Aug 04, 2017

Data Overview Summary

52 Week High-Low $56.30 - $30.89 Novo Nordisk’s top line is driven by strong performance of products such as Victoza.
20 Day Average Volume 1,536,638
Tresiba is also becoming one of the major contributors of revenue for the company.
The company also received approval by the FDA for the Biologics License Application
Beta 0.63
(BLA) for Rebinyn for the treatment of adults and children with hemophilia B and
Market Cap 108.35 B marketing authorization in Europe for the same for the treatment of adolescents and
Dividend / Div Yld $0.81 / 1.91% adults with haemophilia B. The company has a strong pipeline, primarily focusing on
Industry Large Cap Pharmaceuticals
therapeutic proteins within insulin, GLP-1, blood clotting factors and human growth
hormone. However, we are highly concerned about the patent expiry on some of the
Industry Rank 103 / 265 (Top 39%)
products in Novo Nordisk’s portfolio. Shares of Novo Nordisk have outperformed the
Current Ratio 1.14 Large Cap Pharmaceuticals industry year to date. Estimates have decreased lately
Debt/Capital 0.00% ahead of the Q2 results. Novo Nordisk has mixed record of earnings surprises in the
recent quarters.
Net Margin 34.21%

Price/Book (P/B) 18.67

Price/Cash Flow (P/CF) 16.14 Elements of the Zacks Rank

Earnings Yield 5.46%
Agreement Estimate Revisions (60 days)
Debt/Equity 0.00

Value Score 100% 100% 100% 50%

P/E (F1) 18.29

P/E (F1) Rel to Industry 7.28 Q1 (Current Qtr) Q2 (Next Qtr) F1 (Current Year) F2 (Next Year)
PEG Ratio 2.97 Revisions: 1 Revisions: 1 Revisions: 2 Revisions: 2
Up: 1 Down: 0 Up: 1 Down: 0 Up: 2 Down: 0 Up: 1 Down: 1
P/S (F1) 6.22

P/S (TTM) 6.47

Magnitude Consensus Estimate Trend (60 days)
P/CFO 16.14

P/CFO Rel to Industry 18.61

EV/EDITDA Annual 13.70

Growth Score
Proj. EPS Growth (F1/F0) 5.31% 60 30 7 Current 60 30 7 Current 60 30 7 Current 60 30 7 Current
Days Days Days Days Days Days Days Days Days Days Days Days
Hist. EPS Growth (Q0/Q-1) 1.35 Q1 +3.70% Q2 +1.82% F1 +2.21% F2 +0.41%
Qtr CFO Growth -13.30

2 Yr CFO Growth 4,100.34 Upside Zacks Consensus Estimate vs. Most Accurate Estimate
Return on Equity (ROE) 80.40%

(NI - CFO) / Total Assets -7.27

Asset Turnover 1.23

Momentum Score Most Accurate: 0.58 Most Accurate: 0.56 Most Accurate: 2.33 Most Accurate: 2.42
Zacks Consensus: 0.56 Zacks Consensus: 0.56 Zacks Consensus: 2.31 Zacks Consensus: 2.46
1 week Volume change 7.86%
Q1 3.57% Q2 0.00% F1 0.87% F2 -1.63%
1 week Price Cng Rel to Industry 5.58%

(F1) EPS Est 1 week change 0.00%

Surprise Reported Earnings History
(F1) EPS Est 4 week change 2.36%

(F1) EPS Est 12 week change 3.12%

(Q1) EPS Est 1 week change 0.00%

Reported: 0.58 Reported: 0.50 Reported: 0.58 Reported: 0.60 Average 4 Qtr
Surprise
Estimate: 0.53 Estimate: 0.52 Estimate: 0.56 Estimate: 0.58
Q End 03/17 Q End 12/16 Q End 09/16 Q End 06/16

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 The data on the front page and all the charts in the report represent market data as of 08/03/17, while the report's text is as of
07/24/2017

Overview
Bagsværd, Denmark-based Novo Nordisk is a global healthcare
company and a leader in the worldwide diabetes market. The
company is also a key player in hemophilia care, growth hormone
therapy, hormone replacement therapy and obesity.

Novo Nordisk markets its products in more than 180 countries

including North America, Europe, China, Japan & Korea and
International markets.
The company operates through two segments: Diabetes and obesity
care and Biopharmaceuticals. While the Diabetes and obesity care
segment covers insulins, glucagon-like peptide 1 (GLP-1), other
protein-related products, obesity and oral anti-diabetic drugs, the
Biopharmaceuticals segment includes hemophilia, growth hormone
therapy and hormone replacement therapy.

Novo Nordisk’s most well-known drugs include Levemir, NovoRapid,

Victoza, NovoMix 30, NovoMix 50, NovoMix 70, NovoSeven,
NovoThirteen and Norditropin. The company launched its first
product for weight management, Saxenda, in the U.S. in May 2015.

