutical product or
medical device, providing assessments of safety data
throughout the product or device’s life cycle.
• Number of product recalls and failed inspections are
reported to track effectiveness. In 2024, we tracked
three product recalls and 0 failed inspections.
Mitigating safety risks
in clinical trials
Detailed protocol for each clinical research activity
based on scientific methodology and ethical
considerations, to be approved by an Independent
Ethics Committee, Institutional Review Board or
other appropriate bodies, as well as by regulatory
authorities prior to study start.
All Novo Nordisk
sponsored clinical
trials
No
• Relevant safety information is continuously assessed
during Novo Nordisk-sponsored clinical research
activities and appropriate actions taken if risks
outweigh potential benefits. In the event of any clinical
research-related injury, participants are compensated
according to domestic laws.
Performance
To manage impacts and risks related to product safety and quality signals, Novo
Nordisk tracks the number of product recalls. In 2024, we had three product
recalls, due to cracked cartridges of insulin products in South Africa, underfilled
vials in the Czech Republic and incorrect labelling of products in clinical trials.
None of the recalls had serious adverse health consequences.
Furthermore, we actively monitor inspections to ensure compliance with health
inspection requirements. In 2024, 180 inspections were conducted, and we did
not fail any inspections. At year-end, 144 inspections were passed and 36 were
in-progress, as final inspection reports had not yet been received, or the final
authority’s acceptance was pending. Follow-up on in-progress inspections will
continue in 2025.
3.1.4. Product recalls and
failed inspections
Unit
2024
2023
2022
Product recalls
Number
3
2
3
Failed inspections
Number
0
0
0
ACCOUNTING POLICIES
Failed inspections
Inspections where FDA warning letters or European Medicines Agency non-
compliance letters related to Good Medical Practice inspections are received,
Good Medical Practice/ISO certificates for strategic sites are lost, pre-approval
inspections result in a complete response letter, study conclusions are changed
due to Good Clinical Practice/Good Laboratory Practice inspection issues, or
marketing or import authorisations are withdrawn due to inspection issues.
Strategic sites are defined as the manufacturing sites in Brazil, China, Denmark,
France, and the US. Acquired companies' inspections are defined as inspections
run by the acquired company. Inspections at acquired companies run by Novo
Nordisk are reported as Novo Nordisk inspections.
Product recalls
Number of times Novo Nordisk has instituted a recall of a product from the
market due to patient safety reasons, including recalls in connection with clinical
trials. A recall may affect multiple countries.
77
Sustainability statement / Social / 3.1 Patient protection and quality of life
FALSIFIED MEDICINES
Policies
Falsified medicines are a global problem that pose severe risk to public health
and patient safety worldwide. These illegally manufactured products may contain
the wrong or incorrectly dosed active pharmaceutical ingredients or harmful
substances leading to serious adverse effects. Falsified products are at an all-time
high, driven by the surge in demand for weight-loss drugs and injectable products.
Novo Nordisk helps investigate suspected cases of pharmaceutical crime and takes
a proactive approach to managing negative impacts and risks to patients.
The handling of suspected falsified Novo Nordisk products is outlined in our
OneCode policy and covered in our quality management system and standard
operating procedures, supporting the monitoring, signal detection and reporting
to health authorities of alleged occurrences. Further details can be found in our
publicly available position on falsified medicines.
Novo Nordisk detects falsified medicines through reported product complaints from
patients, healthcare professionals and authorities, as well as through field- and
online surveillance by investigative firms. Specialised security services are used to
conduct investigations, test purchases and for decommissioning. With the support
of local investigation firms, we also perform market searches to help health
authorities locate and seize falsified products. We collaborate with authorities in
over 20 countries, including Europol and Interpol, to support and facilitate the
detection of falsified medicines.
Global responsibility for product protection lies with the Head of Global Security
who leads our efforts to protect key products and patents.
Actions
To further prevent falsified or mislabelled medicines entering the pharmaceutical
distribution system, Novo Nordisk pursues targeted actions as outlined in the
table. Unless otherwise indicated, actions are considered recurring.
Resources for our product protection programme lie with Global Security,
however, the programme is implemented globally at regional and affiliate-level,
with more extensive efforts being conducted in high-risk markets. To ensure the
continued effectiveness of our actions, Novo Nordisk is a member of the
Pharmaceutical Security Institute, which fights falsified medicines worldwide. We
will continuously assess relevant sustainability performance indicators to include in
future disclosures.
Key actions to address
falsified medicines
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we
track effectiveness
Product protection
end-to-end solutions
Applying relevant security features based on risk
assessment and regulatory requirements, including
reinforcing supply chain integrity through security
specifications in distribution and warehouse
contracts.
Global operations
and downstream
value chain
No
• In 2024, we continued to review the security of our
supply chain including agile testing solutions and
rapid testing devices to support swift identification of
falsified medicines.
• We continuously review our approach to the
protective features of products, from overt to
covert solutions.
Awareness campaigns
and training
Awareness campaigns and onboarding programme
to prevent patients from buying medicines outside
legitimate channels, including more information for
healthcare professionals.
Global operations
and downstream
value chain
No
• Rolled out a dedicated, onboarding programme to
over 1,600 employees in relevant functions.
• Launch of awareness programme for law
enforcement agencies enabling an increase in
seizures of falsified medicines.
• Launch of other external awareness campaigns for
patients via social media and our website.
78
Sustainability statement / Social / 3.1 Patient protection and quality of life
Information-related impacts for patients and
clinical trial participants
Policies
Data protection is integrated in our global ethics and compliance framework,
as outlined in our OneCode policy and relevant standard operating procedures.
Strict data protection applies to all personal data related to patients and clinical
trials and is implemented in accordance with all applicable data protection
requirements. We outline how we work with data protection in our publicly
available data ethics standards and personal data processing principles. Before
initiating clinical trials, we ensure that participants are well informed about their
privacy rights including the legitimate disclosure of data.
We disseminate scientific knowledge obtained through clinical trials for the benefit
of society. Our commitment to transparency of clinical research activities is outlined
in our clinical disclosure and reporting instructions, which are aligned with legal
requirements and ethical principles
3 and owned by the Head of Regulatory, Quality
and Clinical Reporting. Through our clinical reporting and transparency efforts we
ensure that results from Novo Nordisk sponsored clinical research activities are
disclosed in public registers. To make research more accessible, we aim to publish
Plain Language Summaries (PLS) for our phase 3 primary data publications to
translate complex scientific information in an easy-to-understand format in
accordance with our standard operating procedures.
Following successful completion of a clinical trial programme, we work in close
collaboration with global health authorities to ensure informative and accurate
product labels to guide patients’ use and outcomes of treatment. Processes for
safeguarding labelling quality in the markets in which Novo Nordisk operates
are outlined in standard operating procedures, which are the responsibility of
Global Regulatory Affairs.
We communicate with healthcare professionals about our products to
encourage informed use, so they can make the best treatment choices for
the benefit of their patient’s health. We have strict guidelines in place to only
promote our products for uses that have been approved by the appropriate
regulatory authority in a manner that is truthful, accurate, non-misleading,
balanced and consistent with the approved product label. Off-label promotion
is prohibited as outlined in our OneCode policy.
3. Including, but not limited to, World Medical Association Declaration of Helsinki - Ethical Principles
for Medical Research Involving Human Subjects.
Actions
The management of information-related impacts and risks is a prerequisite
to our operating model. We therefore routinely take action to prevent and
mitigate any information-related risks and impacts for patients and clinical
trial participants while maintaining strict adherence to all relevant regulations
and standards.
The management of information-related impacts involves various functions. Our
Global Ethics and Compliance Office oversees the global data privacy agenda,
together with expert functions throughout the organisation. Ensuring informative
and accurate labels is a cross-functional undertaking anchored in our Global
Regulatory Affairs Department, working closely with our affiliates, regions and
functions engaged in global development programmes. The Clinical Reporting
Department ensures transparency of clinical research activities together with
colleagues across our global development programme. We will continuously assess
relevant sustainability performance indicators to include in future disclosures.
Key actions to
address information-
related impacts
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we
track effectiveness
Improving transparency
of our Patient
Information and
Informed Consent
forms (PIIC)
Update of PIIC forms to enhance general
transparency with respect to i) engaging in Novo
Nordisk sponsored clinical trials and ii) how privacy
rights of patients are protected. Project expected to
be completed by May 2025.
Intended for use
in global clinical
trials. Will be
adaptable to
local deviations
No
• We continuously assess improvement areas when it
comes to privacy rights of patients.
Communicating and
raising awareness of
informed use of our
products
All promotional materials for our respective
products undergo robust legal, medical and
regulatory review processes. We continuously
strengthen our guidance and communication to
ensure healthcare professionals are equipped
with appropriate information about our products
and the underlying clinical data to make the best
decisions for patients.
Global
operations
related to
product
communication
No
• Training healthcare professionals on approved
indications of our products and key messages
around responsible use.
• Alignment with authorities to support proactive
communication to emphasis the indication of
our products.
• Field forces and commercial functions in all markets
have been provided with clear guidance on how only
to engage in conversations for approved labels of
our products.
79
Sustainability statement / Social / 3.1 Patient protection and quality of life
3.2 Own workforce
As a pharmaceutical company, we depend on talented people and innovative
ideas. Our workforce spans employees working at our production sites and in
laboratories to sales representatives and administrative employees. In light of
our current expansion, our workforce has grown substantially to help meet the
surge in demand of our medicines. We have in 2024 implemented a sustainable
growth strategy, moderating the pace of recruitments in order to ensure a good
workplace for all employees.
Material impacts, risks and opportunities (IROs)
Identified IRO
Category
Value chain
Employee benefits and flexible working conditions
• Own operations
Potential human rights incidents
• Own operations
Novo Nordisk upholds good working conditions globally for all employees hired
on an employment contract, offering benefits and flexibility to promote employee
wellbeing. Novo Nordisk has been voted a top workplace across several countries
and regions as part of the Best Places to work programme, highlighting our positive
impact when it comes to offering an attractive, global workplace. We do not tolerate
any potential human rights violations and will manage any harm according to our
procedures. Examples of human rights incidents related to own workforce in Novo
Nordisk include potential incidents related to safe and healthy working conditions,
right to privacy and data protection as well as employee’s rights. No specific parts
of our operations have been found to be at specific risk of forced or child labour,
and most of our employees work in low-risk countries, according to the Global
Rights Index.
Identified IRO
Category
Value chain
Healthy and safe work environment
• Own operations
When we research, produce and manufacture pharmaceutical products, we aim
to operate to the highest health and safety standards, which includes ensuring
that employees feel physically and mentally safe regardless of whether they
work in a physically demanding or sedentary working environment. We
recognise that health and safety incidents can lead to negative impacts for
those affected.
Positive impact
Negative impact
Opportunity
Risk
In 2024, we witnessed serious incidents in connection with the expansion of our
production capacity which have resulted in heightened levels of safety measures
being implemented across the organisation.
Identified IRO
Category
Value chain
Equal opportunities fostering innovation
• Own operations
To sustain an innovative work culture, Novo Nordisk has positive impacts on
our employees by continuously strengthening our efforts in diversity, equity,
and inclusion to ensure that every employee can contribute, feel a sense of
belonging and has equitable career opportunities. Furthermore, by offering
comprehensive training and development opportunities for all, we support our
employees to keep learning and growing.
Identified IRO
Category
Value chain
Attracting talent to enable continued innovation
• Own operations
We recognise that, as an innovation company, we are exposed to potential
risks because our business depends on attracting and retaining talent. We
are especially dependent on research and development to sustain continued
innovation. The deliberate slowdown in recruitment does not affect our
commitment to ensure that we can attract the right skills, experience and
qualifications across our global operations.
General processes for workforce engagement
We engage with our own workforce both directly and indirectly through
multiple processes to inform our decisions. The main way we obtain direct
feedback from our employees is through our yearly employee survey Evolve.
The survey ensures that we continue to monitor and improve Novo Nordisk
as a workplace and all teams work actively with the results every year.
Furthermore, we engage with workers’ representatives. In Denmark, employees
are represented by local unions and associations, and in European affiliates,
workers’ representatives are elected by the employees. In some of our
international affiliates, engagement will take place directly with employees.
The frequency of engagement varies across our operations; in Denmark, we
have scheduled dialogue meetings between management and workers’
representatives at least every quarter. Dialogue with the European Works
Council (EWC) secretariat takes place on an ongoing basis, and includes an
annual meeting with all EWC representatives. Negotiations on topics such as
salary and collective bargaining agreements depend on the agreed time frame.
These dialogues support us in assessing the general effectiveness of our
employee-related efforts and is implemented by local People & Organisation
teams and managers. In Denmark, worker's representatives are also represented
at the Board of Directors, further enhancing dialogue and representation.
Health and safety
p. 83
Equal opportunities
p. 85
Working conditions
p. 81
Efforts linked to ensuring a good workplace
Negative impact
Positive impact
Opportunity
Risk
80
Sustainability statement / Social / 3.2 Own workforce
General process for remediation
There are multiple ways in which employees can raise workplace-related
grievances and concerns, including through the local or global People &
Organisation or Legal function, Business Ethics Compliance Office, Group
Internal Audit, Novo Nordisk Way facilitations, the annual Evolve survey,
onboarding surveys and the Ombudsman function.
Individual cases concerning unfair treatment of a particular employee
will usually be handled by the Ombudsman function. We will not tolerate
discrimination or retaliation against persons who file a report or participate
in an investigation in good faith.
Employees can always report any concerns anonymously through the publicly
available Novo Nordisk Compliance Hotline. The Compliance Hotline is further
described in section 4.1 ‘Business conduct’, under 'Compliance Hotline and
protection of whistleblowers', on page 91, including our anti-retaliation policy.
We place importance on the provision of effective remedy wherever employees’
rights have been found to have been negatively impacted.
Working conditions and other work-related rights
Policies
Policy
Labour Code of Conduct
Purpose
Minimum labour standards for our employees
Scope
All Novo Nordisk employees
Most senior level
accountable
Executive Management
Availability
Externally available:
Novo Nordisk Labour Code of Conduct
Applicability across
Sustainability statement
• Own Workforce, p. 80
Supporting policy
documentation
• Anti-harassment Framework
Novo Nordisk’s Labour Code of Conduct
1 details globally adopted minimum labour
standards for our employees, to safeguard employees' rights and promote
favourable working conditions to remain an attractive workplace. As detailed in
our policy, we operate in accordance with all applicable laws and regulations.
All employees are required to receive secure employment and adequate income
in a standard working week to meet their basic needs, along with discretionary
income. This is achieved by maintaining employee salaries and benefits above
the living wage of a given country, the statutory minimum wage given by law,
prevailing industry benchmarks, or the wage negotiated in collective agreements,
whichever is the highest. Periodic assessments and adjustments are made to
account for changes in the cost of living and economic conditions.
We track permissible working hours to ensure adequate work-life balance. To
empower employees, we offer various flexible working solutions. In line with
local business requirements, employees can apply for options such as a career
break, a compressed working week or reduced working hours according to
personal needs. Pay and benefits are adjusted accordingly. Employees are
covered by social protection through public programmes or benefits offered
by Novo Nordisk.
Novo Nordisk respects our employees’ right to associate freely and to join or
refrain from joining labour unions and workers’ councils without fear of
discrimination or retaliation. Where the right of freedom of association and
collective bargaining is restricted or prohibited under law, we do not hinder
employees from developing alternative mechanisms to express their grievances
and protect their rights regarding working conditions. To encourage social
dialogue, Novo Nordisk also engages with workers' representatives, for
example, through Novo Nordisk’s European Works Council (EWC).
We protect equal treatment and opportunities for all employees, including a
working environment free from discrimination and harassment. Equality means
free from discrimination due to grounds of gender, family status, race and ethnic
origin (including colour), national or social origin, religious beliefs, political
orientation, sexual orientation and identity, marital status, age, disability or
other categories protected by national, state or local laws. Our internal Anti-
harassment Framework sets out the global minimum standards for a fair
process when handling any cases of harassment at Novo Nordisk and is
implemented by local People & Organisation and Ethics & Compliance units.
Employees working in North America are safeguarded from harassment and
discrimination through a local process and framework.
We process employee data as part of conducting our business. Our OneCode
policy and Ethics & Compliance programme are the basis for our global privacy
and data ethics compliance across the value chain. These set the minimum
global standards for how we handle and protect personal data, together with
applicable laws and regulations.
The Labour Code of Conduct also outlines expected minimum requirements
regarding Novo Nordisk employees’ human rights at work, in line with our
Human Rights Commitment. Our policy commits to prohibition, prevention,
and mitigation of forced, bonded or debt labour, slavery, servitude, human
trafficking and child labour. For information on our human rights policy, we
refer to section 3.3 ‘Workers in the value chain’ on page 88.
Actions
Recurring actions related to working conditions are outlined in the table.
Some of our actions supporting our positive working conditions are described
in other sections, for example, strengthening of parental leave as described in
the section 'Equal treatment and opportunities for all' on page 86. Overall, the
effectiveness of our actions is assessed through continuous engagement with our
employees and all leaders are expected to tend to the wellbeing of their employees.
Resources allocated to managing impacts and risks related to own working
conditions are handled by our Global People and Compliance units as well as
local People & Organisation teams depending on affiliate size.
1. The Labour Code of Conduct is aligned with the UN Guiding Principles on Business and Human
Rights, the International Bill of Human Rights, the International Labour Organization’s Declaration on
Fundamental Principles and Rights at Work and the UN Global Compact Ten Principles.
81
Sustainability statement / Social / 3.2 Own workforce
Key actions to address
working conditions in
own workforce
Description and year of completion
Scope of action
Target in
place
Overall progress in 2024 and how we track
effectiveness
Mitigating risks related
to own workforce or
potential human rights
breaches
Risks are assessed and addressed through mitigating
actions on an ongoing basis, in accordance with the
enterprise risk management framework. Any remedy
is applicable in accordance with, local, legal
requirements.
Global operations
No
• Risk mitigation efforts are carried out continuously,
and includes support to relevant affiliates on
compliance with for example local legislation.
• With respect to human rights efforts, we are in the
process of upskilling our workforce to strengthen our
due diligence for our own operations.
Due diligence
assessment of Labour
Code of Conduct
In 2024, we have initiated a due diligence assessment of
our Labour Code of Conduct to evaluate the
effectiveness of its global implementation since its
launch in 2019 to ensure we protect our working
condition standards. To be completed in 2025.
Global operations
No
• The finalisation of the assessment in 2025 will provide
insights for potential future action plans.
Permanent employees
(headcount)
Temporary employees
(headcount)
Non-guaranteed hours
employees (headcount)
Total
3.2.2 Characteristics of Novo Nordisk's
employees
2
Unit
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
Men
Number
34,720
–
–
2,696
–
–
0
–
–
37,416
–
–
Women
Number
33,920
–
–
2,791
–
–
0
–
–
36,711
–
–
Other/not reported
Number
29
–
–
0
–
–
0
–
–
29
–
–
2. Total headcount of 77,349 as per note 2.4 'Employee cost' on page 110 in the Consolidated financial statements. The variance of 3,193 employees is due to Catalent employees not being included.
3.2.3 Employees and employee turnover
3
Unit
2024
2023
2022
Total number of employees (FTEs) – excluding Catalent
FTEs
73,109
63,370
54,393
Total number of employees (headcount) – including Catalent
Number
77,349
64,319
55,185
Total number of employees (headcount) – excluding Catalent
Number
74,156
64,319
55,185
• Denmark
Number
34,185
28,692
22,916
• EMEA (Europe, the Middle East and Africa), excluding Denmark
Number
9,928
8,808
7,954
• North America (US, Canada)
Number
9,279
8,315
7,250
• Region China (Mainland China, Hong Kong, Taiwan)
Number
6,977
6,485
6,148
• Rest of World (all other countries)
Number
13,787
12,019
10,917
Number of leavers
Number
3,574
–
–
Employee turnover
%
5.5
5.5
8.2
3. Total headcount of 77,349 as per note 2.4 'Employee cost' on page 110 in the Consolidated financial statements. The variance of 3,193 employees is due to Catalent employees not being included.
Performance
To measure our employee's engagement, we track our yearly employee survey
(Evolve) index score. The result of the 2024 employee survey is broadly in line with
the one from 2023, with a slight decrease of 1 percentage point of favourable
answers. Novo Nordisk continues to score in the top quartile when benchmarked
against external organisations regarding having a purpose-driven workplace.
3.2.1 Enterprise Evolve score
Unit
2024
2023
2022
Enterprise Evolve score
%
85
86
85
In 2024, we continued to expand our business while focusing on being an
attractive workplace. We increased our workforce by 9,837 employees since 2023,
ending the year with 74,156 employees. The most significant increase was at our
production sites, particularly within manufacturing and quality, as well as
professionals within Digital & IT. Aligned with our sustainable growth objectives,
we continue to safeguard the wellbeing of our employees. Our focus resulted in
an employee turnover of 5.5%, consistent with 2023.
Currently, Novo Nordisk's HR systems allow employees to select the gender with
which they most identify. We are committed to increasing awareness of this self-
identification option for future disclosures to disclose on other/not reported.
To support our policy of employees having the right to form or join associations
and to bargain collectively, we began reporting on the number and percentage
of collective bargaining coverage for Denmark in 2024. There are five collective
bargaining agreements currently in effect, covering 32% of the workforce in
Denmark. All employees covered by collective bargaining agreements in
Denmark are also covered by workers' representatives, resulting in a 32%
representation.
With respect to adequate wages, we provide employees with pay that is above
the living wage in the given country.
3.2.4 Collective bargaining agreements
and workers' representatives coverage
Unit
2024
2023
2022
Number of collective bargaining
agreements – Denmark
Number
5
–
–
Percentage of employees covered by
collective bargaining agreements and
workers' representatives – Denmark
%
32
–
–
82
Sustainability statement / Social / 3.2 Own workforce
In 2024, Novo Nordisk had 167 substantiated people-related cases, which is based
on people who have filed a complaint or concern of different levels of severity and
which have been confirmed. Hereof, 139 cases related to harassment, including
discrimination. None were deemed as severe cases of human rights incidents.
Various activities took place during the year to ensure awareness of speak-up
channels and completeness of data. In 2024, the architecture of our grievance
mechanisms has been improved and the internal governance has been
strengthened, to support registration of incidents reported and investigated
locally. We will continue to promote our speak-up culture and anti-harassment
framework as part of our company-wide campaigns. We acknowledge that there
may be cases which are not being reported to our Compliance Hotline.
3.2.5 Incidents, complaints and severe
human rights impacts
Unit
2024
2023
2022
Substantiated people-related cases
Number
167
–
–
• Hereof substantiated cases of
harassment, including discrimination
Number
139
–
–
• Hereof substantiated cases of severe
human rights incidents
Number
0
–
–
• Hereof breaches of the UNGPs
Number
0
–
–
• Hereof number of complaints filed
against Novo Nordisk to National
Contact Points for OECD Multinational
Enterprises
Number
0
–
–
Amount of material fines, penalties and
compensation related to the above
mentioned incidents
mDKK
0
–
–
ACCOUNTING POLICIES
Enterprise Evolve score
Measures the average percentage of favourable answers to the 18 engagement
items shared in Novo Nordisk’s annual employee survey. Favourable answers are
defined as ‘Agree’ and ‘Strongly agree’ to positively framed questions. The survey is
administered by an external vendor.
Employees (headcount)
Measured as the headcount of all employees at year-end, excluding externals,
employees on unpaid leave, interns, Bachelor’s and Master’s thesis employees
and substitutes. Employee data is based on registrations in Novo Nordisk’s HR
systems. Employees are attributed to geographical regions according to their
primary workplace.
Number of leavers
The number of employees, excluding temporary employees, who left the
Novo Nordisk Group during the year.
Employee turnover
Measured as the number of leavers during the financial year, divided by the
average number of employees, excluding temporary employees. Employees
working for Group companies that have been sold are not counted as having
left the Group.
Collective bargaining agreements and worker's representatives
Comprises the absolute number of the different types of collective bargaining
agreements based on specific employee sub-groups (administrative,
technicians, operators, skilled workers, etc.) in Denmark. Percentage of
employees covered by collective bargaining agreements and workers'
representatives are calculated as headcount covered in Denmark at year-
end divided by total headcount in Denmark at year-end.
Substantiated people-related cases
Cases that, through a formal process, have been reported to or filed with the
Compliance Hotline and have been substantiated or partially substantiated based
on an investigation during the year. Cases are within the overarching categories of
the global anti-harassment framework, the Novo Nordisk Way and Ombudsman, as
well as other potential human rights breaches for internal employees, consultants
and other externally hired individual workers.
Substantiated cases of harassment, including discrimination
Cases that have been closed as substantiated or partially substantiated based
on an investigation under the Novo Nordisk Way and the global anti-harassment
framework for our own workforce.
Severe human rights incidents
Any substantiated case of severe adverse human rights impacts (child labour or
forced labour) reported via Novo Nordisk’s Compliance Hotline for our own
workforce, that has been closed during the year based on an investigation.
Breaches of the UNGPs
Incidents presenting a breach to the United Nations Guiding Principles on
Business and Human Rights.
Complaints filed with OECD Multinational Enterprise Contact Points
Cases filed against a Novo Nordisk legal entity (parent or affiliate) under the
OECD’s database of specific instances.
Amount of material fines, penalties and compensation related to the above-
mentioned incidents
Damages resulting from violations of social or human rights laws, including
discrimination and severe human rights incidents, where a Novo Nordisk legal
entity (parent or affiliate) has been found in violation by a court of law and been
condemned to pay material fines, penalties or compensation.
Health and safety
Policies
Policy
Health and Safety
Purpose
Ensure safety, mental and physical wellbeing
Scope
Applies across all operations, including contractors
Most senior level
accountable
Executive Management
Availability
Externally available: Health and Safety
Applicability across
Sustainability statement
• Own workforce, page 80
Supporting policy
documentation
• Local health and safety instructions
Novo Nordisk's Health and Safety policy focuses on a holistic approach and
encompasses safety, physical wellbeing, mental wellbeing and health
promotion, with the overall goal of prevention and continuous health
improvements. The objectives of the policy are to ensure high standards
in our operations, promote a healthy lifestyle, make employees and leaders
accountable for workplace safety, ensure that the working environment is not
compromised for economic or productivity reasons, and fulfil all necessary
legal requirements.
83
Sustainability statement / Social / 3.2 Own workforce
Our policy is implemented through our health and safety management system,
which applies to Novo Nordisk employees globally. The system includes specific
health and safety requirements, for instance regarding risk assessments,
emergency procedures and preparedness. The procedures are supported by
dedicated training of all managers and health and safety employees as well as
basic training of employees globally. All our production facilities are certified by
international standards for health and safety (ISO 45001) and are regularly audited
internally and externally.
Actions
Our health and safety actions are implemented in a partnering approach with all
business areas across the Group. Internal functions responsible for the actions
include a global Health and Safety unit, which sets the direction and collaborates
across business areas dedicated specifically to health and safety. Furthermore, the
health and safety management system includes requirements for the involvement
of employees across the group.
Performance
In 2024, Novo Nordisk had 173 accidents, primarily related to production
expansion. Several actions were immediately taken across Novo Nordisk,
including to ensure that work permits are in place for all non-routine high-hazard
work such as hot work and working at height. Moreover, emergency procedures
have been reviewed and emergency response teams have been established
where not already in place. From 2025, Novo Nordisk will introduce a new, global
safety target to sustain and enhance focus on driving prevention of potential and
serious accidents.
To measure progress against our local and global health initiatives, we set
targets applicable across our global operations to reduce and prevent accidents
from occurring. Our safety target has the aim of 10% annual improvement in
rate of recordable work-related accidents (also commonly referred to as Lost
Time Accident Frequency (LTAF) or Lost Time Injury Frequency (LTIF)).
Key actions to address
health and safety
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we
track effectiveness
Local health and safety
action plans
A bottom-up management review is conducted
on an annual basis to assess the effectiveness of
the health and safety management system. Each
business area has committed to a local health and
safety plan addressing all strategic focus areas and
relevant risks associated.
Any remedy is provided based on local, legal
requirements and global support options are
made available for affected employees.
Global operations
Yes
• Safety: Performance against health and safety
metrics include 173 recordable work-related
accidents. Several actions were taken to ensure
that safety is systematically addressed.
• Mental wellbeing: 13.8% of employees reported
symptoms of stress. Areas with a high level of
stress symptoms have been offered support from
an organisational psychologist, focusing on
organisational aspects, psycho-social factors
and leadership.
• Physical wellbeing: 6.8% reported symptoms of
work-related physical pain. Targeted efforts in areas
with a high level of work-related pain has been
piloted supporting local business areas to address
root causes systematically. Further, interventions in
Denmark and competency building on work-related
pain at global production sites have been conducted.
• NovoHealth: The employee health promotion
programme focuses on physical activity, healthy
eating, individual mental wellbeing, nicotine
cessation, weight management and health checks.
Specific actions related
to health and safety
incidents
In response to expansion-related health and safety
risks, further measures have been implemented in
2024 to prevent fire-related accidents in the future,
including mapping of high-risk activities, establishing
work permit offices, and review of emergency
response plans.
Global operations,
with a focus
on capacity
expansion
projects
No
• New safety KPI was developed, applicable from 2025,
expanding the scope of reported accidents and
investigations to further prevent incidents across 10
high-risk hazards, including activities related to
working at heights and hot work.
3.2.6 Health and safety (own employees)
Unit
2024
2023
2022
Year-on-year
reduction target
Workforce covered by health and safety management system (headcount)
%
100
–
–
Recordable work-related accidents
Number
173
153
128
Rate of recordable work-related accidents
4
Accidents per million
hours worked
1.2
1.3
1.3
10%
Fatalities as result of work-related injuries
Number
0
1
2
Employees reporting symptoms of stress
%
13.8
13.8
13.8
10%
Employees reporting symptoms of work-related physical pain
%
6.8
7.1
7.8
5%
4. Rate of recordable work-related accidents was previously reported as Frequency of occupational accidents. Figures for 2022 and 2023 have been restated from 1.5 accidents per million
hours worked in both years.
84
Sustainability statement / Social / 3.2 Own workforce
The calculation method for the rate of recordable work-related accidents was
changed as of January 2024 to follow the international standard definition,
harmonising the FTE equivalent working hours to 2,000 hours a year compared
to the previous 1,600 hours, and using an average FTE number instead of year-
end figures.
The rate of recordable work-related accidents decreased by 8% in 2024, which
does not meet the 10% annual improvement target. In 2024, it was reduced to
1.2 accidents per million hours worked compared to 1.3% in 2023. The decrease
is primarily caused by an increased safety focus from top management, based
on awareness of the elevated risk level connected to production expansion.
This focus has been communicated down through line of business and has
been supported by clearer safety requirements and safety behaviour initiatives.
In 2024, Novo Nordisk had 173 accidents with reported absence compared to
153 in 2023, which is in line with the increase in the number of employees.
Furthermore, Novo Nordisk had zero work-related fatalities in 2024 compared
to 1 in 2023.
To improve mental and physical well-being, we have set targets to reduce the
number of employees reporting symptoms of stress by 10% year-on-year and
to reduce employees reporting symptoms of work-related physical pain by 5%
year-on-year. In 2024, 13.8% of employees responded that they had experienced
symptoms of stress, which is in line with the 2023 result, hence the target of 10%
annual improvement has not been met. The reasons are many and vary across
the organisation. The overarching cause is the growth of the company, leading
to both onboarding-related burdens and organisational changes which are
known risk factors to mental wellbeing. In Production and Operations, the
demand for supply adds significantly to the strain. In many other areas, the
increased complexity arising from the expansion of our portfolio is a contributing
factor to stress. In 2024, specific training and follow-up guidance with focus on
mental well-being was offered for relevant teams. Furthermore, a global mental
well-being delivery model targeting areas with a high stress level has been
implemented to both reduce and prevent stress. We will continue to implement
new initiatives throughout 2025 to further improve performance.
Reported symptoms of work-related physical pain decreased by 4% from 7.1%
in 2023 to 6.8% in 2024. Hence, the target of 5% year-on-year improvement has
not been met. The delivery model for physical wellbeing was only initiated in
2024 and the full results of this remain to be seen.
Across all targets, the health and safety management system ensures that we
involve our own workforce, including health and safety representatives, in target
setting, performance tracking and when identifying lessons learned. Insights from
the annual employee engagement survey, Evolve, also informs our target setting.
Monitoring occurs on an ongoing basis and is reported annually.
ACCOUNTING POLICIES
Workforce covered by health and safety management system (headcount)
The percentage of employees in Novo Nordisk's own workforce who are covered
by our health and safety management system based on legal requirements and/
or recognised standards or guidelines is defined as the number of employees
covered by health and safety management systems (headcount) divided by all
employees (headcount).
Recordable work-related accidents
Total number of work-related injuries causing at least one day of absence in
addition to the day of the accident.
Fatalities as a result of work-related injuries
Work-related accidents resulting in the death of an employee. All employees
(headcount), permanent, temporary, and non-guaranteed hours, have been
included in this metric.
Rate of recordable work-related accidents
Rate of recordable work-related accidents for our own workforce, measured in
accidents per million hours worked, also referred to as the lost-time accident
frequency (LTAF). Contractors, visitors, employees on unpaid leave, interns, and
Bachelor's and Master's thesis students are not included. The number of hours
worked is based on 2,000 working hours annually per full-time equivalent and the
monthly records of number of employees converted into full-time equivalents.
Percentages of employees reporting symptoms of stress/work-related physical pain
Reported via the annual employee survey Evolve. In the survey, stress is defined
as a situation where the employee feels tense, restless, nervous or troubled, or
unable to sleep at night due to thoughts about their problems. Regarding
symptoms of physical pain, the survey asks if an employee's work generally
causes them physical pain. The two relative targets of improving mental and
physical wellbeing are measured as the percentage of employees responding
'Quite much' or 'Very much' for mental wellbeing or 'Unfavourable' to the
statement related to physical pain.
