Novo Nordisk A/S (NVO): Business Model Canvas [Dec-2025 Updated]

As someone who spent a decade leading analysis at a firm like BlackRock, I can tell you Novo Nordisk A/S (NVO)'s current business model is a masterclass in managing hyper-growth under pressure. You are looking at a company whose entire engine is fueled by the massive, almost unmanageable demand for its GLP-1 drugs, forcing them into a DKK 9 billion company-wide restructuring and nearly $9 billion in capital expenditure just to keep up with manufacturing. Still, the payoff is visible: a projected Free Cash Flow for 2025 between DKK 35-45 billion, even while fighting Eli Lilly for market share. This canvas breaks down exactly how Novo Nordisk A/S (NVO) is balancing that incredible opportunity against the operational chaos; dive in below to see the nine blocks defining their strategy.

Novo Nordisk A/S (NVO) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that keep Novo Nordisk A/S scaling up to meet unprecedented demand for its metabolic treatments. These partnerships aren't just handshake agreements; they involve billions of dollars and critical infrastructure.

Strategic M&A

Novo Nordisk A/S is actively using strategic Mergers and Acquisitions (M&A) to broaden its pipeline beyond its core GLP-1 franchise. A prime example is the definitive agreement announced on October 9, 2025, to acquire Akero Therapeutics, Inc. for up to $5.2 billion in cash. This move signals a clear intent to push into treatments for associated comorbidities, like metabolic dysfunction-associated steatohepatitis (MASH),,.

The deal structure includes specific financial triggers:

• Upfront cash payment of $54 per share, valuing the deal at about $4.7 billion at the time of announcement,.
• A contingent value right of an additional $6 per share, totaling an extra $500 million, payable if Akero's drug, efruxifermin, secures full U.S. approval by June 30, 2031,.

Parent Company and Manufacturing Site Transfer

The relationship with your parent company, Novo Holdings A/S, is central to securing manufacturing muscle. Novo Holdings completed its acquisition of Catalent for $16.5 billion. Immediately following that, Novo Nordisk A/S agreed to acquire three Catalent fill-finish sites from Novo Holdings for a significant upfront payment of $11 billion,,,.

Here are the key details on those critical assets:

Site Detail	Data Point
Acquisition Cost (to NVO)	$11 billion
Number of Sites Acquired	3
Locations	Anagni (Italy), Bloomington (Indiana, US), Brussels (Belgium)
Personnel Transfer	More than 3,000 people
Expected Capacity Impact Start	From 2026 onwards

This transaction is designed to provide strategic flexibility and scale up filling capacity for diabetes and obesity drugs,. To be fair, the Bloomington, Indiana, site has faced scrutiny, receiving an Official Action Indicated (OAI) classification in October 2025, which has prompted some of its former contract clients to accelerate plans to move their work elsewhere.

Biotech/Academic Collaborations

Novo Nordisk A/S is aggressively seeding its early-stage R&D pipeline through structured external innovation programs like Science2Medicine,. This approach seeks out high-potential ideas before they become formal acquisition targets. For instance, a new collaboration with BioMed X launched on August 19, 2025, specifically targeting the challenge of efficient oral delivery for therapeutic peptides, such as GLP-1 receptor agonists.

The Novo Nordisk Foundation also fuels early-stage research, which directly feeds the R&D pipeline:

• The Exploratory Interdisciplinary Synergy Programme in 2025 offers non-dilutive funding for high-risk/high-gain research.
• Funding available per project is up to DKK 6.5 million for a duration up to 3 years.
• The total annual budget for this specific call was DKK 81 million.

Contract Manufacturing Organizations (CMOs)

While the Catalent deal is about bringing key sites in-house, the overall strategy involves a mix of internal and external production to manage surging demand. The acquisition of the three Catalent sites, which previously operated as a CMO, was a direct response to supply constraints,. The company is investing heavily in both active pharmaceutical ingredients (API) and fill-finish capacity,.

Team Novo Nordisk Cycling Team

Team Novo Nordisk serves as a highly visible, non-financial partnership focused on patient advocacy and global diabetes awareness. This team, composed of athletes living with type 1 diabetes, helps drive the company's purpose to defeat serious chronic diseases.

Novo Nordisk A/S (NVO) - Canvas Business Model: Key Activities

You're looking at the core engine driving Novo Nordisk A/S right now, which is all about scaling production and navigating intense market evolution. Here's the quick math on what keeps the lights on and the pipeline moving.

Large-scale, complex Active Pharmaceutical Ingredient (API) manufacturing for GLP-1s.

Novo Nordisk A/S is heavily focused on expanding its capacity to produce the active ingredients for its blockbuster drugs. This involves complex peptide synthesis, which is a major operational hurdle. The company announced a significant capital commitment to this area.