Novo Nordisk reported 2016 revenues of DKK111.8 billion (up 3.6%

year over year). This includes Diabetes and obesity care and
Biopharmaceuticals revenues of DKK88.9 billion (up 3.9% year over
year, 79.6% of revenues) and DKK22.8 billion (up 2.2% year over year, 20.4% of revenues), respectively.

In the first quarter of 2017, Novo Nordisk reported revenues of DKK28.5 billion, up 5% year over year. Sales within diabetes and obesity
care increased by 13% to DKK 23.8 billion. Sales within biopharmaceuticals declined by 24% to DKK 4.7 billion.

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 Reasons To Buy:
Increasing Share Price: Novo Nordisk’s share price movement year to date shows that Novo Nordisk has a strong
the stock has outperformed the Zacks classified Large Cap Pharmaceuticals industry. presence in the Diabetes
The stock's movement has increased 19.8% in comparison to the industry’s gain of Care market and boasts of
12.8%. a strong pipeline, with
focus on therapeutic
Strong Foothold in the Diabetes Market: Novo Nordisk has a strong presence in the proteins within insulin.
Diabetes care market with a global value market share of 27%. Also, the company has Victoza remains the
strong presence in the total insulin market, and modern and new-generation insulin growth engine for the
market with a global value market share of 46% and 45%, respectively. The company company.
has one of the broadest diabetes portfolios in the industry. The Diabetes and obesity
care segment recorded 3.9% growth in 2016. The segment was driven by strong
performance of drugs like Victoza, Tresiba, Saxenda and Xultophy among others.

Moreover, in Sep 2015, Tresiba and Ryzodeg 70/30 gained FDA approval for diabetes mellitus in adults. Tresiba has been launched
in 56 countries and market uptake continues to be strong backed by higher prescription growth since launch. Moreover, the
company submitted a type II Variation application to the European Commission for including data from the two phase IIIb studies
(SWITCH 1 and SWITCH 2) in Tresiba’s label. In May 2017, Novo Nordisk received an approval from the EU Commission for an
update of the label for Tresiba to include data from the SWITCH 1 and 2 clinical trials. In March 2017, the company initiated a phase
IIIb trial with Tresiba and insulin glargine U300 in about 1,500 people with type II diabetes

As per the International Diabetes Federation, nearly 592 million people are expected to be diagnosed with diabetes by 2035. We
expect the company’s diabetes products to continue performing well and contribute to growth.

Diabetes Drugs Doing Well: Novo Nordisk’s top line is driven by strong performance of products such as Victoza. Victoza is a once-
daily human GLP-1 analogue approved for adult type II diabetes. Victoza is currently the market leader in the GLP-1 segment with a
58% share. The drug witnessed sales growth of 12% (in local currency) in 2016. Going forward, we expect Victoza to continue being
a significant contributor to the company’s top line. Also in June 2017, the companyannouncedthat the Endocrinologic and Metabolic
Drugs Advisory Committee (EMDAC) of the FDA voted 17-2 in favor of Victoza that the drug provides substantial evidence of
cardiovascular risk reduction in patients with type II diabetes. The positive panel recommendation brings Novo Nordisk a step closer
to get the cardiovascular indication included on the label of Victoza. The Advisory Committee’s favorable vote was based on data
from the LEADER cardiovascular outcomes trial, which involved more than 9,300 people with type II diabetes at high risk of major
cardiovascular events. The supplemental new drug application for Victoza to include the cardiovascular indication was submitted to
the FDA in October 2016 and regulatory feedback in the US is expected in the third quarter of 2017.

Additionally, obesity drug, Saxenda (liraglutide 3 mg) was launched in the U.S. in 2015 and its uptake has been encouraging.
Saxenda has been launched in 18 countries. The drug is expected to contribute significantly to the top line in the upcoming quarters
as well. The company is currently conducting promotional activities in the U.S. on the drug. In Jun 2017, the Committee for
Medicinal Products for Human Use (CHMP), under the European Medicines Agency (EMA), issued a positive opinion on update of
the EU label for Victoza. The update is based on the results from the LEADER trial which investigated the long-term effects of
Victoza (liraglutide up to 1.8 mg) in people with type II diabetes, at high risk of major cardiovascular (CV) events. Novo Nordisk
expects to receive the European Commission decision for the Victoza label update in the third quarter of 2017.

Hemophilia Drug: In May 2017, the company received approval by the FDA for the Biologics License Application (BLA) for Rebinyn
(Coagulation Factor IX (Recombinant), GlycoPEGylated) for the treatment of adults and children with hemophilia B. Rebinyn is the
brand name for nonacog beta pegol, N9-GP in U.S.. This was followed by the European Commission granting marketing
authorisation for Refixia (the brand name for N9-GP in Europe) for the treatment of adolescents and adults with haemophilia B. The
drug should contribute to the drug’s revenues going ahead.

