Novo Nordisk A/S Files 20-F for Fiscal Year Ended December 31, 2023

Ticker: NONOF · Form: 20-F · Filed: Jan 31, 2024 · CIK: 353278

Complexity: moderate

Sentiment: neutral

Topics: Novo Nordisk, 20-F Filing, Annual Report, Pharmaceuticals, Financials

TL;DR

<b>Novo Nordisk A/S has submitted its 20-F filing for the fiscal year 2023, detailing its financial position and business operations.</b>

AI Summary

NOVO NORDISK A S (NONOF) filed a Foreign Annual Report (20-F) with the SEC on January 31, 2024. Novo Nordisk A/S filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at Novo Alle, DK 2880 Bagsvaerd, Denmark. Novo Nordisk A/S was formerly known as Novo Industri A/S. The filing includes data related to share capital, retained earnings, and other reserves for the fiscal years 2020, 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking NOVO NORDISK A S, this filing contains several important signals. This filing provides a comprehensive overview of Novo Nordisk's financial performance and corporate structure for the past fiscal year, crucial for investors and analysts tracking the pharmaceutical giant. As a major player in the pharmaceutical industry, Novo Nordisk's annual report offers insights into its market position, product segments, and financial health, which can influence investment decisions and industry trends.

Risk Assessment

Risk Level: — NOVO NORDISK A S shows moderate risk based on this filing. The filing is a standard annual report (20-F) which typically contains a broad range of information, but lacks specific forward-looking financial performance data or significant event disclosures within the provided text snippet.

Analyst Insight

Review the full 20-F filing for detailed financial statements, risk factors, and management discussion to assess Novo Nordisk's performance and outlook.

Key Numbers

Key Players & Entities

Forward-Looking Statements

FAQ

When did NOVO NORDISK A S file this 20-F?

NOVO NORDISK A S filed this Foreign Annual Report (20-F) with the SEC on January 31, 2024.

What is a 20-F filing?

A 20-F is a annual report for foreign private issuers, equivalent to a 10-K but following international reporting standards. This particular 20-F was filed by NOVO NORDISK A S (NONOF).

Where can I read the original 20-F filing from NOVO NORDISK A S?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by NOVO NORDISK A S.

What are the key takeaways from NOVO NORDISK A S's 20-F?

NOVO NORDISK A S filed this 20-F on January 31, 2024. Key takeaways: Novo Nordisk A/S filed its annual report on Form 20-F for the fiscal year ended December 31, 2023.. The filing covers the period from January 1, 2023, to December 31, 2023.. The company's principal executive offices are located at Novo Alle, DK 2880 Bagsvaerd, Denmark..

Is NOVO NORDISK A S a risky investment based on this filing?

Based on this 20-F, NOVO NORDISK A S presents a moderate-risk profile. The filing is a standard annual report (20-F) which typically contains a broad range of information, but lacks specific forward-looking financial performance data or significant event disclosures within the provided text snippet.

What should investors do after reading NOVO NORDISK A S's 20-F?

Review the full 20-F filing for detailed financial statements, risk factors, and management discussion to assess Novo Nordisk's performance and outlook. The overall sentiment from this filing is neutral.

How does NOVO NORDISK A S compare to its industry peers?

Novo Nordisk operates within the pharmaceutical preparations industry, focusing on healthcare solutions.

Are there regulatory concerns for NOVO NORDISK A S?

As a foreign private issuer, Novo Nordisk A/S files an annual report on Form 20-F with the U.S. Securities and Exchange Commission (SEC).

Industry Context

Novo Nordisk operates within the pharmaceutical preparations industry, focusing on healthcare solutions.

Regulatory Implications

As a foreign private issuer, Novo Nordisk A/S files an annual report on Form 20-F with the U.S. Securities and Exchange Commission (SEC).

What Investors Should Do

  1. Thoroughly review the complete 20-F filing for detailed financial statements and disclosures.
  2. Analyze the risk factors section to understand potential challenges and uncertainties.
  3. Compare Novo Nordisk's reported data with industry benchmarks and competitor filings.

Key Dates

Year-Over-Year Comparison

This is the initial filing data provided for the 2023 fiscal year, with no prior filing data available for comparison in this snippet.

