$ Novo Nordisk A/S Sponsored ADR Class B. Grade 68.6

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1 Grade Earnings Last Earnings Release 11/01/2017 Last Qtr. Actual vs. Est. $0.62 / $0.61 Next Release 11/02/2017 $0.61 Year Ending 12/31/2016 $2.17 Quick Facts Dividend Yield 1.48% 52 Wk High $ Wk Low $32.98 Short Interest 0% of float $ /12/2018 Rated 'UY' since May 18th, 2013 Year Ending 12/31/2017 $2.28 Market Cap $105.1 Overview Company Performs Well In Fundamental Analysis MarketGrader currently has a UY rating on Novo Nordisk A/S Sponsored ADR Class (NVO), based on a final overall grade of scored by the company's fundamental analysis. Novo Nordisk A/S Sponsored ADR Class scores at the 95th percentile among all 5786 North American equities currently followed by MarketGrader. Our present rating dates to May 18, 2013, when it was upgraded from a SELL. Relative to the Pharmaceuticals: Major sub-industry, which is comprised of 37 companies, Novo Nordisk A/S Sponsored ADR Class 's grade of ranks third. The industry grade leader is iosyent Inc. (RX.CA) with an overall grade of The stock, up 28.47% in the last six months, has outperformed both the Pharmaceuticals: Major group, up 8.81% and the S&P 500 Index, which has returned 12.06% in the same period. Please go to pages two and three of this report for a complete breakdown of NVO's fundamental analysis. Price, Rating and Sentiment History - 2 Years 1

2 Growth - While Not Entirely Negative, Growth Indicators Show Several Signs of Weakness 's latest financial report wasn't Market Growth LT D very encouraging from a revenue growth perspective, extending an anemic growth record also evident from a long term view. The company's Market Growth ST total revenue last quarter was $4.23 billion, only 2.29% higher than the EPS Growth A+ year earlier period's revenue of $4.14 billion. In the 12 months ended also last quarter, 's total sales were Growth Potential D $16.89 billion, a 8.36% rise from the $15.59 billion in revenue booked in the equivalent period ended three years ago, a poor showing over such a Earnings Momentum C long period of time. As such, any boost to the company's bottom line will have to come from cutting costs, suggesting it will be important for Earnings Surprise - investors to watch closely the company's margins in the next couple of quarters. It posted mixed net income results, with profits growing healthily--but not too strongly--on a year-to-year basis, with full year profit growth very weak when compared to full year profits earned three years ago. It posted a Third quarter profit increase of 5.49% to $1.55 billion from $1.47 billion (excluding extraordinary items) a year earlier, compared to a 22.12% full year profit increase to $5.76 billion in the 12 months ended last quarter from $4.72 billion three years earlier. A modest expansion in margins reported by the company in the latest quarter, with average growth in EITDA, operating and net margins of 1.60%, represents a slowdown from its margin growth of the two previous quarters. The company reported earnings on November 01, 2017 that were 1.64% higher than the analysts' consensus estimate; however, the stock fell -0.30% following the announcement. Despite a cool reaction from investors, this latest report helped ensure the company maintains a positive earnings surprise record, having exceeded analysts' expected earnings by an average 3.92% over the last six quarters. Revenue Qtrly. 09/30/2017 $4.2 Revenue Qtrly. Year Ago $4.1 Revenue 1 Yr. Chg. 2.29% Revenue 12 Mo. Tr. Latest $16.9 Revenue 12 Mo. Tr. 3Y Ago $15.6 Revenue 12 Mo. Tr. 3Y Chg. 8.36% Net Income Qtrly. 