iso4217:DKK242579242021-01-012021-12-31242579242021-01-012021-12-311242579242021-01-012021-12-312242579242021-01-012021-12-313242579242021-01-012021-12-311242579242021-01-012021-12-311242579242021-01-012021-12-312242579242020-01-012020-12-31242579242021-01-012021-12-31fsa:ProposedDividendRecognisedInEquityMember242579242020-01-012020-12-31fsa:ProposedDividendRecognisedInEquityMember242579242021-01-012021-12-31fsa:RetainedEarningsMember242579242020-01-012020-12-31fsa:RetainedEarningsMember242579242021-12-31242579242020-12-31Annual reportAuditor's report on audited financial statementsfalseReporting class BtruefalsefalseNovo Nordisk Pharmaceuticals A/Sc/o Novo Nordisk A/S, Novo Allé2880BagsværdDenmark242579241974-04-04Gladsaxe2021-01-012021-12-312020-01-012020-12-312022-05-16Søren FinkKarsten Munk KnudsenLinette NielsenTomas HaagenChairmanPeter BøggildDeloitte Statsautoriseret RevisionspartnerselskabDeloitte Statsautoriseret RevisionspartnerselskabWiedekampsgade Wiedekampsgade 6623002300Copenhagen SCopenhagen SDenmarkDenmark3396355633963556Novo Nordisk Pharmaceuticals A/Sc/o Novo Nordisk A/S, Novo Allé 2880 Bagsværd24257924Today, the Board of Directors and Executive Management have approved the Annual Report of Novo Nordisk Pharmaceuticals A/S for the year 2021.<br/>The Annual Report has been prepared in accordance with the Danish Financial Statements Act.<br/>In our opinion, the Financial Statements give a true and fair view of the financial position of the company at 31 December 2021 and of the results of the company's operations for 2021 in accordance with the Danish Financial Statements Act.<br/>Further, in our opinion, the Management’s review gives a fair review of the development in the company’s operations and financial matters and the results of the company’s operations and financial position.<br/>We recommend that the Annual Report be adopted at the Annual General Meeting.Bagsværd2022-05-16To the Shareholder of Novo Nordisk Pharmaceuticals A/SOpinionWe have audited the financial statements of Novo Nordisk Pharmaceuticals A/S for the financial year 1 January 2021 - 31 December 2021, which comprise an income statement, balance sheet, statement of changes in equity and notes. The financial statements are prepared in accordance with the Danish Financial Statements Act.<br/>ln our opinion, the financial statements give a true and fair view of the Company's financial position at 31 December 2021 and of the results of its operations for the financial year 1 January 2021 - 31 December 2021 in accordance with the Danish Financial Statements Act.Basis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in Denmark. Our responsibility under those standards and requirements are further described in the “Auditor's responsibilities for the audit of the financial statements” section of this auditor's report. We are independent of the Company in accordance with the International Ethics Standards Board of Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.<br/>ln preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, for disclosing, as applicable, matters related to going concern and for using the going concern basis of accounting in preparing the financial statements unless Management either intends to either liquidate the Company or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.<br/>As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:<br/>•<br/>Identify and assess the risk of material misstatements in the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.<br/>•<br/>Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.<br/>•<br/>Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.<br/>•<br/>Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements, and, based on the audit evidence obtained, whether a material uncertainty exists relating to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.<br/>•<br/>Evaluate the overall presentation, structure, and contents of the financial statements, including note disclosures, and whether the financial statements reflect the underlying transactions and events in a manner that gives a true and fair view.<br/>We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Management is responsible for the management review.<br/>Our opinion on the financial statements does not cover the management review, and we do not express any form of assurance conclusion thereon.<br/>ln connection with our audit of the financial statements, our responsibility is to read the management review and, in doing so, consider whether the management review is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.<br/>Moreover, it is our responsibility to consider whether the management review provides the information requirement under the Danish Financial Statements Act.