Filing Stats: 4,555 words · 18 min read · ~15 pages · Grade level 16 · Accepted 2024-01-31 06:51:16

Filing Documents

o Item 18 o

Item 17 o Item 18 o If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION 2 Part I ITEM 1 IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVIS E RS 3 ITEM 2 OFFER STATISTICS AND EXPECTED TIMETABLE 3 ITEM 3 KEY INFORMATION 3 ITEM 4 INFORMATION ON THE COMPANY 4 ITEM 4A UNRESOLVED STAFF COMMENTS 10 ITEM 5 OPERATING AND FINANCIAL REVIEW AND PROSPECTS 10 ITEM 6 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 14 ITEM 7 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 18 ITEM 8 FINANCIAL INFORMATION 19 ITEM 9 THE OFFER AND LISTING 19 ITEM 10 ADDITIONAL INFORMATION 20 ITEM 11 QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK 23 ITEM 12

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 23 Part II ITEM 13 DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 25 ITEM 14 MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 25 ITEM 15

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 25 ITEM 16A AUDIT COMMITTEE FINANCIAL EXPERT 26 ITEM 16B CODE OF ETHICS 26 ITEM 16C PRINCIPAL ACCOUNTANT FEES AND SERVICES 26 ITEM 16D EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 27 ITEM 16E PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 27 ITEM 16F CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT 28 ITEM 16G CORPORATE GOVERNANCE 28 ITEM 16H MINE SAFETY DISCLOSURE 30 ITEM 16I DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 30 ITEM 16I INSIDER TRADING POLICIES 30 ITEM 16K CYBERSECURITY 30 Part III ITEM 17

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 32 ITEM 18

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 32 ITEM 19 EXHIBITS 35

SIGNATURES

SIGNATURES 37 1 Novo Nordisk Form 20-F 2023 INTRODUCTION INTRODUCTION In this Form 20-F the terms the Company', Novo Nordisk' and the Group' refer to the parent company Novo Nordisk A/S together with its consolidated subsidiaries. The term Novo Nordisk A/S' is used when addressing issues specifically related to this legal entity. Pursuant to Rule 12b-23(a) of the Securities Exchange Act of 1934, as amended, certain information for the 2023 Form 20-F of Novo Nordisk A/S set out herein is being incorporated by reference from the Company's statutory Annual Report 2023, including the consolidated financial statements of Novo Nordisk A/S (hereafter "Annual Report 2023") and the Company's Remuneration Report 2023 as specified elsewhere in this Form 20-F (with the exception of the items and pages so specified, the Annual Report 2023 and Remuneration Report 2023 are not deemed to be filed as part of this Form 20-F). Therefore, the information in this Form 20-F should be read in conjunction with the Annual Report 2023 and the Remuneration Report 2023 (see Exhibits 15.1 and 15.3, respectively) The Company publishes its financial statements in Danish kroner (DKK). Novo Nordisk conducted a stock split whereby the trading unit of the Novo Nordisk B shares listed on NASDAQ OMX Copenhagen was changed from DKK 0.20 to DKK 0.10 as of September 13, 2023. The American Depositary Receipts (ADRs) listed on the New York Stock Exchange (NYSE) were similarly split as of September 20, 2023, to ensure that the ratio of B shares to ADRs remains 1:1. Historical data and comparative disclosures in this Form 20-F and our Annual Report 2023 have been adjusted to reflect the stock split.

Forward-looking statements

Forward-looking statements The information set forth in this Form 20-F contains forward-looking statements as the term is defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as believe', expect', may', will', plan', strategy', prospect', foresee', estimate', project', anticipate', can', intend', target' and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Examples of such forward-looking statements include, but are not limited to: With reference to our Annual Report 2023, examples of forward-looking statements can be found under the heading 'Strategic Aspirations' in our Annual Report 2023 and elsewhere. These statements are based on current plans, estimates and projections. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific. Novo Nordisk cautions that a number of important factors, including those described in our Annual Report 2023, could cause actual results to differ materially from those contemplated in any forward-looking statements. Factors that may affect future results include, but are not limited to, global as well as local political and economic conditions, such as interest rate and currency excha

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS

ITEM 1 IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS PART I

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1 IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2 OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable.