• Investment planned: $6 billion over six years for drug manufacturing expansion.
• New API plant construction phases expected from the end of 2025 through 2029.
• The top five GLP-1 Drug Peptide API producers are estimated to control approximately 70% of the market.
• The combined annual revenue for these top five players exceeds $15 billion.

Extensive R&D, focusing on next-gen obesity and cardiovascular treatments.

Research and Development remains a massive commitment, even as the company streamlines other areas. You see the investment reflected in the pipeline progress, like moving cagrilintide into Phase 3 development.

Here's a look at the reported R&D spend figures:

Metric	Amount/Period	Value
R&D Expenses (12 months ending September 30, 2025)	Trailing Twelve Months	DKK 7.628B
R&D Expenses (First Nine Months of 2025)	Reported Cost	DKK 22 billion
Year-over-Year Change (First Nine Months of 2025 vs. prior year)	Change in R&D Costs	Fell 11%
R&D Expenses (Full Year 2024)	Annual Figure	$6.969B

The company is pushing forward with next-generation assets, including the initiation of phase 3 development for cagrilintide, a first-in-class amylin monotherapy for weight management.

Global regulatory approval and compliance management (e.g., Wegovy MASH approval).

Securing new indications is a critical activity, especially expanding the use of existing molecules into adjacent, large patient populations. The regulatory pathway for Metabolic Dysfunction-Associated Steatohepatitis (MASH) was a recent success.

• Wegovy received U.S. Food and Drug Administration (FDA) accelerated approval for noncirrhotic MASH on August 15, 2025.
• The approval covers adults with moderate to advanced liver fibrosis (stages F2 to F3).
• In the Phase 3 ESSENCE trial at week 72, 62.9% of Wegovy-treated patients achieved MASH resolution with no worsening of liver fibrosis, compared to 34.3% on placebo.
• Novo Nordisk estimates MASH affects around 22 million people in the U.S. alone.

Commercial execution and market access negotiation with major payers.

Commercial execution involves managing massive global demand while navigating pricing pressures, including direct negotiations with large purchasers. The company is actively managing its portfolio to free up capacity for its growth drivers.

Key commercial and financial metrics for the first nine months of 2025:

Metric	Value (DKK)	Value (CER Growth)
Total Sales	DKK 215.7bn	15%
Obesity Care Sales	DKK 59.9bn	41%
GLP-1 Diabetes Sales	N/A	10%
Sales and Distribution Expenses (H1 2025)	DKK 32.4 billion	Rose 15%

Novo Nordisk A/S has agreed to accept U.S. Medicare's negotiated prices for Ozempic, Wegovy, and Rybelsus, which will take effect from January 2027.

Managing the DKK 9 billion company-wide transformation and workforce reduction.

A major recent activity is the restructuring effort designed to simplify the organization and reallocate resources. This involves a significant one-time financial charge and a large reduction in personnel.

• Workforce reduction target: Approximately 9,000 jobs cut globally out of a total of 78,400 positions.
• Job cuts in Denmark are expected to be around 5,000 positions.
• Restructuring costs incurred in the third quarter of 2025 are approximately DKK 9 billion.
• The transformation is expected to deliver total annualized savings of around DKK 8 billion by the end of 2026.
• The one-off restructuring charge of around DKK 9 billion impacted operating profit, which grew 5% in kroner (or 10% at CER) to DKK 95.9bn for the first nine months of 2025.

Finance: draft 13-week cash view by Friday.

Novo Nordisk A/S (NVO) - Canvas Business Model: Key Resources

You're looking at the core assets that let Novo Nordisk A/S dominate the GLP-1 space as of late 2025. It's all about proprietary science and the industrial muscle to back it up.

Proprietary GLP-1 Molecule, Semaglutide, and Related Patents

The foundation here is the molecule itself, Semaglutide, sold as Ozempic, Wegovy, and Rybelsus. While the market buzzes about generics, the core intellectual property remains a massive barrier in key markets.

Here's the quick math on patent protection:

• US and European core patents and Supplementary Protection Certificates (SPCs) protect Semaglutide until 2031.
• The secondary patent in India related to the manufacturing process and delivery mechanism is valid until March 2026.
• Key patents in markets like China, India, and Brazil are set to expire in March 2026.
• In Canada, the compound patent lapsed, opening the door for potential generic launch as early as January 2026.

Novo Nordisk A/S still holds the '343 patent (compound) which expires in 2031, providing significant runway against generic entry in the US.

Global, Specialized Manufacturing Network

Meeting the demand for GLP-1s requires massive, specialized capacity. Novo Nordisk A/S has been aggressively investing to secure its supply chain.