<br/>Based on the work we have performed, we conclude that the management review is in accordance with the financial statements and has been prepared in accordance with the requirements in the Danish Financial Statements Act. We did not identify any material misstatement of the management review.Copenhagen2022-05-16Sumit SudanYassir IqbalState Authorised Public AccountantState Authorised Public Accountantmne33716mne45103Main activities<br/>The company's main activities are holding of equity investments in companies and other investments, and – at the discretion of the Board of Directors – supporting the operations of such companies. Other activities relate to investments in- and receipt of royalty streams related to GLP-1 products that utilises the SNAC technology. Novo Nordisk Pharmaceuticals A/S owns 2% of the shares in Novo Nordisk Pharma Argentina SA, 2.52% of the shares in Novo Nordisk Saglik Ürünleri Ticaret Ltd., Turkey, and up to 1% of shares in some other Novo Nordisk affiliated companies.<br/>Development during the financial year<br/>Novo Nordisk Pharmaceuticals A/S ended with a net profit of DKK 1,330 thousand for the year 2021 compared with net loss DKK 2,368 thousand for the year 2020.<br/>The main development in the 2021 result is driven by fair value adjustment of other financial assets.<br/>Events after the balance sheet date<br/>The royalty rights have, in 2022, been sold to Novo Nordisk A/S, and Novo Nordisk Pharmaceuticals A/S will in 2022 have a gain on the same.The Annual Report of the company is prepared in accordance with the Danish Financial Statements Act for a class B enterprise as well as selected rules applying to reporting class C.<br/>The accounting policies applied remain unchanged from last year.<br/>The Annual Report is presented in DKK 1,000.<br/>Translation of foreign currencies<br/>Assets and debt in foreign currencies are translated into Danish kroner at the exchange rates at the balance sheet date. Financial statements of foreign subsidiaries are translated into Danish kroner at the exchange rates at the balance sheet date for the balance sheet items and at average exchange rates for income statement items.<br/>All exchange rate adjustments are recognised in the income statement.<br/>Royalty income<br/>Royalty income is recognised as the underlying sale is achieved in accordance with the terms of the relevant agreement.<br/>Administrative costs<br/>Administrative costs comprise expenses for the management and administration of the company, such as expenses for audit fee, administrative staff, management, office premises, office costs etc, as well as depreciation, amortisation and impairment losses.<br/>Financial items<br/>Financial income and expenses include interest income and expenses, realised and unrealised capital gains and losses on securities, debt and transactions in foreign currencies, amortisation of financial assets and liabilities. Financial income and expenses are recognised by the amounts pertaining to the financial year.<br/>Financial assets<br/>Financial assets consist of investments in- and receipt of royalty streams related to GLP-1 products that utilises the SNAC technology, and minor equity investments in Novo Nordisk affiliated companies. Financial assets are initially measured at cost, being the acquisition amount and costs related to the investment. The financial assets is subsequently remeasured at fair value at the end of the reporting period.<br/>Value adjustments of the effective part of cash flow hedges are recognised directly in equity. The cumulative value adjustment of these contracts is transferred from other equity to the income statement when the hedged transaction is recognised in the income statement.<br/>Cash flow hedges are discontinued when a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting. Any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the income statement.<br/>Amounts owed by affiliated companies<br/>Amounts owed by affiliated companies are measured at amortised cost less write-downs for potential losses on doubtful debts. The write-downs are based on an individual assessment of each debtor.<br/>Amounts owed to affiliated companies<br/>Amounts owed to affiliated companies are measured at amortised cost.<br/>Dividend<br/>Proposed dividends (not yet declared) for the accounting period are recognised in the equity as proposed dividends.<br/>Tax<br/>The company is jointly taxed with the Danish companies in the Novo Holdings A/S Group. The tax effect of the joint taxation with the parent company and other subsidiaries is allocated to the companies in proportion to their taxable incomes (full allocation). The current tax in the joint taxation is paid by the ultimate parent company, Novo Holdings A/S, which functions as the tax administration company. The jointly taxed Danish enterprises have adopted the on-account taxation scheme.<br/>Novo Nordisk recognises deferred income tax assets if it is probable that sufficient taxable income will be available in the future against which the temporary differences can be utilised.<br/>Income tax in the income statement comprises current tax for the year and any change in the provision for deferred tax.