Novo Nordisk A S Company Profile and SWOT Analysis by ICDResearch

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									Novo Nordisk A-S

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Novo Nordisk A/S                                                        Financial Snapshot

                                                                        Operating Performance
Fast Facts
                                                                        The company reported revenue of US$10,814.23
Headquarters Address               Novo Alle, Bagsvaerd, 2880,Denmark
                                                                        million during the fiscal year 2010 (2010). The
                                                                        company's revenue grew at a CAGR of 13.47%
Telephone                          + 81662635670
                                                                        during 2006–2010, with an annual growth of 13.48%
                                                                        over 2009. In 2010, the company recorded an
Fax                                N/A                                  operating margin of 31.08%, as against 29.24% in
                                                                        2009.
Website                            www.novonordisk.com

Ticker Symbol, Stock Exchange      NOVO B, Copenhagen Stock Exchange    Revenue and Margins

Number of Employees                30,867

Fiscal Year End                    December

Revenue (in US$ million)           10,814.23

Revenue (in DKK million)           60,776.00




SWOT Analysis
                                                                        Return on Equity
Strengths                          Weaknesses
                                                                        The company recorded a return on equity (ROE) of
Focused research and development   Pending litigations                  38.96% for the fiscal year 2010, as compared to its
                                                                        peers, AstraZeneca PLC (Ticker: AZN), Abbott
                                                                        Laboratories (Ticker: ABT) and Sanofi-Aventis
Geographical diversification       Substantial debts                    (Ticker: SAN), which recorded ROEs of 34.69%,
                                                                        20.66% and 10.30% respectively. Furthermore, the
Strong operational performance                                          company reported an operating margin of 31.08% in
                                                                        2010.


                                                                        Return on Equity
Opportunities                      Threats

Agreement with EMIS                Counterfeit drugs

Changing demographics              FDA’s regulatory oversight

Increasing diabetic patients       Intense generic competition

Strategic investments




                                                                        Liquidity Position

                                                                        The company reported a current ratio of 2.02 in 2010,
                                                                        as compared to its peers, AstraZeneca PLC, Abbott
                                                                        Laboratories and Sanofi-Aventis, which recorded
                                                                        current ratios of 1.50, 1.29 and 1.70 respectively. As
                                                                        of December 2010, the company recorded cash and
                                                                        short-term investments of worth US$2,138.26 million,
                                                                        against zero current debt. The company reported a
                                                                        debt to equity ratio of 0.06 in 2010 as compared to its
                                                                        peers, AstraZeneca PLC, Abbott Laboratories and
                                                                        Sanofi-Aventis, which recorded debt to equity ratios of
                                                                        0.40, 0.85 and 0.16 respectively.




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Novo Nordisk A-S - SWOT Profile                                                                                 Page 1
Novo Nordisk A-S

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1     Company Overview .................................................................................................................................................5
    1.2     Business Description ...............................................................................................................................................5
    1.3     Major Products and Services ...................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1     Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...........................................8
    2.2     Key Financial Performance Indicators ...................................................................................................................11
      2.2.1        Revenue and Operating Profit .......................................................................................................................11
      2.2.2        Asset, Liabilities and Capex ..........................................................................................................................12
      2.2.3        Net Debt vs. Gearing Ratio ............................................................................................................................13
      2.2.4        Operational Efficiency ....................................................................................................................................14
      2.2.5        Solvency ........................................................................................................................................................15
      2.2.6        Valuation ........................................................................................................................................................16
    2.3     Competitive Benchmarking ....................................................................................................................................17
      2.3.1        Market Capitalization .....................................................................................................................................17
      2.3.2        Efficiency .......................................................................................................................................................18
      2.3.3        Capital Expenditure .......................................................................................................................................19
      2.3.4        Turnover – Inventory and Asset ....................................................................................................................20
      2.3.5        Liquidity ..........................................................................................................................................................21
3     Mergers & Acquisitions and Partnerships ........................................................................................... 22
    3.1     M&A and Partnerships Strategy ............................................................................................................................22
4     Recent Developments ........................................................................................................................... 30
5     SWOT Analysis ...................................................................................................................................... 32
    5.1     SWOT Analysis - Overview ...................................................................................................................................32
    5.2     Strengths ...............................................................................................................................................................32
    5.3     Weaknesses ..........................................................................................................................................................32
    5.4     Opportunities .........................................................................................................................................................33
    5.5     Threats ...........................................................................................................................................................
								
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