The acquisition of fill-finish capacity is a huge move:

Asset/Investment	Value/Detail	Impact/Timeline
Acquisition of 3 Fill-Finish Sites (from Catalent)	Upfront payment of $11 billion	Expected to gradually increase filling capacity from 2026 onwards
Sites Location	Anagni (Italy), Brussels (Belgium), and Bloomington (Indiana, US)	These sites employ more than 3,000 people
Clayton, NC Fill-Finish Plant	Investment of $4.1 billion	Part of a total planned manufacturing investment of $6.8 billion in 2024
Hillerød Multi-Product Facility	Investment of 15.9 billion kroner (or $2.3 billion)	Slated to start producing active pharmaceutical ingredients by 2029

This network expansion is designed to support Semaglutide and future assets.

Deep R&D Expertise and a Promising Late-Stage Pipeline

The pipeline shows a clear focus on next-generation obesity treatments and expanding indications. You can see the commitment in the pipeline structure as of late 2025.

• CagriSema (Cagrilintide + Semaglutide): Listed in Phase 3 for both Type 2 Diabetes (T2D) and Obesity. The REDEFINE 2 trial showed 15.7% weight loss in adults with obesity/T2D after 32 weeks.
• Oral Semaglutide 25 mg (Obesity): Regulatory review was submitted to the US FDA in Q1 2025.
• Mim8: Listed as Filed for Rare Blood Disorders.
• Valo Health Collaboration (Expanded Jan 2025): Includes near-term payments totaling up to $190 million and milestone payments of $4.6 billion.

The pipeline is definitely deep; they have multiple candidates in Phase 2 and Phase 3 across diabetes, obesity, and cardiovascular disease.

Significant Financial Capital

The financial strength is what fuels all this R&D and manufacturing expansion. The near-term cash generation is robust, despite heavy capital expenditure.

For the 2025 fiscal year, Novo Nordisk A/S has provided a specific forecast:

• Free Cash Flow (FCF) expected to reach DKK 35 billion to DKK 45 billion.

For context on recent performance, the TTM FCF ending September 30, 2025, was reported at $9.509 billion USD.

Strong Brand Equity and Trust in the Diabetes and Obesity Care Markets

The market trust translates directly into sales growth, especially in the obesity segment. The brand equity is visible in the revenue performance, even with supply constraints.

In the first three months of 2025:

• Total Diabetes and Obesity care sales grew by 19% in Danish kroner to DKK 78.1 billion.
• Obesity care sales specifically surged by 67% in Danish kroner, reaching DKK 18.4 billion.

In the US market, which accounts for a large portion of sales, a November 2025 KFF survey showed that 12% of US adults are currently taking a GLP-1 drug, up from 6 percentage points higher than 18 months prior. That's real-world adoption underpinning the brand value.

Novo Nordisk A/S (NVO) - Canvas Business Model: Value Propositions

You're looking at the core promises Novo Nordisk A/S is making to its customers as of late 2025. These aren't just marketing slogans; they are backed by significant financial performance and clinical milestones.

The primary value proposition centers on delivering highly effective, life-changing treatments for serious chronic diseases, particularly obesity and Type 2 Diabetes (T2D). The financial results for the first nine months of 2025 show this clearly: Diabetes and Obesity care sales reached DKK 215.7 billion, marking a 12% increase in Danish kroner (DKK) or 15% at constant exchange rates (CER). Within that segment, obesity care sales were a major driver, surging 37% in DKK to DKK 59.9 billion, which is a 41% increase at CER. To put that reach into perspective, as of the first half of 2025, Novo Nordisk provided medical treatment to 42.8 million people living with diabetes and 2.9 million people living with obesity.

The value is also being expanded through expanding indications for established molecules. The US Food and Drug Administration (FDA) approved Wegovy for the treatment of metabolic dysfunction-associated steatohepatitis (MASH). Furthermore, clinical data supports significant health benefits beyond weight loss. In the STEER real-world study, comparing Wegovy to tirzepatide in people with overweight/obesity and established cardiovascular disease (CVD), Wegovy showed a 57% greater risk reduction for heart attack, stroke, or death from any cause for those on treatment without gaps longer than 30 days. Even when looking at all treated people regardless of gaps, Wegovy users saw a 29% risk reduction compared to tirzepatide users. This builds on the SELECT trial, which showed Wegovy was associated with a 20% risk reduction of cardiovascular events.

Convenience is a key differentiator, moving beyond the once-weekly injectable format. Novo Nordisk is pushing for the future oral formulations. Specifically, the company submitted its first-in-class amylin monotherapy, cagrilintide, for Phase 3 development, and the oral semaglutide for weight management saw an FDA submission in May 2025, with a potential US launch targeted for late 2025 or early 2026.