<br/>The company is jointly taxed with the Danish companies in the Novo Holdings A/S Group. The tax effect of the joint taxation with the parent company and other subsidiaries is allocated to the companies in proportion to their taxable incomes (full allocation). The current tax in the joint taxation is paid by the ultimate parent company, Novo Holdings A/S, which functions as the tax administration company. The jointly taxed Danish enterprises have adopted the on-account taxation scheme.In accordance with the Danish Financial Statements Act § 86, section 4, a separate statement of cash flow has not been prepared. Reference is made to the statement of cash flow presented for the parent company.24653000394100039000380002799000-248000024614000390300002400002637900039460001034000-2283000-296000850001330000-236800027400000000-2738670000-2368000284276400028647050002842764000286470500012007500039410008443700088871000148100011070002059930009391900030487570002958624000100200010020001100320002848702000274000000002851034000284970400017481800088914000174818000889140002107100019974000183400032000229050002000600019772300010892000030487570002958624000Foreign exchange rate gain (net)<br/>-<br/>240<br/>Total financial income<br/>-<br/>240Foreign exchange rate loss<br/>1.662<br/>-<br/>Value adjustment of financial assets<br/>24.653<br/>3.941<br/>Other financial expenses<br/>64<br/>5<br/>Total financial expenses<br/>26.379<br/>3.946Shares in affiliated companies<br/>2021<br/>Royalt ycontracts<br/>Total<br/>Fair value beginning of year<br/>11.970<br/>2.852.735<br/>2.864.705<br/>Dividends<br/>(87)<br/>-<br/>(87)<br/>Fair value adjustments for the year recognised in income statement<br/>2.799<br/>(24.653)<br/>(21.854)<br/>Fair value end of period<br/>14.682<br/>2.828.082<br/>2.842.764<br/><br/>2020<br/>Shares in affiliated companies<br/>Royalty contracts<br/>Total<br/>Fair value beginning of year<br/>14.545<br/>-<br/>14.545<br/>Addition<br/>-<br/>2.856.676<br/>2.856.676<br/>Dividends<br/>(95)<br/>-<br/>(95)<br/>Fair value adjustments for the year recognised in income statement<br/>(2.480)<br/>(3.941)<br/>(6.421)<br/>Fair value end of period<br/>11.970<br/>2.852.735<br/>2.864.705<br/>The royalty contract was acquired in December 2020. The fair value corresponds to the cost price less received royalties from acquisition date to balance sheet date.<br/>The royalty rights have, in 2022, been sold to Novo Nordisk A/S, and Novo Nordisk Pharmaceuticals A/S will in 2022 have a gain on the same.Statement of changes in equity at 31 December<br/>Share capital<br/>Share premium<br/>Fair value reserve<br/>Retained earnings<br/>Proposed dividends<br/>Total<br/>2021<br/>Balance at the beginning of the year<br/>1.002<br/>-<br/>-<br/>2.848.702<br/>-<br/>2.849.704<br/>Net profit/(loss) for the year<br/>1.330<br/>1.330<br/>Proposed dividends<br/>(2.740.000)<br/>2.740.000<br/>-<br/>Balance at the end of the year<br/>1.002<br/>-<br/>-<br/>110.032<br/>2.740.000<br/>2.851.034<br/><br/><br/>2020<br/>Balance at the beginning of the year<br/>1.001<br/>-<br/>-<br/>14.568<br/>-<br/>15.569<br/>Net profit/(loss) for the year<br/>(2.368)<br/>(2.368)<br/>Paid in share capital and share premium *)<br/>1<br/>2.836.502<br/>2.836.503<br/>Transfer of share premium to retained earnings<br/>(2.836.502)<br/>2.836.502<br/>-<br/>Fair value adjustments of cash flow hedges incurred in the period<br/>74.722<br/>74.722<br/>Realised cash flow hedge in the period transferred to financial assets<br/>(74.722)<br/>(74.722)<br/>Balance at the end of the year<br/>1.002<br/>-<br/>-<br/>2.848.702<br/>-<br/>2.849.704<br/>*) Paid in share capital amounts to nominal DKK 1,000 at a price of DKK 2,836,503 thousands.Share capital<br/>Share capital 1 January<br/>1.002<br/>1.001<br/>Capital contribution<br/>-<br/>1<br/>Balance at the end of the year<br/>1.002<br/>1.002Proposed appropriation of net profit<br/>Proposed dividends<br/>2.740.000<br/>-<br/>Retained earnings<br/>(2.738.670)<br/>(2.368)<br/>Distribution of net profit<br/>1.330<br/>(2.368)Controlling interests<br/>Basis<br/>Novo Nordisk A/S, Novo Allé, 2880 Bagsværd, Denmark<br/>Principal shareholder, owns 100%<br/>Novo Holdings A/S, Tuborg Havnevej 19, 2900 Hellerup, Denmark<br/>Controls Novo Nordisk A/S<br/>Novo Nordisk Foundation, Tuborg Havnevej 19, 2900 Hellerup, Denmark<br/>Ultimate parent of the Group<br/>The company is included in the consolidation financial statements of Novo Nordisk A/S and the ultimate parent company, Novo Nordisk Foundation, in which Novo Nordisk Invest 4 A/S is fully consolidated, can by ordered from Novo Nordisk A/S (CVR no. 24 25 67 90), Novo Allé, 2880 Bagsværd, Denmark, and from Novo Nordisk Foundation (CVR no. 10 58 29 89), Tuborg Havnevej 19, 2900 Hellerup, DenmarkThe company is jointly taxed with the Danish companies in the Novo Holdings A/S Group. The joint taxation also covers withholding taxes in the form of dividend tax, royalty tax and interest tax. The Danish companies are jointly and individually liable for the joint taxation. Any subsequent adjustments to income taxes and withholding taxes may lead to a larger liability. The tax for the individual companies is allocated in full on the basis of the expected taxable income.<br/>The company has no other contingent liabilities.