INTRODUCTION:

Novo Nordisk A/S is a Danish multinational pharmaceutical company

headquartered in Bagsvaerd, Denmark, with production facilities in eight
countries, and affiliates or offices in 75 countries. Novo Nordisk is controlled
by majority shareholder Novo Holdings A/S which holds approximately 25% of
its shares and a supermajority (75%) of its voting shares.
Novo Nordisk manufactures and markets pharmaceutical products and services.
Key products include diabetes care medications and devices. Novo Nordisk is
also involved with hemostasis management, growth hormone therapy and
hormone replacement therapy. The company makes several drugs under various
brand names, including Levemir, Tresiba, NovoLog, Novolin R, NovoSeven,
NovoEight and Victoza.
Novo Nordisk employs more than 40,000 people globally and markets its
products in 180 countries. The corporation was created in 1989 through a
merger of two Danish companies which date back to the 1920s. The Novo
Nordisk logo is the Apis bull, one of the sacred animals of ancient Egypt.
Novo Nordisk is a full member of the European Federation of Pharmaceutical
Industries and Associations (EFPIA).
The company was ranked 25th among 100 Best Companies to Work For in
2010 and 72nd in 2014 by Fortune. In January 2012, Novo Nordisk was named
as the most sustainable company in the world by the business magazine
Corporate Knights.
HISTORY:
Behind the Novo Nordisk we know today lies an exciting story that goes back
90 years. It began with the two small Danish companies Nordisk
Insulinlaboratorium and Novo Terapeutisk Laboratorium founded in 1923 and
1925, respectively. The two companies started the production of the
revolutionary new drug insulin that had just been discovered by two Canadian
scientists.
In 1989, Novo Industri A/S (Novo Terapeutisk Laboratorium) and Nordisk
Gentofte A/S (Nordisk Insulinlaboratorium) merged to become Novo Nordisk
A/S, the world's largest producer of insulin with headquarters in Bagsværd,
Copenhagen.
In 1994, Novo Nordisk's existing information technology units was spun out as
NNIT A/S.It is an information technology company that provides IT
consultancy, development, implementation and outsourcing of IT services to
companies in regulated industry sectors.The company was converted into a
wholly owned aktieselskab (name for a stock-based corporation) in 2004 it may
be either publicly traded or private In March 2015, NNIT was floated on the
NASDAQ OMX Nordic.

In 2000, Novo's enzymes business, Novozymes A/S a global biotechnology

company headquartered in Bagsværd outside of Copenhagen, Denmark was
spun-out. In 2013, Novo acquired Xellia for $700 million.In 2015, the company
announced it would collaborate with Ablynx, using its nanobody technology to
develop at least one new drug candidate.
In January 2018, Reuters reported that Novo had offered to acquire Ablynx for
$3.1 billion - having made an unreported offer in mid December for the
company. However the Ablynx board rejected this offer the same day, saying
that the price undervalued the business.Ultimately Novo lost out to Sanofi who
bid $4.8 billion. Later in the same year the company announced it would
acquire Ziylo for around $800 million.
PRODUCTS:
Novo Nordisk is known for manufacturing and offering pharmaceutical
products and services especially related to diabetes like diabetes related
medicines and instruments. Diabetes treatment accounts for 85% of the business
of Novo Nordisk. Apart from that the company also provides services for the
treatment of obesity, haemophilia, growth disorders, and hormone replacement
therapy. In addition to making several medicines the company also works with
doctors and patients to develop products that would help people manage and
monitor diabetes by themselves. One of the iconic products from this company
is Novo Nordisk pen which is a reusable pen with one-time disposable needle
and insulin cartridge which a user can use to self-administer insulin in his/her
body.
The role of Novo Nordisk Pharmatech’s products:
 Insulin’s role in Expression is to make the living cells grow and divide.
 Synthetic molecules are used in the capture of flu vaccines.
 Enzymes are used to modify proteins.
 Purification resins are used to purify peptides and proteins.
 Synthetic molecules are used as preserving agents in final formulations.
Products offered by Novo Nordisk as follows:
 DIABETES DELIVERY SYSTEMS:
Sr No Insulin Pens Pre-filled Insulin Needles Other Insulin
Delivery System Delivery
systems
1 NovoPen FlexTouch U100 & NovoFine Plus 32 PumpCart
Echo U200 Gauge
2 NovoPen 5 FlexPen NovoFine 30 Gauge Glucagon
3 NovoPen 4 InnoLet NovoFine 31 Gauge GlucaGen
4 - - NovoFine AutoCover NovoRapid