Focus on Pipeline Development: Novo Nordisk has a strong pipeline, primarily focusing on therapeutic proteins within insulin, GLP-
1, blood clotting factors and human growth hormone. We are encouraged by the company’s efforts to develop new treatments for
diabetes, which is its core area of expertise. Key pipeline candidates include semaglutide and nonacog beta pegol. In Feb 2017, the
company submitted a New Drug Application (NDA) to the Japanese Ministry of Health, Labour and Welfare for semaglutide (once-
weekly), for the treatment of adults with type II diabetes. In Dec 2016, Novo Nordisk submitted a New Drug Application (NDA) to the
FDA and a Marketing Authorisation Application (MAA) to the European Medicines Agency (EMA) for once –weekly semaglutide.
Moreover, semaglutide is currently being evaluated in phase III PIONEER program. Meanwhile, the company has submitted a
Biologics License Application (BLA) for the approval of long-acting factor IX, nonacog beta pegol in the U.S. for the treatment of
patients with hemophilia B. Also, the company’s once-daily single-injection combination of Tresiba and Victoza - IDegLira
(marketed in EU as Xultophy)- received approval in the U.S. and will be launched in the first half of 2017. Moreover, in Jan 2017,
Fiasp (fast-acting insulin aspart), have been approved in Norway, Iceland , EU and Canada. In the first quarter of 2017, Novo
Nordisk resubmitted the new drug application for fast-acting insulin, aspart, as a class II resubmission to the FDA in Mar 2017.

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 Reasons To Sell:
Generic Threat to Key Products: We are highly concerned about the patent expiry on Novo Nordisk is going
some of the products in Novo Nordisk’s portfolio. In 2014, Novo Nordisk faced patent through a rough patch with
expiry for two products – NovoRapid/NovoLog and NovoLog Mix/NovoMix. The several drugs in its
formulation patent on Norditropin will also expire in the U.S., Europe and Japan in 2017. portfolio losing patent
Victoza is slated to lose patent protection in the U.S. and the EU in 2023. Novo Nordisk protection. The company is
is also facing a risk from biosimilars in the human growth hormone market. Post also facing pricing
NovoSeven’s patent expiry, biosimilar versions were launched in Russia and Iran. pressure for some of its
Moreover, the diabetes market is already crowded with a number of drugs. Merck’s drugs.
Januvia and Janumet (type II diabetes), Eli Lilly’s Trulicity (type II diabetes), Sanofi’s
Toujeo (type I and II diabetes) are already approved.

Pipeline Setbacks: With generic competition looming large over the company, Novo Nordisk’s pipeline needs to deliver. However,
the company has had its share of pipeline and regulatory setbacks. In Oct 2016, Novo Nordisk received a Complete Response
Letter (CRL) from the FDA for its New Drug Application for faster-acting insulin aspart. The agency requested for additional
information related to the assay for the immunogenicity and clinical pharmacology data before the review can be completed. The
company has evaluated the content of the complete response data and completed the end-of-review conference with the FDA.
Based on this, Novo Nordisk expects to submit a NDA and a Class II re-submission within the next three months. The company
received a setback with the discontinuation of the development of liraglutide as a joint therapy to insulin in type I diabetes. The
decision was based on insufficient data related to the overall benefit-risk profile from the phase IIIa ADJUNCT ONE and ADJUNCT
TWO studies to support a label extension for Victoza. With a number of pipeline updates expected in the coming quarters,
unfavorable results would heavily impact the stock.

Pricing Pressure: Market conditions within the pharmaceutical industry continue to change with efforts by governmental entities to
reduce or control costs. In most of the countries in which Novo Nordisk sells insulin, product prices are subsidized or are subject to
price control. Moreover, the company continues to face pricing pressure from other players in the market. Going forward, the
company may encounter a tough pricing environment in the U.S. basal insulin market. Downward pricing pressure could negatively
impact future sales.

Moreover, sales are expected to be partly offset by the impact of a patent expiry in the U.S. for NovoLog, loss of exclusivity for
products within hormone replacement therapy, intensifying competition in the diabetes and biopharmaceuticals markets, and
unfavorable macroeconomic conditions in several regions under international operations. Additionally, Novo Nordisk has hit a rough
patch in Germany, from where it withdrew Tresiba in Jan 2016 due to the negative outcome of price negotiations with the German
National Association of Statutory Health Insurance Funds.