Equal treatment and opportunities for all
Policies
Policy
Diversity and Inclusion
Purpose
Guides our actions to promote equal opportunities
Scope
All Novo Nordisk employees
Most senior level
accountable
Executive Management
Availability
Externally available: Diversity and inclusion policy
Applicability across
Sustainability statement
• Own workforce, page 80
By offering a diverse and inclusive workplace with opportunities to continuously
learn and grow, Novo Nordisk can help foster the best conditions for employees
and sustain continued innovation.
Our diversity and inclusion (D&I) policy defines diversity as the mix of
employees, perspectives, and backgrounds we have in our business, and
inclusion as creating a culture where all employees feel valued and have a sense
of belonging. We recognise that diversity is any dimension that differentiates
our people and enables diverse thinking, for example gender, ethnicity, race,
nationality, disability and sexual orientation.
To foster equal treatment, our D&I policy focuses on mitigating bias, creating
an inclusive workplace, and having leaders serve as role models. Novo Nordisk
actively seeks input from employees, senior leadership and peers to ensure that
efforts reflect the needs and aspirations of our workforce and aligns with
societal values and expectations.
Equal opportunities in Novo Nordisk also means creating a strong learning
culture, embedded in a set of core beliefs that focus on how we ensure a shared
and deliberate approach to personal and professional growth. While we do not
have a specific training policy, we are guided by internal standard operating
85
Sustainability statement / Social / 3.2 Own workforce
procedures for compliance driven and job specific training. The procedures
serve as process guides for identifying, providing, evaluating and documenting
relevant training for each employee to comply with the healthcare-regulated
requirements related to their job. Compliance-driven training varies depending
on the need of the business unit.
To maximise the potential of ongoing dialogue between employees and
managers, we focus on individual development plans and dedicated talks to
discuss growth, where employees engage with their managers regarding,
for example, training opportunities and career aspirations.
Actions
To foster equal opportunities, the outlined action plans support the
implementation of our policy commitments. Unless otherwise indicated, actions
are considered recurring. In consideration of the local context and societal
norms we ask all areas to determine local aspirations and action plans
applicable to their geography.
Internal functions involved in execution of our actions include our Global
D&I team, which sets the strategic direction and targets for Novo Nordisk.
D&I professionals and champions align aspirations and action plans with the
global direction.
Our balanced gender representation targets are aspirational goals and Novo
Nordisk is dedicated to providing equal employment opportunities for all,
regardless of gender. We have a merit-based recruitment strategy and
endeavour to hire the most qualified person for the job based on their
skills, experience and qualifications across our global operations.
Key actions to address
equal treatment and
opportunities
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we
track effectiveness
Mitigate bias through
equal pay reviews
Ensure that individuals with similar roles and
responsibilities are compensated equitably,
regardless of background, gender, or ethnicity.
Equal pay reviews are conducted on a quarterly
basis with corrective actions for confirmed equal
pay risk cases.
Global
operations,
excluding US and
Canada following
own processes
No
• In 2024, out of the around 62 thousand positions
covered in the pay review, we identified 0.13% –
compared to 0.6% in 2023 – with an equal pay gap
and we are taking corrective actions.
• The equal pay review goes beyond gender and
considers various parameters to identify gaps using
employee’s job level, job family, tenure, country.
Inclusive workplace
through balanced
gender representation
Striving for balanced gender representation across
managerial levels, through for example ensuring a
diverse slate of candidates, diverse recruitment
panel and pipeline of diverse talents.
Global operations
Yes
• Men account for 54% in leadership positions and
58% in senior leadership positions.
• Women account for 46% in leadership positions
and 42% in senior leadership positions.
Inclusive workplace
through flexible working
policies
Improved minimum global standards for paid
maternity leave and paid parental leave for
non-birthing parents as well as paid leave for
employees to handle serious health conditions of
their dependents. Changes are applicable from
January 2025.
Global operations
No
• Introduction of a global minimum standard of
parental leave within the first year of becoming a
parent extended from 8 to 14 weeks for all non-
birthing parents globally.
• Introduction of a global minimum standard of 2
weeks of paid leave annually for employees who
need time to handle a serious health condition
of dependents.
Roll-out of training
offerings
Employee training based on target group,
qualifications and job requirements to inspire
positive leadership habits and empower potential at
all levels. Training offerings cover both compliance-
related training but also development options through
global talent and development programmes, virtual
and face-to-face skill courses, and online learning
content.
Global operations
No
• In 2024, new compliance-related training was
established regarding product quality, safety and
efficacy, impacting around 6,000 managers.
• Approximately 4,000 out of nearly 9,000 leaders
engaged in our development programmes, and
about 2,000 employees completed global strategic
capability development programmes.
• More than 40,000 times employees and leaders have
completed a learning item online to help develop
specific skills.
• Progress of training programmes are monitored
through voluntary surveys following course
completion.
86
Sustainability statement / Social / 3.2 Own workforce
Performance
In 2021, we set a global target to achieve balanced gender representation
across all managerial levels, and a minimum of 45% women and 45% men
in senior leadership roles by the end of 2025. The target is applicable across
our operations. The target was set based on various benchmarks, including
pharmaceutical peers, other global Danish companies, industry-leaders and
research, and was developed in collaboration with leaders and People &
Organisation representatives and approved by the Board of Directors. We
are transparent regarding tracking performance against this target.
In 2024, 46% of all leadership positions were filled by women, the same as
in 2023. Within senior leadership, 42% of positions were filled by women at
the end of 2024, in line with 41% at the end of 2023.
As of 31 December 2024, the Board of Directors had equal gender
representation, consisting of six female and six male members. Moreover,
when excluding employee representatives, the shareholder-elected Board
members comprise of three female and five male members. According to the
Danish Companies Act, this is regarded as having equal gender representation,
and Novo Nordisk is therefore not legally required to set a gender target. Since
diversity remains important for the Board, it has maintained a voluntary 2026
target of having at least three shareholder-elected Board members who are
women and three who are men. Diversity in the broadest sense remains a
focus area for the Board of Directors, including Board member searches.
Novo Nordisk is reporting on the gender pay gap for the first time. In 2024,
the aggregated gender pay gap is 3% in favour of women. We continue to work
actively with equal pay, for example through our equal pay reviews as described in
the action section, according to which 0.13% of positions where identified to have
an equal pay gap, when taking into account various parameters beyond gender.
To ensure that we provide equal treatment and opportunities for all, we track
the age distribution among our employees, which largely remains unchanged
year over year.
Across all of our D&I efforts, we monitor our global Inclusion Index, which is
part of our annual employee engagement survey, Evolve. It indicates how our
employees rate the state of inclusion at Novo Nordisk, and it resulted in 82%
of our employees rating the inclusion statements favourably in 2024.
Men
Women
3.2.7 Diversity metrics – Management levels
Unit
2024
2023
2022
2024
2023
2022
Number of employees (headcount) at senior leadership – CEO, EVP, SVP
Number
38
–
–
22
–
–
Percentage of employees (headcount) at senior leadership – CEO, EVP, SVP
%
63
64
71
37
36
29
Number of employees (headcount) at senior leadership – CVP, VP
Number
466
–
–
339
–
–
Percentage of employees (headcount) at senior leadership – CVP, VP
%
58
59
60
42
41
40
Number of employees (headcount) at other leadership levels – Director, manager, team leader
Number
4,726
–
–
4,171
–
–
Percentage of employees (headcount) at other leadership levels – Director, manager, team leader
%
53
54
55
47
46
45
Gender in leadership positions (overall)
%
54
54
56
46
46
44
Gender in senior leadership positions (CEO, EVP, SVP, CVP and VP)
%
58
59
61
42
41
39
Target: minimum 45% men and 45% women
Gender on the Board of Directors
%
50
50
54
50
50
46
Gender on the Board of Directors without employee representatives
%
62
62
67
38
38
33
3.2.8 Remuneration metrics
Unit
2024
2023
2022
Gender pay gap
%
(3)
5
–
–
Annual total remuneration ratio
Ratio
63
–
–
5. Negative gender pay gap shows a pay gap in favour of women.
3.2.9 Employees by age group
Unit
2024
2023
2022
Under 30 years old
Headcount
11,538
–
–
%
16
17
15
Between 30 and 50 years old
Headcount
48,429
–
–
%
65
64
65
Over 50 years old
Headcount
14,189
–
–
%
19
19
20
ACCOUNTING POLICIES
Gender in leadership and senior leadership positions
Reported as the percentage split by gender in leadership and senior leadership
positions. Senior leadership positions are defined as employees in the global
job levels chief executive officer (CEO), executive vice president (EVP), senior
vice president (SVP), corporate vice president (CVP) and vice president (VP).
These are the top management positions in the Novo Nordisk Group. Other
leadership levels are defined as employees in the global job levels of director,
manager and team leader. Leadership positions overall are defined as directors,
managers, team leaders and senior leadership positions. Diversity on the Board
of Directors is reported as the percentage split by gender among all members,
including employee elected members.
Gender pay gap
Calculated as the difference between the average annualised salary for men and
women divided by the average annualised salary for men, and expressed as the
percentage of the average annualised salary for men. All employees at all job
levels and in all countries have been included in this metric. Calculations were
performed for the full consolidation, regardless of job level and country.
Annual total remuneration ratio
Calculated as the ratio between the annual retribution of the highest paid
individual and the annual total remuneration for all employees.
87
Sustainability statement / Social / 3.2 Own workforce
3.3 Workers in the value chain
As a global company, Novo Nordisk depends on a large value chain of more
than 60,000 suppliers providing goods or services to enable our business.
We therefore impact workers in our global supply chain both directly and
indirectly, for example when sourcing materials used to manufacture our
medical products, when hiring external contractors for our expansion projects,
or through logistic partners when distributing our products. While our suppliers
are concentrated primarily in Denmark, the US, and China, we aim to ensure
all of our partners across our global value chain meet and uphold the expected
minimum requirements for human rights, social, health and safety and
environment.
Material impacts, risks and opportunities (IROs)
Identified IRO
Category
Value chain
Protecting working conditions and human rights
• Upstream
• Downstream
Given the size of our value chain, we acknowledge negative impacts can occur
where we fail to identify or follow-up on cases where suppliers do not meet our
standards. Based on supplier audit findings, negative impacts relate primarily
to individual incidents, such as worker protection issues or working hours not
meeting our standards. We acknowledge that human rights violations can occur
across our value chain, and we will continuously review our due diligence and
risk assessments to identify potential and actual human rights violations that we
may cause or contribute to. Currently, we have not identified any geographies
or commodities in our value chain that are exposed to significant risks of human
rights violations. We also have not identified any specific group of value chain
workers that is particularly vulnerable to negative impacts.
Process for engagement and remediation
We engage directly and indirectly with supplier representatives through our
ongoing engagements across sourcing units as well as through supplier audits.
Our various procurement functions are responsible for ensuring engagement is
conducted in accordance with Novo Nordisk’s Responsible Sourcing Programme.
Positive impact
Negative impact
Opportunity
Risk
Our policy specifies that suppliers must implement procedures that allow all
employees to raise and address workplace grievances anonymously without
fear of reprisal or retaliation. Furthermore, all value chain workers can raise any
concerns, including grievances related to human rights through our Compliance
Hotline. The Compliance Hotline is further described in the section ‘Business
conduct’ on page 91. We do not have other formalised processes for engaging
directly with value chain workers.
Working conditions and equal treatment and
opportunities for all
Policies
Policy
Responsible Sourcing Standards
Purpose
Expected minimum requirements for our partners
Scope
All global suppliers providing goods or services to
Novo Nordisk
Most senior level
accountable
Senior Vice President of Global Solutions
Availability
Externally available:
Responsible Sourcing Standards
Applicability across
Sustainability statement
• Workers in the value chain, page 88
• Business conduct, page 90
The purpose of Novo Nordisk’s Responsible Sourcing Standards is to safeguard
human rights in the workplace, protect labour and social rights, establish safe,
secure and healthy working conditions, and minimise negative environmental
impacts. The policy is built on internationally recognised legislations and
standards such as the Corporate Sustainability Due Diligence Directive, the
UN Guiding Principles on Business and Human Rights, the OECD Guidelines
for Multinational Enterprises on Responsible Business Conduct and the
International Labour Organisation.
The minimum requirements outlined in our policy cover all global suppliers and
include, but are not limited to, manufacturers, contractors, agencies, distributors,
transportation carriers and technology partners. In 2024, we have updated our
Responsible Sourcing Standards by strengthening existing policy principles as
well as covering additional social and human rights requirements aligned with the
Corporate Sustainability Due Diligence Directive (CSDDD). Going forward, the policy
is a requirement in all new contracts and will be rolled out in a phased approach
across our global value chain.
To promote good working conditions for value chain workers, our policy includes
principles for appropriate working hours, adequate wages, secure employment,
and ensuring that workers are paid on time and in full, according to applicable
wage laws, including minimum wages, over-time and mandated benefits. Labour
rights should be promoted, as set forth in applicable laws, enabling workers to
associate freely, join or not join labour unions, seek representation, and join
workers’ councils in support of social dialogue.
Suppliers are also required to protect workers from exposure to workplace hazards
through regular review of health and safety policies, regulations and processes,
provide necessary worker protection and safety equipment, implement emergency
plans and train workers accordingly. With Novo Nordisk undertaking several global
capacity expansion projects we have implemented global minimum construction
safety standards. Safe working conditions also refer to physical and mental health
including a workplace free from harassment.
To monitor the implementation of the Responsible Sourcing Standards, we conduct
selected audits of our strategic suppliers each year, during which corrective action
plans can be devised in event of breach of the policy. We follow up to ensure
resolution of issues. If a supplier fails to comply with the corrective action plan,
Novo Nordisk reserves the right to terminate the contract with the supplier,
depending on the extent of the breach.
Negative impact
Positive impact
Opportunity
Risk
88
Sustainability statement / Social / 3.3 Workers in the value chain
Other work-related rights
Policies
Policy
Human Rights Commitment
Purpose
Guiding all behaviour with respect to human rights
Scope
All individuals who can be impacted by Novo
Nordisk's activities and business relationships
Most senior level
accountable
Chief compliance officer
Availability
Externally available:
Novo Nordisk Human Rights Commitment
Applicability across
Sustainability statement
• Patient protection and quality of life, page 71
• Own workforce, page 80
• Workers in the value chain, page 88
• Business conduct, page 90
Our Human Rights Commitment defines adequate human rights protection
and refers to all internationally recognised human rights instruments, including
the International Bill of Human Rights, the International Labour Organisation
Declaration on Fundamental Principles and Rights at Work, and the Convention
on the Rights of the Child.
Key actions to
address workers in
the value chain
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we
track effectiveness
Strengthened the
Responsible Sourcing
Standard
Update of policy from October 2024, making it
mandatory for all new contracts going forward.
To initiate the process we focus on larger contracts
and strategic suppliers. Policy requirements are
aligned with external legal firm and CSDDD.
Global suppliers
No
• Since October, we have started to work in a phased
approach to ensure that all our suppliers globally
adopt Responsible Sourcing Standards in new or
renegotiated contracts. We aim to complete our
efforts by 2027. Effectiveness and progress will be
assessed continuously.
To live up to the commitment, we pay particular attention to the rights of,
as well as the challenges faced by vulnerable groups. In addition, we strictly
prohibit the use of any form of forced labour or human trafficking, and expect
our suppliers to take the necessary steps to prevent this from happening in
their own business or supply chain. Suppliers are also expected to ensure the
protection, security, and lawful use of personal data of workers in the value
chain, and to ensure, at a minimum, compliance with all applicable privacy
and data protection laws.
The process for monitoring the implementation of the Human Rights
Commitment within the value chain and our own operations include identifying
and assessing both materialised and emerging human rights risks within
business relationships. Assessment is in accordance with our enterprise risk
management framework. For suppliers in scope for a responsible sourcing
audit, audits may be extended if indicators from a pre-audit survey show
heightened human rights risks.
Actions
The Responsible Sourcing Programme is being implemented across our
global procurement teams responsible for the various sourcing categories.
This is to ensure the identification and mitigation of negative impacts and risks
by engaging with suppliers, conducting supplier audits, developing corrective
action plans and monitoring progress. Global actions have been initiated as
outlined in the table. Individual incidents found in 2024 as part of our responsible
sourcing audits is further described in the section 4.1 'Business conduct' with
regards to management of relationships with suppliers on page 92, for which
remediation of findings is still ongoing. We will continuously assess relevant
sustainability performance indicators to include in future disclosures.
89
Sustainability statement / Social / 3.3 Workers in the value chain
4. Governance
4.1 Business conduct
Novo Nordisk takes a proactive approach to ensuring uniform and ethical
business conduct across markets to increase trust in our company and
maintain and improve relationships with our key stakeholders. Furthermore,
we endeavour to further strengthen the trust of our investors, business
partners, employees, and the public through open and transparent
corporate communication.
Material impacts, risks and opportunities (IROs)
Identified IRO
Category
Value chain
Ethical working culture through Novo Nordisk Way
• Own operations
At the core of our efforts to uphold high standards of business ethics is the
Novo Nordisk Way. This is a set of corporate culture commitments which help
guide our employees’ ethical behaviour and interaction with our value chain
partners. We conduct facilitations to ensure that all employees live up to our
cultural commitments. This is to safeguard our employees, and reinforce that
we live up to our cultural commitments also outside of Novo Nordisk. We
continue to assess if we live by our commitments, including through our
reputational score.
Identified IRO
Category
Value chain
Interacting with all stakeholders in accordance with
our business ethics standards
• Upstream
• Own operations
• Downstream
While we follow all relevant local and international laws, principles, standards
and codes when it comes to business conduct, negative impacts can occur if
we fail to uphold our business ethics standards in our interactions, especially
in geographies that rank low in Transparency International’s Corruption
Perceptions Index (CPI). The identification of material IROs in relation to
Positive impact
Negative impact
Opportunity
Risk
business conduct matters was undertaken at a global level, but with
consideration of countries ranked low in the CPI. We ensure that interactions
with our stakeholders are compliant with our business ethics standards,
including with healthcare professionals, public officials and third party
representatives. Despite having strong compliance procedures in place,
we recognise that any violations can have negative impacts on society or
stakeholders in our value chain.
Identified IRO
Category
Value chain
Promoting public health
• Downstream
In our interactions with public healthcare systems and their stakeholders, we
promote public policy and societal positions through our public affairs efforts on
public health and serious chronic diseases, thus helping to protect the wellbeing
of patients, the healthcare system and wider society.
Identified IRO
Category
Value chain
Upholding high bioethical standards
• Own operations
Novo Nordisk faces several complex bioethical issues during the discovery,
development and production of pharmaceutical products. We set high bioethical
standards to ensure good business conduct during the innovation phase. These
are essential for protecting and preventing harm to society while simultaneously
promoting trust when advancing public health and scientific knowledge. We do
not compromise the protection of ethical considerations in the pursuit of new
scientific breakthroughs.
Identified IRO
Category
Value chain
Reliance on animals in research
• Upstream
• Own operations
The use of living animals is still crucial in research for new medicines. Novo
Nordisk's use of animals for research has negative impacts for the animals.
While the strictest procedures are in place to ensure high ethical and welfare
standards, it is still expected that the quality of life of animals is affected.
Corporate culture
Policies
The Novo Nordisk Way, through its 10 Essentials (see page 15), describes the
values and behaviours that guide everything we do, rooted in the principles
and vision of our founders.
Our OneCode policy supports us in living up to the Novo Nordisk Way, guiding
everyone employed by, or working on behalf of, Novo Nordisk, on how to act as
a company and as individuals, including what constitutes a healthy workspace
and our speak-up culture. For more on our OneCode policy, see section 3.1
'Patient protection and quality of life' on page 72.
Performance
A team of facilitators evaluates the adherence to the Novo Nordisk Way of
selected units on rotation every year. In 2024, a total of 51 units were facilitated,
compared to 42 in 2023. We will continue to increase the number of facilitations
to match Novo Nordisk's growth. The units facilitated in 2024 represent 29,021
employees across Novo Nordisk's operations, of which approximately 3,000
employees were interviewed, as well as 600 employees collaborating closely
with the units in scope of facilitation. All units were assessed to be working in
accordance with the Novo Nordisk Way and no immediate actions were
required. Across all units facilitated, Novo Nordisk’s rapid growth, organisational
changes, and efforts to increase product supply are the main factors driving
improvement opportunities.
4.1.1 Facilitations of the
Novo Nordisk Way
Unit
2024
2023
2022
Facilitations of the Novo Nordisk Way
Number
51
42
36
ACCOUNTING POLICIES
Facilitations of the Novo Nordisk Way
A facilitation is an internal process for assessing adherence to the Novo Nordisk
Way. The number of facilitations is measured as the number of facilitations
completed. The assessments are based on a review of documentation and feedback
from stakeholders, followed by an on-site visit during which randomly selected
employees and management are interviewed. Identified gaps and improvement
opportunities related to the Novo Nordisk Way are presented to, and discussed
with, Executive Management. The facilitators and Executive Management agree
on an action plan to address any gaps and improvement opportunities.
Negative impact
Positive impact
Opportunity
Risk
90
Sustainability statement / Governance / 4.1 Business conduct
Anti-corruption and anti-bribery
Policies
Rooted in the Novo Nordisk Way, our OneCode policy also reflects our company-
wide commitment to doing business ethically and with integrity, to protect Novo
Nordisk and our business partners from engaging in any form of corruption
and bribery.
To ensure our employees understand the implications of the OneCode policy,
we conduct annual ethics and compliance training and tests in the form of
mandatory e-learning for all employees and monitor the completion rate, while
following up with employees to ensure completion of the training. Additionally,
Group Internal Audit performs business ethics reviews to ensure compliance
with our business ethics standards.
In Novo Nordisk we have not yet defined functions-at-risk, however, ethics
and compliance training is mandatory for all employees globally, including
for employee-elected members of the Board of Directors. As they are not Novo
Nordisk employees, the shareholder-elected members of the Board of Directors
receive annual training in our OneCode policy.
As a part of our OneCode policy, we focus on complying with all local and
international anti-corruption regulations that may apply to our business, such
as the US Foreign Corrupt Practices Act, the UK Bribery Act and the UN Guiding
Principles on Business and Human Rights.
Performance
We continue to have almost full coverage of our global mandatory ethics and
compliance training. The remaining 1% is mainly due to employees being on
leave. Additional targeted measures, such as the annual Ethics Days, help raise
awareness, and we will continue to assess such initiatives in the future to further
strengthen performance.
4.1.2 Prevention and detection of
corruption and bribery
Unit
2024
2023
2022
Employees trained in ethics and
compliance
%
99
99
99
As in 2023, we continue to report zero convictions for breaches of anti-corruption
and anti-bribery laws. The amount of fines for violation of anti-corruption and
anti-bribery laws, an additional metric introduced in 2024, also amounted to zero.
4.1.3 Incidents of corruption or bribery
Unit
2024
2023
2022
Convictions for violation of anti-corruption
and anti-bribery laws
Number
0
0
0
ACCOUNTING POLICIES
Employees trained in ethics and compliance
The mandatory ethics and compliance training for employees working at Novo
Nordisk comprises globally applicable e-learning. The percentage of employees
trained is calculated as the number of employees that have completed the training
divided by the total number of employees at year-end.
Number of convictions for violation of anti-corruption and anti-bribery laws
Anti-corruption and anti-bribery instances where any reported undertaking
has been found in violation by a court of law.
Compliance Hotline and protection of whistleblowers
Policies
Policy
Anti-retaliation policy
Purpose
Protection of any persons who report or participate in
an investigation in good faith
Scope
Any user of the Compliance Hotline, whether
employees or external stakeholders
Most senior level
accountable
Chief Compliance Officer
Availability
Externally available: Compliance Hotline
Applicability across
Sustainability statement
• Patient protection and quality of life, page 71
• Own workforce, page 80
• Workers in the value chain, page 88
Our employees are encouraged to speak up about ethical or compliance concerns
and thereby contribute to an ethical culture at Novo Nordisk.
All employees and external stakeholders can report concerns of misconduct in
a secure and confidential manner, with the option of anonymity, through the
Compliance Hotline or in person. All employees are informed about our hotline
as part of their annual ethics and compliance training. We continually assess the
effectiveness of the Compliance Hotline, including an assessment every two years,
conducted by a third party to ensure trust of the channel and processes.
The concerns reported can be related to business ethics misconduct, accounting
issues, fraud, bribery and corruption, quality misconduct, breaches of antitrust
laws, environmental legislation and data privacy, departures from the Novo
Nordisk Way, and misconduct such as espionage, sabotage, information security
violations or other serious offences.
For each report in scope of the investigational process, an internal lead
investigator will be appointed working objectively and independently, under
confidentiality obligations, and trained to safeguard investigative information.
We reply to all complaints within a few days and confirm the closure of the
investigation when finalised. Results and significant ongoing investigations
are reported on a quarterly basis to the Audit Committee and Executive
Management, including updates on severe cases, general trends, and corrective
actions, such as sanctions. Novo Nordisk has established a global Disciplinary
Sanction Guideline to ensure the best possible alignment of disciplinary
sanctions across the organisation. The guideline is based on two severity
factors: intent and frequency. The processes and sanctions in this guideline do
not overwrite local employment laws and any relevant collective agreements,
which shall be followed at all times.
We have zero tolerance for discrimination or retaliation against whistleblowers.
Anyone who retaliates against an employee reporting misconduct will be subject
to disciplinary action, up to and including termination in accordance with our
policy. Novo Nordisk’s measures to protect whistleblowers are in line with the EU
Whistleblowing Directive (EU Directive 2019/1937), with which we must comply, and
we ensure adherence to local regulations during investigations outside Europe.
Performance
In 2024, 242 cases reported via the Compliance Hotline relating to accounting
issues, fraud and business ethics matters were substantiated. The 9% increase
in number of substantiated cases compared to 2023 is driven by the business
growth, including increased number of employees. The numbers for 2022 and
2023 have been restated, as cases involving Novo Nordisk Way violations have
been moved to table 3.2.5 'Incidents, complaints and severe human rights
impacts', where we report on substantiated people-related cases to avoid
'double-counting'.
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Sustainability statement / Governance / 4.1 Business conduct
4.1.4 Substantiated cases reported
within accounting issues, fraud and
business ethics matters
Unit
2024
2023
2022
Substantiated cases reported within
accounting issues, fraud and business
ethics matters via the Compliance Hotline
1
Number
242
221
227
1. Substantiated cases reported within accounting issues, fraud and business ethics matters was
previously reported as Number of substantiated cases reported via the Compliance Hotline. For 2023
and 2022, 314 and 288 cases have been reported, respectively, considering the previous definition.
ACCOUNTING POLICIES
Substantiated cases reported within accounting issues, fraud and business
ethics matters via the Compliance Hotline
Number of cases reported to the Compliance Hotline, where reported
allegations of suspected misconduct have been substantiated or partially
substantiated. When a case has been substantiated or partially substantiated,
corrective actions are initiated.
Management of relationships with suppliers
Policies
Policy
Global procurement policy
Purpose
Ensure good conduct in how we source goods and
services, select suppliers and negotiate agreements
Scope
All sourced goods and services, excluding those used
for manufacturing of Novo Nordisk products
Most senior level
accountable
Corporate vice president of Corporate
Procurement
Availability
Externally available: Procurement in Novo Nordisk
Applicability across
Sustainability statement
• Business conduct, p. 90
Supporting policy
documentation
• Internal standard operating procedure on
procurement for manufacturing
We are dependent on our suppliers and aim to ensure good conduct in how we
source goods and services, select suppliers and negotiate agreements, including
fair and transparent payment practices. Our procurement policy defines the
guidelines for contracting with us, including qualification and tendering to issuing
invoices and using a spend management platform. The policy applies to our
largest sourcing group, indirect spend, but does not apply to goods and services
used in the manufacturing of Novo Nordisk's products. In those circumstances, an
internal standard operating procedure supplements the policy.
We continue to conduct regular supplier audits, including re-visits, to ensure
high quality with the suppliers with which we engage. The risk-based minimum
frequencies for quality audits are governed through our procurement for
manufacturing setup and the frequencies are based on usage (categories for
goods and services). For responsible sourcing audits, we are considering risk
parameters such as country of operation and spend.
We make procurement decisions that are financially, environmentally and
socially responsible as outlined in our Responsible Sourcing Standards in section
3.3 ‘Workers in the value chain’ on page 88. We use e-sourcing and e-auction
solutions to provide faster tendering and ensure a fair and transparent process
during negotiations. We work with preferred suppliers to help us build better
relationships. Becoming a preferred supplier is dependent on many factors,
including openness to continuous improvement and innovation, and delivering
quality products in a timely manner.
Our standard payment terms are 60 days, but other terms may be agreed as
part of contract negotiations. We are committed to preventing late payments to
suppliers, particularly when these are small enterprises. During the COVID-19
pandemic, to mitigate the impacts of the crisis, we implemented a payment
guideline, that ensured payment to small suppliers as soon as possible upon
receipt and approval of invoices (which may have been earlier than the terms
specified in invoices or contracts). This guideline was then made permanent
and continues to apply today.
Performance
In 2024, new metrics on payment practices were implemented for the first time.
4.1.5 Payment practices
Unit
2024
2023
2022
Average number of days to pay invoice
Days
42
–
–
• Small suppliers
Days
24
–
–
• Large suppliers
Days
49
–
–
Percentage of payments aligned with
standard payment terms
%
83
–
–
• Small suppliers
%
77
–
–
• Large suppliers
%
84
–
–
Outstanding legal proceedings for late
payments
Number
0
–
–
We continued to increase the number of supplier audits to 429 in 2024 from 382
in 2023, reflecting the increased activity level in Novo Nordisk. Three critical
findings were issued during 2024. Two of these were related to responsible
sourcing, concerning management of contract labour, for which the
remediation is still ongoing. The last finding was related to quality audits,
concerning protection against cross contamination, and agreements regarding
actions to address it have been made with the affected supplier.
4.1.6 Supplier audits
Unit
2024
2023
2022
Total supplier audits
Number
429
382
294
ACCOUNTING POLICIES
Average number of days to pay invoice
Average number of days it takes Novo Nordisk to settle an invoice from the invoice
date (when contractual or statutory term of payment starts to be calculated) until
the invoice has been cleared.
Percentage of payments aligned with standard payment terms
Includes all transactions where the invoice cycle time is equal to or less than
the specified payment terms, divided by the total number of transactions. Small
suppliers (with less than DKK 1 million in spend over the last twelve months)
are measured based on 30-day payment terms, whereas other suppliers are
assessed using payment terms from the invoice document recorded in our
internal systems.
92
Sustainability statement / Governance / 4.1 Business conduct
Number of outstanding legal proceedings for late payments
Number of all outstanding legal proceedings (litigation or arbitration)
for late payment.
Supplier audits
Total number of supplier audits, concluded by Novo Nordisk's Corporate Quality
& Inspections function, consisting of the number of responsible sourcing audits
and quality audits conducted at suppliers, selected using various risk
parameters. Audits for responsible sourcing are conducted according to Novo
Nordisk's Responsible Sourcing Standard to ensure compliance. In addition,
suppliers of goods and services used in the manufacture of Novo Nordisk
pharmaceuticals are subject to extensive quality audits in accordance with
different quality standards, including third-party audits.
Political influence and lobbying activities
Policies
Novo Nordisk actively engages with various stakeholders, including public
officials, to advocate for important issues affecting patients, our business, our
partners and the communities in which we operate globally. Our OneCode
policy sets out the objectives of having patients’ interests as our first priority,
acting with professionalism and integrity and adhering to local regulation on
public engagement. It also outlines our zero-tolerance of giving or offering
anything of value to a politician, public official or decision-maker to seek undue
influence. This is essential for us and guides our interactions.
Our advocacy is grounded in realising the potential that innovation in our
industry can bring to patients, healthcare systems and society, while ensuring
transparency and adherence to business ethics in our interactions. We strive
to achieve this by advocating for industry-level initiatives and regulation that
promote the following:
• Evidence-based chronic disease prevention, public health and improvement
of care for people living with serious chronic diseases.
• Innovation and provision of optimal conditions for making new discoveries
to benefit patients.
• Improvements of resilience of healthcare systems.
• A more environmentally sustainable way of operating in the pharma industry.
We are a member of various industry and trade associations representing the
pharmaceutical industry, to bring about consensus on broad policy issues that affect
the patients we serve and our business. Our membership of these organisations is
evaluated on an ongoing basis, considering their expertise in policy, advocacy and
ability to drive the agenda on issues important to us.
To ensure transparency around our activities, we are registered in the EU
Transparency Register under ID 29570313329-11. No members of our Board
of Directors have held a comparable position in public administration in the
two years preceding their appointment.
Actions
Through our engagement with various stakeholders, such as industry and trade
associations, we have taken actions for the implementation of our objectives,
with the key objectives listed in following the table. Unless otherwise indicated,
actions are considered recurring.
Key actions to
address advocacy
Description and year of completion
Scope of action
Target in place
Overall progress in 2024 and how we track
effectiveness
Presidency of the
European Federation
of Pharmaceutical
Industries and
Associations (EFPIA)
Novo Nordisk’s President and CEO Lars Fruergaard
Jørgensen is President of EFPIA 2023-2025, focusing
on the review of the EU General Pharmaceutical
Legislation, advocating for innovation and providing
optimal conditions for making new discoveries
accessible to patients.
Patients in
Europe
No
• Our CEO's presidency of EFPIA supported the
collaboration with policy makers, to establish
industrial policies aimed at fostering an ecosystem
that encourages innovation and prioritises life
sciences as a strategic industry.
Obesity advocacy
Advocacy through EFPIA Obesity Policy Platform to
improve healthcare solutions for people living with
obesity, recognise obesity as a relapsing chronic
disease and increase knowledge of its financial cost.
Recurring collaboration with EFPIA Health Systems
Working Group, to address some of the major
challenges facing health system resilience.
