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Daniela Marušić Gajica Vesna Bujas Vedran Boljat Alen Varžić
Novo Nordisk History
1923. Nordisk insulin laboratorium founded (1921 Banting & Best
sintetized first insulin) 1925. Novo Terapeutisk lab founded 1926. Novo insulin foundation for diabetic patients in Scandinavia 1932. Steno Medical Hospital 1981. Novo becomes first company in Scandinavia to be quoted on the NYSE 1989. merge between Novo Terapeutisk and Nordisk 2001. Novorapid fast acting insulin 2002. Novomix dual release insulin 2004. Levemir long acting modern insulin
Brasil and China Organizational structure: 42% sales and marketing 12% research & development 30% production 16% administration 3 .Novo Nordisk Today Danish company with offices in 76 countries and reaches 179 contries around the world 29300 employees (46% in DK. 4253 in Europe) Production sites in DK. 1010 Japan and Oceania. 4076 North America.
Company Description Product areas: Diabetes care. hormon replacement therapy Insulines are Novo Nordisk core business.) 4 . growth hormon therapy. Victoza – GLP1) Novoseven (factor VII in haemostasis th. premix segment – Novomix. more than 75% of sales come from that area Novo Nordisk is market leader in insuline therapeutic area with 56% of value MS Strategic products in all 3 segments of insulin therapy (fast segment – Novorapid. haemostasis. basal segment – Levemir.
enviromental.Company Description World leader in insulin devices market (Flexpen and NP4. 25 years of experience Total sales in 2009 $9. new factor VII… 5 . Changing Diabetes World Campaign Polices – bioethics. risk management R&D – In next 3y in pipeline new generation of insulin. communication.85b Vision – World’s leading diabetes care company. global health. finance. people. business ethics. offer products and services in areas where they can make a difference.
Ando.Chairman of the Board/Director 6 .Chief Scientific Officer Ms.D. M.D. Ph.Officers & Directors Mr. Goran A. . Lise Kingo .Executive VP Dr. .Vice Chairman/Director Professor Sten Scheibye. Lars Rebien Sorensen – CEO Mr. Kare Schultz – COO Mr. Jesper Brandgaard – CFO Mads Krogsgaard Thomsen .
new factor VII) Social and enviromental responsabilities Weknesses Focus in only one TA Strong domicile competitors in North America and EU (developed markets) High expectation from new launches 7 .SWOT Analysis Strenghts World leader in insulin and devices production Focus in one therapeutical area Clear vision History (90 years of insulin production) Pipeline (new generation of insulin analogues in 3y.
Diabetes explosion in China. Asia and South America in next 5y. Expected diabetes explosion in Africa in next 10 y Patent expiry in 2011 on major competitor Major competitors focus is not only diabetes Threats Generic entries Price pressure Reforms of health care systems 8 .SWOT Analysis Oportunities More than 300mil diabetic patients (7% prevalence). India.
9 . the Novo Nordisk Foundation.512.Shareholders structure The company’s share capital amounts to DKK 620. whereas each B share All A shares are held by Novo A/S. The A shares are not listed but are in principle transferable. according to the Articles of Association of the Foundation the A shares cannot be divested by Novo A/S or the Foundation. However.000.800.000 divided into A share capital of DKK 107.01 carries one vote. of DKK 0. Each A share of DKK 0.487.01 carries 10 votes. a Danish public limited liability company fully owned by the Danish self-governing institution.200 and B share capital of DKK 512.
The A shares held by Novo A/S currently represent 17. Holding 25. Novo A/S holds 8.Shareholders structure The B shares are listed on NASDAQ OMX Copenhagen and on the New York Stock Exchange in the form of ADRs and there are no transferability restrictions on the B shares.2 % of the total capital as B shares.5% of the total share capital.3% of the capital and 67. 10 . The figures related to the number of votes do not take into account treasury shares (own shares) held by Novo Nordisk.7% of the total number of votes in the company.9% of the total number of votes. In addition. Novo A/S controls 70.
however. 11 . Novo Nordisk estimates that as of January 2010. 1% of the capital and less than 1% of the total number of votes in Novo Nordisk.Shareholders structure The stake held by board members and employees cannot be determined exactly. the B-shares held by Novo Nordisk board members and employees represent app.
82 1.94 2. Depreciation and Amortization (EBITDA) FY2009 3.21 Net Operating Profit After Tax (NOPAT) **Corporate tax rate in Denmark is 25 % 2.67 FY2007 2.28 Earnings Before Interest & Taxes (EBIT) 2.31 FY2008 2.43 2.66 12 .21 1. Taxes.Income Statement *in bil US $ Period Ending Earnings Before Interest.
Profit margin ratios Period Ending Net Sales/Revenues Gross Income Operating Income Net Income Operating Margin = Operating Income / Sales Gross Margin = Gross Income / Sales Net Profit Margin = Net Income / Sales *in bil US $ FY2007 7.58 23.39% 13 FY2009 9.57 7.11% FY2008 8.78 2.85 1.87% 75.16% .75 5.48 1.62% 76.98 6.02 29.91 2.48% 20.85 1.95% 21.53 2.05% 78.68% 21.90 27.