Last Earnings Report

Novo Nordisk Beats on Q1 Earnings, Revenues Miss Estimates Quarter Ending 03/2017

Report Date May 03, 2017

Novo Nordisk reported first-quarter 2017 earnings of $0.58 per American Depositary
Receipt (ADR) beating the Zacks Consensus Estimate of $0.53 by 9.4%. Reported earnings Sales Surprise NA
also surpassed the year ago figure of $0.55. EPS Surprise 9.43%
Quarterly revenues were up 1.4% year over year (up 3% in local currency) to $4.07 billion. Quarterly EPS 0.58
However, reported revenue figure came below the Zacks Consensus Estimate of $4.11
Annual EPS (TTM) 2.26
billion.

All growth rates mentioned below are on a year-over-year basis and in local currency.

Quarter in Detail

Novo Nordisk operates through two segments – Diabetes and obesity care, and Biopharmaceuticals.

In the reported quarter, the company’s top line was driven by strong sales within diabetes and obesity care with the main growth
coming from Victoza, Tresiba, NovoRapid and Saxenda, partly offset by declining sales of Levemir. However, sales within
biopharmaceuticals declined, reflecting lower sales of human growth disorder products like NovoSeven and Other Biopharmaceuticals.

The Diabetes and Obesity Care segment recorded sales growth of 11%. The upside was driven by both North America Operations and
International Operations. Moreover, sales of insulin increased by 8% in local currencies. The company’s key drug, Victoza, also
recorded sales growth of 22%.
Nonetheless, sales at the Biopharmaceuticals segment declined 25%. The decline was due to North America Operations and
International Operations. In addition, sales of haemophilia products decreased by 11%.

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 Research and development (R&D) expenses were down 1% due to lower research costs related to updated R&D strategy announced in
Oct 2016, thereby leading to the discontinuation of a number of research projects. Administrative costs also declined by 1% mainly due
to cost control initiatives and lower legal costs.

Sales and distribution costs decreased by 1% mainly due to lower promotional activities in the U.S. following the Tresiba launch in 2016
and broad cost control initiatives. Additionally, the costs were partly offset by higher costs for legal cases and for sales force expansion
in Region AAMEO (Africa, Asia, Middle East and Oceania) and Region Japan & Korea.

Pipeline Update

Aspart will be marketed under the brand name of Fiasp in the EU. In the first quarter of 2017, Fiasp, received marketing authorization
from the European Commission as well as approvals in Norway, Iceland and Canada. Novo Nordisk resubmitted the new drug
application for fast-acting insulin, aspart, as a class II resubmission to the FDA in Mar 2017.

Again, in Mar 2017, the company received a positive opinion from the European authorities on the use of Refixia, the brand name for
N9-GP in Europe, recommending marketing authorization for the treatment of adolescents and adults with hemophilia B.

Outlook

For 2017, Novo Nordisk expects sales growth (in local currencies) to flat to up 3%. The growth is likely to be driven by robust
performance for Victoza and Tresiba as well as a contribution from Saxenda and Xultophy.
Operating profit is expected to be in the range of -1% to +3%. This reflects modest outlook for sales growth. It also reflects a modest
increase in both sales and distribution costs to support product launches as well as improvement in research and development costs to
support Novo Nordisk’s pipeline progress.

Recent News
Reports up to 13.8% weight loss in people with obesity receiving semaglutide-June 23, 2017

Novo Nordisk announced the headline results from a 52-week double-blind phase II study with once-daily subcutaneous semaglutide
investigating safety and potential for inducing and maintaining weight loss in people with obesity.

In the study, 957 people with obesity were randomised to treatment with doses of semaglutide between 0.05 to 0.4 mg/day or placebo.
Liraglutide 3.0 mg/day was included for comparison. Approximately 100 people were included in each active treatment arm in
combination with diet and exercise. All people in the trial were treated for 52 weeks followed by a 7-week follow-up period.

From a mean baseline weight of around 111 kg and a body mass index of approximately 39 kg/m2, a weight loss up to 17.8 kg was
observed after 52 weeks of treatment with semaglutide. This corresponded to an estimated 13.8% weight loss compared to the weight
loss of 2.3% achieved by diet, exercise and placebo alone, with all treatment arms adjusted for people discontinuing treatment in the
study. The results from the liraglutide 3.0 mg treatment arm were almost in line with previously reported data.

CHMP adopts positive opinion for EU label update of Victoza-June 23, 2017

Novo Nordisk announced that the Committee for Medicinal Products for Human Use (CHMP), under the European Medicines Agency
(EMA), has issued a positive opinion on update of the EU label for Victoza. The update is based on the results from the LEADER trial
which investigated the long-term effects of Victoza (liraglutide up to 1.8 mg) in people with type II diabetes, at high risk of major
cardiovascular (CV) events.

In the LEADER trial, Victoza statistically significantly reduced the risk of cardiovascular death, non-fatal myocardial infarction (heart
attack) and non-fatal stroke by 13% versus placebo, when added to standard of care. The CHMP has recommended an update of the
indication for Victoza to reflect both glycaemic control and cardiovascular events as integral parts of type II diabetes treatment.