Addressing affordability and access is a stated commitment, especially in the US market where compounded alternatives posed a challenge. Novo Nordisk launched NovoCare Pharmacy in March 2025 to counter this. As of the data reported, prescriptions via NovoCare Pharmacy and its TeleHealth collaborations accounted for approximately 11,000 total weekly Wegovy prescriptions, supplementing the around 20,000 weekly prescriptions in the retail cash channel. Separately, the Patient Assistance Program (PAP) offers medication at no cost to eligible US citizens or legal residents whose total household income is at or below 400% of the federal poverty level (FPL) and who are uninsured or have Medicare.

The focus on continuous innovation in rare diseases provides a diversified value stream. For the first nine months of 2025, Rare disease sales increased by 10% in DKK, representing a 13% growth at CER. Key pipeline advancements include making regulatory submissions for the hemophilia therapy Mim8 in both the EU and the US. Furthermore, Alhemo, for hemophilia A and B, is approved in the US for patients with or without inhibitors, and is under EU review for patients without inhibitors.

Here is a look at the segment performance driving these value propositions through the first three quarters of 2025:

Therapy Area	Sales (DKK, First 9 Months 2025)	Year-over-Year Growth (CER)
Diabetes and Obesity Care Total	DKK 215.7 billion	15%
Obesity Care (Component of Total)	DKK 59.9 billion	41%
GLP-1 Diabetes Care (Component of Total)	Not explicitly separated from total Diabetes Care sales	10%
Rare Disease (Total)	Not explicitly stated as a total figure, but sales grew	13%

You should track the adoption rate of NovoCare Pharmacy versus the retail cash channel to gauge the success of the direct-to-patient strategy against compounded competition. Finance: draft 13-week cash view by Friday.

Novo Nordisk A/S (NVO) - Canvas Business Model: Customer Relationships

You're looking at how Novo Nordisk A/S manages its connections with the diverse groups it serves-from the doctors writing prescriptions to the patients taking the medication. It's a complex web, especially given the massive demand for their GLP-1 therapies.

Dedicated sales force and Medical Science Liaisons (MSLs) for HCP education

Novo Nordisk A/S relies on direct engagement with healthcare professionals (HCPs) to drive adoption and ensure appropriate use of their specialized therapies. While specific, current headcounts for the dedicated sales force aren't public, the company's operational adjustments suggest a shift in this area; in September 2025, Novo Nordisk announced a global workforce reduction of 9,000 people, which is approximately 9% of its total workforce, indicating a restructuring that likely impacts field teams supporting HCP education. The MSL function remains critical for providing in-depth, scientific exchange beyond the sales interaction, focusing on complex data related to diabetes, obesity, and rare diseases.

Patient support programs and digital health tools for adherence

For patients, adherence is everything, especially with chronic condition treatments. Novo Nordisk A/S supports this through structured programs. The Novo Nordisk Patient Assistance Program (PAP) provides medication at no cost to eligible individuals living with diabetes. Eligibility requirements for the PAP include being a US citizen or legal resident, having a household income at or below 400% of the federal poverty level (FPL), and having Medicare or no insurance; patients with private or commercial insurance are not eligible for the PAP. The company's broader impact shows they served more than 45.2 million people living with serious chronic diseases in 2024, with 43.0 million receiving diabetes and obesity care treatment. Also, as part of their stated progress toward 2025 goals, they reached more than 64,000 children in the Changing Diabetes® in Children programme. Digital tools are integrated, though specific adherence metrics tied to these tools aren't detailed publicly.

Direct-to-consumer (DTC) marketing and patient-facing platforms like NovoCare

The company uses patient-facing platforms to manage access and cost concerns directly. Novo Nordisk A/S established a pharmacy called NovoCare, which, at one point, charged customers $499 per month for access to certain drugs, positioned as less than half the cost through other distribution networks. NovoCare also serves as the hub for the PAP mentioned above, streamlining access through coverage checks and savings offers across therapy areas like Diabetes, Obesity, MASH, and Hemophilia. This direct channel helps manage the patient journey when navigating complex insurance landscapes.