09/30/2017 $1.6 Net Income Qtrly. Year Ago $1.5 Net Income 1 Yr. Chg. 5.49% Net Income 12 Mo. Tr. Latest $5.8 Net Income 12 Mo. Tr. 3Y Ago $4.7 Net Income 12 Mo. Tr. 3Y Chg % Value + Assuming the Company's Fundamentals Don't Deteriorate in Coming Quarters, the Stock's Valuation is Acceptable at this Level Currently trading at times 12-month' earnings per share, Novo Capital Structure A Nordisk A/S Sponsored ADR Class 's stock is too expensive relative to our "optimum" P/E ratio of 15.75, which is based on the company's five P/E Analysis D year EPS growth rate. In order to calculate it, MarketGrader looks at the Price/ook Ratio C company's quarterly earnings in 12-month rolling periods; by this measure 's earnings per share have Price/Cash Flow Ratio + grown at an annualized rate of 12.66% in the last five years. ased on this strong growth rate and its healthy overall Profitability grade, the Price/Sales Ratio A+ company may be gaining market share. In order to make these gains sustainable without adversely impacting its financial performance its Market Value + margin growth needs to continue. The stock's forward P/E of 22.12, based on its earnings estimate for the next four quarters, represents a premium to the S&P 500 index's forward P/E of but is lower than its trailing P/E of Therefore value could apparently be found in the company's future earnings growth even though relative to the market the stock might not seem cheap (the fundamentals may already be factored into the price). ut assuming the company remains fundamentally strong, the stock might have further room to run, or at least be a relatively safe place to be if earnings estimates materialize into actual reported results. 's current valuation, at times tangible book value (which excludes intangible assets such as goodwill), suggests investors have very high expectations for the company's future prospects. Its intangible assets account for 5.57% of its total stockholders' equity and, if included back into total assets, would lower the price to book ratio to Its shares seem reasonably priced at times the $2.80 in cash flow per share generated by the company over the last twelve months, if only because its overall fundamentals are pretty healthy. Its price to sales ratio of 6.39, based on trailing 12-month sales, is 82.90% lower than the Pharmaceuticals: Major's average ratio of 37.38, a very large discount to its peers. Finally, from a value perspective, we look at how much bigger the company's market capitalization is than its latest operating profits after subtracting taxes. ased on this measure 's $ billion market cap is an acceptable valuation, representing a modest multiple of times its latest quarterly net income plus depreciation. P/E Ratio 12 Mo. Tr. 09/30/ Optimum P/E Ratio Forward P/E Ratio S&P 500 Forward P/E Ratio Price to (Tangible) ook Ratio Price-to-Cash Flow Ratio Price/Sales Ratio

3 Profitability A Profitability Record Is Excellent Across the oard Suggesting a Very Well Managed Operation is a very profitable company Asset Utilization A+ with strong overall indicators in this section of our analysis. The company's different measures of return to shareholders and margins are Capital Utilization + typically above those of its peers. In the last four quarters Novo Nordisk Operating Margins A A/S Sponsored ADR Class earned a profit of $5.76 billion, equivalent to 34.13% of its sales in the period. The Pharmaceuticals: Major industry Relative Margins A+ had an average operating margin of 10.89% in the period. The company's operating margin of 43.42% exceeded that average by %. ased Return on Equity A+ on how much it has earned in the last four quarters, the return on Novo Nordisk A/S Sponsored ADR Class 's common equity has been a Quality of Revenues A+ remarkable 77.30% during this time, even though this is below the 89.38% return on equity achieved in the year-earlier period. This metric plays an important role in how our system measures a company's management efficiency. Despite this moderate downturn the company's leverage is low enough that it could be increased without overburdening the company in order to ensure that current profitability is sustained. Its total debt is only 0.55 times total equity. 