The CHMP positive opinion for Victoza is now referred to the European Commission, which grants approval in the EU, for final action
on the proposed indication. Novo Nordisk expects to receive the European Commission decision for the Victoza label update in the third
quarter of 2017.

Novo Nordisk’s Victoza Gets Positive FDA Panel Nod for Label Expansion-Jun 20, 2017

Novo Nordisk announced that the Endocrinologic and Metabolic Drugs Advisory Committee (EMDAC) of the FDA voted 17-2 in favor of

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 Victoza that the drug provides substantial evidence of cardiovascular risk reduction in patients with type II diabetes. The positive panel
recommendation bring Novo Nordisk a step closer to get the cardiovascular indication included on the label of its key top-line driver
Victoza.

Victoza is a once-daily human glucagon-like peptide-1 (GLP-1) analogue approved for adult type II diabetes. The drug is one of the
main revenue contributors for the company.

The Advisory Committee’s favorable vote was based on data from the LEADER cardiovascular outcomes trial, which involved more
than 9,300 people with type II diabetes at high risk of major cardiovascular events. The study evaluated the cardiovascular benefit of
Victoza over a period of up to 5 years in. The study compared the addition of either Victoza or placebo to the standard of care, with the
Victoza arm meeting the primary endpoint of non-inferiority. Results also demonstrated superiority of Victoza in a statistically significant
reduction of cardiovascular risk.

With death from cardiovascular diseases being significantly higher in adults with diabetes compared to those without diabetes, the
addition of positive cardiovascular outcomes on label of diabetes drugs can give sales a shot in the arm.

The supplemental new drug application for Victoza to include the cardiovascular indication was submitted to the FDA in October 2016
and regulatory feedback in the US is expected in the third quarter of 2017.

Submits Application in the EU for including data in the Tresiba label-Jun 14, 2017

Novo Nordisk announced the submission of a Type II Variation application to the European Medicines Agency (EMA) for including data
in the label for Tresiba (insulin degludec) from the DEVOTE trial, to confirm the cardiovascular safety of Tresiba compared to insulin
glargine U100 when added to standard of care, in people with type 2 diabetes.

Presents Data for Type II Diabetes Drug-Jun 13, 2017

Novo Nordisk announced positive results from the post-hoc analysis of the cardiovascular (CV) outcomes study, LEADER on Victoza.

We note that Victoza, glucagon-like peptide-1 (GLP-1) analogue, is Novo Nordisk’s key drug and is approved for the treatment of type
II diabetes.
The study is evaluating the long-term effects of Victoza compared to placebo, both in addition to standard of care, in patients with type II
diabetes at high risk of major CV events.

Notably, the study showed that the treatment with Victoza resulted in similar reductions in the risk of major cardiovascular events in
patients with type II diabetes at high CV risk irrespective of whether they experienced severe hypoglycaemia during the trial.

The people who experienced severe hypoglycaemic episode had a higher chance of major cardiovascular adverse events, CV-death or
non-CV death. The risk of a CV event was much more within 60 days of occurrence of a severe hypoglycaemic episode. However, the
patients who received Victoza experienced significantly fewer episodes of severe hypoglycaemia when compared to placebo, both in
addition to standard of care.

In another release, Novo Nordisk also announced primary results from DEVOTE trial comparing two basal insulins, Tresiba (insulin
degludec injection 100 U/mL) and insulin glargine U100, in adults with type II diabetes at high risk of disease. The study showed that
Tresiba met primary endpoint of non-inferiority compared with insulin glargine u100 for major adverse CV events.

Additionally, the results from secondary endpoints of the study showed significant reduction in rate of severe and nocturnal severe
hypoglycaemia with Tresiba versus insulin glargine u100. In fact, Tresiba showed no increased risk of major cardiovascular events and
significant reduction in rates of severe hypoglycaemia compared to insulin glargine.

Both Victoza and Tresiba are strong contributors to the company’s revenues and positive data from the trails for both the drugs bode
well for the company.

Switching to Tresiba provides significant reductions in blood glucose-Jun 10, 2017

Findings from the real-world study, EU-TREAT (EUropean TREsiba AudiT), showed that people with type I diabetes and type II
diabetes experienced a significant reduction in HbA1c 6 months after switching to Tresiba from another basal insulin, primarily insulin
glargine U100 and insulin detemir, in a real-world setting. These results were sustained at 12 months

Novo Nordisk's (NVO) Drug Gets Marketing Authorisation for Hemophilia B in Europe- June 6, 2017

Novo Nordisk announced that the European Commission has granted marketing authorisation for Refixia for the treatment of
adolescents and adults with haemophilia B. The authorisation covers all 28 European Union member states.