KEY INFORMATION

ITEM 3 KEY INFORMATION A. [RESERVED] B. CAPITALIZATION AND INDEBTEDNESS Not applicable. C. REASONS FOR THE OFFER AND USE OF PROCEEDS Not applicable. D. RISK FACTORS For information on risk factors, reference is made to Risk management' on pages 41-42 of our Annual Report 2023, excluding the section Mitigating actions' on page 42. Outlined in greater detail below, we are subject to cybersecurity risks and the risk related to climate change. The potential risk on our business as a result of cybersecurity breaches We rely on our IT systems to protect our intellectual property, business confidential information, and personal data. Therefore, disruption as a result of cybersecurity breaches could negatively impact the Company's business and operations or financial results. IT systems act as a backbone for the Company. They support processes in research & development, manufacturing, sales and supply, and business administration. As we are a global company, the size and complexity of our IT systems are significant, and our IT infrastructure and networks are spread across the geographic regions in which we operate. The dedicated cybersecurity teams who operate our global IT security infrastructure may be unable to respond sufficiently to the threats facing us or may fail to prevent service interruptions or security breaches resulting from attacks by malicious third parties. Many of these cyber threats have the potential to cause significant downtime of critical IT systems or the unintended disclosure of confidential information and personal data. Although we have not previously experienced material losses as a result of such incidents, we cannot guarantee that we will be able to prevent similar incidents from occurring or adversely affecting our business in the future. We are subject to data privacy regulation in the EU (including the General Data Protection Regulation) and to privacy laws in many other jurisdictions where we do business that impose obligat

KEY INFORMATION

ITEM 3 KEY INFORMATION various parameters, including natural events such as flooding, earthquakes, high-speed winds, tornados, hail storms, and lightning. The risk assessment serves to provide input for risk mitigation, and consequently prioritize actions to prevent or minimize the impact of supply disruptions on manufacturing. The Company's main production facilities are located in Denmark, where the risk of natural events is assessed lower; however, the Company also has other production facilities in countries that are at greater risk of natural disasters. For example, our production facility in Koriyama, Japan is exposed to a higher risk of earthquakes, our production facility in Tianjin, China is located in an area prone to storm surges due to rising sea levels and our production facility in North Carolina, United States is exposed to a higher risk of tornadoes and subsequent rainfall and lightening. In addition, availability of high-quality water is essential for the production of diabetes and biopharmaceutical products and hence the Company's operations. The Company has production facilities in countries with high water stress levels or high seasonal variations, such as France, Brazil, China, United States, Iran and Algeria. Despite our commitment to identify climate-related risks, we could be unable to meet our environmental objectives in an efficient and timely manner, or at all. Since 2020, all our production sites have sourced 100% renewable power; however, our CO2e emissions continue to rise as the company grows, in particular within Scope 3. We are committed to achieving net zero emission by 2045, and we have an interim target to reach zero CO2e emissions from operations and transport by 2030. To achieve this goal, we must also ensure our 60,000-plus suppliers play their part in this transformation, since their activities account for the majority of our total CO2e emissions. Our target is that all goods and services from suppliers will be based on

INFORMATION ON THE COMPANY

ITEM 4 INFORMATION ON THE COMPANY A. HISTORY AND DEVELOPMENT OF THE COMPANY Novo Nordisk A/S was formed in 1989 by a merger of two Danish companies, Nordisk Gentofte A/S and Novo Industri A/S. Novo Industri A/S was the continuing company and its name was changed to Novo Nordisk A/S. The business activities of Nordisk Gentofte were established in 1923 by August Krogh, H. C. Hagedorn and A. Kongsted, and the business activities of Novo Industri A/S were established in 1925 by Harald and Thorvald Pedersen. From the beginning, the business of both companies was the production and sale of insulin for the treatment of diabetes. Novo Nordisk's B shares are listed on Nasdaq Copenhagen (NOVO-B). Its ADRs are listed on the New York Stock Exchange (NVO). Legal name: Novo Nordisk A/S Commercial name: Novo Nordisk Date of incorporation: November 28, 1931 Legal form of the Company: A Danish public limited liability company Legislation under which the Company operates: Danish law Country of incorporation: Denmark Reference is made to More information', on page 100 of our Annual Report 2023 for information on domicile. Important events in 2023 Reference is made to Introducing Novo Nordisk', pages 3-9 and 2023 performance and 2024 outlook', pages 34-37 of our Annual Report 2023 for a description of important events in 2023. Capital expenditure in 2023, 2022 and 2021 For capital expenditure in 2023, 2022 and 2021, reference is made to the section entitled Cash flow and capital allocation' on page 36 of our Annual Report 2023. No significant divestments took place in the period from 2021–2023. For capital expenditures expected in 2024, reference is made to page 37 in the subsection 2024 outlook' in our Annual Report 2023. Such expenditures are expected to be financed with cash flow from operating activities. 4 Novo Nordisk Form 20-F 2023

