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Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
Novo Nordisk BeyondBRIC
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  • Nordisk Insulin Lab. 1936 NPH. First whale insulin 50kg pancreas. South Polar Sea. 1888-1971
  • Egypt & India
  • Emerging markets projected to grow at a 12% CAGR from 2009-2014
  • Countries not in N-11 but in IMS Tier 3 are: Venezuela, Argentina, S. Africa, Thailand, Ukraine, Poland and Romania. N-11 overlap: Mexico, Egypt, Turkey, Pakistan, Indonesia, Vietnam, Only N-11 (not in IMS proj.): Nigeria, Iran, Bangladesh, Philippinnes, S Korea
  • Today NN is established in 40 emerging markets – so I asked the some colleagues who took the decisions in the 1980s what principles they worked by
  • Transcript

    • 1.  
    • 2. Sustainable business in Emerging Markets Jens Pii Olesen Head of Marketing International Operations
    • 3. Slide no
      • Agenda
      • How did we begin
      • New opportunities in Pharma
      • ” P” considerations
        • Portfolio
        • Price
        • Profit
        • Partnerships
      • Conclusions
    • 4. How did it begin? Slide no
      • Keen founders
      • First export in 1933/34
      • Production established 1950s
        • S. Africa, Algeria, India
      • First export market department 1970s
      Novo Nordisk International Operations turnover 2010 ~ Novo Nordisk in 1995
    • 5. New opportunities in pharmaceuticals Slide no
    • 6. WW pharmaceutical sales growth 70% of growth outside developed markets Slide no $955bn $130bn $55bn $765bn 2009E 2014E Developed Markets Other Markets Source: IMS. Developed markets: EU-15, Norway, Switzerland, Iceland; US, Canada, Japan, Australia, New Zealand. 30% 70%
    • 7. N-11 some overlap but 7 others… Slide no
    • 8. “ P” considerations Slide no
    • 9. Portfolio Brands lives long in Emerging Markets Slide no l Source: IMS 2009: (BRIC + South Korea, Mexico, Poland, Taiwan, Hungary, Romania, Egypt, Algeria, Saudi Arabia, South Africa, Ukraine, UAE Branded originals ~$50bn (~28%) Branded generics ~$90bn (~50%) Commodity generics ~$10bn (~5%) ~$30bn (~17%) Total ~$180bn Patented originals
    • 10. Pricing Prices are reasonable Slide no l Source: IMS 2009: (BRIC + South Korea, Mexico, Poland, Taiwan, Hungary, Romania, Egypt, Algeria, Saudi Arabia, South Africa, Ukraine, UAE Branded originals 70-100% Branded generics 50-80% Commodity generics Cost+ 100% EU prices Patented originals
    • 11. Profit Lower prices are made up by lower costs Slide no 69 100 Sources: OM estimation using AZ (72%) and SA (66%) annual reports and IR reports. P re-R&D operating margin (excluding central costs), indexed to typical established markets. FTE cost analysis: Internal competitor analysis Typical emerging markets Typical established markets People cost index: US/EU: 100 Brazil: 40 Russia: 30 China: 25 India: 4
    • 12. Partnerships Slide no Agency Agency w sales force Govt & Health authorities Sales Office Affiliate Any sales +2m +10m +30m
      • Input from the “old timers”:
        • Partners/People determines success
        • Open & honest
        • Keep them close
        • Incentivise optimal behaviour
        • Get rid of bad apples quickly
        • Follow up in the market
    • 13. Slide no
      • Conclusions
      • EMs important for Novo Nordisk future
      • Market choice not always clear
      • Portfolios similar across markets
      • Price fit operating costs
      • Partnerships will be the key to success
    • 14.  

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