Novo Nordisk is a Denmark-based biopharmaceutical company with a focus on diabetes drugs. The company provides detailed disclosure of revenue along geographic, business segment, and product lines. All figures are in millions of euros (€).

In its 2011 annual report, Novo Nordisk provided the following geographic breakdown of sales for the previous three years.

The company also classified revenue into business segments it defined: diabetes care and biopharmaceuticals. Within each segment, disclosure on several individual product lines was also provided.

Use the data in Exhibits 1 and 2 to answer the following questions:

i. Determine the percentage of Novo Nordisk’s sales that came from each geographic region in 2011.

ii. Modern insulins provide certain advantages over human insulins, such as having a faster or longer-lasting effect on blood sugar levels. Compare Novo Nordisk’s recent sales growth rate of modern insulins with that of human insulins.

iii. Which segment was the larger contributor to Novo Nordisk’s sales growth over the past two years: diabetes care or biopharmaceuticals?

iv. Management only began breaking out revenue for China in 2011. Previously, China had been included in the “International” region. Note that over the past two years, revenue from China has increased 41%, compared with 37% growth for the remainder of the International region. Describe at least two alternative interpretations of why management decided to increase disclosure about China.

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EXHIBIT 1 Novo Nordisk's Sales by Geographic Region ( millions) 2009 2010 2011 North America 2,454 3,170 3,569 Europe 2,356 2,506 2,573 International 917 1,119 1,257 Japan and Korea 657 760 835 Region China 476 606 671 Total Sales 6,860 8,161 8,905