Patients in
Europe
No
• In 2024, Novo Nordisk joined the newly established
Obesity Policy Platform.
• The Health Systems Working Group has made
progress on improving efficiencies between health
system resources and fostering collaboration on
creating more sustainable health systems.
Diabetes advocacy
Advocacy through the European Diabetes Forum
for policy change that enables healthcare systems
to better manage diabetes care.
Patients in
Europe
No
• Campaigned, together with the European
cardiovascular community, for cardiovascular
disease and diabetes within European
policy priorities.
Performance
In 2024, a new metric on trade association membership fees was introduced.
A zero-tolerance policy applies at Novo Nordisk with regards to in-kind political
contributions.
4.1.7 Trade association membership
fees and in-kind political contributions
Unit
2024
2023
2022
Trade association membership fees
mDKK
177
–
–
In-kind political contributions made
mDKK
0
–
–
ACCOUNTING POLICIES
Trade association membership fees
The total monetary value of trade association membership fees during the
financial year reported in DKK millions. Data is collected at country level for
Brazil, Canada, China, Denmark, France, Germany, India, Italy, Japan, the United
Kingdom and the US, where Novo Nordisk focuses its public affairs activities.
In-kind political contributions
In-kind contributions can include advertising, use of facilities, design and
printing, donation of equipment, provision of board membership, employment
or consultancy work for elected politicians or candidates for office.
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Sustainability statement / Governance / 4.1 Business conduct
Bioethics
Policies
Policy
Bioethics policy
Purpose
Guide bioethical behaviour in our research and
development
Scope
Applies globally
Most senior level
accountable
Executive management
Availability
Externally available: Bioethics
Applicability across
Sustainability statement
• Business conduct, page 90
• Patient protection and quality of life, page 71
Supporting policy
documentation
• Position papers (for each bioethical focus area)
• Standard operating procedures
Bioethics refers to all ethical issues related to the use of life science technologies
for the discovery, development and production of pharmaceutical products.
Novo Nordisk’s bioethics policy sets out general operational guidelines for
research and development and informs day-to-day business decisions.
Our policy states our commitment to high global ethical standards in research
involving people, animals, human materials and gene technology. We extend
these requirements to our external partners, contract research organisations
and suppliers, and monitor their performance. We act in accordance with relevant
international conventions and standards, and actively promote bioethical
awareness at Novo Nordisk. We implement the policy objectives by integrating
these in standard operating procedures, processes and decision-making, and we
have cross-functional governance that addresses emerging bioethical dilemmas.
On an annual basis we define strategic focus areas, and report to the leadership
teams of Research and Early Development, and Development, on the bioethical
strategy execution, highlighting potential bioethical issues.
Our policy commitments are further detailed in position statements for specific
bioethical focus areas, including clinical trial and human biosample ethics,
animal ethics, cell and gene therapy ethics and gene technology ethics, which
are all publicly available on our website.
Animal welfare
Policies
It is not currently possible to examine the complex interactions in a living
organism using only methods that do not involve animals, such as in silico
methods, cell cultures and tissues. Therefore, research involving living
animals remains crucial in the discovery, development and production of
new pharmaceutical products, to ensure that our products meet high quality
and safety standards throughout their life cycle.
Novo Nordisk’s bioethics policy, with reference to animal ethics, sets out our
high ethical and welfare standards and applies to all animals purchased for
research undertaken by us either in-house or by external contractors. The policy
includes animal ethics principles that we uphold, namely: Replace, Reduce and
Refine (3Rs) research when using animals, defines practices related to housing,
husbandry, care and transportation of animals, and their health control, and
thereby ensures that every precaution is taken to reduce suffering and distress.
Following the principles of the 3Rs, we continually strive to reduce the number
of animals used and to replace animal testing with in vitro methods. We
approach the use of non-human primates with care and consideration, only
using them when absolutely necessary for efficacy and safety prior to testing
in humans, for example when testing potential new therapies where homology
to the human genome is essential.
We have various channels for the expression of any concerns, such as via the
attending veterinarian, the local Animal Unit Manager or the Ethical Review Council,
an internal group established to ensure the ethical review of all experiments on
living and sentient animals performed at, or on behalf of, Novo Nordisk.
Novo Nordisk’s animal rights principles as set out in our bioethics policy comply
with the Council of Europe’s Convention for the Protection of Vertebrate Animals
used for Experimental and Other Scientific Purposes, forming the basis for
Directive 2010/63/EU, which is focused on the protection of animals used for
scientific purposes. Novo Nordisk is also a signatory to the Marseille Declaration,
establishing, together with our pharmaceutical peers, the worldwide
implementation of high standards for animals housed and used internally and
externally by the industry for scientific purposes. We continue to engage in
discussion on animal ethics and welfare issues, gaining insights from stakeholder
dialogues collaborations with animal welfare organisations
2, regulators,
researchers, students and journalists.
Performance
The number of animals purchased for research in 2024 decreased by 13%
compared to 2023. 96% of the animals were rodents. The decrease is due to
our continuous efforts to reduce the number of animals used in research. It
also reflects the nature and maturity of the research projects, where species
qualification determines the number needed for testing in non-human primates
(decreased by 55% from 2023). The significant decrease in the number of fish
since 2022, to none in 2024, is due to specific research projects using fish larvae
that have been discontinued.
4.1.8 Animals purchased for research
Unit
2024
2023
2022
Mice, rats and other rodents
Number
47,478
54,410
63,760
Pigs
Number
615
608
427
Rabbits
Number
689
289
606
Dogs
Number
126
356
146
Non-human primates
Number
366
807
700
Fish
Number
0
36
14,098
Other vertebrates
Number
10
2
13
Total animals purchased
Number
49,284
56,508
79,750
ACCOUNTING POLICIES
Animals purchased for research
Number of animals purchased for all research undertaken by Novo Nordisk,
either in-house or by external contractors. It is based on internal registration
of purchased animals and yearly reports from external contractors.
2. These include the Danish Animal Welfare Society, the UK’s Royal Society for the Prevention of
Cruelty to Animals, the Danish Association of the Pharmaceutical Industry and the Universities
Federation for Animal Welfare.
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Sustainability statement / Governance / 4.1 Business conduct
5. Appendix
Tables in accordance with ESRS 2 General Disclosures and the EU Taxonomy Regulation:
Table 1 – Other legislation
The table below includes all of the data points that derive from other EU legislation as listed in ESRS 2 appendix B, indicating were
the data points can be found in our report and which data points are assessed as not applicable to Novo Nordisk.
Disclosure
requirement
Data point
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law
reference
Section
Page
ESRS 2 GOV-1
21 (d)
x
x
Sustainability statement
87
ESRS 2 GOV-1
21 (e)
x
Sustainability statement
42-44
ESRS 2 GOV-4
30
x
Sustainability statement
49
ESRS 2 SBM-1
40 (d) i
x
x
x
Not applicable to NN
-
ESRS 2 SBM-1
40 (d) ii
x
x
Not applicable to NN
-
ESRS 2 SBM-1
40 (d) iii
x
x
Not applicable to NN
-
ESRS 2 SBM-1
40 (d) iv
x
Not applicable to NN
-
ESRS E1-1
14
x
Sustainability statement
55
ESRS E1-1
16 (g)
x
x
Sustainability statement
55
ESRS E1-4
34
x
x
x
Sustainability statement
55, 57, 58
ESRS E1-5
38
x
Sustainability statement
58, 59
ESRS E1-5
37
x
Sustainability statement
58, 59
ESRS E1-5
40-43
x
Sustainability statement
58
ESRS E1-6
44
x
x
x
Sustainability statement
58
ESRS E1-6
53-55
x
x
x
Sustainability statement
58
ESRS E1-7
56
x
Not applicable to NN
-
ESRS E1-9
66
x
Not applicable to NN
-
ESRS E1-9
66 (a); 66 (c)
x
Not applicable to NN
-
ESRS E1-9
67 (c)
x
Not applicable to NN
-
ESRS E1-9
69
x
Not applicable to NN
-
ESRS E2-4
28
x
Not applicable to NN
-
ESRS E3-1
9
x
Sustainability statement
66
ESRS E3-1
13
x
Not applicable to NN
-
ESRS E3-1
14
x
Not applicable to NN
-
ESRS E3-4
28 (C)
x
Sustainability statement
66
ESRS E3-4
29
x
Sustainability statement
66
ESRS 2- IRO 1 - E4
16 (a) i
x
Not applicable to NN
-
ESRS 2- IRO 1 - E4
16 (b)
x
Not applicable to NN
-
ESRS 2- IRO 1 - E4
16 (c)
x
Sustainability statement
67
ESRS E4-2
24 (b)
x
Sustainability statement
67
ESRS E4-2
24 (c)
x
Not applicable to NN
-
Disclosure
requirement
Data point
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law
reference
Section
Page
ESRS E4-2
24 (d)
x
Sustainability statement
67
ESRS E5-5
37 (d)
x
Sustainability statement
62, 63
ESRS E5-5
39
x
Sustainability statement
62, 63
ESRS 2- SBM 3 - S1
14 (f)
x
Sustainability statement
80
ESRS 2- SBM 3 - S1
14 (g)
x
Sustainability statement
80
ESRS S1-1
20
x
Sustainability statement
80, 81
ESRS S1-1
21
x
Sustainability statement
81
ESRS S1-1
22
x
Sustainability statement
81
ESRS S1-1
23
x
Sustainability statement
83, 84
ESRS S1-3
32 (c)
x
Sustainability statement
81
ESRS S1-14
88 (b), 88 (c)
x
x
Sustainability statement
84, 85
ESRS S1-14
88 (e)
x
Not applicable to NN
-
ESRS S1-16
97 (a)
x
x
Sustainability statement
87
ESRS S1-16
97 (b)
x
Sustainability statement
87
ESRS S1-17
103 (a)
x
Sustainability statement
83
ESRS S1-17
104 (a)
x
x
Sustainability statement
83
ESRS 2- SBM 3 - S2
11 (b)
x
Sustainability statement
88
ESRS S2-1
17
x
Sustainability statement
88, 89
ESRS S2-1
18
x
Sustainability statement
88
ESRS S2-1
19
x
x
Sustainability statement
88
ESRS S2-1
19
x
Sustainability statement
88
ESRS S2-4
36
x
Not applicable to NN
-
ESRS S3-1
16
x
Not applicable to NN
-
ESRS S3-1
17
x
x
Not applicable to NN
-
ESRS S3-4
36
x
Not applicable to NN
-
ESRS S4-1
16
x
Sustainability statement
72
ESRS S4-1
17
x
x
Sustainability statement
72
ESRS S4-4
35
x
Not applicable to NN
-
ESRS G1-1
10 (b)
x
Not applicable to NN
-
ESRS G1-1
10 (d)
x
Not applicable to NN
-
ESRS G1-4
24 (a)
x
x
Sustainability statement
91
ESRS G1-4
24 (b)
x
Sustainability statement
91
95
Sustainability statement / Appendix
Table 2 – Disclosure requirements in ESRS covered by the Sustainability statement
Table 3 – List of incorporations by reference
ESRS 2 – General disclosures
ESRS E2 – Pollution
ESRS E5 – Resource use and
circular economy
ESRS S2 – Workers in the
value chain
ESRS disclosure requirement
Incorporation by reference
Disclosure requirement
Page
Disclosure requirement
Page
ESRS 2 GOV-1 (21 a-e, 23 a, b); G1 GOV-1 (5
a, b): Roles and responsibilities of Board of
Directors and Executive Management
See Annual review, subheading ‘Competences' on pages 42 and 43 and
section 'Independence and meeting attendance overview' on page 44 (and
as additional reference within the Sustainability statement: see table 3.2.7
'Diversity metrics – Management levels' on page 87).
BP-1: Basis for preparation
49
ESRS 2 IRO-1: Processes
52, 53, 64
Disclosure requirement
Page
Disclosure requirement
Page
BP-2: Specific circumstances
49
E2-1: Policies
64
ESRS 2 IRO-1: Processes
52, 53, 60
ESRS 2 SBM 2: Stakeholders
51
GOV-1: Governance roles
50, 51
E2-2: Actions
64
E5-1: Policies
60
ESRS 2 SBM 3: Strategy
88
ESRS 2 GOV-2 (26 b): Overseeing
sustainability matters
See Corporate governance report, page 4, sub-section ‘Strategy’ and Annual
review: page 39, sub-sections ‘Access and affordability’, ‘Environmental
impact’ and ‘Ethics and compliance’.
GOV-2: Governance
50, 51
E2-3: Targets
64
E5-2: Actions
60, 61
S2-1: Policies
88, 89
GOV-3: Incentives schemes
50-52, 55
E2-4: Pollution
N/A
E5-3: Targets
61, 62
S2-2: Processes
88
GOV-4: Due diligence
49
E2-5: Substances
64, 65
E5-4: Resource inflows
62, 63
S2-3: Remediate impacts
88
ESRS 2 GOV-2 (26 a): Sustainability
matters discussed
See Corporate governance report, page 4, sub-section ‘Strategy’.
GOV-5: Risk management
51
E2-6: Financial effects
N/A
E5-5: Resource outflows
62, 63
S2-4: Actions
89
SBM-1: Value chain
49, 52
E5-6: Financial effects
N/A
S2-5: Targets
89
ESRS 2 GOV-3 (29 a-e): Incentive schemes
dependent on sustainability-related targets
and performance metrics
See Remuneration report, pages 13-16, 3.5 ‘Short-term incentive programme
2024’ and pages 16-19, 3.6-3.8 ‘Long-term incentive programmes 2022, 2023
and 2024 – programme design’; page 5, table 1, rows: Short-term cash-based
incentive programme and Long-term share-based incentive programme for
the Board of Directors; and page 9, table 7, rows: Short-term incentive
programme (STIP) and Long-term incentive programme (LTIP) for
Executive Management.
SBM-2: Stakeholders
51
ESRS E3 – Water and
marine resources
SBM-3: Strategy
52
ESRS S1 – Own workforce
ESRS S4 – Patient protection and
quality of life
IRO-1: Processes
52, 53
Disclosure requirement
Page
Disclosure requirement
Page
IRO-2: ESRS DR's covered
95, 96
ESRS 2 IRO-1: Processes
52, 53, 65
ESRS 2 SBM 2: Stakeholders
51
Disclosure requirement
Page
E3-1: Policies
66
ESRS 2 SBM 3: Strategy
80
ESRS 2 SBM 2: Stakeholders
51
ESRS E1, 13 (related to ESRS 2 GOV-3): Portion
of total expensed remuneration to registered
executives dependent on performance against
climate related targets; ESRS 2 GOV-3 (29 d):
Portion of total expensed variable
remuneration to registered executives
dependent on performance against ESG
related targets
See Remuneration report, page 20, table 25.
ESRS E1 – Climate change
E3-2: Actions
66
S1-1: Policies
81, 83, 85
ESRS 2 SBM 3: Strategy
71
Disclosure requirement
Page
E3-3: Targets
66
S1-2: Processes
80, 81
S4-1: Policies
72, 73, 76-79
ESRS 2 GOV-3: Governance
51, 96
E3-4: Water consumption
66, 67
S1-3: Remediate impacts
81
S4-2: Processes
72
E1-1: Transition plan
57
E3-5: Financial effects
N/A
S1-4: Actions
81, 84, 86
S4-3: Remediate impacts
72
ESRS 2 SBM-3: Strategy
55
S1-5: Targets
82, 84, 86
S4-4: Actions
72-74, 76-79
ESRS 2 IRO-1: Processes
52-54
ESRS E4 – Biodiversity
and ecosystems
S1-6: Own employees
82-87
S4-5: Targets
72-79
ESRS 2 SBM-1 (42 a-c): Business model
and value chain
See Annual review, page 9, illustration of the stages from
resources to patients.
E1-2: Policies
55
S1-7: Non-employees
N/A
E1-3: Actions
55, 56
Disclosure requirement
Page
S1-8: Bargaining coverage
82, 83
ESRS G1 – Business conduct
ESRS 2 BP-2 (12): Forward-looking
information
See Annual review, page 35, section ‘Financials’, sub-chapter 'Forward-looking
statements' for information on forward-looking information such as targets.
E1-4: Targets
56, 57
E4-1: Transition plan
68
S1-9: Diversity
87
Disclosure requirement
Page
E1-5: Energy consumption
58, 59
ESRS 2 SBM-3: Strategy
67
S1-10: Adequate wages
82
ESRS 2 GOV-1: Governance
90
ESRS 2 SBM-1 (40 a, e-g): Sustainability-
related goals, significant products,
value chain
See Annual review, section 'Purpose and sustainability', pages 12-16, for
more on our strategy that relate to sustainability matters (and as additional
reference within the Sustainability statement: See page 82, table 3.2.3
'Employees and employee turnover').
E1-6: Scopes 1, 2, and 3
57, 58
ESRS 2 - IRO 1: Processes
52, 53, 67
S1-11: Social protection
N/A
ESRS 2 IRO-1: Processes
90
E1-7: GHG removals
57
E4-2: Policies
67
S1-12: Disabilities
N/A
G1-1: Corporate culture
90
E1-8: Internal carbon pricing
N/A
E4-3: Actions
68
S1-13:Training
N/A
G1-2: Suppliers
92, 93
ESRS E1-1 (disclosure requirement related to
ESRS 2 IRO-1 20 b, c): Process to identify and
assess climate-related risks
See Annual review, section ‘Risk management’ on page 39 with regards to
the main strategic risk 'environmental impact'.
E1-9: Financial effects
N/A
E4-4: Targets
68
S1-14: Health and safety
83-85
G1-3: Prevention
91
E4-5: Impacts
67, 68
S1-15: Work-life balance
81, 86
G1-4: Incidents
91, 92
E4-6: Financial effects
N/A
S1-16: Compensation
87
G1-5: Political influence
93
ESRS S4-4 MDR-A (33b): Overview of what
action is planned or underway to pursue
material opportunities for the undertaking
in relation to consumers and/or end-users
See Annual review, section 'Innovation and therapeutic focus', page 17-25,
for an overview of opportunities to accelerate healthcare innovation
across Obesity, Diabetes, Rare Diseases and Cardiovascular & Emerging
Therapy Areas.
S1-17: Complaints
83
G1-6: Payment practices
92, 93
1. In addition, a detailed description of the material IROs is given in the topical sections of this Sustainability statement.
ESRS 2 MDR-P (65a): The Novo Nordisk
Way Essentials
See Annual review, page 15, visualisation ‘The Novo Nordisk Way Essentials’.
96
Sustainability statement / Appendix
Tables 4a – Proportion of Turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024
2024
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Economic activities (1)
Code
(2)
Turnover
(3)
Proportion
of turnover,
2024
(4)
Climate
change
mitigation
(5)
Climate
change
adaptation
(6)
Water
(7)
Pollution
(8)
Circular
economy
(9)
Biodiversity
(10)
Climate
change
mitigation
(11)
Climate
change
adaptation
(12)
Water
(13)
Pollution
(14)
Circular
economy
(15)
Biodiversity
(16)
Minimum
safeguards
(17)
Proportion
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.)
turnover,
2023
(18)
Category
enabling
activity
(19)
Category
transitional
activity
(20)
mDkk
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
0
0%
0%
0%
Of which enabling
0
0%
0%
0%
0%
0%
0%
0%
0%
Of which transitional
0
0%
0%
0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Manufacture of medicinal products
PPC 1.2
290,403
100%
N/EL
N/EL
N/EL
EL
N/EL
N/EL
100%
Turnover of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2.)
290,403
100%
0%
0%
0%
100%
0%
0%
100%
Turnover of Taxonomy-eligible activities
(A.1. + A.2.)
290,403
100%
0%
0%
0%
100%
0%
0%
100%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities (B)
0
0%
TOTAL
290,403
100%
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective
97
Sustainability statement / Appendix
Tables 4b – Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024
2024
Substantial contribution criteria
DNSH criteria ("Does Not Significantly Harm")
Economic activities (1)
Code
(2)
CapEx
(3)
Proportion
of CapEx,
2024
(4)
Climate
change
mitigation
(5)
Climate
change
adaptation
(6)
Water
(7)
Pollution
(8)
Circular
economy
(9)
Biodiversity
(10)
Climate
change
mitigation
(11)
Climate
change
adaptation
(12)
Water
(13)
Pollution
(14)
Circular
economy
(15)
Biodiversity
(16)
Minimum
safeguards
(17)
Proportion
of
Taxonomy-
aligned
(A.1.) or
eligible
(A.2.)
CapEx,
2023
(18)
Category
enabling
activity
(19)
Category
transitional
activity
(20)
mDkk
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Construction on new buildings
CCM 7.1
3,494
3%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
3,494
3%
3%
0%
Of which enabling
0
0%
0%
0%
0%
0%
0%
0%
0%
Of which transitional
0
0%
0%
0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Construction on new buildings
CCM 7.1
13,050
11%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
14%
Renovation of buildings
CCM 7.2
2,336
2%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
5%
Manufacture of medicinal products
PPC 1.2
20,142
16%
N/EL
N/EL
N/EL
EL
N/EL
N/EL
41%
CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2.)
35,528
29%
13%
0%
0%
16%
0%
0%
60%
CapEx of Taxonomy-eligible activities
(A.1. + A.2.)
39,022
32%
16%
0%
0%
16%
0%
0%
60 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible
activities (B)
84,950
68%
TOTAL
123,972
100%
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective
98
Sustainability statement / Appendix
Tables 4c – Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024
2024
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Economic activities (1)
Code
(2)
OpEx
(3)
Proportion
of OpEx,
2024
(4)
Climate
change
mitigation
(5)
Climate
change
adaptation
(6)
Water
(7)
Pollution
(8)
Circular
economy
(9)
Biodiversity
(10)
Climate
change
mitigation
(11)
Climate
change
adaptation
(12)
Water
(13)
Pollution
(14)
Circular
economy
(15)
Biodiversity
(16)
Minimum
safeguards
(17)
Proportion
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.)
OpEx,
2023
(18)
Category
enabling
activity
(19)
Category
transitional
activity
(20)
mDkk
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable
activities
(Taxonomy-aligned) (A.1)
0
0%
0%
0%
Of which enabling
0
0%
0%
0%
0%
0%
0%
0%
0%
Of which transitional
0
0%
0%
0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Manufacture of medicinal products
P 1.2
1,919
5%
N/EL
N/EL
N/EL
EL
N/EL
N/EL
5%
OpEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2.)
1,919
5%
0%
0%
0%
5%
0%
0%
5%
OpEx of Taxonomy-eligible activities
(A.1. + A.2.)
1,919
5%
0%
0%
0%
5%
0%
0%
5%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible
activities (B)
38,014
95%
TOTAL
39,933
100%
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective
99
Sustainability statement / Appendix
From the moment Logan Phippen first saw cycling on television as a child, he knew it was his calling.
Even after being diagnosed with type 1 diabetes in 2016, Logan remained undeterred. Understanding
that it was a manageable disease, he quickly returned to racing and joined Team Novo Nordisk’s
development team. Five years later, Logan achieved his long-held dream by joining the pro team,
becoming Team Novo Nordisk’s only professional rider from the US.
FINANCIAL
STATEMENTS
101 Consolidated financial statements
138 Statements and Auditor’s Reports
100
Consolidated financial statements
Income statement and Statement of comprehensive income
102
Cash flow statement
103
Balance sheet
104
Equity statement
105
Notes to the Consolidated financial statements
106
Section 1
106
Basis of preparation
106
1.1
Material accounting policies and key accounting estimates and judgements
106
1.2
Changes in accounting policies and disclosures
106
Section 2
107
Results for the year
107
2.1
Net sales and rebates
107
2.2
Segment information
108
2.3
Research and development costs
110
2.4
Employee costs
110
2.5
Other operating income and expenses
111
2.6
Income taxes and deferred income taxes
111
Section 3
113
Operating assets and liabilities
113
3.1
Intangible assets
113
3.2
Property, plant and equipment
115
3.3
Inventories
116
3.4
Trade receivables
116
3.5
Provisions and contingent liabilities
117
Section 4
119
Capital structure and financial items
119
4.1
Earnings per share
119
4.2
Distribution to shareholders
119
4.3
Share capital, Treasury shares and Other reserves
119
4.4
Financial risks
120
4.5
Derivative financial instruments
122
4.6
Borrowings
123
4.7
Cash flow statement specifications
125
4.8
Financial assets and liabilities
126
4.9
Financial income and expenses
127
Section 5
128
Other disclosures
128
5.1
Share-based payment schemes
128
5.2
Commitments
130
5.3
Acquisition of businesses
130
5.4
Related party transactions
131
5.5
Fees to statutory auditors
132
5.6
General accounting policies
132
5.7
Companies in the Novo Nordisk Group
133
Part of the Annual review (not audited)
134
Financial definitions and ratios
134
Non-IFRS financial measures
135
101
Consolidated financial statements
Income statement and Statement of comprehensive income
for the year ended 31 December
DKK million
Note
2024
2023
2022
Income statement
Net sales
2.1, 2.2
290,403
232,261
176,954
Cost of goods sold
2.2
(44,522)
(35,765)
(28,448)
Gross profit
245,881
196,496
148,506
Sales and distribution costs
2.2
(62,101)
(56,743)
(46,217)
Research and development costs
2.2, 2.3
(48,062)
(32,443)
(24,047)
Administrative costs
2.2
(5,276)
(4,855)
(4,467)
Other operating income and expenses
2.2, 2.5
(2,103)
119
1,034
Operating profit
128,339
102,574
74,809
Financial income
4.9
6,198
2,945
239
Financial expenses
4.9
(7,346)
(845)
(5,986)
Profit before income taxes
127,191
104,674
69,062
Income taxes
2.6
(26,203)
(20,991)
(13,537)
Net profit
100,988
83,683
55,525
Earnings per share
Basic earnings per share (DKK)
4.1
22.67
18.67
12.26
Diluted earnings per share (DKK)
4.1
22.63
18.62
12.22
DKK million
Note
2024
2023
2022
Statement of comprehensive income
Net profit
100,988
83,683
55,525
Other comprehensive income:
Remeasurements of retirement benefit obligations
(119)
13
615
Items that will not be reclassified subsequently to the income statement
(119)
13
615
Exchange rate adjustments of investments in subsidiaries
4.3
3,096
(1,404)
2,289
Cash flow hedges:
Realisation of previously deferred (gains)/losses
4.3, 4.5
(1,612)
(1,026)
1,740
Deferred gains/(losses) related to acquisition of businesses
4.3, 4.5
1,154
—
—
Deferred gains/(losses) on hedges open at year-end
4.3, 4.5
(5,763)
1,612
1,026
Tax and other items
4.3
1,343
(355)
(892)
Items that will be reclassified subsequently to the income statement
(1,782)
(1,173)
4,163
Other comprehensive income
(1,901)
(1,160)
4,778
Total comprehensive income
99,087
82,523
60,303
102
Consolidated financial statements / Income statement and Statement of comprehensive income
Cash flow statement
for the year ended 31 December
DKK million
Note
2024
2023
2022
Cash flow statement
Net profit
100,988
83,683
55,525
Adjustment of non-cash items:
Income taxes in the income statement
2.6
26,203
20,991
13,537
Depreciation, amortisation and impairment losses
3.1, 3.2
19,107
9,413
7,362
Other non-cash items
4.7
15,029
33,517
22,509
Changes in working capital
4.7
(11,995)
(13,380)
(5,535)
Interest received
1,884
1,072
276
Interest paid
(612)
(491)
(272)
Income taxes paid
2.6
(29,636)
(25,897)
(14,515)
Net cash flows from operating activities
120,968
108,908
78,887
Purchase of intangible assets
3.1
(4,145)
(13,090)
(2,607)
Purchase of property, plant and equipment
3.2
(47,164)
(25,806)
(12,146)
Cash used for acquisition of businesses
5.3
(82,163)
—
(7,075)
Proceeds from other financial assets
—
33
—
Purchase of other financial assets
(786)
(271)
(169)
Purchase of marketable securities
(19,028)
(13,018)
(9,566)
Sale of marketable securities
24,391
8,260
6,645
Net cash flows from investing activities
(128,895)
(43,892)
(24,918)
DKK million
Note
2024
2023
2022
Purchase of treasury shares
4.2
(20,181)
(29,924)
(24,086)
Dividends paid
4.2
(44,140)
(31,767)
(25,303)
Proceeds from borrowings
4.6
79,391
—
11,215
Repayment of borrowings
4.6
(6,335)
(1,467)
(13,623)
Net cash flows from financing activities
8,735
(63,158)
(51,797)
Net cash generated from activities
808
1,858
2,172
Cash and cash equivalents at the beginning of the year
14,392
12,653
10,719
Exchange gains/(losses) on cash and cash equivalents
455
(119)
(238)
Cash and cash equivalents at the end of the year
15,655
14,392
12,653
103
Consolidated financial statements / Cash flow statement
Balance sheet
at 31 December
DKK million
Note
2024
2023
Assets
Intangible assets
3.1
111,090
60,406
Property, plant and equipment
3.2
162,488
90,961
Investments in associated companies
400
410
Deferred income tax assets
2.6
24,627
20,380
Other receivables and prepayments
4.8
4,016
1,430
Other financial assets
4.8
2,277
1,253
Total non-current assets
304,898
174,840
Inventories
3.3
40,849
31,811
Trade receivables
3.4
71,949
64,770
Tax receivables
2,853
2,423
Other receivables and prepayments
4.8
12,612
8,068
Marketable securities
4.4
10,653
15,838
Derivative financial instruments
4.5
6,326
2,344
Cash at bank
4.4
15,655
14,392
Total current assets
160,897
139,646
Total assets
465,795
314,486
DKK million
Note
2024
2023
Equity and liabilities
Share capital
4.3
446
451
Treasury shares
4.3
(2)
(5)
Retained earnings
144,448
104,839
Other reserves
4.3
(1,406)
1,276
Total equity
143,486
106,561
Borrowings
4.6
89,674
20,528
Deferred income tax liabilities
2.6
5,426
10,162
Retirement benefit obligations
903
742
Other liabilities
4.8
23
189
Provisions
3.5
8,755
6,649
Total non-current liabilities
104,781
38,270
Borrowings
4.6
13,113
6,478
Trade payables
28,846
25,606
Tax payables
9,716
7,116
Other liabilities
4.8
37,993
28,705
Derivative financial instruments
4.5
7,531
1,272
Provisions
3.5
120,329
100,478
Total current liabilities
217,528
169,655
Total liabilities
322,309
207,925
Total equity and liabilities
465,795
314,486
104
Consolidated financial statements / Balance sheet
Equity statement
at 31 December
2024
2023
2022
DKK million
Share
capital
Treasury
shares
Retained
earnings
Other
reserves
Total
Share
capital
Treasury
shares
Retained
earnings
Other
reserves
Total
Share
capital
Treasury
shares
Retained
earnings
Other
reserves
Total
Balance at the beginning of the year
451
(5)
104,839
1,276
106,561
456
(6)
80,587
2,449
83,486
462
(6)
72,004
(1,714)
70,746
Net profit
100,988
100,988
83,683
83,683
55,525
55,525
Other comprehensive income
(119)
(1,782)
(1,901)
13
(1,173)
(1,160)
615
4,163
4,778
Total comprehensive income
100,869
(1,782)
99,087
83,696
(1,173)
82,523
56,140
4,163
60,303
Transfer of cash flow hedge reserve to intangible assets (note 4.3)
(900)
(900)
—
—
—
—
Transactions with owners:
Dividends (note 4.2)
(44,140)
(44,140)
(31,767)
(31,767)
(25,303)
(25,303)
Share-based payments (note 5.1)
2,289
2,289
2,149
2,149
1,539
1,539
Purchase of treasury shares (note 4.3)
(2)
(20,179)
(20,181)
(4)
(29,920)
(29,924)
(6)
(24,080)
(24,086)
Reduction of the B share capital (note 4.3)
(5)
5
—
(5)
5
—
(6)
6
—
Tax related to transactions with owners
770
770
94
94
287
287
Balance at the end of the year
446
(2)
144,448
(1,406)
143,486
451
(5)
104,839
1,276
106,561
456
(6)
80,587
2,449
83,486
Refer to note 4.3 for details of movements in Other reserves.
105
Consolidated financial statements / Equity statement
Notes to the Consolidated financial statements
Section 1
Basis of preparation
1.1 Material accounting policies and key accounting
estimates and judgements
The Consolidated financial statements included in this Annual Report have been
prepared in accordance with IFRS
® Accounting Standards as issued by the
International Accounting Standards Board (IASB) and in accordance with IFRS
Accounting Standards as endorsed by the EU and further requirements in the Danish
Financial Statements Act.
Measurement basis
The Consolidated financial statements have been prepared on the historical cost basis
except for derivative financial instruments, equity investments, marketable securities
and trade receivables in a factoring portfolio, which are measured at fair value.
Material accounting policies
Apart from the general accounting policies, which are described in note 5.6, Novo Nordisk’s
accounting policies are described in each of the individual notes to the Consolidated
financial statements. The accounting policies have been applied consistently in the
preparation of the Consolidated financial statements for all the years presented.
Key accounting estimates and judgements
The use of reasonable estimates and judgements is an essential part of the
preparation of the Consolidated financial statements. Given the uncertainties inherent
in Novo Nordisk’s business activities, Management must make certain estimates
regarding valuation and make judgements on the reported amounts of assets,
liabilities, net sales, expenses and related disclosures.
The key accounting estimates identified are those that have a significant risk of
resulting in a material adjustment to the carrying amount of assets and liabilities in
the following reporting period. An example being the estimation of US sales
deductions and provisions for sales rebates.
When determining estimates and assumptions, Management has assessed the qualitative
and quantitative impact of climate-related matters. It is Management’s assessment that the
effect of climate-related matters does not significantly impact estimates and assumptions.