INFORMATION ON THE COMPANY

ITEM 4 INFORMATION ON THE COMPANY Public takeover offers in respect of the Company's shares No such offers occurred during 2023 or 2024 to date. B. BUSINESS OVERVIEW Reference is made to the sections 'Novo Nordisk at a glance' on page 6 and Strategic Aspirations' on pages 10-39 of our Annual Report 2023. Novo Nordisk is a global healthcare company and a world leader in Diabetes and Obesity care. The Company manufactures and markets pharmaceutical products and services that make a significant difference to patients, the medical profession and society. Headquartered in Denmark, Novo Nordisk employs more than 60,000 employees in 80 countries, and markets its products in approximately 170 countries. The Company has a broad product portfolio across Diabetes and Obesity care and Rare disease, including a full portfolio of glucagon-like-peptide-1 (GLP-1) receptor agonists for the treatment of diabetes and obesity, modern insulins and human insulins. During 2023, there has been continued strong growth across therapy areas and geographic areas in which Novo Nordisk operates. Combined with higher than expected demand, and temporary capacity limitations at some of our manufacturing sites, there have been periodic supply constraints for certain products, including the leading product by sales, Ozempic for the treatment of type 2 diabetes 1 . The Company also markets two drugs - Saxenda and Wegovy - for the treatment of people with obesity. In it's third year after launch the GLP-1 product, Wegovy, grew more than 400% to DKK 31 billion . Further, Novo Nordisk has a Rare disease portfolio consisting mainly of growth hormone and hemophilia products. From August to October 2023, Novo Nordisk acquired 100% of the share capital of a French company. Biocorp Production S.A., and its subsidiaries (Biocorp), whose primary assets are patents and know-how related to Mallya, a Bluetooth enabled add-on device that can be used in administering doses for injection pens and provid

INFORMATION ON THE COMPANY

ITEM 4 INFORMATION ON THE COMPANY countries except for North America) and North America (covering the United States and Canada). For 2023, the Company's most important markets in terms of sales were the United States, China, Japan, Canada, and the major European countries. Due to the increasing number of people with diabetes, the global pharmaceutical market for treatment of diabetes continues to grow. Several of the major international pharmaceutical companies have entered the diabetes market, specifically in the area of oral products for the treatment of type 2 diabetes. In the global insulin market, Novo Nordisk, Eli Lilly and Sanofi are the most significant companies measured by market share. The use of GLP-1 as a treatment option for people with type 2 diabetes has continued to increase resulting in significant growth of the GLP-1 market. Novo Nordisk and Eli Lilly are the most significant companies in the global GLP-1 market measured by market share. In February 2018, Novo Nordisk launched the once-weekly GLP-1 product, Ozempic , for the treatment of adults with type 2 diabetes in the United States and Canada. Since then, Ozempic has become a market leading product and the Company's best performing product by sales, with global sales of DKK 95.7 billion in 2023. The global branded obesity market grew 116% by volume in 2023. Wegovy has been launched in the United States, Denmark, Norway, Germany, the UK, Iceland, Switzerland and the United Arab Emirates. Market conditions within the pharmaceutical industry continue to change, including efforts by both private and governmental entities to reduce or control costs generally and in specific therapeutic areas. Most of the countries in which Novo Nordisk sells insulin subsidize or control pricing. In most markets insulin and GLP-1 products are prescription drugs. In recent years, there has been a general trend in the United States of payers managing the cost of diabetes care to exert pressure on the pric

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