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 Refixia is the brand name for nonacog beta pegol; N9-GP in Europe. Refixia is indicated for prophylaxis, on-demand treatment of
bleeding and surgical procedures in adolescent (>12 years of age) and adult patients with haemophilia B (congenital factor IX
deficiency). The efficacy and safety evaluation was based on 115 patients across the five paradigm clinical trials, and the marketing
authorisation follows the positive opinion from the Committee for Medicinal Products for Human Use (CHMP), under the European
Medicines Agency (EMA), given on Mar 24, 2017.

Novo Nordisk's (NVO) Drug Gets FDA Approval for Hemophilia B-May 31, 2017

Novo Nordisk announced that the FDA has approved the Biologics License Application (BLA) for Rebinyn (Coagulation Factor IX
(Recombinant), GlycoPEGylated) for the treatment of adults and children with hemophilia B.
Rebinyn is the brand name for nonacog beta pegol, N9-GP. It The evaluation was based on the results from the paradigm clinical trial
program where 115 previously treated children and adults with haemophilia B were treated with Rebinyn, and the approval follows the
Blood Products Advisory Committee meeting held on April 4, 2017.

In Mar 2017, the company received a positive opinion from the European authorities on the use of Refixia, the brand name for N9-GP in
Europe, recommending marketing authorization for the treatment of adolescents and adults with hemophilia B. The approval should
boost the revenues of the company.

Submits application in the US for including data from the DEVOTE trial in the Tresiba label-May 27, 2017

Novo Nordisk announced the submission of a supplemental application to the FDA for including data in the label for Tresiba (insulin
degludec) from the DEVOTE trial, conducted to confirm the cardiovascular safety of Tresiba compared to insulin glargine U100 when
added to standard of care, in people with type 2 diabetes.

In the DEVOTE trial, the primary endpoint was achieved by demonstrating non-inferiority of major adverse cardiovascular events
(MACE) with Tresiba compared to insulin glargine U100. The trial thus confirmed the results of the DEVOTE interim analysis submitted
to the FDA in Mar 2015, on the basis of which Tresiba and Ryzodeg 70/30 were approved in the US in Sept 2015.

Early Data Presented from Saxenda’s Study-May 17, 2017

Results from a post-hoc analysis of data from the SCALE Maintenance trial showed that adults who lost at least 5% of their initial weight
during a low- calorie run-in period were randomised to receive Saxenda (liraglutide 3 mg) or placebo. After 16 weeks of treatment with
Saxenda, participants who lost an additional 5% or more of their body weight were more likely to maintain weight loss and achieve
greater additional weight loss over 56 weeks, compared with people losing less than 5% body weight after 16 weeks of
Saxendatreatment.

Novo Nordisk Inks Diabetes Deal with University of Oxford-Jan 30, 2017

Novo Nordisk and University of Oxford announced a landmark research collaboration for the treatment of type II diabetes. The
partnership will enable scientists from Novo Nordisk and University of Oxford to work together towards bringing innovative approaches
for treating type II diabetes. Also, Novo Nordisk will invest in a new research centre on the premises of the University of Oxford.

Novo Nordisk is expected to make an investment of around 1 billion DKK over a period of 10 years and employ around 100 Novo
Nordisk researchers, based in an Oxford University research centre. Additionally, the company will focus on innovation within early
stage research that has potential to substantially impact future treatment of type II diabetes and its complications.

Novo Nordisk’s expertise in the area of diabetes coupled with the expertise of leading scientists from the University of Oxford will lead
to innovative therapies and a new generation of treatments to treat people suffering from type II diabetes.

Novo Nordisk (NVO) Fiasp Gets EU Nod for Diabetes in Adults-Jan 10, 2017

Novo Nordisk announced that its fast-acting insulin aspart, Fiasp, has been approved in the EU for the treatment of diabetes in adults.
Fiasp is approved in the EU for improving the control of postprandial glucose (PPG) excursions in patients with type I and type II
diabetes, as well as for pump treatment.

The company expects to launch the drug in the first half of 2017.

Fiasp also received marketing authorisation from Health Canada on Jan 6, 2017, and has been filed for regulatory review in the US,
Switzerland, Australia, Canada, Brazil, South Africa and Argentina.

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 Files Regulatory Application for Semaglutide – Dec 5

Novo Nordisk announced that it has submitted a regulatory application for its GLP-1 analogue, semaglutide (once-weekly), in both the
U.S. and the EU for the treatment of adults with type II diabetes.

The submission was based on results from the SUSTAIN phase IIIa clinical trial program, which evaluated semaglutide (once-weekly) in
combination with oral-antidiabetic agents and basal insulin. Findings demonstrated statistically significant and sustained blood glucose
control in patients treated with semaglutide in comparison to sitagliptin, exenatide extended-release, Sanofi’s Lantus and placebo.

