NEWS - BUSINESS - Nordisk CEO Lars Rebien Sorensen, on 2011 Financial Results - February 6, 2012

🎥 Feb 06, 2012 📺 webtvcanalinter ⏱ 6m 👁 1115 views

SEE MORE ON CANAL INTERNACIONAL: www.ci-webtv.com Nordisk CEO Lars Rebien Sørensen, on 2011 Financial Results Nordisk CEO and president Lars Rebien Sørensen on sales growth in 2011 by 11%, measured in local currencies, Victoza and the competition by Amylins's once-weekly GLP-1 product, Bydureon, launced in Europe and just approved in the US, regulatory update on Degludec, the ultra-long acting insulin from Novo Nordisk now submitted for approval in the US, Europe and Japan, on the Novo Nordisk pipeline, expectations of sales growth in 2012 between 7 and 11 % and finally the fact that Lars Re...

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Transcript (19 segments)

Interviewer0:50

Good morning. Novo Nordisk sales grew by 11% last year measured in local currencies. What products drove that growth and where?

Lars Sorensen1:01

We saw very strong growth of Victoza all over the world, but of course primarily in the United States, which is the biggest market for this product. We saw strong growth of our modern insulins all over the world. We saw a contraction of our human insulin business in the United States and in Europe and in Japan, but still demand for human insulin in emerging markets. We saw growth of our biopharmaceutical business basically all over the world, and we saw growth of our HRT business. Sales of insulin grew by 5% measured in local currencies, which is slightly lower than in past years.

Interviewer1:40

What's happening there?

Lars Sorensen1:42

Well, we have to note here that our sales of insulin was significantly impacted by healthcare reforms. So if we add back a couple of percentage points of headwind on the insulin sales, then we are at 7%. But then we also experienced significant competition in the human insulin segment, in particular in the United States, but also in Europe. And due to healthcare reforms in China, insulin markets are growing very slowly in Europe and Japan, and that's also impacting the overall growth.

Interviewer2:18

Victoza was the company's best performing product last year, but now a competitor, AstraZeneca's once-weekly GLP-1 product Bydureon, is available in Europe and was just approved in the US. What impact do you expect that to have on Victoza sales?

Lars Sorensen2:33

We hope that Bydureon, by now being more competitive by having a longer-acting product than Byetta, will assist us in creating an interest in the GLP-1 segment, because we're the market leaders at the moment. So we believe that they will expand the interest in the GLP-1 segment, expand the market. They will gain some customers, but we do believe that we will still be competitive and have the leading market position. So not a lot of concern there, no, not really.

Interviewer3:04

Degludec, Novo Nordisk's new ultra-long-acting insulin, is now submitted for regulatory approval in Europe, the US, Japan. Have you heard back from these regulatory authorities?

Lars Sorensen3:18

We have an ongoing dialogue with the authorities. We have certain filing obligations as we approach decision time, and that process has been running on a very normal basis. Nothing extraordinary has come out of our dialogue. So we're anticipating a normal, regular review process.

Interviewer3:39

And when do you expect approval?

Lars Sorensen3:41

Well, we have one set date, which is in the US, which is the 29th of July in 2012, the PDUFA date where the agency is committed to give us a response. We know historically it has been difficult for the agency to sometimes live up to these timelines, but in and around that date is where we should be expecting to get some feedback. But there could be more time after, there could be time added to that if there are issues we have to respond to, or if the agency is under work pressure which does not allow them to complete their review.

Interviewer4:17

What else can you tell us about Novo Nordisk's R&D pipeline?

Lars Sorensen4:19

Further development of Degludec and DegludecPlus, Phase 3B studies that are going to evaluate the actual use of these products in more normal settings than a regulatory trial, combination of Degludec and liraglutide, liraglutide and obesity, hemophilia trials, further inflammation trials. We're going to be very busy.

Interviewer4:43

Sounds like there's a lot going on.

Lars Sorensen4:45

Absolutely.

Interviewer4:47

For 2012, you've announced expectations of sales growth between 7% and 11% measured in local currencies. What factors would influence whether this ends up in the low or the high end of the range?

Lars Sorensen5:00

Well, there are a number of uncertainties. When we look at the world economy, of course there are concerns about especially the European economies. We could see further headwind in terms of healthcare reforms, also in terms of uncertainty on the demands for our product, which also leads to more competitive scenarios. So all of these put together could mean that we'd end up in the lower part of the range. If we're not impacted as severely from competition and healthcare reform, if we have good penetration of the new products, then of course we could end up in the high end of the range.

Interviewer5:36

Today's announcement states that you've extended your contract by three years, which means that you will stay on as CEO until 2019. What factors affected that decision and how did you make it?

Lars Sorensen5:50

Well, it was not me that made it. It was the board that asked me whether I wanted to stay on until '19, and I was proud to be asked in the first place. I think it's no secret for people that I think this is the most fantastic company in the world, and to be given an opportunity to oversee the next six to eight years of introduction of new products, I'm very pleased to be asked, and I'll do my best.

Interviewer6:16

Thank you very much.