89 6.30 6. 14 .18 5.04 6.67 6.48 3.58 2.56 3.Balance Sheet *in bil US $ Period Ending Total Assets Total Liabilities Shareholders Equity Current Assets Current liabilities Current ratio FY2009 10.08 2.29 Current ratio under 1 suggests that the company would be unable to pay off its obligations.24 FY2007 9.43 2.28 2.43 FY2008 9.35 3.42 2.76 2.31 4.
00 432.555.00 short term debts trade related payabels med & long term debts shareholders equity receivables 1.256.852.00 inventories fixed assets 1.00 2.00 4.00 6.890.00 *in mil $ 15 .931.00 10.516.Balance Sheet 2009 *in mil US $ cash 2.078.155.00 1.00 10.555.
00 4.00 short term debts trade related payabels med & long term debts shareholders equity receivables 1.00 2.014.001.180.483.00 *in mil $ 16 .00 427.00 6.00 875.00 9.00 inventories fixed assets 1.483.631.037.00 9.Balance Sheet 2008 *in mil US $ cash 2.801.
588.766.00 inventories fixed assets 1.00 9.Balance Sheet 2007 *in mil US $ cash 1.301.346.00 6.346.562.00 961.00 4.430.00 381.703.00 9.00 short term debts trade related payabels med & long term debts shareholders equity receivables 1.00 *in mil $ 17 .00 1.
Performance.00 6.037. US$) EVA (NOPAT .864.588.37 1.00 305. US$) OWC (Reciv. . US$) Capital charge (Cap.015.00 7.256.14 4.00 4.27 1.180.94 % FY2008 1.06 4.580.00 311.63 30 % 30 % 0.00 7.271.00 7.346. US$) Shareholder Equity (mil.00 2.403.00 4. US$) Fixed assets (mil.00 4.00 340.00 3.+ Invent. US$) Cap.301.00 6.23 27 % 22 % 0.00 6. Employed (Fixed Assets + OWC) (mil.815.17 5.00 3.payabels) (mil.005.517.890.042.020.900. Employed * WACC) (mil. debt / SH equity) WACC FY2009 2.capital charge) ROE (Net Income/ SH equity) ROCE (NOPAT / capital employed) Leverage (Net fin.21 29 % 26 % 0.29 % 18 .29 1.94 % FY2007 1. ratio analisys Period Ending Net Income (mil.
63 % .Tax rate = 25 % .RD .Beta = 0.WACC – Cost of Capital (2009) WACC = RD (1-T) D / (D+E) + REE / (D+E) = 4.Cost of Debt = 7 % .Market Risk Premium = 3.T .cost of raising funds) .47 .94 % (Weighted Average Cost Of Capital .Debt / Equity Ratio = 0.6 % 19 .6 .Risk Free Rate = 2.
6 E(Rm) – expexted return on the market Rf – risk free rate = 2.[E(Rm) .Rf .Capital Asset Pricing Model E(Ri) = Rf + βi [E(Rm) .63 % [E(Rm) .compensates the investors for placing money in any investment over a period of time .amount of compensation the investor needs for taking on additional risk E(Ri) – expected return on asset βi – BETA coefficient = 0.Rf ] .Rf ] – market risk premium = 3.6 % 20 .Rf ] = 4.79 % .
Major Competitors LILLY ELI & CO SANOFI AVENTIS 21 .
Taxes.9 9.Income Statement Sanofi Aventis *in bil $ Period Ending Earnings Before Interest & Taxes (EBIT) Earnings Before Interest. Depreciation and Amortization (EBITDA) Net Operating Profit After Tax (NOPAT) **Corporate tax rate in Denmark is 25 % FY2009 17.5 7.47 22 .1 10.3 6.86 FY2008 16.9 5.7 6.27 FY2007 14.
6 105.8 69.0 65.3 FY2007 86.0 23 .1 FY2008 78.1 62.Balance Sheet Sanofi Aventis *in bil $ Period Ending Total Assets Total Liabilities Shareholders Equity FY2009 89.7 114.7 100.
91% Net Income Revenue Dividend Per Share (TTM) EPS 19.63 24.97 15.36 11.97 15.65 62.64 13.02% 16.97 39.10% 14.44% 26.81% 14.42% 5.48% 21.40 18.18 % 24 .55 % Dividend Per Share (TTM) Book Value Per Share P/E (TTM) Revenue Per Share Dividend Payout Ratio 1.11% Per Share Ratio Dividend Per Share (TTM) Book Value Per Share P/E (TTM) Revenue Per Share Dividend Payout Ratio 1.Novo Nordisk vs. Sanofi Aventis 5 Year Annual Growth Net Income Revenue Dividend Per Share (TTM) EPS 19.
company created value and contributed to owners wealth Solid sales growth (15% in 2009) Constant improvement in gross margine (1.7%) Increased capital expenditure in 2009 (new device manufacture lines in DK.Comments and Recomendations Since EVA > 0 and ROCE > WACC. new insulin production plants in China) 25 .