High-stakes negotiation and long-term contracts with Pharmacy Benefit Managers (PBMs)

This is where the rubber meets the road in the US market. Novo Nordisk A/S engages in intense negotiations with the 'Big 3' PBMs-Cigna's Express Scripts, UnitedHealth Group's Optum Rx, and CVS Health's Caremark. In late 2024, the CEO committed to working with these PBMs on list price reductions. However, past experience shows the risk: a 65% list price reduction on Levemir resulted in its coverage dropping from 90% of insurance schemes to only about 35%. More recently, in November 2025, Novo Nordisk A/S agreed with the U.S. Administration to lower prices for semaglutide medicines in Medicare Part D and Medicaid starting in 2026, including a pilot program for obesity medicines in Medicare Part D beginning in 2026. This agreement is projected to have a direct, negative low single-digit impact on global sales growth in 2026. Furthermore, under a November MFN deal, Novo Nordisk A/S agreed to offer Medicare prices for Ozempic and Wegovy of $245.

The relationship with payers is a constant balancing act between list price, rebates, and formulary access. Here's a snapshot of the scale and recent financial context influencing these relationships:

Metric Category	Data Point	Value/Amount	Context Year/Period
Patient Reach (Total)	People reached with Diabetes and Obesity care products	43.0 million	As of Strategic Aspirations 2025 progress (reported 2024)
Patient Support	Household Income Limit for PAP Eligibility (US)	At or below 400% of FPL	2025 Eligibility Requirement
Cost Management (DTC/Cash)	NovoCare Monthly Access Cost (Example)	$499	Historical/Example Pricing
PBM Negotiation Impact	Levemir Coverage Drop Post-Price Cut	From 90% to approx. 35% of schemes	Historical Data
PBM Negotiation Impact (Medicare)	Agreed Medicare Price for Ozempic/Wegovy (MFN)	$245	November 2025 Agreement
Financial Impact (Forecast)	Expected Negative Impact on 2026 Global Sales Growth from US Agreement	Negative low single-digit impact	Forecasted for 2026
Sales Context (Obesity Care)	Obesity Care Sales (Kroner)	DKK59.9 billion	First nine months of 2025

Building patient trust through advocacy and disease awareness campaigns

Trust is built on consistent delivery and visible commitment to the patient community beyond the pill itself. Novo Nordisk A/S emphasizes its long-standing commitment to people living with diabetes and obesity, which is foundational to the PAP. Their advocacy efforts are often channeled through disease awareness, such as the Changing Diabetes® in Children programme, which reached over 64,000 children as part of their 2025 aspirations. Furthermore, the company is actively warning consumers about counterfeit products, such as the warning issued in December 2025 regarding counterfeit Ozempic® (semaglutide) injection 1 mg in the US, which directly addresses patient safety and trust.

You should review the impact of the 9,000 person workforce reduction announced in September 2025 against the planned field force deployment for 2026. Finance: draft 13-week cash view by Friday.

Novo Nordisk A/S (NVO) - Canvas Business Model: Channels

You're looking at how Novo Nordisk A/S gets its medicines, from the factory floor to the patient's hand, as of late 2025. It's a complex web, balancing massive global scale with targeted patient access programs.

Global network of pharmaceutical wholesalers and distributors

Novo Nordisk A/S relies heavily on established third-party logistics to move its high-demand products globally. The security of supply is a key metric here, supported by strategically placed infrastructure.

For instance, the U.S. distribution network in 2024 was anchored by 3 major wholesalers, which collectively contributed approximately 23%, 17%, and 17% of total global net sales for that year. To maintain supply chain resilience, Novo Nordisk Pharmaceuticals operates two main warehouse locations serving its global client base: one in Plainfield, Indiana, US, and another near Copenhagen, Denmark. In the US, the Indiana center, utilizing MD Logistics (MDL) as a third-party logistic provider, aims to deliver desired products within seven days or less virtually anywhere in the United States.

Retail and specialty pharmacies (the defintely most common channel)

This segment, encompassing retail and specialty pharmacies, is where the vast majority of prescriptions are ultimately filled. The strength in this channel is reflected in market share data, though specific revenue splits are often bundled into broader geographic reporting.

As of the first nine months of 2025, Novo Nordisk A/S maintained a volume market share of 29.4% of the total US insulin market, indicating significant presence through these dispensing points. The company's overall sales and distribution costs were reported at 20.9% as a percentage of sales for the first six months of 2025. Furthermore, the sales increase in US Operations during the first nine months of 2025 was positively impacted by a positive channel and payer mix, suggesting favorable placement within pharmacy networks.

Here is a look at the financial context surrounding the distribution costs and sales growth across major operational areas for the first nine months of 2025:

Metric	Value (DKK)	Growth (CER)
Total Sales (9M 2025)	DKK 215.7 billion (Diabetes and Obesity care)	15%
Obesity Care Sales (9M 2025)	DKK 59.9 billion	41%
US Operations Sales Growth (9M 2025)	N/A	15%
International Operations Sales Growth (9M 2025)	N/A	13%
Sales and Distribution Costs (H1 2025)	20.9% of Sales	N/A

Direct-to-consumer channel via the NovoCare platform for certain products

Novo Nordisk A/S has actively pursued direct patient engagement channels to manage access and cost, particularly for its high-profile obesity and diabetes treatments. This is a direct response to market pressures and the need to secure formulary access.

