 |
|
 |
New NovoSeven® indication holds promise for growth Since its launch way back in 1996, NovoSeven® has been a so-called niche product, needed by very few patients worldwide. A new indication, which is now in Phase 3 clinical development, suggests that NovoSeven® might become a big product. |
|
Award for Annual Report For the fourth time Novo Nordisk has received the Danish Society of Financial Analysts' Information Award. |
|
Financial highlights Summary of the Group |
|
Financial
statement For the first nine months of 1999. |
|
Enzymes solve industrial problems Enzymes are environmentally friendly in production, application and disposal. They can, therefore, in many instances be applied in industries wanting a sustainable development. |
|
New vision sharpens On occasion of its establishment as an independent company Novo Nordisk A/S (pharmaceuticals) has adopted a new strategy and vision. Main elements are a strong focus on diabetes and customer value. |
 |
|
New vision, sharper strategy
With the imminent demerger of Novo Nordisk into two separate companies, Health Care decided that it was time to take a new look at our vision and strategies. Could they be adapted to better meet the needs of our customers and the challenges presented by the changes in health care systems around the world?
The result of the process was a new vision and a sharpened business. The vision is both ambitious and realistic, focused on the needs of our customers and rooted in the values governing the company and all its employees.
"Our strategy is not one of size," explained Lars Rebien Sørensen, head of Novo Nordisk Health Care. "We believe in a focused approach that allows us to devote all our attention to a few therapy areas in which we can achieve a leading position. This strategy has served us well in the past, and we are convinced that it will enable us to continue to deliver competitive returns to our shareholders. Therefore, our aim is to remain independent and to form alliances that complement our skills and resources when needed.
"Our largest business area is Diabetes Care where we have a broad range of products and services, as well as the industry's most complete discovery and development pipeline. Outside diabetes, we offer Norditropin® (human growth hormone), NovoSeven® (for haemophilia) and a range of hormone replacement therapy (HRT) products, with Activelle® as the key product for the future."
Input from around the world
In order to acquire a first-hand impression and understanding of the challenges and issues facing patients as well as public and private health care providers around the world, Lars Rebien Sørensen decided to meet with employees in Denmark and abroad as well as doctors, patients and policy-makers. For two months last autumn Lars Rebien Sørensen visited ten countries and talked to more than 200 people with diabetes and as many doctors and other health care professionals.
The insights gained from countries as diverse as Germany, Spain, Japan, India, Egypt, Poland and Sweden proved to be extremely valuable in formulating the new vision for Novo Nordisk.
Diabetes care
The ultimate goal for Novo Nordisk's activities in diabetes care has been and remains the defeat of diabetes. However, despite more than 75 years of insulin availability, the advent of the sulfonylureas and new oral therapies, and the combined efforts of health organisations and the pharmaceutical industry around the world, diabetes is rising at a frightening rate.
WHO estimates that the number of people with diabetes will more than double over the next 25 years, reaching 300 million. In other words, there are still many challenges to overcome before treatment can be said to have reached an acceptable level. Novo Nordisk is well positioned to meet these challenges with its wide range of insulin products and devices, with NovoNorm®, and with the industry's broadest range of diabetes discovery and development projects.
In the short term, the strategy is to maximise the potential of our insulin portfolio and NovoNorm®.
In the medium term, the aim is to complete the range of insulin analogues, and provide new and more convenient delivery systems, for example through the pulmonary route. In this phase the launch of the first new compounds coming from proprietary research in the area of oral treatment of Type 2 diabetes is also expected.
Over the longer term, expansion will come from the inclusion of intervention against risk factors such as obesity and dyslipidemia - and hopefully also a therapy that protects the beta cell and thereby halts the progression of Type 1 diabetes.
Novo Nordisk has a long-standing history of supporting patients and health professionals in achieving better treatment outcomes. This support is needed more than ever. Some even argue that, in the short term, the most significant improvement of treatment outcomes can be obtained by simply creating more awareness about diabetes through better education on how to deal with the disease, and by improving deficiencies in the health care system.
