Valby, Denmark, 05 January 2021 - H. Lundbeck A/S (Lundbeck) announced the publication of Adjusted Supplementary Information to the Annual Report 2019 as required by the Danish Business Authority (“Erhvervsstyrelsen”).
Lundbeck communicated on 27 November 2020, that the Danish Business Authority had required Lundbeck to conduct an impairment test of Rexulti product rights for 2017. The impairment test lead to a reversal of an impairment loss on Rexulti (brexpiprazole) of DKK 3,766 million, net of amortization as of 31 December 2017. This generates an increase in intangible assets for 2017 and subsequent amortizations.
The 2018 and 2019 figures have been adjusted accordingly as set out in the Adjusted Supplementary Information to the Annual Report 2019. The Adjusted Supplementary Information to the Annual Report 2019 is prepared in order to fulfill the requirements set out in the decision from the Danish Business Authority dated 27 November 2020 issued to the Board of Directors’ of Lundbeck.
Lundbeck has decided to disclose the rectified notes in full, presenting only the adjustment effects on the original notes. Notes not affected by the adjustment are not included in the Adjusted Supplementary Information to Annual Report 2019. Note numbers remain the same as in to the Annual Report 2019 for easy reference.
The Adjusted Supplementary Information to the Annual Report 2019 is to be seen in conjunction with the Annual Report 2019, which was approved by the Board of Directors and the registered Executive Management on 6 February 2020.
As described in the 27 November 2020 company release the intangible asset will be amortized over the next nine years, including 2020, with a yearly amount of around DKK 300 million recognized as part of Cost of Sales.
|Palle Holm Olesen||Juliane Lenzner|
|Vice President, Investor Relations||Vice President, Corporate Communication|
|+45 30 83 24 26||+45 36 43 40 00|
About H. Lundbeck A/S
H. Lundbeck A/S (LUN.CO, LUN DC, HLUYY) is a global pharmaceutical company specialized in brain diseases. For more than 70 years, we have been at the forefront of neuroscience research. We are tirelessly dedicated to restoring brain health, so every person can be their best.
Millions of people worldwide live with brain diseases, and far too many suffer due to inadequate treatment, discrimination, a reduced number of working days, early retirement, and other unnecessary consequences. Every day, we strive for improved treatment and a better life for people living with brain diseases – we call this Progress in Mind.
Our approximately 5,800 employees in more than 50 countries are engaged in the entire value chain throughout research, development, production, marketing, and sales. Our pipeline consists of several R&D programs, and our products are available in more than 100 countries. We have research centers in Denmark and the US, and our production facilities are located in Denmark, France, and Italy. Lundbeck generated revenue of DKK 17 billion in 2019 (EUR 2.3 billion; USD 2.6 billion).
For additional information, we encourage you to visit our corporate site www.lundbeck.com, and connect with us on Twitter at @Lundbeck and via LinkedIn.
Safe Harbor/Forward-Looking Statements
The above information contains forward-looking statements that provide our expectations or forecasts of future events such as new product introductions, product approvals and financial performance.
Such forward-looking statements are subject to risks, uncertainties and inaccurate assumptions. This may cause actual results to differ materially from expectations and it may cause any or all of our forward-looking statements here or in other publications to be wrong. Factors that may affect future results include interest rate and currency exchange rate fluctuations, delay or failure of development projects, production problems, unexpected contract breaches or terminations, government-mandated or market-driven price decreases for Lundbeck's products, introduction of competing products, Lundbeck's ability to successfully market both new and existing products, exposure to product liability and other lawsuits, changes in reimbursement rules and governmental laws and related interpretation thereof, and unexpected growth in costs and expenses.
Certain assumptions made by Lundbeck are required by Danish Securities Law for full disclosure of material corporate information. Some assumptions, including assumptions relating to sales associated with product that is prescribed for unapproved uses, are made considering past performances of other similar drugs for similar disease states or past performance of the same drug in other regions where the product is currently marketed. It is important to note that although physicians may, as part of their freedom to practice medicine in the US, prescribe approved drugs for any use they deem appropriate, including unapproved uses, at Lundbeck, promotion of unapproved uses is strictly prohibited.
H. Lundbeck A/S
Ottiliavej 9, 2500 Valby, Denmark
+45 3630 1311