The company continues to invest in direct-to-patient initiatives such as the NovoCare® Pharmacy and collaborations with telehealth organizations. In a move to expand access and counter compounded alternatives, Novo Nordisk announced a strategic reset in 2025 that included cutting out-of-pocket prices for Ozempic and Wegovy to $199 for starter doses and $349 monthly. Historically, the NovoCare platform was established to charge customers $499 per month for access to a drug, which was less than half the cost through other pharmaceutical distribution networks.

Direct sales to hospitals and integrated healthcare systems

While the majority of sales flow through the wholesale/pharmacy route, specialized products and large-volume contracts with major healthcare providers are managed directly. This channel is crucial for products outside the core diabetes/obesity portfolio, such as those for rare diseases, and for securing large-scale institutional adoption.

The Rare Disease segment, which often involves more specialized hospital administration, saw sales increase by 10% in Danish kroner (13% at CER) in the first nine months of 2025. The company also works within the insured channel, engaging in commercial initiatives and awaiting regulatory decisions, such as the one for the Wegovy® MASH indication during the third quarter of 2025.

Digital channels for patient education and HCP engagement

Digital outreach supports the physical distribution network by driving awareness, education, and adherence. This is less about direct sales and more about market shaping and patient support.

The company's R&D progress is communicated digitally, such as the initiation of the REDEFINE 11 trial for CagriSema and the submission of semaglutide 7.2 mg for regulatory review in the EU during the first quarter of 2025. Furthermore, the company's global presence is supported by a workforce of approximately 78,400 people across 80 countries as of mid-2025, all of whom engage digitally to support the marketing and distribution of products in around 170 countries.

Finance: draft 13-week cash view by Friday.

Novo Nordisk A/S (NVO) - Canvas Business Model: Customer Segments

You're looking at the core groups Novo Nordisk A/S (NVO) serves, which are heavily concentrated in chronic disease management, especially as of late 2025. The sheer scale of the patient base is what drives the financial performance you see in the latest reports.

The primary focus is on individuals managing serious, long-term conditions. In the first half of 2025, Novo Nordisk expanded its patient reach to over 45 million people, adding more than 3 million new patients compared to the prior year, showing the massive demand for their portfolio. Back in 2024, the company reported serving more than 45.2 million people living with these chronic diseases.

People with Type 2 Diabetes (T2D) globally

This segment remains foundational. In 2024, the company provided medical treatment to 43.0 million people living with diabetes. Financially, the Diabetes Care sales for 2024 hit DKK 206,618 million. Even with the massive growth in obesity care, GLP-1 sales in diabetes still saw a 10% increase in the first six months of 2025. You can see the market dynamics clearly in the segment performance:

Metric	2024 Figure	H1 2025 Figure
Diabetes Patients Reached (Millions)	43.0	(Part of 45.8 total patients reached)
Diabetes Care Sales (DKK Billion)	206.7	(Part of DKK 271.8B Diabetes & Obesity Care Sales in 2024)
Global GLP-1 Volume Market Share	63%	(Market share in 2024)

People with Obesity (BMI >30 or >27 with co-morbidities)

This is the explosive growth area. Novo Nordisk provided medical treatment to 2.2 million people living with obesity in 2024, which jumped to 2.9 million in the first half of 2025. The financial impact is stark; obesity care sales surged 58% at constant exchange rates globally in H1 2025. For the first nine months of 2025, obesity care sales specifically rose 37% in Danish kroner. Honestly, the market share in branded obesity is dominant:

• Volume market share in branded obesity (2024): 70.4%.
• Obesity care sales (H1 2025, CER): DKK 38.8 billion.
• Total US obesity market value (August 2025): DKK 262.2 billion.
• Novo Nordisk value share of that market (August 2025): DKK 118.1 billion.

Healthcare Providers (HCPs), including endocrinologists and primary care

While not direct end-consumers, HCPs are critical channel partners. Novo Nordisk maintains business-to-business relationships with them for product distribution and integration into care pathways. The company is actively engaging them with new data, presenting 29 abstracts at the American Diabetes Association (ADA) 85th Scientific Sessions in June 2025, covering cardiovascular and kidney benefits of semaglutide for T2D patients.