 DIABETES:
1) Long-acting insulin :Tresiba insulin degludec ,Xultophy insulin
degludec/liraglutide,Levemir insulin detemir.
2) Premix insulin: Ryzodeg 70/30, insulin degludec/insulin aspart,NovoMix
30, biphasic insulin aspart,NovoMix 50, biphasic insulin aspart,NovoMix
70, biphasic insulin aspart.
 3) Fast-acting insulin: Fiasp, insulin aspart,NovoRapid, insulin
aspart,NovoRapid PumpCart, pre-filled insulin pump cartridge.
4) Human insulin : Insulatard human insulin ,Actrapid human insulin,
Mixtard 30 biphasic human insulin,Mixtard 40 biphasic human
insulin,Mixtard 50 biphasic human insulin.
5) Glucagon-like peptide-1: Victoza liraglutide ,Ozempic semaglutide.
6) Oral antidiabetic agents: NovoNora repaglinide.

 OBESITY:
1) Saxenda, liraglutide 3 mg.

 HAEMOPHILIA:
1) NovoSeven recombinant factor VIIa.
2) NovoEight recombinant factor VIII.
3) NovoThirteen recombinant factor XIII.
4) Refixia Nonacog beta pegol; N9/GP.
5) Esperoct1, Turoctocog alfa pegol, N8-GP.

 HUMAN GROWTH HORMONE:

1) Norditropin somatropin (rDNA origin).
2) Norditropin FlexPro, pre-filled multi-dose delivery system.
3) Norditropin NordiFlex, pre-filled multi-dose delivery system.
4) Norditropin NordiLet, pre-filled multi-dose delivery system.
5) Norditropin SimpleXx, durable multi-dose delivery system.
6) NordiPen, prefilled multi-dose delivery system.
7) PenMate, automatic needle inserter.
8) Macrilen Macimorelin; growth hormone secretagogue receptor agonist.

 Hormone replacement therapy:

1) Vagifem estradiol hemihydrate.
2) Activelle estradiol/norethisterone acetate.
3) Kliogest estradiol/norethisterone acetate.
4) Novofem estradiol/norethisterone acetate.
5) Trisequens estradiol/norethisterone acetate.
6) Estrofem estradiol.
NOVO NORDISK STP:
 Segment : Diabetes, homeostasis management & hormone replacement
therapy.

 Target Group :Endocrinologists, healthcare professionals providing

treatment to patients suffering from diabetes & other hormonal disorders.

 Positioning :Novo Nordisk is leading healthcare company with more than 89

years of experience in diabetes treatment.

SWOT ANALYSIS OF NOVO NORDISK:

 STRENGTHS:

1) Strong dealer community – It has built a culture among distributor &

dealers where the dealers not only promote company’s products but also
invest in training the sales team to explain to the customer how he/she can
extract the maximum benefits out of the products.
2) Highly skilled workforce through successful training and learning
programs. Novo Nordisk A/S is investing huge resources in training and
development of its employees resulting in a workforce that is not only highly
skilled but also motivated to achieve more.
3) Strong Brand Portfolio – Over the years Novo Nordisk A/S has invested in
building a strong brand portfolio. The SWOT analysis of Novo Nordisk A/S
just underlines this fact. This brand portfolio can be extremely useful if the
organization wants to expand into new product categories.
4) Successful track record of integrating complimentary firms through
mergers & acquisition. It has successfully integrated number of technology
companies in the past few years to streamline its operations and to build a
reliable supply chain.
5) Automation of activities brought consistency of quality to Novo Nordisk
A/S products and has enabled the company to scale up and scale down based
on the demand conditions in the market.
6) Reliable suppliers – It has a strong base of reliable supplier of raw material
thus enabling the company to overcome any supply chain bottlenecks.
7) Strong Free Cash Flow – Novo Nordisk A/S has strong free cash flows that
provide resources in the hand of the company to expand into new projects.
8) Superb Performance in New Markets – Novo Nordisk A/S has built
expertise at entering new markets and making success of them. The
 expansion has helped the organization to build new revenue stream and
diversify the economic cycle risk in the markets it operates in.