Management bases its estimates on historical experience and various other
assumptions that are held to be reasonable under the circumstances. The estimates
and underlying assumptions are reviewed on an ongoing basis. If necessary, changes
are recognised in the period in which the estimate is revised. Management considers
the key accounting estimates to be reasonable and appropriate based on currently
available information. The actual amounts may differ from the amounts estimated as
more detailed information becomes available.
In addition, Management may make certain judgements in the process of applying
the entity’s accounting policies, for example the Judgement of whether intangible
assets acquired in a business combination are separately identifiable.
Management regards those listed below as the key accounting estimates and
judgements applied in the preparation of the Consolidated financial statements.
Refer to the specific notes for further information on the key accounting estimates
and judgements as well as assumptions applied.
Applying materiality
The Consolidated financial statements are a result of processing large numbers
of transactions and aggregating those transactions into classes according to their
nature or function. The transactions are presented in classes of similar items in
the Consolidated financial statements. If a line item is not individually material, it
is aggregated with other items of a similar nature in the Consolidated financial
statements or in the notes.
Key accounting estimates and judgements
Risk
Note(s)
Estimate of US sales deductions and provisions for sales rebates
High
2.1, 3.5
Estimate in determining fair values of assets acquired in a business combination and in impairment reviews of intangible assets
High
3.1, 5.3
Judgement of whether intangible assets acquired in a business combination are separately identifiable
High
5.3
Estimate regarding deferred income tax assets and provision for uncertain tax positions
Medium
2.6
Estimate of ongoing legal disputes, litigation and investigations
Medium
3.5
Management provides the specific disclosures required by IFRS Accounting Standards
unless the information is not applicable or is considered immaterial to the decision-
making of the primary users of these financial statements.
1.2 Changes in accounting policies and disclosures
Management has assessed that new or amended IFRS Accounting Standards and
interpretations issued by the IASB and endorsed by the EU effective on or after 1
January 2024 has not had a significant effect on the Consolidated financial statements.
Furthermore, new or amended IFRS Accounting Standards and interpretations issued
by the IASB that have not yet become effective are generally not adopted until they
become effective and endorsed by the EU. Management does not anticipate any
significant impact on the Consolidated financial statements in the period of initial
application from the adoption of these new standards and amendments, apart from
IFRS 18 ‘Presentation and Disclosure in Financial Statements’ which replaces IAS 1
effective from 1 January 2027. The new IFRS 18 is expected to change the presentation
of the Income statement and to differentiate between earnings from operating
activities, investment activities and financing activities. IFRS 18 will also add additional
disclosures but will not change any accounting policies on recognition and
measurement, hence it will not change reported net results.
106
Consolidated financial statements / Notes to the Consolidated financial statements / 1.1 Material accounting policies and key accounting estimates and judgements
Section 2
Results for the year
2.1 Net sales and rebates
Gross-to-net sales reconciliation
DKK million
2024
2023
2022
Gross sales
680,563
608,645
455,692
US Managed Care and Medicare
(238,946)
(223,191)
(161,123)
US wholesaler charge-backs
(64,437)
(74,435)
(56,443)
US Medicaid rebates
(32,919)
(31,821)
(24,667)
Other US discounts and sales returns
(30,737)
(28,481)
(18,300)
US rebates, discounts and sales returns
(367,039)
(357,928)
(260,533)
Non-US rebates, discounts and sales returns
(23,121)
(18,456)
(18,205)
Total gross-to-net sales adjustments
(390,160)
(376,384)
(278,738)
Net sales
290,403
232,261
176,954
Provisions for sales rebates
DKK million
2024
2023
2022
At the beginning of the year
99,878
69,499
50,822
Additional provisions, including increases to
existing provisions
318,812
285,266
206,354
Amount paid during the year
(299,334)
(250,316)
(189,580)
Adjustments regarding prior years, including
unused amounts reversed during the year
(6,452)
(2,364)
(1,141)
Effect of exchange rate adjustment
5,612
(2,207)
3,044
At the end of the year
118,516
99,878
69,499
Sales discounts and sales rebates are predominantly issued in the US. As such, total US
rebates, discounts and sales returns amounts to DKK (367,039) million, corresponding
to 69% of gross sales in the US (74% in 2023 and 75% in 2022).
Provisions for sales rebates include US Managed Care, Medicare, Medicaid, 340B
Drug Pricing Program and other US rebate types, as well as rebates in a number
of European countries and Canada.
Pricing mechanisms in the US market
In the US, sales rebates are paid in connection with public healthcare insurance
programmes, including Medicare and Medicaid, as well as rebates to pharmacy
benefit managers (PBMs) and managed healthcare plans. Key customers in the US
include private payers, PBMs and government payers. PBMs and managed healthcare
plans play a role in negotiating price concessions with drug manufacturers for both
the commercial and government channels, and determine which drugs are covered
on their formularies (or 'preferred drug lists').
US Managed Care and Medicare
For Managed Care and Medicare, rebates are offered to a number of PBMs and
managed healthcare plans. These rebate programmes allow the customer to receive a
rebate after attaining certain performance parameters relating to formulary status or
pre-established market share thresholds. Rebate provisions are estimated according
to the specific terms in each agreement, historical experience, anticipated channel
mix, growth rates and market share information. Novo Nordisk adjusts the provision
periodically to reflect actual sales performance. Managed Care and Medicare rebates
are generally settled around 100 days from the transaction date.
US wholesaler charge-backs
Wholesaler charge-backs relate to contractual arrangements between Novo Nordisk
and indirect customers in the US whereby products are sold at contract prices lower
than the list price originally charged to wholesalers. Chargeback provisions are
estimated using a combination of factors such as historical experience, current
wholesaler inventory levels, contract terms and the value of claims received but not
yet processed. Wholesaler charge-backs are generally settled within 30 days after
receipt of claim.
In January 2021, Novo Nordisk changed its policy in the US related to the 340B Drug
Pricing Program, whereby Novo Nordisk no longer provides 340B statutory discounts
to certain pharmacies that contract with covered entities participating in the 340B
Drug Pricing Program. Novo Nordisk has recognised revenue related to the 340B Drug
Pricing Program to the extent that it is highly probable that its inclusion will not result
in a significant revenue reversal in the future. Management’s assessment considers
interpretations of applicable laws, legal and administrative rulings, as well as attrition
and experience from historical claims. During 2024, additional provisions for 340B
statutory discounts of net USD 0.8 billion were recognised. As of 31 December 2024,
provisions for sales rebates comprise a provision for 340B statutory discounts of
USD 4.6 billion.
Refer to note 3.5 for a more elaborate description of the ongoing litigation related to
the 340B Drug Pricing Program.
US Medicaid rebates
Medicaid is a government insurance programme. Medicaid rebates have been
estimated using a combination of historical experience, product and population
growth, price changes and the impact of contracting strategies. The calculation
also involves interpretation of relevant regulations that are subject to changes in
interpretative guidance from government authorities. Novo Nordisk adjusts the
provision periodically to reflect actual sales performance. Medicaid rebates
are generally settled around 150 days from the transaction date.
Other US and non-US discounts and sales returns
Other discounts are provided to distributors, wholesalers, hospitals, pharmacies, etc.
Further, discounts are provided to patients through different programmes.They are
usually linked to sales volume or provided as cash discounts. Discounts are calculated
based on historical data and recorded as a reduction in gross sales at the time the
related sales are recorded. Sales returns relate to damaged or expired products.
Other net sales disclosures
In 2024, Novo Nordisk had 3 major wholesalers distributing products in the US,
representing 23%, 17% and 17% respectively of global net sales (22%, 17% and 15% in
2023 and 19%, 14% and 13% in 2022). Sales to these 3 wholesalers are within both
Diabetes and Obesity care and Rare disease.
Net sales to be recognised from existing customer contracts containing fixed or
minimum sales volumes, with an original term greater than 12 months, are expected
to be DKK 3,753 million within 12 months (DKK 3,166 million in 2023) and DKK
5,822 million thereafter (DKK 443 million).
KEY ACCOUNTING ESTIMATES OF SALES DEDUCTIONS AND
PROVISIONS FOR SALES REBATES
Sales deductions are estimated and provided for at the time the related sales
are recorded. These estimates of unsettled rebate, discount and product return
obligations is considered a key accounting estimate as not all conditions are known
at the time of sale, for example total sales volume to a given customer. The estimates
are based on analyses of existing contractual obligations and historical experience.
Provisions are calculated on the basis of a percentage of sales for each product
as defined by the contracts with the various customer groups. Provisions for
sales rebates are adjusted to actual amounts as rebates, discounts and returns
are processed.
Revenue related to the 340B Drug Pricing Program can only be recognised to the
extent that it is highly probable that a significant reversal of the recognised revenue
will not occur.
Novo Nordisk considers the provisions established for sales rebates to be reasonable
and appropriate based on the information currently available. However, the actual
amount of rebates and discounts may differ from the amounts estimated by
Management as more detailed information becomes available.
107
Consolidated financial statements / Notes to the Consolidated financial statements / 2.1 Net sales and rebates
ACCOUNTING POLICIES
Revenue from sale of goods is recognised when Novo Nordisk has transferred
control of products sold to the buyer and it is probable that Novo Nordisk will collect
the consideration to which it is entitled for transferring the products. Control of the
products is transferred at a single point in time, typically on delivery. The amount of
sales to be recognised is based on the consideration Novo Nordisk expects to receive
in exchange for its goods. When sales are recognised, Novo Nordisk also records
estimates for a variety of sales deductions; including product returns as well as
rebates and discounts to government agencies, wholesalers, health insurance
companies, managed healthcare organisations and retail customers. Sales deductions
are recognised as a reduction of gross sales to arrive at net sales, by assessing the
expected value of the sales deductions (variable consideration). Where contracts
contain customer acceptance criteria, Novo Nordisk recognises sales when the
acceptance criteria are satisfied.
In some markets, Novo Nordisk sells products on a sale-or-return basis. Where there
is historical experience or a reasonably accurate estimate of future returns, estimated
product returns are recorded as a reduction in sales. Where shipments of new
products are made on a sale-or-return basis, without sufficient historical experience
for estimating sales returns, revenue is recorded based on estimated demand and
acceptance rates for well-established products with similar market characteristics. If
similar market characteristics do not exist, revenue is recorded when there is evidence
of consumption or when the right of return has expired.
Unsettled rebates are recognised as provisions when the timing or amount is
uncertain (note 3.5).
Where absolute amounts are known, the rebates are recognised as other liabilities.
Wholesaler charge-backs that are absolute are netted against trade receivable balances.
The impact of foreign currency hedging in the income statement is recognised as
part of financial items. Refer to notes 4.4, 4.5 and 4.9 for more details on hedging.
2.2 Segment information
Operating segments – Key figures
Diabetes and Obesity care
Rare disease
Total
DKK million
2024
2023
2022
2024
2023
2022
2024
2023
2022
Net sales
271,764
215,098
156,412
18,639
17,163
20,542
290,403
232,261
176,954
Cost of goods sold
(37,760)
(30,483)
(23,405)
(6,762)
(5,282)
(5,043)
(44,522)
(35,765)
(28,448)
Sales and distribution costs
(57,840)
(52,477)
(42,392)
(4,261)
(4,266)
(3,825)
(62,101)
(56,743)
(46,217)
Research and development costs
(41,490)
(28,073)
(20,157)
(6,572)
(4,370)
(3,890)
(48,062)
(32,443)
(24,047)
Administrative costs
(4,881)
(4,435)
(3,955)
(395)
(420)
(512)
(5,276)
(4,855)
(4,467)
Other operating income and expenses
(2,074)
(7)
892
(29)
126
142
(2,103)
119
1,034
Segment operating profit
127,719
99,623
67,395
620
2,951
7,414
128,339
102,574
74,809
Operating margin
47.0%
46.3%
43.1%
3.3%
17.2%
36.1%
44.2%
44.2%
42.3%
Depreciation and amortisation expenses
(7,104)
(6,042)
(5,421)
(1,441)
(1,247)
(1,132)
(8,545)
(7,289)
(6,553)
Impairment losses and reversals
(9,262)
(2,153)
(280)
(1,300)
29
(529)
(10,562)
(2,124)
(809)
Total depreciation, amortisation, impairment
losses and reversals
(16,366)
(8,195)
(5,701)
(2,741)
(1,218)
(1,661)
(19,107)
(9,413)
(7,362)
Operating segments
Novo Nordisk operates in two segments based on therapies: Diabetes and Obesity
care and Rare disease, representing the entirety of the Group's operations. The
activities of the segments include research, development, manufacturing and
marketing of products within the following areas:
• Diabetes and Obesity care: diabetes, obesity, cardiovascular and emerging therapy areas
• Rare disease: rare blood disorders, rare endocrine disorders and hormone
replacement therapy.
Segment performance is evaluated on the basis of operating profit, consistent with the
Consolidated financial statements. Financial income and expenses and income taxes
are managed at Group level and are not allocated to segments. There are no sales or
other transactions between the segments. Costs have generally been split between
segments according to a specific allocation. Certain corporate overhead costs are
allocated between segments based on overall allocation keys. Other operating income
and expenses have been allocated to the two segments based on the same principle.
ACCOUNTING POLICIES
Operating segments are reported in a manner consistent with the internal reporting
provided to Executive Management and the Board of Directors. We consider Executive
Management to be the operating decision-making body.
Geographical areas
In 2024, Novo Nordisk operated in two main commercial units:
• International Operations
• EMEA: Europe, the Middle East and Africa.
• Region China: Mainland China, Hong Kong and Taiwan.
• Rest of World: All other countries except for North America.
• North America Operations (the US and Canada).
In 2024, the US contributed 10% or more of total net sales. In 2023, the US also
contributed 10% or more of total net sales. The country of domicile is Denmark, which
is part of EMEA. Denmark is immaterial to Novo Nordisk's activities in terms of sales as
99.2% of total net sales are realised outside Denmark (99.2 % in 2023). Sales are
attributed to geographical areas according to the location of the customer.
Total property, plant and equipment and intangible assets amounts to
DKK 273,578 million (DKK 151,367 million in 2023), of which DKK 177,471 million is
located in Denmark (DKK 82,274 million in 2023) and DKK 57,141 million is located in
the US (DKK 46,609 million in 2023).
108
Consolidated financial statements / Notes to the Consolidated financial statements / 2.2 Segment information
Net sales – Segments and geographical areas
Total International Operations
Total North America Operations
Total Novo Nordisk
net sales
Total IO
EMEA
Region China
Rest of World
Total NAO
US
DKK million
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
Diabetes and Obesity care segment:
Ozempic
®
29,055
26,378
17,369
16,001
14,327
10,417
5,762
4,821
2,196
7,292
7,230
4,756
91,287
69,340
42,381
84,201
63,010
38,750
120,342
95,718
59,750
Rybelsus
®
12,231
7,389
3,155
7,136
4,232
1,714
511
131
63
4,584
3,026
1,378
11,070
11,361
8,144
10,795
11,060
8,011
23,301
18,750
11,299
Victoza
®
3,686
4,850
5,672
1,422
2,166
2,724
975
1,256
1,478
1,289
1,428
1,470
1,796
3,814
6,650
1,699
3,613
6,406
5,482
8,664
12,322
Total GLP-1
44,972
38,617
26,196
24,559
20,725
14,855
7,248
6,208
3,737
13,165
11,684
7,604
104,153
84,515
57,175
96,695
77,683
53,167
149,125
123,132
83,371
Long-acting insulin
12,884
11,339
11,403
7,686
7,103
7,157
2,696
1,649
1,636
2,502
2,587
2,610
6,211
3,566
5,338
5,538
2,931
4,685
19,095
14,905
16,741
• of which Awigli
®
15
—
—
9
—
—
6
—
—
—
—
—
4
—
—
—
—
—
19
—
—
• of which Tresiba
®
6,494
5,864
6,092
3,876
3,435
3,485
978
848
1,050
1,640
1,581
1,557
3,411
1,888
3,261
2,806
1,333
2,723
9,905
7,752
9,353
• of which Xultophy
®
4,217
2,887
2,400
2,185
1,831
1,716
1,414
409
45
618
647
639
286
332
409
281
325
399
4,503
3,219
2,809
• of which Levemir
®
2,158
2,588
2,911
1,616
1,837
1,956
298
392
541
244
359
414
2,510
1,346
1,668
2,451
1,273
1,563
4,668
3,934
4,579
Premix insulin
10,143
9,342
10,023
2,637
2,570
2,622
4,784
4,441
4,912
2,722
2,331
2,489
646
232
539
632
216
517
10,789
9,574
10,562
• of which Ryzodeg
®
4,929
3,730
2,889
701
587
495
2,782
1,965
1,218
1,446
1,178
1,176
—
—
—
—
—
—
4,929
3,730
2,889
• of which NovoMix
®
5,214
5,612
7,134
1,936
1,983
2,127
2,002
2,476
3,694
1,276
1,153
1,313
646
232
539
632
216
517
5,860
5,844
7,673
Fast-acting insulin
10,563
10,415
10,826
6,934
6,695
6,456
1,474
1,545
1,942
2,155
2,175
2,428
7,959
5,534
6,637
7,773
5,265
6,247
18,522
15,949
17,463
• of which Fiasp
®
1,609
1,512
1,354
1,289
1,266
1,138
—
—
—
320
246
216
260
661
649
213
618
606
1,869
2,173
2,003
• of which NovoRapid
®
8,954
8,903
9,472
5,645
5,429
5,318
1,474
1,545
1,942
1,835
1,929
2,212
7,699
4,873
5,988
7,560
4,647
5,641
16,653
13,776
15,460
Human insulin
5,388
6,134
6,508
1,762
1,919
1,983
806
1,213
1,812
2,820
3,002
2,713
1,579
1,460
1,678
1,535
1,406
1,605
6,967
7,594
8,186
Total insulin
38,978
37,230
38,760
19,019
18,287
18,218
9,760
8,848
10,302
10,199
10,095
10,240
16,395
10,792
14,192
15,478
9,818
13,054
55,373
48,022
52,952
Other Diabetes care
1,856
1,987
2,428
688
661
717
782
892
1,181
386
434
530
264
325
797
213
267
660
2,120
2,312
3,225
Total Diabetes care
85,806
77,834
67,384
44,266
39,673
33,790
17,790
15,948
15,220
23,750
22,213
18,374
120,812
95,632
72,164
112,386
87,768
66,881
206,618
173,466
139,548
Wegovy
®
11,425
1,913
54
7,513
1,913
54
196
—
—
3,716
—
—
46,781
29,430
6,134
45,770
29,430
6,134
58,206
31,343
6,188
Saxenda
®
5,563
6,402
5,832
2,920
3,780
3,561
102
146
133
2,541
2,476
2,138
1,377
3,887
4,844
777
3,306
4,368
6,940
10,289
10,676
Total Obesity care
16,988
8,315
5,886
10,433
5,693
3,615
298
146
133
6,257
2,476
2,138
48,158
33,317
10,978
46,547
32,736
10,502
65,146
41,632
16,864
Diabetes and Obesity care total
102,794
86,149
73,270
54,699
45,366
37,405
18,088
16,094
15,353
30,007
24,689
20,512
168,970
128,949
83,142
158,933
120,504
77,383
271,764
215,098
156,412
Rare disease segment:
Rare blood disorders
6,442
6,432
6,671
3,924
4,021
3,795
363
372
604
2,155
2,039
2,272
5,696
5,344
5,035
5,387
5,070
4,710
12,138
11,776
11,706
• of which Haemophilia A
1,906
1,939
1,769
1,231
1,271
1,137
236
223
81
439
445
551
548
483
569
537
468
543
2,454
2,422
2,338
• of which Haemophilia B
649
584
479
436
377
294
17
13
13
196
194
172
657
477
280
486
336
152
1,306
1,061
759
• of which NovoSeven
®
3,735
3,789
4,335
2,168
2,285
2,311
110
136
510
1,457
1,368
1,514
4,248
4,169
3,973
4,135
4,065
3,811
7,983
7,958
8,308
Rare endocrine disorders
2,032
2,045
4,904
1,038
699
2,232
41
216
246
953
1,130
2,426
2,961
1,791
2,234
2,922
1,757
2,205
4,993
3,836
7,138
Other Rare disease
963
1,006
1,002
741
781
804
9
5
6
213
220
192
545
545
696
160
203
358
1,508
1,551
1,698
Rare disease total
9,437
9,483
12,577
5,703
5,501
6,831
413
593
856
3,321
3,389
4,890
9,202
7,680
7,965
8,469
7,030
7,273
18,639
17,163
20,542
Total sales by geographical area
112,231
95,632
85,847
60,402
50,867
44,236
18,501
16,687
16,209
33,328
28,078
25,402
178,172
136,629
91,107
167,402
127,534
84,656
290,403
232,261
176,954
Total sales growth as reported
17.4%
11.4%
16.7%
18.7%
15.0%
17.3%
10.9%
2.9%
1.2%
18.7%
10.5%
28.2%
30.4%
50.0%
35.4%
31.3%
50.6%
34.4%
25.0%
31.3%
25.7%
109
Consolidated financial statements / Notes to the Consolidated financial statements / 2.2 Segment information
2.3 Research and development costs
DKK million
2024
2023
2022
Employee costs (note 2.4)
15,923
12,429
9,952
Amortisation, intangible assets (note 3.1)
931
649
604
Impairment losses and reversals,
intangible assets (note 3.1)
7,912
1,108
760
Depreciation, property, plant and
equipment (note 3.2)
1,120
1,053
898
Impairment losses, property, plant and
equipment (note 3.2)
78
260
24
Clinical trial cost
12,232
9,468
6,313
Other research and development costs
9,866
7,476
5,496
Total research and development costs
48,062
32,443
24,047
As percentage of net sales
16.6%
14.0%
13.6%
Novo Nordisk's research and development is mainly focused on:
• Insulins, GLP-1s and other therapeutic compounds for diabetes treatment
• GLP-1s, combinations and new modes of action for Obesity care
• Blood-clotting factors and new modes of action for treatment of haemophilia
and other rare blood disorders
• Novel targets within cardiovascular disease focusing on ASCVD and Heart failure
• Human growth hormone and new modes of action for treatment of growth
disorders and other rare endocrine disorders
• New indications with existing assets within MASH, Alzheimer’s disease and
chronic kidney disease
• Research technology platforms including cell therapy and RNAi for treatment of
MASH, cardiovascular disease, chronic kidney disease and Parkinson's disease,
among others
The research activities mainly utilise biotechnological methods based on advanced
protein chemistry and protein engineering. These methods have played a key role in
the development of the production technology used to manufacture insulin, GLP-1,
recombinant blood-clotting factors and human growth hormone. Research activities
further utilise digital scientific methodologies and other technology platforms
including stem cells, gene therapy, small molecules and RNAi therapies.
Research and development activities are mainly carried out by Novo Nordisk's
research and development centres in Denmark, the US, the UK and China. Clinical
trials are carried out all over the world. Novo Nordisk also enters into partnerships
and licence agreements.
Other research and development costs mainly comprise external consulting
fees, IT services, facilities, consumables and other operational costs.
ACCOUNTING POLICIES
Novo Nordisk expenses all research costs. Due to significant regulatory uncertainties
and other uncertainties inherent in the development of new products, internal and
subcontracted development costs are also expensed as they are incurred, in line with
industry practice. This means that they do not qualify for capitalisation as intangible
assets until marketing approval by a regulatory authority is obtained or considered
highly probable. Costs for post-approval activities that are required by authorities
as a condition for obtaining regulatory approval are recognised as research and
development costs.
Research and development costs primarily comprise employee costs as well as
internal and external costs related to execution of studies, including manufacturing
costs and facility costs of the research centres. The costs also comprise amortisation,
depreciation and impairment losses related to intellectual property rights and
property, plant and equipment used in the research and development activities.
Amortisations of intellectual property rights related to marketed products are
recognised in cost of goods sold. Royalty expenses paid to partners after regulatory
approval are also expensed as cost of goods sold.
Contractual research and development obligations to be paid in the future are
disclosed separately as commitments in note 5.2.
2.4 Employee costs
DKK million
2024
2023
2022
Wages and salaries
52,311
42,867
34,575
Share-based payment costs (note 5.1)
2,289
2,149
1,539
Pensions – defined contribution plans
4,235
3,267
2,472
Pensions – defined benefit plans
156
126
185
Other social security contributions
3,505
3,039
2,713
Other employee costs
4,929
4,066
3,105
Total employee costs for the year
67,425
55,514
44,589
Employee costs capitalised as intangible
assets and property, plant and equipment
(3,540)
(2,337)
(1,451)
Change in employee costs capitalised
as inventories
(470)
(409)
(70)
Total employee costs
in the income statement
63,415
52,768
43,068
Included in the income statement:
Cost of goods sold
20,074
15,490
11,766
Sales and distribution costs
22,920
20,810
17,700
Research and development costs
15,923
12,429
9,952
Administrative costs
4,265
3,962
3,517
Other operating income and expenses
233
77
133
Total employee costs in the
income statement
63,415
52,768
43,068
Number of employees
Number
2024
2023
2022
Average number of full-time employees
69,480
59,552
51,046
Year-end number of full-time employees
76,302
63,370
54,393
Year-end employees (total)
77,349
64,319
55,185
110
Consolidated financial statements / Notes to the Consolidated financial statements / 2.3 Research and development costs
ACCOUNTING POLICIES
Wages, salaries, social security contributions, annual leave and sick leave, bonuses
and non-monetary benefits are recognised in the year in which the associated services
are rendered by employees of Novo Nordisk. Where Novo Nordisk provides long-term
employee benefits, the costs are accrued to match the rendering of the services by the
employees concerned.
2.5 Other operating income and expenses
ACCOUNTING POLICIES
Other operating income and expenses, include mainly licence income and
amortisations and impairment losses, which are of a secondary nature in relation
to the main activities of Novo Nordisk.
Operating profit from wholly owned subsidiaries, not related to Novo Nordisk's
main activities, as well as operating profit from non-core manufacturing contracts,
are recognised as other operating income and expenses.
Other operating income and expenses, also includes transaction costs in
connection with acquisition of businesses. Refer to note 5.3 for details on the
acquisition of businesses.
2.6 Income taxes and deferred income taxes
Income taxes expensed
DKK million
2024
2023
2022
Current tax on profit for the year
32,082
25,918
17,829
Deferred tax on profit for the year
(5,484)
(4,464)
(3,806)
Tax on profit for the year
26,598
21,454
14,023
Current tax adjustments recognised
for prior years
172
(916)
339
Deferred tax adjustments recognised
for prior years
(567)
453
(825)
Income taxes in the income statement
26,203
20,991
13,537
Tax on other comprehensive income
for the year, (income)/expense
(1,343)
359
889
Computation of effective tax rate
DKK million
2024
2023
2022
Statutory corporate income tax
rate in Denmark
22.0%
22.0%
22.0%
Deviation in foreign subsidiaries'
tax rates compared to the Danish
tax rate (net)
(0.5%)
(0.9%)
(1.1%)
Non-taxable income less non-tax-
deductible expenses (net)
(0.7%)
(0.7%)
(0.5%)
Other adjustments (net)
(0.2%)
(0.3%)
(0.8%)
Effective tax rate
20.6%
20.1%
19.6%
Income taxes paid
DKK million
2024
2023
2022
Income taxes paid in Denmark for
current year
21,810
16,899
7,481
Income taxes paid outside Denmark
for current year
7,826
8,998
7,034
Income taxes paid
29,636
25,897
14,515
The deviation in foreign subsidiaries' tax rates from the Danish tax rate is mainly
driven by Swiss and US business activities. Other adjustments consist of tax related
to prior years.
From 1 January 2024 Novo Nordisk is subject to Global Minimum Tax (OECD BEPS Pillar 2
rules). The rules did not have a material impact on the tax position of Novo Nordisk in 2024.
KEY ACCOUNTING ESTIMATES REGARDING DEFERRED INCOME TAX ASSETS AND
PROVISIONS FOR UNCERTAIN TAX POSITIONS
Management has considered future taxable income and has estimated the amount
of deferred income tax assets that should be recognised. The estimate is based on an
assessment of whether sufficient taxable income will be available in the future, against
which the temporary differences and unused tax losses can be utilised. The total tax
value of unrecognised tax loss carry-forwards amounts to DKK 602 million in 2024
(DKK 360 million in 2023).
In the course of conducting business globally, tax and transfer pricing disputes with
tax authorities may occur. Management has estimated the expected outcome of the
disputes by using the ‘most likely outcome’ method to determine the provisions for
uncertain tax positions. Management considers the provisions made to be adequate.
However, the actual obligation may deviate and depends on the result of litigation
and settlements with the relevant tax authorities.
ACCOUNTING POLICIES
The tax expense for the period comprises current and deferred tax. It also includes
adjustments to previous years and changes in provisions for uncertain tax positions.
Tax is recognised in the income statement except to the extent that it relates to items
recognised in equity or other comprehensive income. Provisions for ongoing tax
disputes are included as part of deferred tax assets, tax receivables and tax payables.
Deferred income taxes arise from temporary differences between the accounting
and tax values of the individual consolidated companies and from realisable tax loss
carry-forwards. Deferred tax liabilities are not recognised if they arise from the initial
recognition of goodwill. Deferred income tax is also not accounted for if it arises
from initial recognition of an asset or liability in a transaction other than a business
combination that, at the time of the transaction, affects neither accounting nor taxable
profit or loss and does not give rise to equal taxable and deductible temporary
differences. The tax value of tax loss carry-forwards is included in deferred tax
assets to the extent that these are expected to be utilised in future taxable income.
The deferred income taxes are measured according to current tax rules and at the
tax rates assumed in the year in which the assets are expected to be utilised.
In general, the Danish tax rules related to dividends from group companies provide
exemption from tax for most repatriated profits. In some countries withholding tax
will be applied to dividends paid to Denmark. A provision for withholding tax is only
recognised if a concrete distribution of dividends is planned. The unrecognised
potential withholding tax amounts to DKK 1,228 million (DKK 1,026 million in 2023).
111
Consolidated financial statements / Notes to the Consolidated financial statements / 2.5 Other operating income and expenses
The value of future tax deductions in relation to share programmes is recognised
as a deferred tax asset until the shares are paid out to the employees. Any estimated
excess tax deduction compared to the costs realised in the income statement is
charged to equity.
Development in deferred income tax assets and liabilities
Property,
plant and
equipment
Intangible
assets
Inventories
Liabilities
Other
Offset
within
countries
Total
DKK million
2024
Net deferred tax asset/(liability) at the beginning of the year
(2,561)
(10,241)
1,717
14,427
6,876
—
10,218
Income/(charge) to the income statement
(207)
427
2,142
3,485
204
—
6,051
Income/(charge) to other comprehensive income
—
(254)
(71)
17
1,622
—
1,314
Income/(charge) to equity
—
254
—
—
(314)
—
(60)
Additions from acquisitions
(2,723)
3,693
—
25
102
—
1,097
Effect of exchange rate adjustment
(116)
(145)
2
773
67
—
581
Net deferred tax asset/(liability) at the end of the year
(5,607)
(6,266)
3,790
18,727
8,557
—
19,201
Classified as follows:
Deferred tax asset at the end of the year
497
225
3,847
18,989
13,112
(12,043)
24,627
Deferred tax liability at the end of the year
(6,104)
(6,491)
(57)
(262)
(4,555)
12,043
(5,426)
2023
Net deferred tax asset/(liability) at the beginning of the year
(2,402)
(8,279)
2,595
11,007
3,922
—
6,843
Income/(charge) to the income statement
(213)
(2,106)
(645)
3,973
3,002
—
4,011
Income/(charge) to other comprehensive income
—
—
(224)
(6)
(129)
—
(359)
Income/(charge) to equity
—
—
—
—
(120)
—
(120)
Additions from acquisitions
—
—
—
—
62
—
62
Effect of exchange rate adjustment
54
144
(9)
(547)
139
—
(219)
Net deferred tax asset/(liability) at the end of the year
(2,561)
(10,241)
1,717
14,427
6,876
—
10,218
Classified as follows:
Deferred tax asset at the end of the year
433
245
1,820
14,792
6,986
(3,896)
20,380
Deferred tax liability at the end of the year
(2,994)
(10,486)
(103)
(365)
(110)
3,896
(10,162)
112
Consolidated financial statements / Notes to the Consolidated financial statements / 2.6 Income taxes and deferred income taxes
Section 3
Operating assets and
liabilities
3.1 Intangible assets
Amortisation
DKK million
2024
2023
2022
Cost of goods sold
1,400
982
846
Sales and distribution costs
—
9
34
Research and development costs
931
649
604
Administrative costs
14
41
19
Other operating income and expenses
167
153
96
Total amortisation
2,512
1,834
1,599
Impairment losses and reversals
DKK million
2024
2023
2022
Research and development costs
7,912
1,108
760
Other operating income and expenses
1,601
306
—
Total impairment losses and reversals
9,513
1,414
760
DKK million
Goodwill
Intellectual
property
rights and
know-how
Software
and other
intangibles
Total
intangible
assets
2024
Cost at the beginning of the year
4,464
60,745
5,584
70,793
Additions from acquisition of businesses (note 5.3)
15,323
41,154
311
56,788
Additions during the year
—
4,165
710
4,875
Disposals during the year
—
(213)
(70)
(283)
Effect of exchange rate adjustment
277
858
89
1,224
Cost at the end of the year
20,064
106,709
6,624
133,397
Amortisation and impairment losses at the beginning of the year
—
8,225
2,162
10,387
Amortisation for the year
—
2,257
255
2,512
Impairment losses for the year
—
9,441
72
9,513
Amortisation and impairment losses reversed on disposals during the year
—
(213)
(70)
(283)
Effect of exchange rate adjustment
—
163
15
178
Amortisation and impairment losses at the end of the year
—
19,873
2,434
22,307
Carrying amount at the end of the year
20,064
86,836
4,190
111,090
2023
Cost at the beginning of the year
4,615
49,731
5,281
59,627
Additions during the year
—
12,567
500
13,067
Disposals during the year
—
(1,629)
(158)
(1,787)
Effect of exchange rate adjustment
(151)
76
(39)
(114)
Cost at the end of the year
4,464
60,745
5,584
70,793
Amortisation and impairment losses at the beginning of the year
—
6,737
1,951
8,688
Amortisation for the year
—
1,621
213
1,834
Impairment losses for the year
—
1,776
20
1,796
Impairment losses reversed during the year
—
(382)
—
(382)
Amortisation and impairment losses reversed on disposals during the year
—
(1,629)
(16)
(1,645)
Effect of exchange rate adjustment
—
102
(6)
96
Amortisation and impairment losses at the end of the year
—
8,225
2,162
10,387
Carrying amount at the end of the year
4,464
52,520
3,422
60,406
113
Consolidated financial statements / Notes to the Consolidated financial statements / 3.1 Intangible assets
Material intangible assets
Intellectual property rights and know-how with a carrying value of DKK 86,836 million
(DKK 52,520 million in 2023), comprise intellectual property and licenses related mainly
to marketed products, know-how attributable to manufacturing, products and
technologies in development as well as technologies used in the research and
development phase.