Therefore, in addition to increasing our efforts to identify better pharmaceuticals for diabetes, we are committed to promoting collaboration with all parties who share the common goal of defeating diabetes.
This highlights a dilemma, because Novo Nordisk doesn't make its profits from helping improve the health care system for people with diabetes. It earns money from the products sold - and it could be argued that it should concentrate on that.
However, Novo Nordisk finds it has an obligation to help improve diabetes treatment, even if it entails activities for which there is no apparent financial reward.
The rewards for taking this stance will come long-term in the form of a reputation as a caring and responsible company - a reputation that in many ways will benefit the business over time.
Other products
While most of our research is targeted at diabetes, it may well lead to discoveries in other areas. In such cases, Novo Nordisk intends to take an opportunistic approach, as has also been the case in the past. Some products may be out-licensed, because others may be better at extracting value from them (as with Seroxat®, PDGF, TPO and Gabitril®), while others will be made into new product areas (as with NovoSeven®). Today, Novo Nordisk has three such businesses based on strong products:
· Norditropin® SimpleXx™ (human growth hormone)
· HRT (hormone replacement therapy) - with Activelle® the key product for the future
· NovoSeven® for treating bleeding disorders in haemophiliacs with inhibitor reaction.
The aspiration for Norditropin® is to build leadership through continued innovation of the therapeutic use of human growth hormone, new formulations and innovative devices. The liquid formulation of human growth hormone - Norditropin® SimpleXx™ combined with the new device NordiPen® - offers a strong position in the growth hormone market.
In HRT, Novo Nordisk's strategy is built around Activelle®, a low-dose product in the continuous combined segment, which is the fastest growing market segment.
The aspiration for NovoSeven® is to build leadership within the haemostasis market primarily by expanding NovoSeven® indications to general haemostasis, and developing new NovoSeven® formulations. Novo Nordisk believes NovoSeven® has large potential in the field of haemostasis. Currently, this unique protein product is only indicated for treating haemophilia patients with inhibitor reaction. But as described in the article on pages 1-2 of this issue of Perspective, it is now being developed for treating liver patients - work that may ultimately lead to several other applications in the field of general haemostasis.
The right balance
Just as living well with diabetes is a question of finding the right balance, so is running a profitable company with high ethical standards.
Novo Nordisk has long been aware that it is not enough for a company to show good financial performance alone. No company is an island and to obtain sustainable and sustained growth and profitability it is necessary to constantly and carefully think about and renew the relationship between society and the company, in order to find the right balance between the different needs of all stakeholders. The balance between compassion and competitiveness, the short term and the long term, the company's self-interest and its commitment to others.
CEO Lars Rebien Sørensen, Novo Nordisk A/S has talked to doctors, patients, health care authorities and employees in 10 countries
Being there, listening to and supporting patients and health professionals is what will continue to characterise Health Care.
|
Our vision We will be the world's leading diabetes care company Our aspiration is to defeat diabetes by finding better methods of diabetes prevention, detection and treatment. We will work actively to promote collaboration between all parties in the health care system in order to achieve our common goals. We will offer products and services in other areas where we can make a difference Our research will lead to the discovery of new, innovative products also outside diabetes. We will develop and market such products ourselves whenever we can do it as well as or better than others. We will achieve competitive business results Our focus is our strength. We will stay independent and form alliances whenever they serve our business purpose and the cause we stand for. A job here is never just a job We are committed to being there for our customers whenever they need us. We will be innovative and effective in everything we do. We will attract and retain the best people by making our company a challenging place to work. Our values are expressed in all our actions Decency is what counts. Every day we strive to find the right balance between compassion and competitiveness, the short and the long term, self and commitment to colleagues and society, work and family life. Our history tells us it can be done |