Novo Nordisk plans to deliver semaglutide in the prefilled delivery device, FlexTouch. A potential approval in the U.S. and the EU will
further strengthen Novo Nordisk’s diabetes portfolio. We note that the company has a strong presence in the Diabetes Care market,
supported by one of the broadest diabetes portfolios in the industry comprising drugs like Victoza, Levemir and modern insulins.

Presents NovoSeven SMART-7 Study Sub-Analysis – Dec 3

Novo Nordisk presented a sub-analysis of the SMART-7 study evaluating the efficacy of NovoSeven (a portable room temperature
stable recombinant activated factor VIIa) in a real-world setting, at the annual meeting of the American Society of Hematology.

NovoSeven resolved 96.5% of bleeds when initiated within one hour after onset of bleeding, demonstrating efficacy of early treatment in
people with hemophilia A or B with inhibitors. Efficacy also remained high for bleeds treated after 4 hours.

Reports New DUAL VII Data on Xultophy – Dec 2

Novo Nordisk announced new results from an open-label phase IIIb study (DUAL VII) on Xultophy.

The study evaluated the efficacy and safety of Xultophy, in comparison with Lantus, in combination with NovoLog/NovoRapid, at all
main meals, after 26 weeks of treatment in 506 adults with type II diabetes.

People treated with Xultophy showed a superior reduction of 89% in the rate of severe or blood glucose confirmed symptomatic
hypoglycemic episodes compared to Lantus in combination with NovoLog/NovoRapid. Furthermore, from a mean baseline body weight
of 87.7 kg, people treated with Xultophy experienced weight loss of 0.9 kg compared with weight gain of 2.6 kg for people treated with
the basal-bolus regimen, reflecting a superior weight difference of -3.6 kg.

The complete study results will be presented in the first half of 2017.

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 Industry Analysis Zacks Industry Rank: 103 / 265 (Top 39%) Top Peers

Eli Lilly and Company (LLY)

H Lundbeck A/S (HLUYY)
Bristol-Myers Squibb Company (BMY)
AbbVie Inc. (ABBV)
GlaxoSmithKline PLC (GSK)
Merck & Company, Inc. (MRK)
Novartis AG (NVS)
Johnson & Johnson (JNJ)

Industry Comparison Large Cap Pharmaceuticals | Position in Industry: 3 of Industry Peers

14

NVO X Industry S&P 500 BMY LLY AZN

VGM Score - -
Market Cap 107.87 B 110.20 B 20.65 B 90.57 B 90.08 B 76.78 B
# of Analysts 3 8.5 14 13 16 5
Dividend Yield 1.43% 2.87% 1.82% 2.84% 3.10% 4.68%

Value Score - -
Cash/Price 17.96 12.28 9.88 -5.49 11.24 11.02
EV/EBITDA 13.70 14.34 12.91 14.45 19.80 11.97
PEG Ratio 2.97 2.23 2.00 2.03 1.82 2.37
Price/Book (P/B) 18.67 5.66 3.24 6.21 6.44 4.91
Price/Cash Flow (P/CF) 16.14 18.44 13.50 21.14 23.77 30.97
P/E (F1) 18.29 16.35 19.02 18.62 19.72 16.28
Price/Sales (P/S) 6.22 4.03 2.50 4.43 4.01 3.59
Earnings Yield 5.46% 6.11% 5.22% 5.29% 5.04% 6.18%
Debt/Equity 0.00 0.55 0.68 0.47 0.70 1.09
Cash Flow ($/share) 2.33 4.31 5.41 3.07 4.74 3.09

Growth Score - -
Hist. EPS Growth (3-5 yrs) 5.31% 8.53% 7.16% 3.92% 16.57% -11.13%
Proj. EPS Growth (F1/F0) 8.10% 7.03% 9.54% 4.79% 17.90% -57.08%
Curr. Cash Flow Growth 11.77% 4.59% 5.36% 36.71% 2.94% -5.22%
Hist. Cash Flow Growth (3-5 yrs) 14.24% -3.52% 6.71% 2.44% -3.61% -8.97%
Current Ratio 1.14 1.26 1.36 1.59 1.24 0.91
Debt/Capital 0.00% 34.77% 41.73% 31.80% 35.13% 52.14%
Net Margin 34.21% 17.14% 9.92% 22.66% 11.12% 17.80%
Return on Equity 80.40% 26.68% 15.93% 31.31% 27.35% 70.80%
Sales/Assets 1.23 0.51 0.55 0.61 0.58 0.33
Proj. Sales Growth (F1/F0) 4.33% 5.44% 5.22% 5.28% 5.83% -6.90%