Know-how with a carrying value of DKK 40,944 million (DKK nil in 2023), and a
remaining useful life of 10 years, is recognised in the acquisition of three fill-finish
sites in 2024 and is primarily attributable to the documented processes and systems
for efficient and large-scale production of GLP-1 products as well as know-how to
expand capacity in an efficient way. Intellectual property and licenses related to
marketed products include Rybelsus
® with a carrying value of DKK 5,453 million
(DKK 6,018 million in 2023) and a remaining useful life of 10 years (11 years in 2023).
Technologies used in the research and development phase include a RNAi technology
platform with a carrying value of DKK 9,530 million (DKK 9,480 million in 2023), with
a remaining estimated useful life of 20 years (21 years in 2023).
Intellectual property rights and know-how as well as Software and other intangibles
contain assets not yet available for use amounting to DKK 23,893 million
(DKK 29,548 million in 2023).
Impairment losses on intellectual property rights
Impairment losses on intellectual property rights amounted to DKK 9,441 million
(DKK 1,776 million in 2023). The single-largest impairment loss recognised in 2024
amounted to DKK 5,650 million arising from the impairment of ocedurenone. The
impairment loss is linked to the termination of a phase 3 trial with ocedurenone which
failed to meet its primary endpoints, hence the recoverable amount was estimated to
nil. The impairment loss is recognised in research and development costs in the
segment Diabetes and Obesity.
Impairment review of goodwill
Goodwill is allocated to the segments Diabetes and Obesity care by DKK 19,592 million
(DKK 4,018 million in 2023) and to Rare Disease by DKK 472 million (DKK 446 million in
2023). The annual impairment review showed that the recoverable amount in the
forecast period significantly exceeds the carrying amount of the cash-generating
units to which goodwill was allocated.
Goodwill is monitored for impairment at the operating segment level, which is the lowest
level CGU to which consolidated goodwill is allocated and monitored by Management.
CGUs are therefore defined as Novo Nordisk's operating segments, Diabetes and Obesity
care and Rare disease. The recoverable amount is estimated based on fair value, with fair
value being estimated at net present value using an income-approach. The applied post-
tax discount rates are 7.0% (Pre-tax discount rate of 8.3%). Cash flow projections are
based on budgets approved by Management. The forecast period comprises 9 years.
The key estimations relate to volume of market share, growth rates, pricing,
development of new markets and the success rate for introducing new products and
treatments. Assumptions are affected by external factors such as market and generic
competition, and price regulation.
Key assumptions reflect past experience adjusted for market specific risks or expected
changes. Fair value is determined using largely unobservable inputs.
KEY ACCOUNTING ESTIMATES IN DETERMINING FAIR VALUES OF INTANGIBLE
ASSETS IN IMPAIRMENT REVIEWS
Impairment tests are based on Management’s projections and anticipated net present
value of estimated future cash flows.
Goodwill and intangible assets not yet available for use are tested for impairment at
least annually or when indicators of impairment are identified. Goodwill is allocated to
operating segments based on expected future cash flow from products utilising the
synergies and know-how acquired.
Impairment tests are based on Management’s projections and anticipated net present
value of estimated future cash flows from marketable products. The discount rate
used is based on the Group WACC, adjusted where appropriate, to reflect the risk of
the specific asset tested. Fair value is determined using largely unobservable inputs.
Accordingly, the valuation technique and inputs used to measure fair value are
classified as level 3 in the fair value hierarchy.
Assets that are subject to amortisation are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be
recoverable. Factors considered material that could trigger an impairment test include
the following:
• Development of a competing drug
• Realised sales trending below predicted sales
• Changes or anticipated changes in participation rates or reimbursement policies
• Inconsistent or unfavourable clinical readouts
• Changes in the legal framework covering patents, rights and licences
• Advances in medicine and/or technology that affect the medical treatments
• Adverse impact on reputation and/or brand names
• Changes in the economic lives of similar assets
• Relationship to other intangible assets or property, plant and equipment
An impairment loss is recognised when the carrying amount of intangible assets
exceeds the recoverable amount. Impairments on intangible assets, other than
goodwill, are reviewed at each reporting date for possible reversal.
ACCOUNTING POLICIES
Research and development projects
Internal and subcontracted research costs are fully charged to the consolidated
income statement in the period in which they are incurred. Consistent with industry
practice, development costs are also expensed until regulatory approval is obtained
or is probable; refer to note 2.3.
Payments to third parties under collaboration and licence agreements are assessed
for the substance of their nature. Payments which represent subcontracted research
and development work are expensed as the services are received. Payments which
represent transfer of rights of intellectual property are capitalised.
For acquired research and development projects, and intellectual property rights,
the likelihood of obtaining future commercial sales is reflected in the cost of the asset,
and thus the probability recognition criteria is always considered to be satisfied. As the
cost of acquired research and development projects can often be measured reliably,
these projects fulfil the capitalisation criteria as intangible assets on acquisition.
Subsequent milestone payments payable on achievement of a contingent event (e.g.
commencement of phase 3 trials) are accrued and capitalised into the cost of the
intangible asset when the achievement of the event is probable. Development costs
incurred subsequent to acquisition are treated consistently with internal project
development costs.
Recognition and measurement
Intangible assets acquired separately are initially measured at cost and are
subsequently measured at cost less any accumulated amortisation and any
impairment loss. Identifiable intangible assets acquired in a business combination
are initially measured at fair value.
Amortisation of intellectual property rights is based on the straight-line method over
the estimated useful life. This corresponds to the legal duration or the economic
useful life depending on which is shorter, and not exceeding 25 years in either case.
The amortisation of intellectual property rights commences after regulatory approval
has been obtained or when assets are put in use.
Amortisation of know-how, which arises from business combinations, is based on
the straight-line method over the estimated useful life of 10 years corresponding
to the period in which economic benefits are expected to be realised.
Amortisation of software is based on the straight-line method over the estimated
useful life of 3-15 years. The amortisation commences when the asset is in the
location and condition necessary for it to be capable of operating in the manner
intended by Management.
114
Consolidated financial statements / Notes to the Consolidated financial statements / 3.1 Intangible assets
3.2 Property, plant and equipment
DKK million
Land and
buildings
Plant and
machinery
Other
equipment
Assets
under
construction
Property,
plant and
equipment
2024
Cost at the beginning of the year
48,990
40,951
8,979
39,663
138,583
Additions from acquisition of businesses (note 5.3)
6,709
18,460
278
—
25,447
Additions during the year
3,789
872
874
46,650
52,185
Disposals during the year
(632)
(1,305)
(547)
(524)
(3,008)
Transfer and reclassifications
2,342
3,602
509
(6,453)
—
Effect of exchange rate adjustment
943
618
74
42
1,677
Cost at the end of the year
62,141
63,198
10,167
79,378
214,884
Depreciation and impairment losses at the beginning of the year
18,325
23,834
5,463
—
47,622
Depreciation for the year
2,786
2,099
1,148
—
6,033
Impairment losses for the year
43
474
8
524
1,049
Depreciation and impairment losses reversed on disposals during the year
(563)
(918)
(538)
(524)
(2,543)
Effect of exchange rate adjustment
113
69
53
—
235
Depreciation and impairment losses at the end of the year
20,704
25,558
6,134
—
52,396
Carrying amount at the end of the year
41,437
37,640
4,033
79,378
162,488
2023
Cost at the beginning of the year
43,403
37,548
8,114
22,361
111,426
Additions during the year
2,681
47
873
27,830
31,431
Disposals during the year
(690)
(952)
(624)
(562)
(2,828)
Transfer and reclassifications
4,246
4,679
731
(9,656)
—
Effect of exchange rate adjustment
(650)
(371)
(115)
(310)
(1,446)
Cost at the end of the year
48,990
40,951
8,979
39,663
138,583
Depreciation and impairment losses at the beginning of the year
16,781
22,935
5,039
—
44,755
Depreciation for the year
2,450
1,919
1,086
—
5,455
Impairment losses for the year
6
118
24
562
710
Depreciation and impairment losses reversed on disposals during the year
(664)
(942)
(597)
(562)
(2,765)
Effect of exchange rate adjustment
(248)
(196)
(89)
—
(533)
Depreciation and impairment losses at the end of the year
18,325
23,834
5,463
—
47,622
Carrying amount at the end of the year
30,665
17,117
3,516
39,663
90,961
Depreciation
DKK million
2024
2023
2022
Cost of goods sold
3,799
3,522
3,205
Sales and distribution costs
487
500
423
Research and development costs
1,120
1,053
898
Administrative costs
554
354
408
Other operating income and expenses
73
26
20
Total depreciation
6,033
5,455
4,954
Of which related to leased assets
1,500
1,251
1,052
Impairment losses
DKK million
2024
2023
2022
Cost of goods sold
962
446
24
Sales and distribution costs
9
4
1
Research and development costs
78
260
24
Total impairment losses
1,049
710
49
Of which related to leased assets
9
—
—
Novo Nordisk mainly leases office buildings, warehouses, laboratories and vehicles.
The right-of-use asset is presented in property, plant and equipment and the lease
liability in borrowings.
Leased property, plant and equipment
DKK million
2024
2023
Land and buildings
6,067
5,157
Other equipment
775
768
Total
6,842
5,925
The total cash outflow for leases amounted to DKK 2,211 million (DKK 2,022 million in
2023 and DKK 1,438 million in 2022). Refer to note 4.6 for a maturity analysis of
lease payments and 5.2 for commitments not recognised in the balance sheet
related to leases.
115
Consolidated financial statements / Notes to the Consolidated financial statements / 3.2 Property, plant and equipment
ACCOUNTING POLICIES
Property, plant and equipment is measured at historical cost less accumulated
depreciations and any impairment loss. The cost of self-constructed assets includes
costs directly attributable to the construction of the assets. Any subsequent cost is
included in the asset’s carrying amount or recognised as a separate asset only when
it is probable that future economic benefits associated with the item will flow to Novo
Nordisk, and the cost of the item can be measured reliably. Depreciation is based on
the straight-line method over the estimated useful life of the assets (buildings: 10-50
years, plant and machinery: 5-25 years and other equipment: 3-10 years. Land is not
depreciated). Climate-related matters, including the commitment to reach net zero
emissions, were considered when estimating the useful lives of property, plant
and equipment.
Depreciation commences when the asset is available for use, i.e. when it is in the
location and condition necessary for it to be capable of operating in the manner
intended by Management. The asset's residual value and useful life is reviewed and
adjusted, if appropriate, at the end of each reporting period. If an asset’s carrying
amount is higher than its estimated recoverable amount, it is written down to the
recoverable amount. Plant and equipment with no alternative use developed as part
of a research and development project are expensed. However, plant and equipment
with an alternative use or used for general research and development purposes are
capitalised and depreciated over the estimated useful life as research and
development costs.
For contracts which are, or contain, a lease, the Group recognises a right-of-use asset
and a lease liability. The right-of-use asset is initially measured at cost, being the initial
amount of the lease liability. The right-of-use asset is subsequently depreciated using
the straight-line method over the lease term.
The lease term comprises the non-cancellable period of a lease, together with periods
covered by extension options if these are reasonably certain to be exercised.
3.3 Inventories
DKK million
2024
2023
Raw materials
13,369
9,500
Work in progress
22,335
17,601
Finished goods
8,873
7,224
Total inventories (gross)
44,577
34,325
Write-downs at year-end
(3,728)
(2,514)
Total inventories (net)
40,849
31,811
Indirect production costs included in work in
progress and finished goods
15,082
13,101
Share of total inventories (net)
37%
41%
Movements in inventory write-downs:
Write-downs at the beginning of the year
2,514
1,715
Write-downs during the year
2,660
1,808
Utilisation of write-downs
(1,401)
(718)
Reversal of write-downs
(45)
(291)
Write-downs at the end of the year
3,728
2,514
All write-downs in both 2024 and 2023 relate to fully impaired inventory.
ACCOUNTING POLICIES
Inventories are stated at cost or net realisable value, whichever is lower. Cost is
determined using the first-in, first-out method. Cost comprises direct production
costs such as raw materials, consumables and labour. Production costs for work in
progress and finished goods include indirect production costs such as employee costs,
depreciation, maintenance, etc. If the expected sales price less completion 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.
Inventory manufactured prior to regulatory approval (prelaunch inventory) is
capitalised but immediately written down, until there is a high probability of regulatory
approval for the product. The cost is recognised in the income statement as research
and development costs. Once there is a high probability of regulatory approval being
obtained, the write-down is reversed, up to no more than the original cost.
3.4 Trade receivables
DKK million
Gross
carrying
amount
Loss
allowance
Net
carrying
amount
2024
Not yet due
71,245
(1,049)
70,196
1-90 days
1,452
(230)
1,222
91-180 days
415
(110)
305
181-270 days
328
(102)
226
271-360 days
341
(341)
—
More than 360 days past due
295
(295)
—
Trade receivables
74,076
(2,127)
71,949
2023
Not yet due
64,327
(1,095)
63,232
1-90 days
1,557
(160)
1,397
91-180 days
211
(100)
111
181-270 days
111
(81)
30
271-360 days
90
(90)
—
More than 360 days past due
268
(268)
—
Trade receivables
66,564
(1,794)
64,770
Allowance for doubtful trade receivables
DKK million
2024
2023
Carrying amount at the beginning of the year
1,794
1,520
Reversal of allowance on realised losses
(70)
(39)
Net movement recognised in income statement
445
413
Effect of exchange rate adjustment
(42)
(100)
Allowance at the end of the year
2,127
1,794
Novo Nordisk’s customer base is comprised of government agencies, wholesalers,
retail pharmacies and other customers. Novo Nordisk closely monitors the current
economic conditions of countries impacted by currency fluctuations, high inflation
and an unstable political climate. These indicators, as well as payment history, are
taken into account in the valuation of trade receivables. No loss allowance has been
116
Consolidated financial statements / Notes to the Consolidated financial statements / 3.3 Inventories
recognised on trade receivables in factoring portfolios in 2024 and 2023. Refer to
note 4.4 for more information on credit exposures.
ACCOUNTING POLICIES
Trade receivables are initially recognised at transaction price and subsequently
measured at amortised cost using the effective interest method, less allowance
for doubtful trade receivables.
Before being sold, trade receivables in factoring portfolios are measured at fair value
with changes recognised in other comprehensive income. The allowance for doubtful
receivables is deducted from the carrying amount of trade receivables in sales and
distribution costs.
Management measures allowance for doubtful trade receivables based on the
simplified approach to provide for expected credit losses, which requires the use
of the lifetime expected loss provision for all trade receivables. The allowance is an
estimate based on shared credit risk characteristics and the days past due. Generally,
invoices are due for payment within 90 days from shipment of goods. Loss allowance
is calculated using an ageing factor, geographical risk and specific customer
knowledge. The allowance is based on a provision matrix on days past due and a
forward looking element relating mainly to incorporation of S&P Ratings country risk
ratings and an individual assessment. Refer to note 4.4 for a general description of
credit risk.
3.5 Provisions and contingent liabilities
DKK million
Provisions
for sales
rebates
1
Provisions
for legal
disputes
Provisions
for product
returns
Other
provisions
2
2024
Total
2023
Total
At the beginning of the year
99,878
3,786
1,532
1,931
107,127
74,877
Additional provisions, including increases to existing provisions
318,812
202
2,148
798
321,960
288,801
Additional provisions from acquisition of businesses (note 5.3)
—
—
—
1,084
1,084
—
Amount used during the year
(299,334)
—
(693)
(191)
(300,218)
(251,246)
Adjustments regarding prior years, including unused amounts reversed during the year
(6,452)
(31)
80
(320)
(6,723)
(3,023)
Effect of exchange rate adjustment
5,612
222
27
(7)
5,854
(2,282)
At the end of the year
118,516
4,179
3,094
3,295
129,084
107,127
Non-current liabilities
3
548
4,154
908
3,145
8,755
6,649
Current liabilities
117,968
25
2,186
150
120,329
100,478
1. Provisions for sales rebates are related to US Managed Care, Medicare, Medicaid, 340B Drug Pricing Program and other types of US rebates, as well as rebates in a number of European countries and Canada.
2. Other provisions consist of various types of provisions, including contingent payments arising from business combinations and obligations in relation to employee benefits such as jubilee benefits. 3. For non-
current liabilities, provisions for sales rebates are expected to be settled after one year, provisions for product returns will be utilised in 2025 and 2026. In the case of provisions for legal disputes, the timing of
settlement cannot be determined.
Contingent liabilities
Novo Nordisk is currently involved in pending litigations, claims and investigations
arising out of the normal conduct of its business. While provisions that Management
deems to be reasonable and appropriate have been made for probable losses, there
are inherent uncertainties connected with these estimates.
Since January 2021, Novo Nordisk has made a number of changes to its policy in
the US related to facilitating delivery of its discounted medicines to commercial
pharmacies that contract with covered entities participating in the 340B Drug Pricing
Program. On 30 January 2023, the US Court of Appeals for the Third Circuit issued a
ruling holding that Novo Nordisk’s drug distribution policy was consistent with the
340B statute. On 21 May 2024, the US Court of Appeals for the DC Circuit issued a
ruling in a related case involving other pharmaceutical manufacturers that similarly
held that their drug distribution policies were consistent with the 340B statute.
However, an appeal in another related case is still pending before the US Court of
Appeals for the Seventh Circuit, and as such these cases may be subject to further
discretionary appellate review before the US Supreme Court. Depending on the
outcome of the pending Seventh Circuit ruling and any subsequent appeals in
these matters, there may be a material impact on Novo Nordisk’s financial
position, net sales, operating profit and cash flow.
Pending litigation against Novo Nordisk
Mosaic Health Inc. and Central Virginia Health Services, Inc. (both 340B covered
entities) filed a putative class action lawsuit in Federal Court in New York against Novo
Nordisk, Eli Lilly and Company, Sanofi and AstraZeneca alleging a conspiracy among
the manufacturers to artificially fix prices of diabetes medications through changes to
their policies relating to the distribution of 340B drugs. The lawsuit was subsequently
dismissed by the Court on 2 September 2022. The plaintiffs appealed the dismissal of
the complaint to the United States Court of Appeals for the Second Circuit. That appeal
is currently pending. Novo Nordisk does not expect this matter to have a material
impact on Novo Nordisk’s financial position, operating profit or cash flow.
Novo Nordisk is currently defending numerous lawsuits, including putative class
actions, relating to the pricing of diabetes medicines in the US. The first lawsuit was
filed in 2017 and in August 2023 a multi-district litigation was created in the United
States District court for the District of New Jersey. Nearly all pending matters also
name Eli Lilly and Company and Sanofi as defendants, while certain matters also
name Pharmacy Benefit Managers (PBMs) and related entities. Plaintiffs generally
allege that the manufacturers and PBMs colluded to artificially inflate list prices paid
by consumers for diabetes products, while offering reduced prices to PBMs through
rebates used to secure formulary access. Novo Nordisk does not expect these matters
to have a material impact on Novo Nordisk’s financial position, operating profit or
cash flow.
117
Consolidated financial statements / Notes to the Consolidated financial statements / 3.5 Provisions and contingent liabilities
In 2016, Novo Nordisk received a Civil Investigative Demand ("CID") from the US
Department of Justice ("DOJ") relating to potential off-label marketing of NovoSeven
®
(including high dose and for prophylactic use) and interactions with physicians and
patients. The DOJ investigation was likely prompted by a lawsuit filed in 2015 by a
former Novo Nordisk employee (the “Relator”), who alleged Novo Nordisk caused the
submission of false claims to Medicare, Medicaid, Federal Employees Health Benefits
Program and private insurers in California. In September 2022, DOJ ceased its
investigation and declined to intervene in the lawsuit. The Relator and the Washington
State Attorney General have proceeded with the lawsuit, which was transferred to the
United States District Court for the Western District of Washington in May 2023. Novo
Nordisk does not expect this matter to have a material impact on Novo Nordisk’s
financial position, operating profit or cash flow.
Novo Nordisk, along with Eli Lilly, are defendants in numerous product liability
lawsuits (mainly in in the US) related to the use of GLP-1-based medicines. Plaintiffs
have alleged that the use of these treatments, including Victoza
®, Ozempic
®,
Wegovy
® and Rybelsus
®, have caused various gastrointestinal and other injuries.
The US lawsuits have been consolidated in a multi-district litigation in the United
States District Court for the Eastern District of Pennsylvania. Novo Nordisk does not
expect these matters to have a material impact on Novo Nordisk’s financial position,
operating profit or cash flow.
On 13 September 2024, five former employees filed a putative class action against
Novo Nordisk Inc. ("NNI"), the NNI Board of Directors, and the NNI Retirement
Committee alleging claims for breach of fiduciary duty in connection with the
management of the NNI Retirement Plan. The complaint alleges that, from September
2018 to the present, certain conduct violated the Employee Retirement Income
Security Act of 1974. Novo Nordisk does not expect this matter to have a material
impact on Novo Nordisk’s financial position, operating profit or cash flow.
On 24 January 2025, a class-action lawsuit was filed against Novo Nordisk A/S,
Chief Executive Officer Lars Fruergaard Jorgensen and Executive Vice President,
Development Martin Holst Lange in the United States District Court for the District
of New Jersey by a proposed class of purchasers of Novo Nordisk American Depository
Receipts (ADRs) between 2 November 2022 and 19 December 2024. The lawsuit relates
to REDEFINE-1 and alleges that the company failed to disclose or otherwise misled
investors as to the nature of the dosages provided to patients in the study and that the
company misleadingly exhibited confidence in its expected 25% average weight loss
outcome. Novo Nordisk does not expect the litigation to have a material impact on
Novo Nordisk’s financial position, operating profit or cash flow.
Other provisions and contingent liabilities
In February 2023, a class action lawsuit was filed by the City of Warwick Retirement
System (“City of Warwick”) against Catalent, Inc. (“Catalent”) and co-defendants in the
United States District Court for the District of New Jersey. The lawsuit alleges that the
defendants artificially inflated Catalent’s revenue and made misleading statements
and omissions concerning Catalent’s quality control issues; compliance with the US
Generally Accepted Accounting Principles; and the general demand for non-vaccine
products. In December 2024, Novo Nordisk acquired three Catalent fill-finish sites
from Novo Holding A/S, including a portion of any potential financial liability
associated with the City of Warwick lawsuit. Novo Nordisk does not expect these
matters to have a material impact on Novo Nordisk’s financial position, operating
profit or cash flow.
In addition to the above, Novo Nordisk is engaged in certain litigation proceedings
and various ongoing audits and investigations. In the opinion of Management, neither
settlement nor continuation of such proceedings, nor such pending audits and
investigations, are expected to have a material effect on Novo Nordisk’s financial
position, operating profit or cash flow.
KEY ACCOUNTING ESTIMATES REGARDING ONGOING LEGAL DISPUTES,
LITIGATION AND INVESTIGATIONS
Provisions for legal disputes consist of various types of provisions linked to ongoing
legal disputes. Management makes estimates regarding provisions and contingencies,
including the probability of pending and potential future litigation outcomes. These
are by nature dependent on inherently uncertain future events. When determining
likely outcomes of litigation, etc., Management considers the input of external counsel
on each case, as well as known outcomes in case law. Although Management believes
that the total provisions for legal proceedings are adequate based on currently
available information, there can be no assurance that there will not be any changes in
facts or matters, or that any future lawsuits, claims, proceedings or investigations will
not be material.
ACCOUNTING POLICIES
Provisions for sales rebates and discounts granted to government agencies,
wholesalers, retail pharmacies, Managed Care and other customers are recorded
at the time the related revenues are recorded or when the incentives are offered.
Provisions are calculated based on Management's interpretation of applicable
laws and regulations, historical experience and the specific terms in the individual
agreements. Unsettled rebates are recognised as provisions when the timing
or amount is uncertain. Where absolute amounts are known, the rebates are
recognised as other liabilities. Refer to note 2.1 for further information on sales
rebates and provisions.
Provisions for legal disputes are recognised where a legal or constructive obligation
has been incurred as a result of past events and it is probable that there will be an
outflow of resources that can be reliably estimated. In this case, Novo Nordisk arrives
at an estimate based on an evaluation of the most likely outcome. Disputes for which
no reliable estimate can be made are disclosed as contingent liabilities.
Provisions are measured at the present value of the anticipated expenditure for
settlement. This is calculated using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the obligation.
Novo Nordisk issues credit notes for expired goods as a part of normal business.
Where there is historical experience or a reasonably accurate estimate of expected
future returns can otherwise be made, a provision for estimated product returns is
recorded. The provision is measured at net sales value.
118
Consolidated financial statements / Notes to the Consolidated financial statements / 3.5 Provisions and contingent liabilities
Section 4
Capital structure and
financial items
4.1 Earnings per share
2024
2023
2022
Net profit
DKK million
100,988
83,683
55,525
Average number of shares
outstanding
1
in million
shares
4,453.9
4,482.8
4,530.6
Dilutive effect of restricted
stock units
in million
shares
9.1
12.0
14.0
Average number of shares
outstanding, including
dilutive effect
in million
shares
4,463.0
4,494.8
4,544.6
Basic earnings per share
DKK
22.67
18.67
12.26
Diluted earnings per share
DKK
22.63
18.62
12.22
1. Excluding treasury shares.
The trading unit of the Novo Nordisk B shares listed on NASDAQ Copenhagen was
changed from DKK 0.20 to DKK 0.10 as of 13 September 2023. The ADRs listed on
the New York Stock Exchange (NYSE) were similarly split as of 20 September 2023.
Comparative figures have been restated to reflect the change in trading unit from
DKK 0.20 to DKK 0.10.
ACCOUNTING POLICIES
Earnings per share is presented as both basic and diluted earnings per share. Basic
earnings per share is calculated as net profit divided by the monthly average number
of shares outstanding. Diluted earnings per share is calculated as net profit divided by
the sum of monthly average number of shares outstanding, including the dilutive
effect of the outstanding share pool. Refer to 'Financial definitions and ratios' for a
description of calculation of the dilutive effect.
4.2 Distribution to shareholders
DKK million
2024
2023
2022
Interim dividend for the year
15,583
13,430
9,613
Dividend for prior year
28,557
18,337
15,690
Dividend payout in the year
44,140
31,767
25,303
Share repurchases for the year
20,181
29,924
24,086
Total distribution for the year
64,321
61,691
49,389
Novo Nordisk's dividend pay-outs in the year was complemented by share repurchase
programmes. Novo Nordisk's guiding principle is that any excess capital after the
funding of organic growth opportunities and potential acquisitions should be returned
to investors. No dividend is declared on treasury shares.
DKK million
2024
2023
2022
Interim dividend
1
15,583
13,430
9,613
Final dividend
2
35,100
28,557
18,337
Total dividend
50,683
41,987
27,950
DKK per share
2024
2023
2022
Interim dividend
1
3.50
3.00
2.12
Final dividend
2
7.90
6.40
4.08
Total dividend
11.40
9.40
6.20
1. Interim dividend was declared and paid in August 2024. 2. Final dividend for 2024 is expected
to be distributed pending approval at the Annual General Meeting in March 2025. Final dividend
for 2023 was declared and paid in March 2024.
4.3 Share capital, Treasury shares and Other reserves
Development in number of shares
Number of shares
(million)
A
shares
B
shares
Total
issued
shares
Treasury
shares
Out-
standing
shares
Shares beginning of 2023
1,075
3,485
4,560
(60)
4,500
Shares cancelled in 2023
—
(50)
(50)
50
—
Released allocated shares
to employees
—
—
—
9
9
Shares purchased in 2023
—
—
—
(51)
(51)
Number of shares end
of 2023
1,075
3,435
4,510
(52)
4,458
Shares cancelled in 2024
—
(45)
(45)
45
—
Released allocated shares
to employees
—
—
—
8
8
Shares purchased in 2024
—
—
—
(25)
(25)
Number of shares end
of 2024
1,075
3,390
4,465
(24)
4,441
The A share capital and number of A shares of DKK 0.10 was unchanged in 2024, 2023 and
2022. In 2024, the B share capital decreased by DKK 4.5 million (equal to cancellation of 45
million shares of DKK 0.10). The corresponding decrease in 2023 was DKK 5 million (equal
to cancellation of 50 million shares of DKK 0.10) and decrease in 2022 of DKK 6 million
(equal to cancellation of 60 million shares of DKK 0.10).
Each A share of DKK 0.10 per share carries 100 votes and each B share of DKK 0.10 per
share carries 10 votes.
At the end of 2024, the holding of treasury shares amounted to 0.5% of the total
outstanding shares (1.1% of the outstanding shares in 2023). Treasury shares are
primarily acquired to reduce the company's share capital. In addition, a limited part is
used to finance Novo Nordisk's long-term share-based incentive programme and
restricted stock units to employees. Treasury shares are deducted from the share
capital on cancellation at their nominal value of DKK 0.10 per share. Differences
between this amount and the amount paid to acquire or received for disposing of
treasury shares are deducted directly in retained earnings.
The purchase of treasury shares during the year relates to the remaining part of the
2023 share repurchase programme, totalling DKK 1.6 billion, and the DKK 20 billion
Novo Nordisk B share repurchase programme for 2024, of which DKK 1.4 billion was
outstanding at year-end. The programme ended on 3 February 2025.
119
Consolidated financial statements / Notes to the Consolidated financial statements / 4.1 Earnings per share
Specification of Other reserves
DKK million
Exchange
rate
adjustments
Cash flow
hedges
1
Tax and
other items
Total
Reserve at 1 January 2022
(904)
(1,740)
930
(1,714)
Other comprehensive
income, net
2,289
2,766
(892)
4,163
Reserve at 31 December 2022
1,385
1,026
38
2,449
Other comprehensive income,
net
(1,404)
586
(355)
(1,173)
Reserve at 31 December 2023
(19)
1,612
(317)
1,276
Other comprehensive
income, net
3,096
(6,221)
1,343
(1,782)
Transferred to
intangible assets
2
—
(1,154)
254
(900)
Reserve at 31 December 2024
3,077
(5,763)
1,280
(1,406)
1. Refer to note 4.5 for information on cash flow hedges. 2. A gain from cash flow hedges related to
acquisition of businesses of DKK 1,154 million is transferred directly from the cash flow hedge
reserve on an after-tax basis to the initial cost of net assets acquired leading to a net hedging effect
of DKK 900 million. Refer to note 5.3 for information of acquisition of businesses.
According to Danish corporate law, reserves available for distribution as dividends
are based on the financial statements of the parent company, Novo Nordisk A/S.
Dividends are declared and paid from distributable reserves. As of 31 December
2024, distributable reserves total DKK 121,931 million (DKK 78,779 million in 2023),
corresponding to the parent company's retained earnings and Reserve for cash flow
hedges and exchange rate adjustments.
4.4 Financial risks
Management has assessed the following key financial risks:
Type
Financial risk
Foreign exchange risk
High
Credit risk
Low
Interest rate risk
Low
Liquidity risk
Low
Novo Nordisk has centralised management of the Group's financial risks. The overall
objectives and policies for the company's financial risk management are outlined in
the internal 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 permitted use of 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, and
all positions are marked-to-market.
Foreign exchange risk
Foreign exchange risk is the most important financial risk for Novo Nordisk and can
have a significant impact on the income statement, statement of comprehensive
income, balance sheet and cash flow statement. The majority of Novo Nordisk's
foreign exchange exposures are in USD, EUR, CNY, CAD, JPY and BRL. The foreign
exchange risk is most significant in USD. The exchange rate risk exposure in EUR is
regarded as low because of Denmark's fixed exchange rate policy towards EUR. The
overall objective of foreign exchange risk management is to reduce the short-term
negative impact of exchange rate fluctuations on earnings and cash flow, thereby
contributing to the predictability of the financial results. In selected currencies, Novo
Nordisk hedges assets and liabilities as well as future expected cash flows up to a
maximum of 24 months, including selected business development activities
(acquisition of businesses).
Hedge accounting is applied to match the impact of the hedged item and the hedging
instrument in the consolidated income statement. The currency hedging strategy
balances risk reduction and cost of hedging by use of foreign exchange forwards and
foreign exchange options matching the due dates of the hedged items. Expected cash
flows are continually assessed using historical inflows, budgets and monthly sales
forecasts. Hedge effectiveness is assessed on a regular basis.
Exchange rates applied for selected currencies
USD
CNY
CAD
JPY
BRL
Average exchange rate applied (DKK per 100)
2024
689
96
503
4.56
129
2023
689
97
511
4.91
138
2022
708
105
543
5.40
137
Year-end exchange rate applied (DKK per 100)
2024
714
98
496
4.53
115
2023
674
95
509
4.77
139
2022
697
101
515
5.29
132
Sensitivity of an immediate 5% decrease in currency rates on
31 December vs DKK
1
DKK million
2024
2023
Sensitivity of all currencies
Income statement
(323)
(117)
Other comprehensive income
8,012
6,058
Total
7,689
5,941
Hereof sensitivity of USD
Income statement
148
70
Other comprehensive income
7,178
5,082
Total
7,326
5,152
1. An immediate 5% increase would have the opposite impact of the above.
The foreign exchange sensitivity analysis comprises effects from the Group's financial
instruments, including cash, trade receivables and trade payables, current loans,
current and non-current financial investments, lease liabilities and foreign exchange
forwards. Anticipated currency transactions, investments in foreign subsidiaries and
non-current assets are not included. The main impact is driven by forward contracts
used for hedging activities.
