Strong momentum with 28% growth across all strategic brands in 2019. For 2020, Lundbeck expects revenue growth of 2-6%

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Feb 6, 2020

Strong momentum with 28% growth across all strategic brands in 2019. For 2020, Lundbeck expects revenue growth of 2-6%



HIGHLIGHTS

  • Revenue reached DKK 17,036 million in 2019 representing a decline of 6% (6% in local currencies) compared to 2018. The decline was expected and a result of generic competition on Onfi® - excluding Onfi, revenue grew by 7%
    • Revenue of Abilify Maintena® increased 23% to DKK 1,961 million (20% in local currencies)
    • Revenue of Brintellix®/Trintellix® increased 30% to DKK 2,826 million (26% in local currencies)
    • Revenue of Northera® increased 29% to DKK 2,328 million (22% in local currency)
    • Revenue of Rexulti®/Rxulti® increased 32% to DKK 2,270 million (25% in local currencies)
    • Revenue in North America declined 11% to DKK 9,583 million (15% in local currencies)
    • Revenue in International Markets increased 11% to DKK 3,892 million (11% in local currencies)
    • Revenue in Europe increased 9% to DKK 3,223 million (8% in local currencies)
  • The four strategic brands grew by 28%, reaching DKK 9,385 million or 55% of total revenue
  • Core EBIT reached DKK 4,976 million corresponding to a core EBIT margin of 29.2%
  • EBIT reached DKK 3,608 million and the EBIT margin reached 21.2%
  • Core EPS reached DKK 19.46 and reported EPS reached DKK 13.42
  • The acquisition of Alder BioPharmaceuticals was completed in October 2019 with a transaction value up to USD 1.95 billion net of cash. This transaction expands Lundbeck’s operating space in brain disorders to include migraine and other chronic pain syndromes and the company expects to build a migraine franchise starting with eptinezumab for migraine prevention, which has a PDUFA action date of February 21, 2020. 2019 financials are impacted by DKK 514 million in transaction and integration costs.
  • Lundbeck closed the acquisition of Abide Therapeutics in May 2019 and has transitioned it into a Lundbeck drug discovery hub. Lundbeck La Jolla Research Center focuses on novel target/drug discovery in the serine hydrolase enzyme class, which is initially focusing on MAG-Lipase inhibition
  • 2020 will be impacted by investments in launch and development activities for eptinezumab. Therefore, Lundbeck expects revenue to reach DKK 17.4 – 18.0 billion, core EBIT to reach DKK 3.5 – 4.0 billion and EBIT to reach DKK 2.2 – 2.7 billion for 2020
  • The Board of Directors proposes to pay a dividend of DKK 4.10 per share, equal to a pay-out ratio of 31%

In connection with the financial report, Lundbeck’s President and CEO Deborah Dunsire said:

“2019 was a tremendous year for Lundbeck as we executed well against our Expand and Invest to Grow strategy: Strategic brands grew substantially – up 28% over the prior year and we bolstered and reshaped our pipeline through the acquisitions of Alder Biopharmaceuticals and Abide Therapeutics, and through internal discovery such that we now have 14 programmes across all phases of development. In 2020 the company returns to growth of 2-6%, anticipating continued momentum in the strategic brands as well as the U.S. launch of eptinezumab in migraine prevention pending FDA approval.

We will continue to build out a robust pipeline, to deliver important new medicines for patients and deliver sustainable value for all our stakeholders, positioning Lundbeck strongly for the foreseeable future.”

DKK million FY 2019 FY 2018 Growth
Core Revenue* 17,036 18,117 (6%)
Core EBIT* 4,976 6,158 (19%)
Core EPS* 19.46 23.71 (18%)
Core EBIT margin* 29.2% 34.0% -
       
Reported Revenue 17,036 18,117 (6%)
Reported EBIT 3,608 5,301 (32%)
Reported EPS 13.42 19.66 (32%)
Reported EBIT margin 21.2% 29.3% -

       *For definition of the measures “Core Revenue”, “Core EBIT” and “Core EPS”, see note 3 Core reporting

H. Lundbeck A/S

Ottiliavej 9, 2500 Valby, Denmark

+45 3630 1311

info@lundbeck.com

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