Health insurance payers and government health systems (e.g., Medicare, NHS)

Payers control access, which is a major lever for volume. In the US, for instance, Wegovy® achieved approximately 10% cash channel penetration of Total Prescriptions (TRx) since January 2025 via initiatives like the NovoCare Pharmacy. Furthermore, the Center for Medicare and Medicaid Services (CMS) started allowing reimbursement in Medicare Part D for Anti-Obesity Medications (AOMs) that carry a Cardiovascular disease (CV) indication in early 2025. You should note that reimbursement for AOMs for obesity alone remains prohibited by law.

Patients with Rare Blood Disorders (e.g., Hemophilia A)

This is a niche but high-value segment managed by the RareD unit. Rare blood disorders sales increased by 6% in US Operations during H1 2025. Overall, the Rare Disease division saw sales growth of 15% at CER in H1 2025. The total addressable pool for Novo Nordisk's RareD focus is estimated at 20 million people globally. For context on the underlying condition, Hemophilia A affects an estimated 1.1 million people worldwide.

• Rare Disease Sales (2024): DKK 18.639 billion.
• Rare Blood Disorders Sales Growth (H1 2025): 6% (US Operations).
• Rare Disease Sales Growth (H1 2025, CER): 15%.

Finance: review the Q3 2025 impact of the DKK 9 billion in restructuring costs on the payer segment's net revenue realization by next Tuesday.

Novo Nordisk A/S (NVO) - Canvas Business Model: Cost Structure

You're looking at the cost side of Novo Nordisk A/S (NVO) as of late 2025, and honestly, the numbers show a company aggressively spending to secure its future dominance in obesity and diabetes care, even while trimming fat elsewhere. The cost structure is defined by massive investment in capacity, high innovation spending, and significant one-time charges from a major overhaul.

Manufacturing Expansion and Capital Expenditure

Novo Nordisk A/S (NVO) is pouring capital into manufacturing expansion to meet the seemingly endless demand for its GLP-1 franchise. The company guided for capital expenditure to be around DKK 65 billion in 2025. This reflects a massive commitment, as reports indicate Novo Nordisk plans to spend about $9 billion in 2025 to create additional capacity. This investment is earmarked for doubling U.S. production and major expansions across Denmark, France, China, and Brazil. For context, the latest twelve months capital expenditures peaked at DKK 9.092 billion (this figure may represent a quarterly or partial-year spend depending on the source context, but it aligns with the scale of the reported $9 billion plan).

The key cost drivers related to production scaling include:

• Investment in new active pharmaceutical ingredient (API) facilities, with more than DKK 80 billion committed in recent years.
• Acquisition-related costs, such as the $11.7 billion price tag for the three Catalent manufacturing sites, which impacted 2024 free cash flow.
• Depreciation, amortisation, and impairment losses for 2025 are expected to total around DKK 17 billion, which includes charges related to the Catalent transaction.

Research & Development (R&D) Investment

Maintaining pipeline leadership requires serious, sustained R&D spending, though the company has recently pruned specific areas. For the first nine months of 2025, Research and Development costs increased by 9% to DKK 37.4 billion. On a trailing twelve-month basis ending September 30, 2025, R&D expenses were reported at $7.628B, representing a 17.39% year-over-year increase. However, this high spending is being strategically refocused; for instance, the company discontinued all cell therapy R&D, which involved laying off around 250 positions in that division. Some reports indicated a 23.8% reduction in R&D spending as part of broader 2025 cost-cutting initiatives, which suggests a shift in resource allocation rather than an outright reduction in total R&D commitment, given the reported increases elsewhere.

Selling, General, and Administrative (SG&A) Expenses

The commercial engine, particularly in the US, drives significant SG&A. For the twelve months ending September 30, 2025, Novo Nordisk A/S (NVO) SG&A Expenses reached $10.844B, marking a 13.43% increase year-over-year. This reflects heavy investment in market development for obesity care and GLP-1 diabetes products. Specifically, Sales and distribution costs for the first half of 2025 rose 15% to DKK 32.4 billion. The cost increase in US Operations is noted as being mainly driven by promotional activities related to Wegovy®.

One-off Restructuring Charges

A significant cost event in 2025 was the company-wide transformation designed to simplify operations, which included eliminating approximately 9,000 jobs globally. This overhaul resulted in substantial one-off charges. Novo Nordisk stated the overhaul resulted in one-off costs of about DKK 9 billion in 2025, which included DKK 5 billion in severance expenses and DKK 4 billion in asset impairments. These expenses were booked around the third quarter of 2025. The net impact for the year from this transformation was estimated to be around DKK 8 billion. This charge negatively impacted the full-year 2025 operating profit guidance by around DKK 8 billion at constant exchange rates.