120
Consolidated financial statements / Notes to the Consolidated financial statements / 4.4 Financial risks
Financial contracts coverage at year end
Months
USD
CNY
2
CAD
JPY
BRL
2024
12
12
0
12
0
2023
12
12
9
12
0
2. Chinese yuan traded offshore (CNH) is used to hedge Novo Nordisk's CNY currency exposure.
The table above shows hedge coverage horizon existing at year-end to cover the
expected future cash flow for the disclosed number of months. The hedging of CAD
has been phased out during 2024. Average hedge rate for USD cash flow hedges is
676 at the end of 2024 (676 at the end of 2023).
Credit risk
Credit risk arises from the possibility that transactional counterparties may default
on their obligations towards the Group.
Credit exposure for cash at bank, marketable securities and
derivative financial instruments (fair value)
DKK million
Cash at
bank
Marketable
securities
Derivative
financial
instruments
Total
2024
AAA range
—
10,653
—
10,653
AA range
6,582
—
1,773
8,355
A range
8,278
—
4,553
12,831
BBB range
172
—
—
172
Not rated or below
BBB range
623
—
—
623
Total
15,655
10,653
6,326
32,634
2023
AAA range
—
15,838
—
15,838
AA range
6,451
—
912
7,363
A range
7,292
—
1,432
8,724
BBB range
17
—
—
17
Not rated or below
BBB range
632
—
—
632
Total
14,392
15,838
2,344
32,574
Credit risk exposure to financial counterparties
Novo Nordisk considers its maximum credit exposure to financial counterparties
to be DKK 32,634 million (DKK 32,574 million in 2023).
To manage credit risk regarding financial counterparties, Novo Nordisk only enters
into derivative financial contracts and money market deposits with financial
counterparties possessing a satisfactory long-term credit rating from at least two
of the three selected rating agencies: Standard and Poor's, Moody's and Fitch.
Furthermore, maximum credit lines defined for each counterparty diversify the
overall counterparty risk. The credit risk on marketable securities is low, as
investments are made in highly liquid bonds with AAA credit ratings.
Credit risk exposure to non-financial counterparties
Novo Nordisk considers its maximum credit exposure to trade receivables, other
receivables (less prepayments and VAT receivables) and other financial assets to be
DKK 77,572 million (DKK 67,209 million in 2023). Refer to note 4.8 for details of the
Group's total financial assets.
Outside the US, Novo Nordisk has no significant concentration of credit risk related
to trade receivables or other receivables and prepayments, because the exposure in
general is spread over a large number of counterparties and customers. In the US, the
three major wholesalers account for a large proportion of total net sales, see note 2.1.
However, US wholesaler credit ratings are monitored, and part of the trade receivables
are sold on full non-recourse terms; see below for details.
Novo Nordisk closely monitors the current economic conditions of countries impacted
by currency fluctuations, high inflation and an unstable political climate. These
indicators, as well as payment history are taken into account in the valuation of
trade receivables.
Trade receivable programmes
At year-end, the Group had derecognised receivables without recourse having
due dates after 31 December 2024 amounting to:
DKK million
2024
2023
2022
US
3,214
5,059
1,394
Japan
1,834
2,050
2,273
Novo Nordisk's subsidiaries in the US and Japan employ trade receivable programmes
in which trade receivables are sold on full non-recourse terms to optimise working
capital.
Interest rate risk
Novo Nordisk's exposure to interest rate risk is deemed low, primarily attributable
to the capital structure. The company's interest-bearing liabilities comprise a mix of
fixed rate Eurobonds and variable rate instruments. The risk associated with variable
interest-bearing liabilities is offset to some extent by variable interest-bearing assets.
These assets consist of cash, cash equivalents, and marketable securities with a low
portfolio duration. Taking into account these balancing factors, the overall interest
rate risk is assessed to be low.
Liquidity risk
Novo Nordisk´s liquidity risk is considered to be low. The availability of the required
liquidity is ensured through a combination of cash pools for cash centralisation, highly
liquid investment portfolios and both uncommitted and committed credit facilities. In
combination these factors mitigate short-term liquidity risk. Furthermore, the Board of
Directors has decided not to initiate a new share repurchase program in 2025.
Financial reserves
DKK million
2024
2023
2022
Cash at bank
15,655
14,392
12,653
Marketable securities
10,653
15,838
10,921
Undrawn committed credit facility
3
22,380
11,552
11,527
Undrawn bridge facility
6,341
—
—
Borrowings
(11,775)
(5,431)
(480)
Financial reserves
43,254
36,351
34,621
3. The undrawn committed credit facility comprises a facility of EUR 3,000 million in 2024
(EUR 1,550 million in 2023 and 2022) committed by a portfolio of international banks. The facility
matures in 2029.
Financial reserves comprise of sources of liquidity, as shown in the table above, less
borrowings that are contractually obliged to be repaid within 12 months. Borrowings,
which reduces the financial reserves, consist of current borrowings (DKK
13,113 million) excluding leasing (DKK 1,338 million).
121
Consolidated financial statements / Notes to the Consolidated financial statements / 4.4 Financial risks
4.5 Derivative financial instruments
2024
2023
DKK million
Average
rate
Contract
amount
at year-end
Positive
fair value
at year-end
Negative
fair value
at year-end
Average
rate
Contract
amount
at year-end
Positive
fair value
at year-end
Negative
fair value
at year-end
Forward contracts USD
676
137,781
13
5,704
676
104,022
1,600
193
Forward contracts CNH and JPY
1
16,910
109
181
20,246
295
90
Forward contracts, cash flow hedges
154,691
122
5,885
124,268
1,895
283
Forward contracts USD
683
75,864
6,135
1,577
675
65,870
330
946
Forward contracts EUR, CNH, JPY and others
17,451
69
69
28,520
119
43
Forward contracts, fair value hedges
93,315
6,204
1,646
94,390
449
989
Total derivative financial instruments
248,006
6,326
7,531
218,658
2,344
1,272
Recognised in the income statement
6,204
1,646
449
989
Recognised in other comprehensive income
122
5,885
1,895
283
1. For 2023 the relevant currencies are CNH, CAD and JPY.
Deferred losses of DKK 5,763 million from cash flow hedges open at 31 December
2024 were recorded in Other Comprehensive Income along with deferred gains from
cash flow hedges related to acquisition of businesses of DKK 1,154 million which was,
upon maturity, transferred directly from the cash flow hedge reserve to the initial cost
of net assets acquired on an after-tax basis.
Forward contracts are expected to impact the income statement within the next 12
months through financial income or expenses.
There is no ineffectiveness recognised at 31 December 2024.
ACCOUNTING POLICIES
On initiation of the contract, Novo Nordisk designates each derivative financial
contract that qualifies for hedge accounting as one of:
• hedges of the fair value of a recognised asset or liability (fair value hedge)
• hedges of a forecast financial transaction (cash flow hedge).
All contracts are initially recognised at fair value and subsequently remeasured
at fair value at the end of the reporting period.
Fair value hedges
Value adjustments of fair value hedges are recognised in the income statement along with any
value adjustments of the hedged asset or liability that are attributable to the hedged risk.
Cash flow hedges
Value adjustments of the effective part of cash flow hedges are recognised in other
comprehensive income. The cumulative value adjustment of these contracts is
transferred from other comprehensive income to the income statement when the
hedged transaction is recognised in the income statement. For cash flow hedges of
foreign currency risk on highly probable non-financial asset purchases, the cumulative
value adjustments are transferred directly from the cash flow hedge reserve to the
initial cost of the asset when recognised.
Discontinuance of cash flow hedging
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for
hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity
and is transferred when the forecasted transaction is ultimately recognised in the income
statement. When a forecasted transaction is no longer expected to occur, the cumulative gain
or loss that was reported in equity is immediately transferred to the income statement under
financial income or financial expenses.
For additional disclosures on accounting policies for financial instruments refer to note 4.8.
122
Consolidated financial statements / Notes to the Consolidated financial statements / 4.5 Derivative financial instruments
4.6 Borrowings
Reconciliation of liabilities arising from financing activities
Non-cash movements
DKK million
Beginning of
the year
Re-
payments
Proceeds
Additions
1
Disposals
Exchange
rates
Other
End of the
year
2024
Lease liabilities
5,726
(1,417)
—
2,383
(3)
71
6
6,766
Eurobonds
20,824
(4,849)
34,513
—
—
12
28
50,528
Loans
—
—
39,494
201
—
6
—
39,701
Commercial papers
—
—
5,344
—
—
(1)
—
5,343
Bank overdrafts
456
(69)
40
—
—
22
—
449
Total borrowings
27,006
(6,335)
79,391
2,584
(3)
110
34
102,787
2023
Lease liabilities
4,529
(1,448)
—
2,809
(4)
(170)
10
5,726
Eurobonds
20,775
—
—
—
—
46
3
20,824
Bank overdrafts
480
(19)
—
—
—
(4)
(1)
456
Total borrowings
25,784
(1,467)
—
2,809
(4)
(128)
12
27,006
1. Non-cash additions include additions from acquisitions of businesses.
Issuance of Eurobonds
Nominal value in millions
Interest
Issue date
Maturity
EUR
DKK
0.750% Fixed
Mar 2022
Mar 2025
500
3,730
3.375% Fixed
May 2024
May 2026
1,300
9,698
1.125% Fixed
Mar 2022
Sep 2027
500
3,730
0.125% Fixed
Jun 2021
Jun 2028
650
4,849
3.125% Fixed
May 2024
Jan 2029
1,000
7,460
1.375% Fixed
Mar 2022
Mar 2030
500
3,730
3.250% Fixed
May 2024
Jan 2031
1,000
7,460
3.375% Fixed
May 2024
May 2034
1,350
10,071
Eurobonds
Four tranches of Eurobonds with an aggregate nominal amount of EUR 4.65 billion,
corresponding to DKK 34.7 billion, were issued under the Novo Nordisk’s European
Medium Term Note (EMTN) programme in 2024. Net proceeds of the issuances
contributed to the financing of the acquisition of three fill-finish sites from Novo
Holdings A/S in connection with a transaction where Novo Holdings A/S acquired
Catalent, Inc. (note 5.3). No bonds were issued in 2023.
The fair value of Eurobonds approximates the carrying value.
Loans
Loans comprise mainly of unsecured bank loans, intended as temporary funding of
the acquisition of three fill-finish sites from Novo Holdings A/S, which carries a variable
interest rate. The fair value of the loans approximates their carrying value.
A portion of loans arises from a sale and repurchase agreement of marketable
securities (REPO). On 31 December 2024, the carrying amount of the assets
transferred was DKK 2,200 million, and the carrying value of associated liabilities
amounted to DKK 2,200 million. The repurchase is fixed, and Novo Nordisk has
therefore retained full exposure from fair value changes of the marketable securities.
Therefore, the transaction is treated as a collateralised lending arrangement. Where
substantially all the risks and rewards of ownership are retained in financial assets
that have been transferred, the assets are not derecognised and the proceeds
obtained are recognised as a financial liability.
Commercial papers
Commercial papers comprise of short-term, unsecured promissory notes, intended as
temporary funding of the acquisition of three fill-finish sites from Novo Holdings A/S,
which carries a fixed interest rate. The fair value of the commercial papers
approximates their carrying value.
123
Consolidated financial statements / Notes to the Consolidated financial statements / 4.6 Borrowings
ACCOUNTING POLICIES
Issued bonds, loans, commercial papers and bank overdrafts are initially recognised
at the fair value of the proceeds received less transaction costs. In subsequent periods
these are measured at amortised cost using the effective interest method. The
difference between the proceeds received and the nominal value is recognised in
financial income or financial expenses over the term of the loan. For fair value
determination refer to note 4.8.
Lease liabilities are related to right-of-use assets primarily premises and company cars
and include the present value of future lease payments during the lease term. Lease
liabilities are initially measured at the present value of the lease payments outstanding
at the commencement date, discounted using the incremental borrowing rate. Lease
liabilities are measured using the effective interest method. Lease liabilities are
subsequently remeasured to reflect changes in future lease payments, e.g. changes
in lease terms.
Contractual undiscounted cash flows
2024
DKK million
Leases
Eurobonds
Loans
Commercial
papers
Bank
overdrafts
Total
2024
Within 1 year
1,510
4,842
3,279
5,356
449
15,436
1-3 years
2,327
11,829
37,945
—
—
52,101
3-5 years
1,558
17,700
28
—
—
19,286
More than 5 years
2,056
23,403
—
—
—
25,459
Total
7,451
57,774
41,252
5,356
449
112,282
Carrying amount end of the year
6,766
50,528
39,701
5,343
449
102,787
Non-current borrowings
5,428
46,799
37,447
—
—
89,674
Current borrowings
1,338
3,729
2,254
5,343
449
13,113
2023
Within 1 year
1,318
4,975
—
—
456
6,749
1-3 years
1,902
3,948
—
—
—
5,850
3-5 years
1,253
8,695
—
—
—
9,948
More than 5 years
1,612
3,819
—
—
—
5,431
Total
6,085
21,437
—
—
456
27,978
Carrying amount end of the year
5,726
20,824
—
—
456
27,006
Non-current borrowings
4,552
15,976
—
—
—
20,528
Current borrowings
1,174
4,848
—
—
456
6,478
124
Consolidated financial statements / Notes to the Consolidated financial statements / 4.6 Borrowings
4.7 Cash flow statement specifications
Other non-cash items
DKK million
2024
2023
2022
Interest income and interest expenses, net
(note 4.9)
(198)
(527)
139
Capital gain/(loss) on investments, net
(note 4.9)
19
106
124
Result of associated companies (note 4.9)
17
(81)
189
Share-based payment costs (note 5.1)
2,289
2,149
1,539
Increase/(decrease) in provisions and
retirement benefit obligations
22,118
32,230
18,465
Exchange rate effects on provisions and
retirement benefit obligations
(5,846)
2,277
(3,238)
Adjustment for remeasurements of
retirement benefit obligations
(119)
13
615
Adjustment of provisions and retirement
benefit obligations related to acquisition
of businesses
(1,088)
—
—
Unrealised gain/(loss) on fair value hedge
through profit or loss (note 4.9)
(5,098)
(662)
2,448
Other
2,935
(1,988)
2,228
Total other non-cash items
15,029
33,517
22,509
Change in working capital
DKK million
2024
2023
2022
Inventories
(9,038)
(7,423)
(4,767)
Trade receivables
(7,179)
(14,210)
(9,917)
Other receivables and prepayments
(4,544)
(2,063)
(968)
Trade payables
3,240
10,019
6,717
Other liabilities
9,288
5,099
4,006
Adjustment for payables related to
non-current assets
(3,520)
(2,432)
(1,567)
Adjustment related to acquisition
of businesses
1,134
—
(143)
Other non-current receivables
and prepayments
1
(2,586)
(1,224)
61
Other non-current liabilities
1
(166)
89
(260)
Change in working capital including
exchange rate adjustments
(13,371)
(12,145)
(6,838)
Exchange rate adjustments
1,376
(1,235)
1,303
Cash flow change in working capital
(11,995)
(13,380)
(5,535)
1. Other non-current receivables and prepayments and Other non-current liabilities relating to 2023
and 2022 have been reclassified from Total other non-cash items to Cash flow changes in operating
assets, net.
125
Consolidated financial statements / Notes to the Consolidated financial statements / 4.7 Cash flow statement specifications
4.8 Financial assets and liabilities
DKK million
2024
2023
Financial assets by category
Other financial assets
1,530
571
Marketable securities
10,653
15,838
Financial assets at fair value through
the income statement
12,183
16,409
Derivative financial instruments (note 4.5)
6,326
2,344
Derivatives used as hedging instruments (assets)
6,326
2,344
Other financial assets
747
682
Trade receivables
25,996
31,729
Other receivables and prepayments
(current and non-current)
16,628
9,498
• less prepayments and VAT receivables
(13,282)
(8,312)
Cash at bank (note 4.4)
15,655
14,392
Financial assets at amortised cost
45,744
47,989
Trade receivables eligible for factoring
45,953
33,041
Financial assets at fair value through other
comprehensive income
45,953
33,041
Total financial assets at the end
of the year by category
110,206
99,783
Financial liabilities by category
Derivative financial instruments (note 4.5)
7,531
1,272
Derivatives used as hedging
instruments (liability)
7,531
1,272
Borrowings (non-current) (note 4.6)
1
89,674
20,528
Borrowings (current) (note 4.6)
1
13,113
6,478
Trade payables
28,846
25,606
Other liabilities (non-current)
23
189
Other liabilities (current)
37,993
28,705
• less VAT and duties payable
(960)
(600)
Financial liabilities measured at
amortised cost
168,689
80,906
Total financial liabilities at the end
of the year by category
176,220
82,178
1. Refer to note 4.6 for a maturity analysis for non-current and current borrowings.
Fair value measurement hierarchy
DKK million
2024
2023
Active market data (level 1)
10,833
16,052
Directly or indirectly observable market data (level 2)
6,326
2,344
Not based on observable market data (level 3)
47,303
33,398
Total financial assets at fair value
64,462
51,794
Active market data (level 1)
—
—
Directly or indirectly observable market data (level 2)
7,531
1,272
Not based on observable market data (level 3)
—
—
Total financial liabilities at fair value
7,531
1,272
Financial assets and liabilities measured at fair value can be categorised using the fair
value measurement hierarchy above. There were no transfers between the 'Active
market data' and 'Directly or indirectly observable market data' categories during 2024
or 2023. The fair value of issued Eurobonds, which is disclosed in note 4.6, are based
on 'Active market data'. There are no significant intangible assets or items of property,
plant and equipment measured at fair value.
Cash at bank at 31 December 2024 includes DKK 867 million that is restricted (DKK
857 million in 2023). The restricted cash balance relates to subsidiaries in which
availability of currency for remittance of funds is temporarily scarce.
ACCOUNTING POLICIES
Depending on purpose, Novo Nordisk classifies financial instruments into the
following categories:
• Financial assets at fair value through the income statement
• Derivatives used as hedging instruments
• Financial assets at amortised cost
• Financial assets at fair value through other comprehensive income
• Financial liabilities at amortised cost
Recognition and measurement
Financial assets measured at fair value through the income statement consist of other
financial assets, which comprise of equity investments, and marketable securities.
These financial instruments are initially recognised at fair value. Net gains and losses
arising from changes in the fair value of equity instruments and marketable securities
are recognised in the income statement as financial income or expenses.
For a description of accounting policies on derivative financial instruments used as
hedging instruments, refer to note 4.5.
Financial assets at amortised cost are cash at bank and non-derivative financial assets
solely with payments of principal and interest. Novo Nordisk normally 'holds-to-collect'
the financial assets to attain the contractual cash flows. If collection is expected within
one year (or in the normal operating cycle of the business, if longer), they are classified
as current assets. If not, they are presented as non-current assets. These are initially
measured at fair value less transaction costs, except for trade receivables that are
initially measured at the transaction price. Subsequently, they are measured at
amortised cost using the effective interest method less impairment. For a description
of accounting policies on trade receivables, refer to note 3.4.
Financial assets at fair value through other comprehensive income are trade
receivables that are held to collect or to sell in factoring agreements.
Financial liabilities at amortised cost consist of borrowings (issued Eurobonds, bank
overdrafts and lease liabilities), trade payables and other liabilities (primarily accruals
for promotional and distribution activities, accrued employee-related costs and
accrued payables related to assets under construction). These are initially recognised
at the fair value less transaction costs. Subsequently, they are measured at amortised
cost using the effective interest method. For initial recognition of lease liabilities refer
to note 4.6.
Fair value measurement
If an active market exists, the fair value of a financial instrument is based on the
most recently observed market price at the end of the reporting period. If a financial
instrument is quoted in a market that is not active, Novo Nordisk bases its valuation
on the most recent transaction price. Adjustment is made for subsequent changes
in market conditions, for instance by including transactions in similar financial
instruments assumed to be motivated by normal business considerations. The fair
values of quoted investments are based on current bid prices at the end of the
reporting period.
Financial assets for which no active market exists are carried at fair value based on a
valuation methodology. The fair value of such financial instruments are determined
on the basis of quoted market prices of financial instruments traded in active markets.
The fair value of standard and simple financial instruments, such as foreign exchange
forward contracts, interest rate swaps, currency swaps and unlisted bonds, is
measured according to generally accepted valuation techniques. Market-based input
is used to measure the fair value.
The fair value of trade receivables held to collect or sell in factoring agreements is
calculated based on the net invoice amount (invoice amount less charge-backs) less
the fee payable to the factoring entity. The factoring fee is insignificant due to the
short period between the time of sale to the factoring entity and the invoice due date
and the rate applicable. Inputs into the estimate of US wholesaler charge-backs are
described in note 2.1.
126
Consolidated financial statements / Notes to the Consolidated financial statements / 4.8 Financial assets and liabilities
4.9 Financial income and expenses
DKK million
2024
2023
2022
Financial income
Interest income
1
1,838
1,069
239
Foreign exchange gain (net)
—
308
—
Financial gain from forward
contracts (net)
4,358
1,344
—
Capital gain on marketable securities
2
143
—
Result of associated companies
—
81
—
Total financial income
6,198
2,945
239
Financial expenses
Interest expenses on debts and
borrowings
1,640
542
378
Foreign exchange loss (net)
5,381
—
2,885
Financial loss from forward
contracts (net)
—
—
1,766
Capital loss on investments
19
106
124
Capital loss on marketable securities
—
—
463
Result of associated companies
17
—
189
Other financial expenses
289
197
181
Total financial expenses
7,346
845
5,986
1. Interest income include DKK 399 million from marketable securities at fair value through the
income statement (2023: DKK 370 million; 2022: DKK 78 million) while the remaining interest income
is derived from financial assets at amortised cost.
Financial impact from forward contracts, specified
DKK million
2024
2023
2022
Income/(loss) transferred from other
comprehensive income
1,612
1,026
(1,740)
Realised fair value adjustment of
transferred contracts
(2,903)
214
(3,772)
Unrealised fair value adjustments of
forward contracts
2
4,558
(540)
(1,202)
Realised foreign exchange gain/(loss) on
forward contracts
1,091
644
4,948
Financial income/(expense) from
forward contracts
4,358
1,344
(1,766)
2. Refer to note 4.5 for information on open fair value hedge contracts at 31 December.
ACCOUNTING POLICIES
Management has chosen to classify the result of hedging activities as part of financial
items in the income statement, except for foreign currency-risk cash flow hedges on
highly probable non-financial asset purchases where the cumulative value
adjustments are transferred directly from the cash flow hedge reserve to the initial
cost of the asset when recognised.
127
Consolidated financial statements / Notes to the Consolidated financial statements / 4.9 Financial income and expenses
Section 5
Other disclosures
5.1 Share-based payment schemes
Share-based payment expensed in the income statement
DKK million
2024
2023
2022
Restricted stock units to employees
380
365
265
Long-term share-based incentive programme
(Management Board)
314
304
250
Long-term share-based incentive programme
(Management group below Management Board)
1,403
1,271
819
Restricted stock units to individual employees
192
209
205
Share-based payment expensed in the
income statement
2,289
2,149
1,539
Restricted stock units to employees
In connection with Novo Nordisk's 100 year anniversary and in appreciation of the
efforts of employees during recent years, as of 1 February 2023, all eligible employees
in the company were offered 74 restricted stock units. Each restricted stock unit gives
the holder the right to receive one Novo Nordisk B share free of charge in August
2026, subject to continued employment. The cost of the DKK 1,331 million programme
is amortised over the vesting period.
Long-term share-based incentive programme
Management Board
The LTIPs commenced in 2022, 2023 and 2024 have a three-year performance
period, subject to continued employment, and a subsequent two-year holding
period. Targets are set at the beginning of the performance period and include
determination of threshold, on-target level of performance and level of performance
to achieve maximum allocation of shares. The maximum share allocation at grant
cannot exceed 30 months' base salary for the CEO, 24 months' base salary for
executive vice presidents and up to 15.6 months' base salary for senior vice presidents.
Hence the LTIP is capped at a number of shares at the time of grant. For 2024 onward,
the Board sets both financial and non-financial targets for a three-year period which
are linked to three-year average growth in sales, operating profit and non-financial
performance. All targets are aligned to Novo Nordisk's Strategic Aspirations 2025:
Purpose & Sustainability, Innovation & Therapeutic Focus, Commercial Execution and
Financials. Target achievement is assessed by the Board.
The grant date of the 2024-programme was 31 January 2024, and the share price
used for the determining the grant date fair value of the award (DKK 767) was the
average share price for Novo Nordisk B shares on Nasdaq Copenhagen in the period
31 January 2024 to 13 February 2024, adjusted for the expected dividend. Based on
the split of participants at the grant date, 50% of the shares is allocated to members
of Executive Management and 50% to other members of the Management Board.
All restricted stock units and shares allocated to Management are settled by transfers
of treasury shares at the time of vesting.
Management group below the Management Board
The Management group below the Management Board has a share-based
incentive programme with similar performance criteria as Management Board.
For 2024 onward, the Board sets both financial and non-financial targets for a
three-year period.
On 31 December 2024, a total of 13.3 million shares (18.9 million in 2023 and 21.4
million in 2022) were outstanding including all ongoing programmes.
ACCOUNTING POLICIES
Novo Nordisk operates equity-settled, share-based compensation plans.
The fair value of the employee services received in exchange for the grant of
shares is recognised as an expense and allocated over the vesting period.
The total amount to be expensed over the performance and vesting period is
determined by reference to the fair value of the shares granted, excluding the
impact of any non-market vesting conditions. The fair value is fixed at the grant
date, and adjusted for expected dividends during the vesting period. Non-market
vesting conditions are included in assumptions about the number of shares that
are expected to vest. At the end of each reporting period, Novo Nordisk revises its
estimates of the number of shares expected to vest. Novo Nordisk recognises the
impact of the revision of the original estimates, if any, in the income statement and in
a corresponding adjustment to equity (change in proceeds) over the remaining vesting
period. Adjustments relating to previous years are included in the income statement
in the year of adjustment.
128
Consolidated financial statements / Notes to the Consolidated financial statements / 5.1 Share-based payment schemes
General terms and conditions of 2022-2024 programmes
Employees'
100 year
anniversary
programme
Management Board
Management group below
Management Board
Individual employees
Year of launch
2023
2024
2023
2022
2024
2023
2022
2024
2023
2022
Preliminary number of shares to be allocated
1 (million)
3.0
0.3
0.6
0.7
1.5
3.1
3.3
0.2
0.3
0.8
Fair value per restricted stock unit at grant date (DKK)
446
767
456
320
767
456
320
794
544
371
Performance and vesting period
2023 to 2026
2024 to 2026
2023 to 2025
2022 to 2024
2024 to 2026
2023 to 2025
2022 to 2024
2024 to 2027
2023 to 2026
2022 to 2025
Allocation date
Aug 2026
Feb 2027
Feb 2026
Feb 2025
Feb 2027
Feb 2026
Feb 2025
2027
2026
2025
Amortisation period
3.5 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
1. The number of shares to be allocated under the LTIPs to Management Board and management group below Management Board, respectively, may potentially be reduced or increased depending on whether Novo Nordisk's performance during the 3-year performance period is higher or lower compared to targets
determined by the Board. The maximum number is capped.
129
Consolidated financial statements / Notes to the Consolidated financial statements / 5.1 Share-based payment schemes
5.2 Commitments
Contractual obligations not recognised in the balance sheet
DKK million (undiscounted)
Current
Non-
current
Total
2024
Leases
1
288
3,893
4,181
Research and development obligations
12,101
23,215
35,316
Research and development – potential
milestone payments
2
2,076
32,507
34,583
Commercial product launch – potential
milestone payments
2
384
16,543
16,927
Purchase obligations relating to investments
in property, plant and equipment
8,305
3,354
11,659
Purchase obligations relating to contract
manufacturers
8,925
62,136
71,061
Other purchase obligations
10,531
8,463
18,994
Total obligations not recognised
in the balance sheet
42,610
150,111
192,721
2023
Leases
1
144
2,053
2,197
Research and development obligations
8,678
13,235
21,913
Research and development – potential
milestone payments
2
1,234
27,311
28,545
Commercial product launch – potential
milestone payments
2
—
12,952
12,952
Purchase obligations relating to investments
in property, plant and equipment
4,222
1,693
5,915
Purchase obligations relating to contract
manufacturers
6,315
26,792
33,107
Other purchase obligations
7,151
5,888
13,039
Total obligations not recognised
in the balance sheet
27,744
89,924
117,668
1. Predominantly relates to estimated variable property taxes, leases committed but not yet
commenced and low value leases. 2. Potential milestone payments are associated with uncertainty
because they are linked to successful achievements in research activities.
Contractual obligations
Research and development obligations include commitments relating to clinical trials,
contingent payments related to achieving development milestones. Such amounts
entail uncertainties in relation to the period in which payments are due because a
proportion of the obligations are dependent on milestone achievements. Exercise fees
and subsequent milestone payments under in-licensing option agreements are
excluded, as Novo Nordisk is not contractually obligated to make such payments.
Commercial product launch milestones include contingent payments solely related to
achievement of a commercial product launch following regulatory approval. The
increase in research and development obligation is driven by the general increase in
business activities.
Commercial milestones, royalties and other payments based on a percentage of sales
generated from sale of goods following marketing approval are excluded from the
contractual commitments analysis because of their contingent nature, related to
future sales.
Purchase obligations related to investments in property, plant and equipment
primarily relates to production capacity expansion projects. Novo Nordisk expects
to fund these commitments with existing cash and cash flow from operations.
Purchase obligations related to contract manufacturers relate to commitments
entered to secure future manufacturing capacity.
Other purchase obligations mainly consist of commitments related to promotional and
media activities, professional and consulting activities and strategic sourcing contracts.
The contractual obligations not recognised in the balance sheet represent contractual
payments and are not discounted and are not risk-adjusted.
Other guarantees
Other guarantees amount to DKK 2,380 million (DKK 1,878 million in 2023) and
primarily relate to performance guarantees issued by Novo Nordisk.
5.3 Acquisition of businesses
Fair value recognised at date of acquisition
2024
DKK million
Fill-finish
sites
(Catalent)
Other
acquisitions
Total
Know-how
41,102
—
41,102
Intellectual property rights and other
intangible assets
311
52
363
Property, plant and equipment
24,839
608
25,447
Deferred tax assets (liabilities), net
992
(7)
985
Provisions
(1,084)
—
(1,084)
Other net assets
1,290
(2)
1,288
Net identifiable assets acquired
67,450
651
68,101
Goodwill
15,293
30
15,323
Purchase price
82,743
681
83,424
Settlement of pre-existing
relationships
(597)
—
(597)
Cash consideration transferred
82,146
681
82,827
Cash acquired
(664)
—
(664)
Cash used for acquisition of
businesses; net of cash acquired
81,482
681
82,163
Business combinations in 2024
Three fill-finish sites (Catalent)
On 18 December 2024, Novo Nordisk acquired three fill-finish sites from Novo
Holdings A/S in connection with a transaction where Novo Holdings A/S acquired
Catalent, Inc. (“Catalent”), a global contract development and manufacturing
organisation.
The three fill-finish sites are specialised in the sterile filling of drugs and located in
Bloomington (Indiana, US), Anagni (Italy) and Brussels (Belgium) and employ around
3,500 people.
Novo Nordisk and Novo Holdings are related parties. Novo Nordisk’s Board of
Directors has approved the acquisition, finding it to be in the best interest of Novo
Nordisk and its shareholders.
130
Consolidated financial statements / Notes to the Consolidated financial statements / 5.2 Commitments
Strategic rationale
The acquisition of the fill-finish sites is aligned with Novo Nordisk’s strategy of
reaching more people living with diabetes and obesity with current and future
treatments. It is expected to enable an expansion of the manufacturing capacity
and provide future optionality and flexibility for Novo Nordisk’s existing supply
network. The acquisition is expected to gradually increase Novo Nordisk's filling
and finish capacity.
Details of the acquisition
The total cash consideration transferred was USD 11,723 million (DKK 82,146 million
including hedging effects).
The purchase price allocation for the acquisition is considered provisional since the
transaction was closed only on 18 December 2024, leaving limited time to identify
and determine fair value of assets acquired and liabilities assumed.
Know-how is primarily comprised of the documented processes and systems for
efficient and large-scale production of GLP-1 products as well as know-how to expand
capacity in an efficient way. The fair value of both property, plant and equipment and
know-how incorporate a significant value of accelerated access to capacity as a
reflection of the current shortage of fill-finish capacity and high demand for GLP-1
products in the market.
Goodwill primarily reflects the value of a highly-skilled assembled workforce in place
at the three fill-finish sites and expected synergies from Novo Nordisk’s existing know-
how and production capabilities. Goodwill is fully allocated to the Diabetes and Obesity
care segment.
Acquisition related costs of DKK 978 million are included in other operating income
and expenses and a gain on pre-existing relationships of DKK 597 million is included
in cost of goods sold.
Had the business combination taken place on 1 January 2024, Net profit would have
likely included additional net costs of around DKK 9 billion reflecting significant
integration costs, amortisation of fair value adjustments made in purchase price
allocation and interest expenses from planned borrowings incurred to finance the
transaction. Net sales would have remained largely unchanged as revenues from
existing manufacturing and development contracts are included in Other operating
income and expenses as these are not part of the main revenue-generating activities
of Novo Nordisk.
Other acquisitions
Other acquisitions of businesses in 2024 comprise the acquisition of a production
site in Ireland for a total purchase price of DKK 681 million.