 WEAKNESS:

1) Not highly successful at integrating firms with different work culture.

As mentioned earlier even though Novo Nordisk A/S is successful at
integrating small companies it has its share of failure to merge firms that
have different work culture.
2) Not very good at product demand forecasting leading to higher rate of
missed opportunities compare to its competitors. One of the reason why the
days inventory is high compare to its competitors is that Novo Nordisk A/S
is not very good at demand forecasting thus end up keeping higher inventory
both in-house and in channel.
3) The profitability ratio and Net Contribution % of Novo Nordisk A/S are
below the industry average.
4) Need more investment in new technologies. Given the scale of expansion
and different geographies the company is planning to expand into, Novo
Nordisk A/S needs to put more money in technology to integrate the
processes across the board. Right now the investment in technologies is not
at par with the vision of the company.
5) There are gaps in the product range sold by the company. This lack of
choice can give a new competitor a foothold in the market.
6) The marketing of the products left a lot to be desired. Even though the
product is a success in terms of sale but its positioning and unique selling
proposition is not clearly defined which can lead to the attacks in this
segment from the competitors.
7) High attrition rate in work force – compare to other organizations in the
industry Novo Nordisk A/S has a higher attrition rate and have to spend a lot
more compare to its competitors on training and development of its
employees.

 OPPORTUNITIES:

1) New environmental policies – The new opportunities will create a level

playing field for all the players in the industry. It represent a great
opportunity for Novo Nordisk A/S to drive home its advantage in new
technology and gain market share in the new product category.
2) Economic uptick and increase in customer spending, after years of
recession and slow growth rate in the industry, is an opportunity for Novo
Nordisk A/S to capture new customers and increase its market share.
3) Government green drive also opens an opportunity for procurement of
Novo Nordisk A/S products by the state as well as federal government
contractors.
4) Stable free cash flow provides opportunities to invest in adjacent product
segments. With more cash in bank the company can invest in new
technologies as well as in new products segments. This should open a
window of opportunity for Novo Nordisk A/S in other product categories.
5) Organization’s core competencies can be a success in similar other
products field. A comparative example could be - GE healthcare research
helped it in developing better Oil drilling machines.
6) New customers from online channel – Over the past few years the
company has invested vast sum of money into the online platform. This
investment has opened new sales channel for Novo Nordisk A/S. In the next
few years the company can leverage this opportunity by knowing its
customer better and serving their needs using big data analytics.
7) Increasing prevalence of diabetes & other chronic ailments due to
increasing urbanization & average life expectancy.

 THREATS:

1) No regular supply of innovative products – Over the years the company

has developed numerous products but those are often response to the
development by other players. Secondly the supply of new products is not
regular thus leading to high and low swings in the sales number over period
of time.
2) The company can face lawsuits in various markets given - different laws
and continuous fluctuations regarding product standards in those markets.
3) The demand of the highly profitable products is seasonal in nature and
any unlikely event during the peak season may impact the profitability of the
company in short to medium term.
4) Growing strengths of local distributors also presents a threat in some
markets as the competition is paying higher margins to the local distributors.
5) Imitation of the counterfeit and low quality product is also a threat to
Novo Nordisk A/S’s product especially in the emerging markets and low
income markets.
6) Intense competition – Stable profitability has increased the number of
players in the industry over last two years which has put downward pressure
on not only profitability but also on overall sales.

COUNTRIES OF EXISTENCE:
CONCLUSION:
Novo Nordisk is synonymous with diabetes care in India. Novo Nordisk has
introduced products and services hitherto not seen in the area of diabetes care in
the country.
Over the last decade Novo Nordisk has been able to ensure that there is a
marked improvement in the way people with diabetes live and work.
Novo Nordisk India's portfolio of products and services deals with therapy areas
in Diabetes, Human Growth Hormone and Haemostasis Management.
Certain capabilities or factors of an organization can be both a strength and
weakness at the same time. This is one of the major limitations of SWOT
analysis . For example changing environmental regulations can be both a threat
to company it can also be an opportunity in a sense that it will enable the
company to be on a level playing field or at advantage to competitors if it able
to develop the products faster than the competitors.

Novo Nordisk have built their business on the conviction that the formula for
lasting success is to stay focused, think long-term and do business in a
financially, socially and environmentally responsible way. That is why they
manage their business in accordance with the Triple Bottom Line principle.