's core earnings in the last twelve months grew moderately from the twelve months ended a year earlier. The company's EITDA for the most recent period was $7.88 billion, or 5.08% above the $7.50 billion earned from its core operations in the prior period. EITDA is used by MarketGrader to measure the company's true earnings power since it includes interest expenses, income taxes, depreciation and amortization, all non-operating expenses, which are nevertheless accounted for in other parts of our analysis that look at EPS gains and net income. Cash Flow A Company's Cash Flow Is Very Well Managed as Our Analysis Reflects a Very Healthy Operation 's cash flow declined Cash Flow Growth F significantly last quarter to $2.04 billion, 10.42% lower than the year earlier quarterly cash flow of $2.28 billion. This marks an accelerating EIDTA Margin A decline from twelve month trailing cash flow, which fell to $6.91 billion in Debt/Cash Flow Ratio A+ the period ended last quarter, 1.74% lower than the $7.04 billion in the year earlier period, underscoring the ongoing deterioration of the Interest Cov. Capacity A+ company's business. Even though the company has $41.30 million in total debt, its net debt is virtually zero since it has $3.45 billion in cash on Economic Value A+ hand; and since it generated $2.10 billion in earnings before interest, taxes, depreciation and amortization last quarter, it's safe to say its Retention Rate A+ liquidity is remarkable. Therefore the company's debt is not only very manageable with its own cash flow but could be increased if it wanted to pursue strategic growth opportunities. The company also has the ability to enhance shareholder returns through dividends or by repurchasing its own shares, boosting the future value of its earnings. Even more positive is the fact that during the last 12 months while the company's cash on hand increased 33.36% from last year's $2.59 billion, its leverage actually fell, with total debt as a percentage of total capital now at 0.55% compared to 1.09% a year ago. Our Economic Value indicator looks at the company's total return to shareholders in the last twelve months after accounting not only for the operating costs of running the business but also the cost of the capital employed. ased on 12 month trailing operating income, had a remarkable 98.34% return on invested capital during the period. Total invested capital as of the company's latest quarter was $7.46 billion, including all forms of equity as well as long term debt. y our measure, the company's total cost of capital for the period in question was only 7.45%, which, when subtracted from the aforementioned return on invested capital, results in total economic value added (EVA) of 90.90% for the last twelve months, an excellent measure of true shareholder returns. The company increased its quarterly common dividend on September 30, 2017 by 1.48%, to $0.336 cents a share from $0.331 cents. It has paid a dividend for at least 36 years and, based on this latest payout, the stock is currently yielding 1.48%. paid out a total of $2.81 billion in common dividends during the last 12 months (ended last reported quarter), which accounted for 40.69% of its cash flow and 48.81% of what it earned in the period after taxes. This payout was slightly lower than what it paid out during the 12 months ended just a quarter earlier, or 49.14% of total earnings. Combined with the company's generally healthy fundamentals, the recent reduction alleviates concerns about the company's outlays growing faster than its cash flow, which could damage its balance sheet and contribute to lower overall grades. Cash Flow Qtrly. 09/30/2017 $2 Cash Flow Qtrly Year Ago $2.3 Cash Flow 1 Yr. Chg. (10.42%) Cash Flow 12 Mo. Tr. Latest $6.9 Cash Flow 12 Mo. Tr. 3Y Ago $5.4 Cash Flow 12 Mo. Tr. 3Y Chg % Free Cash Flow Last Qtr. $1.7 Economic Value Total Invested Capital $7.5 Return on Inv. Capital 98.34% Weighted Cost of Equity 7.45% Weighted Cost of Debt 0.00% Total Cost of Capital 7.45% Economic Value Added 90.90% 3