KEY ACCOUNTING ESTIMATES IN DETERMINING THE FAIR VALUE OF
ASSETS ACQUIRED IN A BUSINESS COMBINATION AND JUDGEMENT OF
WHETHER INTANGIBLE ASSETS ACQUIRED IN A BUSINESS COMBINATION
ARE SEPARATELY IDENTIFIABLE
Management makes judgements when determining whether intangible assets,
such as know-how related to large-scale production of GLP-1 products as well as
know-how to expand capacity in an efficient way, are separately identifiable. This
involves assessing if the know-how meets the separability criterion, which means it
can be separated from the acquiree and sold, transferred, licensed, rented, or
exchanged independently.
The application of the acquisition method of accounting involves the use of significant
estimates because the identifiable net assets of the acquiree are recognised at their
fair value for which observable market prices are typically not available. This is
particularly relevant for assets which require use of valuation techniques typically
based on estimates of present value of future uncertain cash flows.
The fair value is based on assumptions made by market participants, which in this
business combination is assessed to be a company with similar needs and capacity
to acquire assets of the same nature and size as those of the acquired business.
The valuation of know-how identified in the acquisition is based on the multi-period
excess earnings method, which is used to value unique assets that generate earnings.
The economic benefit of the know-how is comprised by net cash flows attributable to
the asset which also includes the benefit of accelerated access to production capacity
compared to a greenfield construction scenario without the know-how required for
commercial production at scale. The net present value of future estimated cash flows
is based on projections of sales volumes and prices, valuation period and royalty rates.
The valuation of property, plant and equipment identified in the acquisition of the
three fill-finish sites is mainly based on the depreciated replacement cost method in
combination with the present value of accelerated access to production facilities. The
depreciated replacement cost method reflects adjustments for physical deterioration
as well as functional and economic obsolescence. Land has been valued using the
market approach based on comparable transactions.
ACCOUNTING POLICIES
The acquisition method of accounting is used to account for all business combinations.
The purchase price for a business comprises the fair values of the assets transferred,
liabilities incurred to the former owners including warrant holders of the acquired
business and the fair value of any asset or liability resulting from a contingent
consideration arrangement. Any amount of the purchase price which effectively
comprises a settlement of a pre-existing relationship is not part of the exchange for
the acquiree and is therefore not included in the consideration for the purpose of
applying the acquisition method. Settlements of pre-existing relationships are
accounted for as separate transactions in accordance with the relevant IFRS
Accounting Standards.
Identifiable assets and liabilities and contingent liabilities assumed are measured
at fair value at the date of acquisition by applying relevant valuation methods.
Acquisition-related costs are expensed as incurred. Goodwill is recognised at the
excess of purchase price over the fair value of net identifiable assets acquired and
liabilities assumed.
5.4 Related party transactions
Material transactions with related parties
DKK million
2024
2023
2022
Novo Holdings A/S
Purchase of Novo Nordisk B shares
10,164
8,775
6,984
Acquisition of fill-finish sites (note 5.3)
82,146
—
—
Dividend payment to Novo Holdings A/S
12,502
9,028
7,207
Services provided by Novo Nordisk
(33)
(17)
(24)
Novonesis Group
Services provided by Novo Nordisk
(48)
(48)
(78)
Services provided by Novonesis
117
112
92
Altasciences Group
Services provided by Altasciences
146
229
70
Other subsidiaries of Novo Holding A/S
Services provided to Novo Nordisk
93
—
—
NNIT Group
Services provided by NNIT
257
436
660
Novo Nordisk A/S is controlled by Novo Holdings A/S (incorporated in Denmark), which
owns 28.1% of the share capital in Novo Nordisk A/S, representing 77.3% of the total
number of votes. 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.
Novonesis Group, Altasciences Company Inc., and other subsidiaries of Novo Holdings
A/S are considered related parties to Novo Nordisk A/S. As an associated company of
Novo Nordisk A/S, NNIT Group is also considered related party.
131
Consolidated financial statements / Notes to the Consolidated financial statements / 5.4 Related party transactions
In 2024, Novo Nordisk A/S acquired 12.6 million B shares, worth DKK 10,164 million,
from Novo Holdings A/S as part of the DKK 20,000 million share repurchase
programme. The transaction price for each transaction was calculated as the average
market price in the open window period following the announcements of the financial
results for the first and third quarters in 2024.
Remuneration to Executive Management and Board of Directors
DKK million
2024
2023
2022
Salary and short-term incentive
180
173
141
Pension
18
17
13
Benefits
1
55
19
9
Long-term incentive
2
112
121
97
Executive Management in total
3
365
330
260
Fees to Board of Directors
4
23
22
20
Total
388
352
280
1. In 2024, an amount of DKK 45.4 million relates to recruitment arrangements as well as
a conditional amount payable at the end of employment. 2. Refer to note 5.1 for further
information on share-based payment schemes. 3. Total remuneration for persons registered as
members of Executive Management with the Danish Business Authority amounts to DKK 88 million
(DKK 195 million in 2023 and DKK 175 million in 2022). 4. All members of the Board of Directors
are registered with the Danish Business Authority.
There were no transactions with the Board of Directors or Executive Management
besides remuneration.
There were no material unsettled balances with related parties at the end of the year.
5.5 Fees to statutory auditors
DKK million
2024
2023
2022
Statutory audit
1
35
30
38
Audit-related services
5
3
2
Tax advisory services
9
8
3
Other services
13
18
12
Total fees to statutory auditors
62
59
55
1. Statutory audit fees in 2024 include DKK 5 million of additional fees mainly related to business
acquisitions. Statutory audit fees in 2022 include DKK 9 million of additional fee related to 2021.
Fees for services other than statutory audit of the financial statements amount to
DKK 27 million (DKK 29 million in 2023 and DKK 17 million in 2022).
In 2024, Deloitte Statsautoriseret Revisionspartnerselskab provided other services
than statutory audit in the amount of DKK 6 million (DKK 18 million in 2023 and
DKK 12 million in 2022) which relate to tax services relating to acquisitions, tax
compliance, financial due diligence, management consulting, educational training and
other assurance assessments and opinions.
5.6 General accounting policies
Principles of consolidation
The Consolidated financial statements incorporate the financial statements of the
parent company Novo Nordisk A/S and entities controlled by Novo Nordisk A/S.
Control exists when Novo Nordisk has effective power over the entity and has the right
to variable returns from the entity. The results of subsidiaries acquired or disposed of
during the year are included in the consolidated income statement from the effective
date of acquisition and up to the effective date of disposal.
Functional and presentation currency
Items included in the financial statements of Novo Nordisk's entities are measured
using the currency of the primary economic environment in which the entity operates
(functional currency). The Consolidated financial statements are presented in Danish
kroner (DKK), which is also 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
prevailing exchange rates at the transaction dates. 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 are recognised in the income
statement. Foreign currency differences arising from the translation of effective
qualifying cash flow hedges are recognised in other comprehensive income.
Translation of Group companies
Financial statements of foreign subsidiaries are translated into DKK at the exchange
rates prevailing at the end of the reporting period for balance sheet items, and at
average exchange rates for income statement items. All effects of exchange rate
adjustments are recognised in other comprehensive income.
Cash flow statement
The Cash flow statement is presented in accordance with the indirect method
commencing with net profit for the year.
132
Consolidated financial statements / Notes to the Consolidated financial statements / 5.5 Fees to statutory auditors
5.7 Companies in the Novo Nordisk Group
Activity: •
Sales and marketing
•
Production
•
Research and development •
Services/investments
Subsidiaries by geographical area
Company and country
Percentage of shares owned
Activity
North America Operations
Inversago Pharma Inc., Canada
100
•
Novo Nordisk Canada Inc., Canada
100 •
Novo Nordisk North America Operations A/S, Denmark
100
•
Novo Nordisk Inc., US
100 •
Novo Nordisk Pharmaceutical Industries LP, US
100
•
Novo Nordisk Pharmatech US, Inc., US
100 •
Novo Nordisk Pharma, Inc., US
100 •
NN Corporate Development US, Inc., US
100
•
NN Research & Development US, Inc., US
100
•
Novo Nordisk US Bio Production, Inc., US
100
•
Novo Nordisk US Holdings Inc., US
100
•
Dicerna Pharmaceuticals, Inc., US
100
•
Emisphere Technologies, Inc., US
100
•
Forma Therapeutics, Inc., US
100
•
Catalent Indiana LLC, US
100
•
Region International Operations
Novo Nordisk Pharmaceuticals A/S, Denmark
100
•
Novo Nordisk Pharma Operations A/S, Denmark
100 •
•
Novo Nordisk Region AAMEO and LATAM A/S, Denmark
100
•
Novo Nordisk Region Europe A/S, Denmark
100
•
Novo Nordisk Region Japan & Korea A/S, Denmark
100
•
Region EMEA
Aldaph SpA, Algeria
100 • •
Novo Nordisk Pharma GmbH, Austria
100 •
S.A. Novo Nordisk Pharma N.V., Belgium
100 •
Catalent Belgium S.A, Belgium
100
•
Novo Nordisk Pharma d.o.o., Bosnia and Herzegovina
100 •
Novo Nordisk Pharma EAD, Bulgaria
100 •
Novo Nordisk Hrvatska d.o.o., Croatia
100 •
Novo Nordisk s.r.o., Czech Republic
100 •
Novo Nordisk Production Czech s.r.o, Czech Republic
100
•
Novo Nordisk Denmark A/S, Denmark
100 •
Novo Nordisk Pharmatech A/S, Denmark
100 • •
Novo Nordisk Egypt LLC, Egypt
100 •
Novo Nordisk Egypt Pharmaceuticals Ltd., Egypt
100 •
Company and country
Activity
Parent company
Novo Nordisk A/S, Denmark
• • • •
Company and country
Percentage of shares owned
Activity
Novo Nordisk Estonia OÜ, Estonia
100 •
Novo Nordisk Farma OY, Finland
100 •
Biocorp Production S.A., France
100
• •
Novo Nordisk, France
100 •
Novo Nordisk Production SAS, France
100
•
Novo Nordisk Pharma GmbH, Germany
100 •
Cardior Pharmaceuticals GmbH, Germany
100
•
Novo Nordisk Hellas Epe., Greece
100 •
Novo Nordisk Hungária Kft., Hungary
100 •
Novo Nordisk Limited, Ireland
100 •
Novo Nordisk Production Ireland Ltd., Ireland
100
•
Novo Nordisk Ltd, Israel
100 •
Novo Nordisk S.P.A., Italy
100 •
Catalent Anagni S.R.L, Italy
100
•
Novo Nordisk Kazakhstan LLP, Kazakhstan
100 •
Novo Nordisk Kenya Ltd., Kenya
100 •
Novo Nordisk Latvia SIA, Latvia
100 •
Novo Nordisk Pharma SARL, Lebanon
100 •
UAB Novo Nordisk Pharma, Lithuania
100 •
Novo Nordisk Farma dooel, North Macedonia
100 •
Novo Nordisk Pharma SAS, Morocco
100 •
Novo Nordisk B.V., Netherlands
100 •
Novo Nordisk Finance (Netherlands) B.V., Netherlands
100
•
Novo Nordisk Pharma Limited, Nigeria
100 •
Novo Nordisk Norway AS, Norway
100 •
Novo Nordisk Pharmaceutical Services Sp. z.o.o., Poland
100 •
Novo Nordisk Pharma Sp.z.o.o., Poland
100 •
Novo Nordisk Portugal, Lda., Portugal
100 •
Novo Nordisk Farma S.R.L., Romania
100 •
Novo Nordisk Limited Liability Company, Russia
100 • •
Novo Nordisk Production Support LLC, Russia
100
•
Novo Nordisk Saudi for Trading, Saudi Arabia
100 •
Novo Nordisk Pharma d.o.o. Belgrade (Serbia), Serbia
100 •
Novo Nordisk Slovakia s.r.o., Slovakia
100 •
Novo Nordisk, d.o.o., Slovenia
100 •
Novo Nordisk (Pty) Limited, South Africa
100 •
Novo Nordisk Pharma S.A., Spain
100 •
Novo Nordisk Scandinavia AB, Sweden
100 •
Novo Nordisk Health Care AG, Switzerland
100 •
• •
Novo Nordisk Pharma AG, Switzerland
100 •
Novo Nordisk Tunisie SARL, Tunisia
100 •
Novo Nordisk Saglik Ürünleri Tic. Ltd. Sti., Turkey
100 •
Novo Nordisk Ukraine, LLC, Ukraine
100 •
Novo Nordisk Pharma Gulf FZE, United Arab Emirates
100 •
Novo Nordisk Limited, UK
100 •
Novo Nordisk Research Centre Oxford Limited, UK
100
•
Company and country
Percentage of shares owned
Activity
Region China
Novo Nordisk (China) Pharmaceuticals Co. Ltd., China
100 • •
Novo Nordisk (Shanghai) Pharma Trading Co., Ltd., China
100 •
Novo Nordisk Region China A/S, Denmark
100
•
Novo Nordisk Hong Kong Limited, Hong Kong
100 •
Novo Nordisk Pharma (Taiwan) Ltd., Taiwan
100 •
Beijing Novo Nordisk Pharmaceuticals Science & Technology
Co., Ltd., China
100
•
Region Rest of World
Novo Nordisk Pharma Argentina S.A., Argentina
100 •
Novo Nordisk Pharmaceuticals Pty. Ltd., Australia
100 •
Novo Nordisk Pharma (Private) Limited, Bangladesh
100 •
Novo Nordisk Produção Farmacêutica do Brasil Ltda., Brazil
100
•
Novo Nordisk Farmacêutica do Brasil Ltda., Brazil
100 •
Novo Nordisk Farmacéutica Limitada, Chile
100 •
Novo Nordisk Colombia SAS, Colombia
100 •
Novo Nordisk India Private Limited, India
100 •
Novo Nordisk Service Centre (India) Pvt. Ltd., India
100
•
PT. Novo Nordisk Indonesia, Indonesia
100 •
Novo Nordisk Pars Co. (PJS), Iran
100 • •
Novo Nordisk Pharma Ltd., Japan
100 • •
Novo Nordisk Pharma (Malaysia) Sdn Bhd, Malaysia
100 •
Novo Nordisk Pharma Operations Sdn Bhd, Malaysia
100 •
Novo Nordisk Mexico S.A. de C.V., Mexico
100 •
Novo Nordisk Service Centre Mexico, Sociedad Anonim,
Mexico
100
•
Novo Nordisk Pharmaceuticals Ltd., New Zealand
100 •
Novo Nordisk Pharma (Private) Limited, Pakistan
100 •
Novo Nordisk Panama S.A., Panama
100 •
Novo Nordisk Peru S.A.C., Peru
100 •
Novo Nordisk Pharmaceuticals (Philippines) Inc., Philippines
100 •
Novo Nordisk Pharma (Singapore) Pte Ltd., Singapore
100 •
Novo Nordisk Pharma Korea Ltd., South Korea
100 •
Novo Nordisk Lanka (PVT) Ltd, Sri Lanka
100 •
Novo Nordisk Pharma (Thailand) Ltd., Thailand
100 •
Novo Nordisk Vietnam Ltd., Vietnam
100 •
Other subsidiaries and associated companies
NNE A/S, Denmark
100
•
NNIT A/S, Denmark
18
•
CS Solar Fund XIV, LLC, US
99
•
Companies without significant activities are not included in the list.
NNE A/S subsidiaries are not included in the list.
133
Consolidated financial statements / Notes to the Consolidated financial statements / 5.7 Companies in the Novo Nordisk Group
Financial definitions and ratios
(part of the Annual review – not audited)
Financial ratios have been calculated in accordance with the guidelines from the
Danish Society of Financial Analysts, and supplemented by certain key ratios for
Novo Nordisk. Financial ratios are described below and in the section 'Non-IFRS
financial measures'.
FINANCIAL DEFINITIONS
ADR
An American Depository Receipt (ADR) represents ownership of shares in a non-US
company and trades in US financial markets.
EBITDA
EBITDA is defined as ’net profit’, adjusted for 'income taxes', 'financial items',
'depreciation and amortisation' and 'impairment losses and reversals'.
Number of shares outstanding
The total number of shares, excluding the holding of treasury shares.
Shares
The share capital of Novo Nordisk comprises of A-shares and B-shares, with B-shares
listed on Nasdaq Copenhagen in trading units of nominal value DKK 0.10 and ADRs,
that equals B-shares of nominal value DKK 0.10, being listed on New York Stock
Exchange (NYSE). Key ratios per share, including number of outstanding shares, are
aligned with trading units of nominal value DKK 0.10.
Working capital
Working capital is the net of operating assets and operating liabilities.
FINANCIAL RATIOS
Basic earnings per share (EPS)
Net profit divided by the average number of shares outstanding.
Diluted earnings per share
Net profit divided by average number of shares outstanding, including the dilutive
effect of the outstanding restricted stock units.
Dividend payout ratio
Total dividends for the year as a percentage of net profit. Total dividends for the year
comprise of interim dividend paid during the year and proposed ordinary dividend for
the year.
Effective tax rate
Income taxes as a percentage of profit before income taxes.
Gross margin
Gross profit as a percentage of net sales.
Operating margin
Operating profit as a percentage of net sales.
Net profit margin
Net profit as a percentage of net sales.
134
Part of the Annual review – not audited
Non-IFRS financial measures
(part of the Annual review – not audited)
In the Annual review, Novo Nordisk discloses certain financial measures of the Group’s
financial performance, financial position and cash flows that reflect adjustments to the
most directly comparable measures calculated and presented in accordance with IFRS
Accounting Standards. These non-IFRS financial measures may not be defined and
calculated by other companies in the same manner, and may therefore not be
comparable.
The non-IFRS financial measures presented in the Annual review are:
• Net sales and operating profit in constant exchange rates (CER)
• 'Net profit’, adjusted for 'income taxes', 'financial items', 'depreciation and
amortisation' and 'impairment losses and reversals' (EBITDA) and EBITDA at
constant exchange rates
• Return on invested capital (ROIC)
• Free cash flow
• Cash to earnings
IFRS refers to an IFRS financial measure.
Net sales and operating profit growth in constant exchange rates
'Growth in constant exchange rates' means that the effect of changes in exchange
rates is excluded. It is defined as sales/operating profit for the period measured at the
average exchange rates for the same period of the prior year, compared with net
sales/operating profit for the same period of the prior year. Price adjustments within
hyperinflation countries as defined in IAS 29 'Financial reporting in hyperinflation
economies' are excluded from the calculation to avoid growth in constant exchange
rates being artificially inflated. Growth in constant exchange rates is considered to be
relevant information for investors in order to understand the underlying development
in sales and operating profit by adjusting for the impact of currency fluctuations.
Net sales in constant exchange rates
DKK million
2024
2023
2022
Net sales IFRS
290,403
232,261
176,954
Effect of exchange rate
1,575
7,658
(13,024)
Net sales in constant exchange rates
291,978
239,919
163,930
Net sales previous year
232,261
176,954
140,800
% increase/(decrease) in reported
currencies
25.0%
31.3%
25.7%
% increase/(decrease) in constant
exchange rates
25.7%
35.6%
16.4%
Operating profit in constant exchange rates
DKK million
2024
2023
2022
Operating profit IFRS
128,339
102,574
74,809
Effect of exchange rate
1,096
4,898
(7,578)
Operating profit in constant
exchange rates
129,435
107,472
67,231
Operating profit previous year
102,574
74,809
58,644
% increase/(decrease) in reported
currencies
25.1%
37.1%
27.6%
% increase/(decrease) in constant
exchange rates
26.2%
43.7%
14.6%
EBITDA and EBITDA at constant exchange rates
Novo Nordisk defines EBITDA as ’net profit’ adjusted for 'income taxes', 'financial
items', 'depreciation and amortisation' and 'impairment losses and reversals'.
Management believes EBITDA is a useful measure as it helps analyse operating
results from core business operations without including the effects of capital
structure, tax rates, depreciation, amortisation and impairment losses and reversals.
"EBITDA at CER" means that the effect of changes in exchange rates is excluded by
measuring EBITDA (as defined above) at the average exchange rates for the same
period prior year. EBITDA at CER is considered to be useful information for investors
in order to understand the underlying development by adjusting for the impact of
currency fluctuations.
EBITDA and EBITDA at constant exchange rates
DKK million
2024
2023
2022
Net profit IFRS
100,988
83,683
55,525
Income taxes IFRS
26,203
20,991
13,537
Financial income IFRS
(6,198)
(2,945)
(239)
Financial expenses IFRS
7,346
845
5,986
Operating profit (EBIT) IFRS
128,339
102,574
74,809
Depreciation and amortisations
8,545
7,289
6,553
Impairment losses and reversals
10,562
2,124
809
EBITDA
147,446
111,987
82,171
Effect of exchange rate
1,146
5,043
(7,841)
EBITDA in constant exchange rates
148,592
117,030
74,330
EBITDA previous year
111,987
82,171
64,669
% increase/(decrease) in reported
currencies
31.7%
36.3%
27.1%
% increase/(decrease) in constant
exchange rates
32.7%
42.4%
14.9%
135
Part of the Annual review – not audited
Return on invested capital (ROIC)
ROIC is defined as 'operating profit after tax' (using the effective tax rate) as a
percentage of average inventories, receivables, property, plant and equipment,
intangible assets and deferred tax assets, less non-interest-bearing liabilities including
provisions and deferred tax liabilities (where the average is the sum of the above
assets and liabilities at the beginning of the year and at year-end divided by two).
Management believes ROIC is a useful measure in providing investors and
Management with information regarding the Group's performance. The calculation
of this financial target is a widely accepted measure of earnings efficiency in relation
to total capital employed.
The following tables show the reconciliation of ROIC with operating profit/equity in
%, the most directly comparable IFRS financial measure:
Operating profit/equity in %
DKK million
2024
2023
2022
Operating profit IFRS
128,339
102,574
74,809
/ Equity IFRS
143,486
106,561
83,486
Operating profit/equity in %
89.4%
96.3%
89.6%
ROIC
DKK million
2024
2023
2022
Operating profit after tax
101,901
81,957
60,146
/ Average net operating assets
159,548
92,566
81,744
ROIC in %
63.9%
88.5%
73.6%
ROIC numerator
Reconciliation of operating profit to operating profit after tax
DKK million
2024
2023
2022
Operating profit IFRS
128,339
102,574
74,809
Tax on operating profit (using effective
tax rate)
(26,438)
(20,617)
(14,663)
Operating profit after tax
101,901
81,957
60,146
ROIC denominator
DKK million
2024
2023
2022
Intangible assets
111,090
60,406
50,939
Property, plant and equipment
162,488
90,961
66,671
Deferred income tax assets
24,627
20,380
13,904
Other receivables and prepayments (non-
current)
4,016
1,430
206
Inventories
40,849
31,811
24,388
Trade receivables
71,949
64,770
50,560
Tax receivables
2,853
2,423
940
Other receivables and prepayments
(current)
12,612
8,068
6,005
Deferred income tax liabilities
(5,426)
(10,162)
(7,061)
Retirement benefit obligations
(903)
(742)
(762)
Other liabilities (non-current)
(23)
(189)
(100)
Provisions (non-current)
(8,755)
(6,649)
(4,590)
Trade payables
(28,846)
(25,606)
(15,587)
Tax payables
(9,716)
(7,116)
(7,091)
Other liabilities (current)
(37,993)
(28,705)
(23,606)
Provisions (current)
(120,329)
(100,478)
(70,287)
Net operating assets
218,493
100,602
84,529
Average net operating assets
159,548
92,566
81,744
Reconciliation of net operating assets to equity IFRS
DKK million
2024
2023
2022
Equity IFRS
143,486
106,561
83,486
Investment in associated companies
(400)
(410)
(327)
Other financial assets
(2,277)
(1,253)
(1,016)
Marketable securities
(10,653)
(15,838)
(10,921)
Derivative financial instruments
(6,326)
(2,344)
(2,727)
Cash at bank
(15,655)
(14,392)
(12,653)
Borrowings – non-current
89,674
20,528
24,318
Borrowings – current
13,113
6,478
1,466
Derivative financial instruments
7,531
1,272
2,903
Net operating assets
218,493
100,602
84,529
136
Part of the Annual review – not audited
Free cash flow
Free cash flow is a measure of the amount of cash generated in the period which is
available for the Board to allocate between Novo Nordisk's capital providers, through
measures such as dividends, share repurchases and repayment of debt (excluding
lease liability repayments) or for retaining within the business to fund future growth.
The following table shows a reconciliation of free cash flow with net cash generated
from operating activities, the most directly comparable IFRS financial measure:
Free cash flow
DKK million
2024
2023
2022
Net cash generated from operating
activities IFRS
120,968
108,908
78,887
Net cash used in investing activities IFRS
(128,895)
(43,892)
(24,918)
Net purchase/(net sale) of marketable
securities IFRS
(5,363)
4,758
2,921
Addition on marketable securities
through acquisition of business IFRS
—
—
1,470
Repayment on lease liabilities IFRS
(1,417)
(1,448)
(998)
Free cash flow
(14,707)
68,326
57,362
Cash to earnings
Cash to earnings is defined as 'free cash flow as a percentage of net profit'.
Management believes that cash to earnings is an important performance metric
because it measures the Group’s ability to turn earnings into cash. Since Management
wants this measure to capture the ability of the Group’s operations to generate cash,
free cash flow is used as the numerator instead of net cash flow.
The following table shows the reconciliation of cash to earnings to cash flow
from operating activities/net profit in %, the most directly comparable IFRS
financial measure:
Cash flow from operating activities/net profit in %
DKK million
2024
2023
2022
Net cash generated from operating
activities IFRS
120,968
108,908
78,887
/ Net profit IFRS
100,988
83,683
55,525
Cash flow from operating
activities/net profit in %
119.8%
130.1%
142.1%
Cash to earnings
DKK million
2024
2023
2022
Free cash flow
(14,707)
68,326
57,362
/ Net profit IFRS
100,988
83,683
55,525
Cash to earnings
(14.6%)
81.6%
103.3%
137
Part of the Annual review – not audited
Statement by the Board of Directors and Executive Management
The Board of Directors and Executive Management have today
considered and approved the Annual Report of Novo Nordisk A/S
for the financial year 1 January 2024 – 31 December 2024.
The Consolidated financial statements are prepared in accordance
with IFRS Accounting Standards as adopted by the EU and disclosure
requirements for listed companies in Denmark. The parent financial
statements are presented in accordance with the Danish Financial
Statements Act. Furthermore, the Annual Report is prepared in
accordance with disclosure requirements for listed companies.
In our opinion, the Consolidated financial statements and the parent
financial statements give a true and fair view of the Group’s and the
Parent's financial position at 31 December 2024 as well as of the
results of their operations and the Group's cash flows for the
financial year 1 January 2024 – 31 December 2024.
In our opinion, the Management report is prepared in accordance with
relevant laws and regulations and contains a fair review of the
development of the Group's and the Parent’s business and financial
matters, the results for the year and of the Parent’s financial position
and the financial position as a whole of the entities included in the
Consolidated financial statements, together with a description of the
principal risks and uncertainties that the Group and the Parent face.
The Sustainability statement is prepared in accordance with the
European Sustainability Reporting Standards (ESRS) as required by
the Danish Financial Statements Act, as well as article 8 in the
EU Taxonomy regulation.
Furthermore, in our opinion, the Annual Report of Novo Nordisk A/S
for the financial year 1 January 2024 – 31 December 2024, with the file
name NOVO-2024-12-31-0-en.zip, is prepared, in all material respects, in
accordance with the ESEF Regulation.
We recommend the Annual Report for adoption at the Annual
General Meeting.
Bagsværd, 5 February 2025
Registered Executive Management
Board of Directors
Lars Fruergaard Jørgensen
President and CEO
Karsten Munk Knudsen
CFO
Helge Lund
Chair
Henrik Poulsen
Vice Chair
Elisabeth Dahl Christensen
Laurence Debroux
Andreas Fibig
Sylvie Grégoire
Liselotte Hyveled
Mette Bøjer Jensen
Kasim Kutay
Christina Law
Martin Mackay
Thomas Rantzau
138
Statements and auditor’s reports / Statement by the Board of Directors and Executive Management
Key audit matter
How our audit addressed the key audit matter
US sales rebates
Refer to notes 2.1 and 3.5 in the Consolidated financial statements.
In the United States (US), sales rebates are paid in connection with public healthcare insurance
programs, namely Medicare and Medicaid, as well as rebates to pharmacy benefit managers and
managed healthcare plans. In January 2021, the Company changed its policy in the US related to
the 340B Drug Pricing Program, whereby Novo Nordisk no longer provides 340B statutory
discounts to certain pharmacies that contract with covered entities participating in the 340B Drug
Pricing Program. Novo Nordisk has only recognised revenue related to the 340B Drug Pricing
Program to the extent that it is highly probable that its inclusion will not result in a significant
revenue reversal in the future. When sales are recognised, Novo Nordisk also records provisions
for the expected value of the sales deductions (variable consideration) at the time the related sales
are recorded.
We identified the US sales rebates, including provisions related to the 340B Drug Pricing Program,
as a critical audit matter due to the significant measurement uncertainty involved in developing
these provisions, as the provisions are based on legal interpretations of applicable laws and
regulations, historical claims experience, payer channel mix, current contract prices, unbilled
claims, claims submission time lags and inventory levels in the distribution channel. In addition,
significant judgments are involved in determining whether a significant reversal in the amount of
cumulative revenue recognised will not occur. This led to a high degree of auditor judgment and
an increased extent of effort in applying procedures relating to these provisions.
We evaluated the appropriateness of the Company’s methodology used to develop their sales
rebates provisions, including provisions related to the 340B Drug Pricing Program, by
involving audit professionals with industry and quantitative analytics experience to assist us in
performing our auditing procedures.
We tested the effectiveness of controls relating to sales rebates, including controls over the
assumptions and data used to estimate these rebates.
We tested rebate claims processed by the Company, including evaluating those claims for
consistency with the conditions and terms of the Company’s rebate arrangements.
We tested the overall reasonableness of the accruals recorded at period end by developing an
expectation for comparison to actual recorded balances.
We evaluated the Company’s ability to estimate sales rebates accurately by considering the
historical accuracy of the Company’s estimates in prior year.
Acquisition of the Catalent Fill-finish sites
Refer to notes 3.1 and 5.3 to the Consolidated financial statements.
On 18 December, 2024, Novo Nordisk acquired fill-finish sites from Novo Holdings A/S
for a purchase price of USD 11.7 billion (DKK 82.1 billion). The Company accounted for
the acquisition as a business combination and, accordingly, has performed procedures
to identify all assets and liabilities and allocated the purchase price to the assets
acquired and liabilities assumed based on their respective estimated fair values as of
the date of acquisition. Intangible assets acquired primarily included know-how. The
excess of the purchase consideration over the fair value of identifiable assets acquired
and liabilities assumed was recorded as goodwill.
We identified the recognition of a separably identifiable know-how intangible asset
and the valuation approach applied in valuing such an asset as a critical audit matter
due to the high level of complexity and management judgement involved. This led to a
high degree of auditor judgment and an increased extent of effort in applying
procedures relating to these significant estimates and judgement.
We assessed the appropriateness of the recognition of a separably identifiable know-how
intangible asset in relation to the recognition criteria in IFRS 3, Business Combinations and IAS
38, Intangible Assets.
Due to the complexity and significance of the matter, we also consulted with IFRS technical
accounting specialists regarding the appropriateness of management’s conclusion that such
know-how fulfills the separability criteria in IAS 38, Intangible Assets and thus can be
recognised as an intangible asset.
With the assistance of our fair value specialists, we evaluated the appropriateness of the
valuation approach and methodology used in determining the fair value of the know-how
intangible asset.
We tested the effectiveness of internal controls over the business combination.
We assessed the knowledge, skills, abilities, and objectivity of management’s experts used in
determining the appropriateness of recognition of a separable intangible asset and the
determination of the appropriate method by which to value such assets and evaluated the
work performed.
Independent auditor’s report
To the stakeholders of Novo Nordisk A/S
Report on the Financial Statements
Opinion
We have audited the Consolidated financial statements and the parent financial statements of
Novo Nordisk A/S for the financial year 1 January 2024 – 31 December 2024, which comprise the
income statement, balance sheet, equity statement and notes, including a summary of material
accounting policy information, for the Group as well as the Parent, and the statement of
comprehensive income and the cash flow statement of the Group (collectively referred to as the
“Financial Statements”). The Consolidated financial statements are prepared in accordance with
IFRS Accounting Standards as endorsed by the EU and additional requirements of the Danish
Financial Statements Act, and the parent financial statements are prepared in accordance with
the Danish Financial Statements Act.
In our opinion, the Consolidated financial statements give a true and fair view of the Group’s
financial position at 31 December 2024, and of the results of its operations and cash flows for the
financial year 1 January 2024 – 31 December 2024 in accordance with IFRS Accounting Standards
as endorsed by the EU and additional requirements under the Danish Financial Statements Act.
Further, in our opinion, the parent financial statements give a true and fair view of the Parent’s
financial position at 31 December 2024, and of the results of its operations for the financial year
1 January 2024 – 31 December 2024 in accordance with the Danish Financial Statements Act.
Our opinion is consistent with our Long-form Auditor’s report issued to the Audit Committee
and the Board of Directors.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the
additional requirements applicable in Denmark. Our responsibilities under those standards and
requirements are further described in the Auditor’s responsibilities for the audit of the Consolidated
financial statements and the parent financial statements section of this auditor’s report. We are
independent of the Group in accordance with the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the
additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the IESBA Code. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, we have not provided any prohibited non-audit services
as referred to in Article 5(1) of Regulation (EU) No 537/2014.
We were appointed auditors of Novo Nordisk A/S for the first time on 25 March 2021, for the
financial year 2021. We have been reappointed annually by decision of the general meeting for
a total continuous engagement period of four years up to and including the financial year 2024.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the Consolidated financial statements and the parent financial statements for the
financial year 1 January 2024 – 31 December 2024. These matters were addressed in the context of
our audit of the Consolidated financial statements and the parent financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
139
Statements and auditor’s reports / Independent auditor’s report
Statement on the Management report
Management is responsible for the Management report.