Momentum Score - -
Daily Price Chg -0.02% -0.11% -0.15% -1.57% -0.67% 1.37%
1 Week Price Chg 5.58% 4.70% -0.00% 3.50% 4.81% -5.80%
4 Week Price Chg -0.28% -1.11% 1.43% -1.99% -1.06% -11.21%
12 Week Price Chg 4.86% -0.08% 3.00% 0.16% 0.95% -2.29%
52 Week Price Chg -23.58% 2.40% 12.24% -26.16% -1.09% -11.03%
20 Day Average Volume 1,584,223 3,277,606 0 7,158,965 3,708,589 7,337,843
(F1) EPS Est 1 week change 0.00% 0.25% 0.03% 0.90% 0.00% 1.09%
(F1) EPS Est 4 week change 2.36% 0.81% 0.33% 1.12% 1.07% 0.54%
(F1) EPS Est 12 week change 3.12% 1.19% 1.00% 1.04% 0.92% 1.09%
(Q1) EPS Est Mthly Chg 1.82% -0.16% 0.00% 0.96% -0.32% 42.10%

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Zacks Equity Research: NVO www.zacks.com Page 10 of 12
 Zacks Rank Education
The Zacks Rank is calculated from four primary inputs: Agreement, Magnitude, Upside and Surprise.

Agreement
This is the extent which brokerage analysts are revising their earnings estimates in the same
direction. The greater the percentage of estimates being revised higher, the better the score for this
component.

For example, if there were 10 estimate revisions over the last 60 days, with 8 of those revisions up,
and the other 2 down, then the agreement factor would be 80% positive. If, however, 8 were to the
downside with only 2 of them up, then the agreement factor would be 80% negative. The higher the
percentage of agreement the better.

Magnitude
This is a measure based on the size of the recent change in the current consensus estimates. The
Zacks Rank looks at the magnitude of these changes over the last 60 days.

In the chart to the right, the display shows the consensus estimate from 60-days ago, 30-days ago,
7-days ago, and the most current estimate The difference between the current estimate and the
estimate from 60-days ago is displayed as a percentage. A larger positive percentage increase will
score better on this component.

Upside
This is the difference between the most accurate estimate, as calculated by Zacks, and the
consensus estimate. For example, a stock with a consensus estimate of $1.00, and a most
accurate estimate of $1.05 will have an upside factor of 5%.

This is not an indication of how much a stock will go up or down. Instead, it's a measure of the
difference between these two estimates. This is particularly useful near earnings season as a
positive upside percentage can be used to help predict a future surprise.

Surprise
The Zacks Rank also factors in the last few quarters of earnings surprises. Companies that have
positively surprised in the recent past have a tendency of positively surprising again in the future (or
missing if they recently missed).

A stock with a recent track record of positive surprises will score better on this factor than a stock
with a history of negative surprises. These stocks will have a greater likelihood of positively
surprising again.

Zacks Style Score Education

The Zacks Style Score is as a complementary indicator to the Zacks Rank, giving investors a way to focus
on the best Zacks Rank stocks that best fit their own stock picking preferences.

Academic research has proven that stocks with the best Growth, Value, and Momentum characteristics outperform the market. The
Zacks Style Scores rate stocks on each of these individual styles and assigns a rating of A, B, C, D and F. An A, is better than a B; a B
is better than a C; and so on.

As an investor, you want to buy stocks with the highest probability of success. That means buying stocks with a Zacks Rank #1 or #2,
Strong Buy or Buy, which also has a Style Score of an A or a B.

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 Disclosures
The analysts contributing to this report do not hold any shares of this stock. The EPS and revenue forecasts are the Zacks
Consensus estimates. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the
analysts' personal views as to the subject securities and issuers. Zacks certifies that no part of the analysts compensation was, is, or
will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional
information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we
believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. Because of individual objectives, the
report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed
herein are subject to change. This report is not to be construed as an offer or the solicitation of an offer to buy or sell the securities
herein mentioned. Zacks or its officers, employees or customers may have a position long or short in the securities mentioned and buy
or sell the securities from time to time. Zacks uses the following rating system for the securities it covers which results from a
proprietary quantitative model using trends in earnings estimate revisions. This model is proven most effective for judging the timeliness
of a stock over the next 1 to 3 months. The model assigns each stock a rank from 1 through 5. Zacks Rank 1 = Strong Buy. Zacks Rank
2 = Buy. Zacks Rank 3 = Hold. Zacks Rank 4 = Sell. Zacks Rank 5 = Strong Sell. We also provide a Zacks Industry Rank for each
company which provides an idea of the near-term attractiveness of a company s industry group. We have 264 industry groups in total.
Thus, the Zacks Industry Rank is a number between 1 and 264. In terms of investment attractiveness, the higher the rank the better.
Historically, the top half of the industries has outperformed the general market.

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