4 Profile Novo Nordisk A/S engages in the development, manufacturing, and sale of pharmaceutical products. The company operates through the Diabetes Care and iopharmaceuticals segments. The Diabetes Care segment includes research, development, manufacturing, and marketing of products within the areas of insulin, glucagon-like-peptide 1 and related delivery systems, oral antidiabetic products, and obesity. The iopharmaceuticals segment covers research, development, manufacturing, and distribution of products within haemophilia growth hormone, hormone replacement, inflammation and other therapy areas. The company was founded in 1989 and is headquartered in agsværd, Denmark. Key Facts: Novo Allé agsværd, 2880 Phone: iggest Company in Sub-Industry Johnson & Johnson (JNJ) Grade 62.9 Market Cap:$ billion Smallest Company in Sub-Industry Crescita Therapeutics, In Grade 23.4 Market Cap:$10.50 million MarketGrader Dilution Analysis Impact of Change in Shares on EPS - Q Dilution Summary Income Statement Last Qtr (09/2017) 12 Mo. Trailing Revenue $4.2 $16.9 *EPS Latest $0.63 *EPS Year Ago $0.58 EPS Change 1 Yr. 8% C. Shares - Latest(M) 2,469 C. Shares - Yr Ago(M) 2,531 C. Shares - 1Yr Chg. (2%) EPS if Yr. Ago Shares $0.61 EPS Chg. if Yr. Ago 5% EPS Loss from Dilution $0.02 *Earnings per share are based on fully diluted net income per share excluding extrodinary items. This number may not match the headline number reported by the company. Op. Income $1.8 $7.3 Net Income $1.6 $5.8 *EPS $ *Earnings per share are based on fully diluted net income per share excluding extrodinary items. This number may not match the headline number reported by the company. alance Sheet Total Assets Latest $15.6 Total Debt $41M Stockholders Eq. $7.5 All numbers in millions except EPS Total Assets $15.6 Intangible Assets $415M Long Term Debt 0 Total Debt $41M ook Value $7.5 Enterprise Value ($3.4) '13 '14 '15 '16 '17 Qtr Qtr Qtr Qtr Ratios Price/Earnings (12 mo. trailing) Price/Tangible ook Price/Cash Flow Price/Sales 6.39 Debt/Cash Flow 0.60 Return on Equity 77.30% Gross Margin (12 mo. trailing) 83.95% Operating Margin (12 mo. trailing) 43.42% Net Profit Margin (12 mo. trailing) 34.13% 4

5 Top Down Analysis Health Care Stocks in Sector: 717 uys: 64 (8.93%) Holds: 61 (8.51%) Sells: 592 (82.57%) No. of stocks at: 52-Wk. High: Wk. Low: 9 Above 50 & 200-day MA: 345 elow 50 & 200-day MA: 182 Pharmaceuticals: Major Stocks in Sub-Industry: 37 uys: 7 (18.92%) Holds: 5 (13.51%) Sells: 25 (67.57%) No. of stocks at: 52-Wk. High: 4 52-Wk. Low: 0 Above 50 & 200-day MA: 23 elow 50 & 200-day MA: 7 # Ticker Grade Sentiment Name Price Next EPS 1 CNCE N Concert Pharmaceuticals, Inc. $ /01/ EGRX N Eagle Pharmaceuticals, Inc. $ /15/ MDXG N MiMedx Group, Inc. $ /27/ EXEL N Exelixis, Inc. $ /08/ UTHR N United Therapeutics Corporation $ /31/ MASI N Masimo Corporation $ /13/ REGN N Regeneron Pharmaceuticals, Inc. $ /13/ OPHT N Ophthotech Corp. $ /15/ CERC N Cerecor Inc $ /07/ RX.CA N iosyent Inc. $ /22/ NVO P $ /02/2017 # Ticker Grade Sentiment Name Price Next EPS 1 RX.CA N iosyent Inc. $ /22/ AV P AbbVie, Inc. $ /26/ NVO P $ /02/ GRFS N Grifols, S.A. Sponsored ADR Class $ /03/ MY P ristol-myers Squibb Company $ /25/ JNJ P Johnson & Johnson $ /23/ PAHC N Phibro Animal Health Corporation Class $ /14/ PFE P Pfizer Inc. $ /30/ PETQ N PetIQ, Inc. Class A $ /29/ AZN P Astrazeneca PLC Sponsored ADR $ /10/ Price Trend. A+ 2. Price Momentum. 3. Earnings Guidance Short Interest. A+ 8.1 Copyright 2010 MarketGrader.com Corp. All rights reserved. Any unauthorized use or disclosure is prohibited. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or any options, futures or other derivatives related to such securities ("related investments"). The information herein was obtained from various sources; we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regards to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. MarketGrader does not make markets in any of the securities mentioned in this report. MarketGrader does not have any investment banking relationships. MarketGrader and its employees may have long/short positions or holdings in the securities or other related investments of companies mentioned herein. Officers or Directors of MarketGrader.com Corp. are not employees of covered companies. MarketGrader or any of its employees do not own shares equal to one percent or more of the company in this report. 5