Our opinion on the Consolidated financial statements and the parent financial statements
does not cover the Management report, and we do not as part of the audit express any form
of assurance conclusion thereon.
In connection with our audit of the Consolidated financial statements and the parent financial
statements, our responsibility is to read the Management report and, in doing so, consider
whether the Management report is materially inconsistent with the Consolidated financial
statements and the parent financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether the Management report provides the
information required by the Danish Financial Statements Act. This does not include the
requirements in paragraph 99a related to the Sustainability statement covered by the
separate auditor’s limited assurance report hereon.
Based on the work we have performed, we conclude that the Management report is in
accordance with the Consolidated financial statements and the parent financial statements and
has been prepared in accordance with the requirements of the Danish Financial Statements Act
except for the requirements in paragraph 99a related to the Sustainability statement, cf. above.
We did not identify any material misstatement in the Management report.
Management’s responsibilities for the Financial Statements
Management is responsible for the preparation of Consolidated financial statements that give
a true and fair view in accordance with IFRS Accounting Standards as endorsed by the EU and
additional requirements of the Danish Financial Statements Act as well as the preparation of
parent financial statements that give a true and fair view in accordance with the Danish
Financial Statements Act, and for such internal control as Management determines is
necessary to enable the preparation of Consolidated financial statements and parent financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the Consolidated financial statements and the parent financial statements,
Management is responsible for assessing the Group’s and the Parent’s ability to continue as a
going concern, for disclosing, as applicable, matters related to going concern, and for using
the going concern basis of accounting in preparing the Consolidated financial statements and
the parent financial statements unless Management either intends to liquidate the Group or
the Entity or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Consolidated financial
statements and the parent financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs and the additional requirements applicable in Denmark
will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these
Consolidated financial statements and these parent financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements
applicable in Denmark, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Consolidated financial statements
and the parent financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s and the Parent’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by Management.
• Conclude on the appropriateness of Management’s use of the going concern basis of
accounting in preparing the Consolidated financial statements and the parent financial
statements, and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s and the Parent’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the Consolidated
financial statements and the parent financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor’s report. However, future events or conditions may cause the Group and the
Entity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Financial Statements, including
the disclosures in the notes, and whether the Financial Statements represent the underlying
transactions and events in a manner that gives a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the Consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the group as a basis for forming an
opinion on the Financial Statements. We are responsible for the direction, supervision and
review of the audit work performed for purposes of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and, where applicable, safeguards put in place and measures taken to eliminate threats.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Financial Statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on compliance with the ESEF Regulation
As part of our audit of the Financial Statements of Novo Nordisk A/S, we performed procedures
to express an opinion on whether the annual report of Novo Nordisk A/S for the financial year 1
January 2024 to 31 December 2024 with the file name NOVO-2024-12-31-0-en.zip is prepared, in
all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815
on the European Single Electronic Format (ESEF Regulation), which includes requirements
related to the preparation of the annual report in XHTML format and iXBRL tagging of the
Consolidated financial statements including notes.
Management is responsible for preparing an annual report that complies with the ESEF
Regulation. This responsibility includes:
• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags, including extensions to the ESEF
taxonomy and the anchoring thereof to elements in the taxonomy, for financial information
required to be tagged using judgement where necessary;
• Ensuring consistency between iXBRL tagged data and the Consolidated financial statements
presented in human readable format; and
• For such internal control as Management determines necessary to enable the preparation of
an annual report that is compliant with the ESEF Regulation.
Our responsibility is to obtain reasonable assurance on whether the annual report is prepared,
in all material respects, in compliance with the ESEF Regulation based on the evidence we have
obtained and to issue a report that includes our opinion. The nature, timing and extent of
procedures selected depend on the auditor’s judgement, including the assessment of the risks
of material departures from the requirements set out in the ESEF Regulation, whether due to
fraud or error. The procedures include:
• Testing whether the annual report is prepared in XHTML format;
• Obtaining an understanding of the Company’s iXBRL tagging process and of internal control
over the tagging process;
• Evaluating the completeness of the iXBRL tagging of the Consolidated financial statements
including notes;
• Evaluating the appropriateness of the Company’s use of iXBRL elements selected from the
ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF
taxonomy has been identified;
• Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and
• Reconciling the iXBRL tagged data with the audited Consolidated financial statements.
In our opinion, the annual report of Novo Nordisk A/S for the financial year 1 January to 31
December 2024 with the file name NOVO-2024-12-31-0-en.zip is prepared, in all material
respects, in compliance with the ESEF Regulation.
Copenhagen, 5 February 2025
Deloitte
Statsautoriseret Revisionspartnerselskab
Business Registration No 33 96 35 56
Anders Vad Dons
Sumit Sudan
State-Authorised Public Accountant
State-Authorised Public Accountant
mne25299
mne33716
140
Statements and auditor’s reports / Independent auditor’s report
Independent auditor’s limited assurance report on Sustainability statement
Limited assurance conclusion
We have conducted a limited assurance engagement on the Sustainability statement of Novo
Nordisk A/S (the “Group”) included in the Management Report (the “Sustainability statement”),
for the financial year 1 January – 31 December 2024.
Based on the procedures we have performed and the evidence we have obtained, nothing
has come to our attention that causes us to believe that the Sustainability statement is not
prepared, in all material respects, in accordance with the Danish Financial Statements Act
section 99 a, including:
• compliance with the European Sustainability Reporting Standards (ESRS), including that the
process carried out by the management to identify the information reported in the
Sustainability statement (the “Process”) is in accordance with the description set out in 1.5
Double materiality assessment; and
• compliance of the disclosures in 2.6 EU Taxonomy within the environmental information
and 5. Appendix of the Sustainability statement with Article 8 of EU Regulation 2020/852
(the “Taxonomy Regulation”).
Basis for conclusion
We conducted our limited assurance engagement in accordance with ISAE 3000 (Revised),
Assurance engagements other than audits or reviews of historical financial information, and
additional requirements applicable in Denmark.
The procedures in a limited assurance engagement vary in nature and timing from, and are less
in extent than for, a reasonable assurance engagement. Consequently, the level of assurance
obtained in a limited assurance engagement is substantially lower than the assurance that
would have been obtained had a reasonable assurance engagement been performed.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our conclusion. Our responsibilities under this standard are further described in the
“Auditor’s responsibilities for the assurance engagement” section of our report.
Our independence and quality management
We are independent of the Group in accordance with the International Ethics Standards Board
for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and
the additional ethical requirements applicable in Denmark. We have also fulfilled our other
ethical responsibilities in accordance with these requirements and the IESBA Code.
Deloitte Statsautoriseret Revisionspartnerselskab applies International Standard on Quality
Management 1, ISQM1, which requires the firm to design, implement and operate a system
of quality management including policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
Other matter
The comparative information included in the Sustainability statement of the Group was not
subject to an assurance engagement on sustainability information prepared in accordance
with the Danish Financial Statements Act section 99 a. Our conclusion is not modified in
respect of this matter.
Inherent limitations in preparing the Sustainability statement
In reporting forward-looking information in accordance with ESRS, management is required
to prepare the forward-looking information on the basis of disclosed assumptions about
events that may occur in the future and possible future actions by the Group. Actual outcomes
are likely to be different since anticipated events frequently do not occur as expected.
Management’s responsibilities for the Sustainability statement
Management is responsible for designing and implementing a process to identify the
information reported in the Sustainability statement in accordance with the ESRS and for
disclosing this Process as part of the General information. This responsibility includes:
• understanding the context in which the Group’s activities and business relationships take
place and developing an understanding of its affected stakeholders;
• the identification of the actual and potential impacts (both negative and positive) related to
sustainability matters, as well as risks and opportunities that affect, or could reasonably be
expected to affect, the Group’s financial position, financial performance, cash flows, access
to finance or cost of capital over the short-, medium-, or long-term;
• the assessment of the materiality of the identified impacts, risks and opportunities related
to sustainability matters by selecting and applying appropriate thresholds; and
• making assumptions that are reasonable in the circumstances.
Management is further responsible for the preparation of the Sustainability statement, in
accordance with the Danish Financial Statements Act section 99a, including:
• compliance with the ESRS;
• preparing the disclosures within the Environmental information of the Sustainability
statement, in compliance with Article 8 of the Taxonomy Regulation;
• designing, implementing and maintaining such internal control that management
determines is necessary to enable the preparation of the Sustainability statement that is
free from material misstatement, whether due to fraud or error; and
• the selection and application of appropriate sustainability reporting methods and making
assumptions and estimates that are reasonable in the circumstances.
Auditor’s responsibilities for the assurance engagement
Our objectives are to plan and perform the assurance engagement to obtain limited
assurance about whether the Sustainability statement is free from material misstatement,
whether due to fraud or error, and to issue a limited assurance report that includes our
conclusion. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence decisions of
users taken on the basis of the Sustainability statement as a whole.
To the stakeholders of Novo Nordisk A/S
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise
professional judgement and maintain professional scepticism throughout the engagement.
Our responsibilities in respect of the Process include:
• Obtaining an understanding of the Process but not for the purpose of providing a
conclusion on the effectiveness of the Process, including the outcome of the Process;
• Considering whether the information identified addresses the applicable disclosure
requirements of the ESRS, and
• Designing and performing procedures to evaluate whether the Process is consistent with
the Group’s description of its Process, as disclosed in 1.5 Double materiality assessment of
the Sustainability statement.
Our other responsibilities in respect of the Sustainability statement include:
• Identifying disclosures where material misstatements are likely to arise, whether due to
fraud or error; and
• Designing and performing procedures responsive to disclosures in the Sustainability
statement where material misstatements are likely to arise. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain evidence about
the Sustainability statement.
The nature, timing and extent of procedures selected depend on professional judgement,
including the identification of disclosures where material misstatements are likely to arise,
whether due to fraud or error, in the Sustainability statement.
In conducting our limited assurance engagement, with respect to the Process, we:
• Obtained an understanding of the Process by performing inquiries to understand the
sources of the information used by management; and reviewing the Group’s internal
documentation of its Process; and
• Evaluated whether the evidence obtained from our procedures about the Process
implemented by the Group was consistent with the description of the Process set out in 1.5
Double materiality assessment of the Sustainability statement.
In conducting our limited assurance engagement, with respect to the Sustainability
statement, we:
• Obtained an understanding of the Group’s reporting processes relevant to the preparation
of its Sustainability statement (including the consolidation processes) by obtaining an
141
Statements and auditor’s reports / Independent auditor’s limited assurance report on Sustainability statement
understanding of the Group’s control environment, processes and information systems
relevant to the preparation of the Sustainability statement but not evaluating the design of
particular control activities, obtaining evidence about their implementation or testing their
operating effectiveness;
• Evaluated whether material information identified by the Process is included in the
Sustainability statement;
• Evaluated whether the structure and the presentation of the Sustainability statement are in
accordance with the ESRS;
• Performed inquiries of relevant personnel and analytical procedures on selected
information in the Sustainability statement;
• Performed substantive assurance procedures on selected information in the Sustainability
statement;
• Evaluated methods, assumptions and data for developing material estimates and
forward-looking information and how these methods were applied; and
• Obtained an understanding of the process to identify taxonomy-eligible and taxonomy-
aligned economic activities and the corresponding disclosures in the Sustainability
statement.
Copenhagen, 5 February 2025
Deloitte
Statsautoriseret Revisionspartnerselskab
Business Registration No. 33 96 35 56
Anders Vad Dons
Sumit Sudan
State-Authorised Public Accountant
State-Authorised Public Accountant
mne25299
mne33716
142
Statements and auditor’s reports / Independent auditor’s limited assurance report on Sustainability statement
ADDITIONAL
INFORMATION
144 More information
145 Product overview
146 Financial statements of the parent company
Families participating in the 2024 Breakthrough T1D Walk in the greater
Boston area. The fundraising walk supports scientific research for
better treatment options for people living with type 1 diabetes (T1D).
Over 200 US Novo Nordisk employees participated in the Boston walk
in support of patients worldwide.
143
Additional reporting
Novo Nordisk provides additional disclosure to satisfy legal requirements and stakeholder interests.
Supplementary reports can be downloaded at: www.novonordisk.com/annualreport, while additional
information can be found at: www.novonordisk.com.
Annual Report
This Annual Report is Novo Nordisk’s full statutory Annual Report pursuant to Section 149(1) of
the Danish Financial Statements Act. The statutory Annual Report will be presented and adopted
at the Annual General Meeting on 27 March 2025 and will subsequently be submitted to and
be available at the Danish Business Authority. The Consolidated financial statements included in
this Annual Report have been prepared in accordance with IFRS Accounting Standards (IFRS) as
issued by the International Accounting Standards Board (IASB) and in accordance with IFRS
Accounting Standards endorsed by the EU and further requirements in the Danish Financial
Statements Act.
The Sustainability statement included in this Annual Report has been prepared in accordance
with the European Sustainability Reporting Standards (ESRS) as required by the Danish Financial
Statement Act, as well as article 8 in the EU Taxonomy regulation.
Form 20-F
The Form 20-F is filed using a standardised reporting form so that investors can evaluate the company
alongside US domestic equities. It is an annual reporting requirement by the US Securities and
Exchange Commission (SEC) for foreign private issuers with equity shares listed on exchanges in the
United States.
Corporate Governance Report
The Corporate Governance Report discloses Novo Nordisk’s compliance with corporate governance to
meet the requirements of the Danish Financial Statements Act.
Remuneration Report
The Remuneration Report describes the remuneration awarded or due during 2024 to members of the
Board and Executive Management registered with the Danish Business Authority in accordance with
section 139b of the Danish Companies Act. The Remuneration Report is submitted to the Annual
General Meeting for an advisory vote.
Disclaimer
The patients, employees and relatives portrayed in this Annual Report and ancillary reports
have participated of their own accord and solely to express their own personal opinions on
topics referred to, which do not necessarily reflect the views and opinions of Novo Nordisk.
Use of the pictures as illustrations is in no way intended to associate the patients, employees
or relatives with the promotion of any Novo Nordisk products.
Credits
Design and production: Kontrapunkt.
Illustrations: Kontrapunkt.
More information
144
Financial statements and additional information / Additional information / More information
Once-weekly insulin
• Awiqli®, insulin icodec
New generation insulin and combinations
• Tresiba®, insulin degludec
• Ryzodeg®, insulin degludec/insulin aspart
• Fiasp®, fast-acting insulin aspart
• Xultophy®2, insulin degludec/liraglutide
Modern insulin
• Levemir®, insulin detemir
• NovoRapid®3, insulin aspart
• NovoMix® 30, biphasic insulin aspart
• NovoMix® 50, biphasic insulin aspart
Human insulin
• Insulatard® isophane (NPH) insulin
• Actrapid®, regular human insulin
• Mixtard® 30, biphasic human insulin
• Mixtard® 50, biphasic human insulin
Glucagon-like peptide-1
• Victoza®, liraglutide
• Ozempic®, semaglutide
• Rybelsus®, oral semaglutide
Pre-filled delivery systems
• FlexTouch®, U100, U200
• FlexPen®
• InnoLet®
• Ozempic®, FlexTouch®
Durable delivery systems
• NovoPen® 6
• NovoPen® 5
• NovoPen® 4
• NovoPen Echo® Plus
• NovoPen Echo®
Other delivery systems
• PumpCart®, NovoRapid® and Fiasp® cartridge
to be used in pump
• Penfill® cartridge
• Mallya®
Oral antidiabetic agents
• NovoNorm®, repaglinide
Glucagon
• GlucaGen®, glucagon (vial and Hypokit®)
• Zegalogue®, dasiglucagon
Needles
• NovoFine® Plus
• NovoFine®
• NovoTwist®
• NovoFine® AutoCover®
Glucagon-like peptide-1
• Saxenda®, liraglutide 3.0 mg
• Wegovy®, semaglutide 2.4 mg
Obesity delivery systems
• Saxenda®, FlexTouch®
• Wegovy®, Single Dose Device and FlexTouch®
Rare blood disorders
• NovoSeven®, eptacog alfa (recombinant activated factor VII)
• NovoEight®4, turoctocog alfa (recombinant factor VIII)
• Esperoct®, turoctocog alfa pegol, N8-GP (recombinant factor VIII)
• Alhemo®, concizumab (anti-TFPI monoclonal antibody)
• Refixia®5, nonacog beta pegol, N9-GP (recombinant factor IX)
• NovoThirteen®6, catridecacog (recombinant factor XIII)
Rare haemato-renal disorders
• Rivfloza™, nedosiran (small interfering RNA)
Rare endocrine disorders
• Norditropin®, somatropin (rDNA origin)
• Sogroya®, somapacitan (rDNA origin)
Pre-filled human growth hormone delivery systems
• FlexPro®
• NordiFlex®
Other delivery systems
• PenMate®, automatic needle inserter for FlexPro®
Hormone replacement therapies
• Vagifem®7, estradiol hemihydrate
• Activelle®, estradiol/norethisterone acetate
• Kliogest®, estradiol/norethisterone acetate
• Novofem®, estradiol/norethisterone acetate
• Trisequens®, estradiol/norethisterone acetate
• Estrofem®, estradiol
Product overview1
1. Products listed may not be available or approved in all markets. 2. In the US approved under the brand name Xultophy® 100/3.6. 3. In the US called NovoLog®. 4. In the US written Novoeight®.
5. In the US approved under the name of REBINYN®. 6. In the US approved under the name tretten®. 7. In the UK also called gina®.
145
Financial statements and additional information / Additional information / Product overview
Financial statements of the parent company 2024
The following pages comprise the financial statements of the parent company, the legal entity Novo Nordisk A/S. Apart from ownership of the subsidiaries in the
Novo Nordisk Group, activities of the parent company mainly comprises sales, research and development, production, corporate activities and support functions.
Income statement
For the year ended 31 December
DKK million
Note
2024
2023
Net sales
2
261,712
198,078
Cost of goods sold
3
(48,930)
(38,433)
Gross profit
212,782
159,645
Sales and distribution costs
3
(48,921)
(42,291)
Research and development costs
3
(40,296)
(28,731)
Administrative costs
3
(1,905)
(2,002)
Other operating income and expenses
692
1,315
Operating profit
122,352
87,936
Profit in subsidiaries, net of tax
8
8,578
15,973
Financial income
4
6,230
3,636
Financial expenses
4
(12,568)
(4,581)
Profit before income taxes
124,592
102,964
Income taxes
(22,908)
(19,557)
Net profit
101,684
83,407
Balance sheet
At 31 December
DKK million
Note
2024
2023
Assets
Intangible assets
6
93,202
28,755
Property, plant and equipment
7
86,376
53,822
Financial assets
8
116,186
87,543
Other receivables and prepayments
9
3,429
1,238
Total non-current assets
299,193
171,358
Raw materials
11,075
8,415
Work in progress
20,439
16,211
Finished goods
5,038
4,311
Inventories
36,552
28,937
Trade receivables
3,289
2,348
Amounts owed by affiliated companies
47,106
30,398
Tax receivables
7
8
Other receivables and prepayments
9
6,402
5,494
Receivables
56,804
38,248
Marketable securities
10,653
15,838
Derivative financial instruments
11
6,326
2,344
Cash at bank
11,750
10,623
Total current assets
122,085
95,990
Total assets
421,278
267,348
DKK million
Note
2024
2023
Equity and liabilities
Share capital
10
446
451
Net revaluation reserve
18,952
24,696
Development costs reserve
1,994
1,756
Reserve for cash flow hedges and
exchange rate adjustments
(4,243)
1,594
Retained earnings
126,174
77,185
Total equity
143,323
105,682
Borrowings
12
85,368
16,855
Deferred income tax liabilities
5
4,886
6,282
Other provisions
13
1,576
1,280
Total non-current liabilities
91,830
24,417
Borrowings
12
11,557
5,072
Derivative financial instruments
11
7,531
1,272
Trade payables
9,099
6,778
Amounts owed to affiliated companies
137,678
108,865
Tax payables
3,883
3,046
Other liabilities
16,377
12,216
Total current liabilities
186,125
137,249
Total liabilities
277,955
161,666
Total equity and liabilities
421,278
267,348
146
Financial statements and additional information / Financial statements of the parent company 2024
Equity statement
DKK million
Share
capital
Net
revaluation
reserve
Development
costs reserve
Reserve for
cash flow
hedges and
exchange rate
adjustments
Retained
earnings
2024
2023
Balance at the beginning of the year
451
24,696
1,756
1,594
77,185
105,682
82,901
Appropriated from net profit
59,946
59,946
33,116
Appropriated from net profit to net revaluation reserve
(8,945)
(8,945)
8,304
Exchange rate adjustments of investments in subsidiaries
3,201
(135)
3,066
(1,393)
Realisation of previously deferred (gains)/losses on cash flow hedges
(1,547)
(1,547)
(998)
Deferred gains/(losses) on cash flow hedges incurred during the period
(5,763)
(5,763)
1,547
Tax related to cash flow hedges
1,608
1,608
(121)
Development costs
238
(238)
—
—
Other adjustments
155
155
(496)
Transactions with owners:
Total dividend for the year
50,683
50,683
41,987
Interim dividends paid during the year
(15,583)
(15,583)
(13,430)
Dividends paid for prior year
(28,557)
(28,557)
(18,337)
Reduction of the B share capital
(5)
5
—
—
Purchase of treasury shares
(20,181)
(20,181)
(29,924)
Share-based payments (note 3)
626
626
562
Share-based payments in subsidiaries
1,663
1,663
1,587
Tax related to share-based payments
470
470
377
Balance at the end of the year
446
18,952
1,994
(4,243)
126,174
143,323
105,682
Proposed appropriation of net profit:
Interim dividend for the year
15,583
13,430
Final dividend for the year
35,100
28,557
Appropriated to net revaluation reserve
(8,945)
8,304
Transferred to retained earnings
59,946
33,116
Distribution of net profit
101,684
83,407
Refer to note 4.3 in the Consolidated financial statements for details on the number of shares, treasury shares and total number of A and B shares in Novo Nordisk A/S.
147
Financial statements and additional information / Financial statements of the parent company 2024
Notes
1 Accounting policies
The financial statements of the parent company have been prepared in accordance
with the Danish Financial Statements Act (Class D) and other accounting regulations
for companies listed on Nasdaq Copenhagen.
The accounting policies for the financial statements of the parent company are
unchanged from the previous financial year, except for the addition of access to
capacity under intangible assets. The accounting policies are the same as for the
Consolidated financial statements with the adjustments described below. For a
description of the accounting policies of the Group, refer to the Consolidated
financial statements.
No separate statement of cash flows has been prepared for the parent company;
refer to the statement of cash flows for the Group.
Supplementary accounting policies for the parent company
In the Parent Financial Statements the acquisition of three fill-finish sites from Novo
Holdings A/S is accounted for as acquisition of shares in subsidiaries and intangible
assets (access to capacity).
Intangible assets
Access to capacity asset is amortised over 10 years.
Financial assets
In the financial statements of the parent company, investments in subsidiaries and
associated companies are recorded under the equity method, using the respective
share of the net asset values in subsidiaries and associated companies. The equity
method is used as a measurement method rather than a consolidation method.
The net profit of subsidiaries and associated companies less unrealised intra-group profits
and amortisation of goodwill is recorded in the income statement of the parent company.
To the extent that net profit exceeds declared dividends from such companies, the net
revaluation of investments in subsidiaries and associated companies is transferred to net
revaluation reserve under equity according to the equity method.
Goodwill recognised in subsidiaries is amortised over 10-23 years, which reflects
the useful life of the underlying assets and activities generating the goodwill.
Amounts owed by affiliates, where settlement is neither planned nor likely within
the foreseeable future, are treated as part of net-investments in subsidiaries, with
exchange rate adjustments recognised directly in equity through reserve for cash
flow hedges and exchange rate adjustments.
Tax
For Danish tax purposes, the parent company is assessed jointly with its Danish
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. Novo Nordisk A/S and its jointly
taxed subsidiaries are included in the joint taxation of the parent company,
Novo Holdings A/S.
2 Sales
DKK million
2024
2023
Sales by segment
Diabetes and Obesity care
261,556
197,969
Rare disease
156
109
Total sales
261,712
198,078
Sales by geographical segment
North America Operations
165,689
124,860
International Operations:
EMEA
47,810
40,038
Region China
23,356
12,800
Rest of World
24,857
20,380
Total sales
261,712
198,078
Sales are attributed to a geographical segment based on location of the customer.
For definitions of segments, refer to note 2.2 in the Consolidated financial statements.
3 Employee costs
DKK million
2024
2023
Wages and salaries
25,252
19,525
Share-based payment costs
626
562
Pensions
2,211
1,709
Other social security contributions
417
301
Other employee costs
1,371
1,039
Total employee costs
29,877
23,136
Average number of full-time employees
29,288
23,754
Year-end number of full-time employees
31,096
26,111
For information regarding remuneration to the Board of Directors and Executive
Management, refer to note 5.4 in the Consolidated financial statements.
4 Financial income and financial expenses
DKK million
2024
2023
Interest income relating to subsidiaries
227
487
Interest income relating to external counterparties
1,589
936
Foreign exchange gain (net)
—
772
Financial gain from forward contracts (net)
4,355
1,263
Capital gain from marketable securities (net)
2
144
Other financial income
57
34
Total financial income
6,230
3,636
Interest expenses relating to subsidiaries
6,763
4,225
Interest expense relating to external counterparties
529
148
Result of associated company
4
38
Foreign exchange loss (net)
5,076
—
Other financial expenses
196
170
Total financial expenses
12,568
4,581
5 Deferred income tax assets/(liabilities)
DKK million
2024
2023
Net deferred tax asset/(liability) at the beginning
of the year
(6,282)
(2,967)
Income/(charge) to the income statement
(349)
(2,797)
Additions from acquisitions
254
—
Income/(charge) to equity
1,491
(518)
Net deferred tax asset/(liability)
at the end of the year
(4,886)
(6,282)
The Danish corporate tax rate is 22% in 2024 (22% in 2023), which is used for the
calculation of the deferred tax liability.
148
Financial statements and additional information / Financial statements of the parent company 2024
6 Intangible assets
DKK million
Intellectual
property rights
and similar
rights
Software and
other
intangibles
2024
2023
Cost at the beginning of the year
31,514
4,143
35,657
23,820
Additions during the year
72,095
597
72,692
11,837
Disposals during the year
(949)
(70)
(1,019)
—
Cost at the end of the year
102,660
4,670
107,330
35,657
Amortisation at the beginning of the year
5,011
1,891
6,902
4,371
Amortisation during the year
1,178
221
1,399
1,011
Impairment losses for the year
5,985
71
6,056
1,520
Amortisation and impairment losses reversed on disposals during the year
(159)
(70)
(229)
—
Amortisation at the end of the year
12,015
2,113
14,128
6,902
Carrying amount at the end of the year
90,645
2,557
93,202
28,755
Intangible assets primarily relate to intellectual property rights, access to capacity asset amounting to DKK 57,496 million (acquired in 2024), internally developed software and
costs related to major IT projects. Intangible assets which are not yet available for use amount to DKK 17,610 million (DKK 19,993 million in 2023).
For further information on impairments, refer to note 3.1 in the Consolidated financial statements.
7 Property, plant and equipment
DKK million
Land and
buildings
Plant and
machinery
Other
equipment
Assets
under
construction
2024
2023
Cost at the beginning of the year
24,890
25,554
4,882
31,025
86,351
65,692
Additions during the year
1,127
337
171
34,184
35,819
22,420
Disposals during the year
(135)
(375)
(180)
(244)
(934)
(1,761)
Transfer from/(to) other items
1,286
2,388
261
(3,935)
—
—
Cost at the end of the year
27,168
27,904
5,134
61,030
121,236
86,351
Depreciation and impairment losses at the beginning of the year
12,149
17,310
3,070
—
32,529
31,145
Depreciation for the year
1,297
1,248
393
—
2,938
2,748
Impairment losses for the year
22
50
6
244
322
409
Depreciation reversed on disposals during the year
(130)
(378)
(177)
(244)
(929)
(1,773)
Depreciation and impairment losses at the end of the year
13,338
18,230
3,292
—
34,860
32,529
Carrying amount at the end of the year
13,830
9,674
1,842
61,030
86,376
53,822
Of which related to leased property, plant and equipment
1,377
—
84
—
1,461
1,083
Leased property, plant and equipment primarily relates to lease of office buildings, warehouses, laboratories and vehicles.
149
Financial statements and additional information / Financial statements of the parent company 2024
8 Financial assets
DKK million
Investments
in subsidiaries
Amounts
owed by
affiliated
companies
Investment in
associated
company
Other
securities and
investments
2024
2023
Cost at the beginning of the year
59,801
2,447
105
818
63,171
60,497
Investments during the year
33,977
868
145
34,990
6,094
Divestments and repayments during the year
—
(476)
—
(476)
(3,420)
Cost at the end of the year
93,778
2,839
105
963
97,685
63,171
Value adjustments at the beginning of the year
41,271
21
52
(345)
40,999
34,521
Profit/(loss) before tax
20,823
20,823
18,112
Share of result after tax in associated company
(4)
(4)
(38)
Income taxes on profit for the year
(3,377)
(3,377)
(1,332)
Market value adjustment
(34)
(34)
(6)
Dividends received
(21,762)
(21,762)
(9,127)
Divestments during the year
—
—
—
54
Effect of exchange rate adjustment charged to the income statement
24
18
42
(367)
Effect of exchange rate adjustment charged to equity
2,920
(135)
2,785
(2,285)
Other adjustments
4,243
4,243
1,467
Value adjustments at the end of the year
44,118
(90)
48
(361)
43,715
40,999
Unrealised internal profit at the beginning of the year
(16,627)
(16,627)
(16,712)
Unrealised internal profit movements in the year
(8,868)
(8,868)
(807)
Effect of exchange rate adjustment charged to equity
281
281
892
Unrealised internal profit at the end of the year
(25,214)
—
—
—
(25,214)
(16,627)
Carrying amount at the end of the year
112,682
2,749
153
602
116,186
87,543
For a list of companies in the Novo Nordisk Group, refer to note 5.7 in the Consolidated financial statements.
9 Other receivables and prepayments
Other receivables and prepayments includes prepayments of DKK 7,571 million
(DKK 5,375 million in 2023), primarily related to prepaid contract manufacturing
and R&D activities
10 Share capital
For information on share capital, refer to note 4.3 in the Consolidated financial
statements.
11 Derivatives
For information on derivative financial instruments, refer to note 4.5 in the
Consolidated financial statements. All derivatives in the group are entered into
with Novo Nordisk A/S as the counterpart.
12 Borrowings
DKK million
2024
2023
Within 1 year
11,557
5,072
1-5 years
63,815
12,889
More than 5 years
21,553
3,966
Total borrowings
96,925
21,927
Borrowings mainly consist of debt to fund the acquisition of shares in subsidiaries and
intangible assets (access to capacity), and loans from Novo Nordisk Finance
(Netherlands) B.V. related to issuance of Eurobonds. For further information on
borrowings, refer to note 4.6 in the Consolidated financial statements.
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13 Other provisions
Provisions for pending litigations are recognised as other provisions. For information
on pending litigations, refer to note 3.5 in the Consolidated financial statements.
Furthermore, as part of normal business Novo Nordisk issues credit notes for
expired goods. Consequently, a provision for future returns is made, based on
historical product return statistics.
14 Related party transactions
For information on transactions with related parties, refer to note 5.4 in the
Consolidated financial statements.
The parent company’s share of services provided by NNIT Group amounts to
DKK 189 million (DKK 327 million in 2023). The parent company’s share of services
provided to Novonesis Group amounts to DKK 38 million (DKK 38 million in 2023).
Novo Nordisk A/S is included in the Consolidated financial statements of the
Novo Nordisk Foundation.
15 Fee to statutory auditors
DKK million
2024
2023
Statutory audit
1
14
9
Audit-related services
3
2
Tax advisory services
4
4
Other services
13
15
Total fee to statutory auditors
34
30
1. 2024 statutory audit fee includes DKK 5 million of additional fees mainly related to business
acquisitions
16 Commitments and contingencies
DKK million
2024
2023
Commitments
Leases
1
2,657
804
Research and development obligations
31,511
18,448
Research and development - potential milestones
2
33,614
25,218
Commercial product launch - potential milestones
2
15,749
11,780
Purchase obligations relating to investments in
property plant and equipment
4,956
1,072
Purchase obligation relating to contract manufacturers
71,061
33,107
Other purchase obligations
5,027
2,742
Guarantees given for subsidiaries
3
68,081
35,608
Other guarantees
1,003
993
1. Lease commitments predominantly relate to lease agreements executed but not commenced
and estimated variable property taxes and low value assets.
2. Potential milestone payments are associated with uncertainty as they are linked to successful
achievements in research activities; refer to note 5.2 in the Consolidated financial statements.
3. Guarantees given for subsidiaries mainly relate to guarantees towards Novo Nordisk Finance
(Netherlands) B.V. related to issuance of Eurobonds.
Novo Nordisk A/S and its Danish subsidiaries are jointly taxed with the Danish
companies in Novo Holdings A/S. The joint taxation also covers withholding taxes
in the form of dividend tax, royalty tax and interest tax. The Danish companies are
jointly and severally liable for the joint taxation. Any subsequent adjustments to
income taxes and withholding taxes may lead to a larger liability. The tax for the
individual companies is allocated in full on the basis of the expected taxable income.
For information on Purchase obligation related to contract manufacturers, refer to
note 5.2 in the Consolidated financial statements. For information on pending
litigation and other contingencies, refer to notes 3.5 and 5.2 in the Consolidated
financial statements.
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Financial statements and additional information / Financial statements of the parent company 2024
Novo Nordisk A/S – Novo Alle 1, 2880 Bagsværd, Denmark – CVR no. 24256790,
+45 4444 8888 (switchboard), novonordisk.com