Cost of Goods Sold (COGS)

The production of complex biologic drugs inherently carries a high COGS component, though efficiency gains have kept the gross margin high. For the first six months of 2025, the Cost of Goods Sold increased by 27% to DKK 25,736 million, resulting in a gross margin of 83.4%. This margin compares to 84.9% in the first six months of 2024. The decline in the gross margin was primarily attributed to amortisations and depreciations related to the Catalent acquisition and costs from ongoing capacity expansions, partially offset by a positive product mix from increased GLP-1 sales. For reference, the full-year 2024 gross margin was 84.7%.

Here's a quick look at the key cost components for the period:

Cost Category	Reported Amount (2025 Data)	Context/Period
Capital Expenditure Guidance	DKK 65 billion	Full Year 2025 Guidance
Manufacturing Expansion Spend	$9 billion	Planned 2025 Investment
Restructuring Charges (One-off)	DKK 9 billion	Incurred in Q3 2025
Net Restructuring Impact	DKK 8 billion	Estimated net one-off impact for 2025
SG&A Expenses (LTM)	$10.844B	Twelve Months ending September 30, 2025
R&D Costs	DKK 37.4 billion	First Nine Months of 2025
COGS	DKK 25,736 million	First Six Months of 2025

Finance: draft 13-week cash view by Friday.

Novo Nordisk A/S (NVO) - Canvas Business Model: Revenue Streams

You're looking at the core engine driving Novo Nordisk A/S's massive valuation, and honestly, it all comes down to a few key therapeutic areas. The revenue streams are heavily concentrated, which is both a strength and a near-term risk, especially given the competition we're seeing.

Primary revenue from Diabetes and Obesity Care, driven by GLP-1 agonists. This segment is the powerhouse. For the first six months of 2025, sales in Diabetes and Obesity care hit DKK 145.4 billion, representing a 16% increase in Danish kroner (or 18% at Constant Exchange Rates (CER)) over the prior year period. The real star here is Obesity care; that part of the business saw growth of 56% in Danish kroner, reaching DKK 38.8 billion for the first half of 2025, which translates to a 58% lift at CER. GLP-1 diabetes sales, primarily Ozempic, grew by 8% in Danish kroner (10% at CER) over the same period. The company's full-year 2025 sales growth outlook has been narrowed to a range of 8% to 14% at CER, reflecting lower growth expectations for the second half of the year, largely due to the US compounded GLP-1 situation.

The revenue mix is clearly shifting toward weight management. Here's a quick look at the segment performance based on the first half of 2025 results:

Revenue Stream Component	H1 2025 Sales (DKK Billion)	H1 2025 Growth (CER)
Total Sales	154.9	18%
Diabetes and Obesity Care	145.4	18%
Obesity Care (Sub-segment)	38.8	58%
GLP-1 Diabetes Sales (Sub-segment)	N/A	10%
Rare Disease Segment	N/A	15%

Revenue from the smaller Rare Disease segment (less than 10% of total sales). This division provides important diversification, though it's a small piece of the overall revenue pie. In 2024, Rare Disease sales were DKK 186.39 billion, which was about 6.4% of total revenue, confirming its smaller relative size. For the first six months of 2025, this segment showed solid momentum, with sales increasing by 14% in Danish kroner, or 15% at CER.

Sales of older insulin and biopharma products. While the focus is squarely on the GLP-1 agonists, the legacy insulin portfolio still contributes. Novo Nordisk has been taking steps to consolidate this portfolio by gradually phasing out some older products to free up manufacturing capacity. For context on the scale of these older products, here are the 2024 revenue figures, as 2025 specific breakdowns for these older lines aren't as readily available:

• Total Insulin Sales (2024): DKK 55.37 billion.
• Second-generation human insulin sales (2024): DKK 6.97 billion.
• Pre-mixed insulins (Ryzodeg and NovoMix) combined (2024): DKK 10.79 billion.
• Rapid-acting insulins (Fiasp and NovoRapid) collective sales (2024): DKK 18.52 billion.

Licensing and milestone payments from R&D collaborations. You see the financial impact of R&D partnerships pop up in the form of upfront payments and future milestone potential, which bolsters the non-product sales revenue. For instance, in March 2025, Novo Nordisk entered two significant deals:

• An exclusive license agreement for a GLP-1/GIP/glucagon triple receptor agonist, which includes an upfront payment of USD 200 million and potential milestone payments up to USD 1.8 billion.
• An exclusive license agreement with Lexicon Pharmaceuticals for an oral non-incretin candidate, where Lexicon is eligible for upfront and near-term milestones up to USD 75 million, with total potential reaching USD 1 billion.

Finance: draft Q3 2025 cash flow forecast incorporating expected milestone receipts by next Wednesday.