H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — Lundbeck — H1 2023 Earnings Presentation
57 slides from H. Lundbeck A/s Class A's earnings presentation, Aug 16, 2023
Slide 1: Financial results and business update H1 2023
AUGUST 16, 2023 Financial results and business update H1 2023 Maria Liv Kjærgaard Living with schizophrenia
Slide 2: Company disclaimer
Company disclaimer This presentation contains forward-looking statements that provide our expectations or forecasts of future events such as new product introductions, product approvals and financial performance. Forward looking statements include, without limitation, any statement that may predict,
Slide 3: Outstanding performance across the business in H1 2023
H1 2023: Business update Outstanding performance across the business in H1 2023 Record-breaking Strong performance Excellent profit Major pipeline revenue by strategic brands growth achievements DKK 10.0bn DKK 6.6bn DKK 3.3bn Rexulti AADAD and Abilify Achieved record H1 revenue 66% of total revenue
Slide 4: Record H1 revenue driven by strategic brands performance
H1 2023: Business update Record H1 revenue driven by strategic brands performance Reported geographic revenue split & YoY growth1) Reported product revenue split & YoY growth1) (H1 2023) (H1 2023) DKKm Strategic brands Mature brands DKKm United States Europe International Markets 10,000 +10% 10,000
Slide 5: Strong momentum for Vyepti with strong demand in the U.S.
H1 2023: Business update Strong momentum for Vyepti with strong demand in the U.S. U.S. Vyepti demand1) U.S. Vyepti revenue U.S. Vyepti performance (weekly – vials) (DKKm) continues to be driven by strong demand +78% • Vyepti's market share in the U.S. preventive CER market reached ~7.0%2) DKK 704m
Slide 6: Vyepti's global rollout remains on track
H1 2023: Business update Vyepti’s global rollout remains on track RoW Vyepti launch aligned1) RoW Vyepti revenue Vyepti's H1 2023 global revenue (months since launch – volume share) (DKKm) up 91% (%) • DKK 757m (91% CER) driven by strong demand 13 in the U.S. and expansion in Europe and +1,667% Inte
Slide 7: Brintellix/Trintellix sustains accelerated growth trajectory in Europe
H1 2023: Business update Brintellix/Trintellix sustains accelerated growth trajectory in Europe Global Brintellix/Trintellix revenue European market maintains (DKKm) strong momentum • Strong growth in demand in Europe, with Spain +6% contributing significantly CER DKK 2,156m DKK 2,051m Robust growth
Slide 8: Rexulti's potential blockbuster indication now launched in the U.S.
H1 2023: Business update Rexulti’s potential blockbuster indication now launched in the U.S. U.S. Rexulti demand1) Global Rexulti revenue Double-digit revenue growth (weekly – TRx) (DKKm) across all regions • Strong performance in the U.S. drives majority +18% CER of Rexulti's strong brand growth DK
Slide 9: Abilify Asimtufii U.S. launch builds upon the success of Abilify Maintena
H1 2023: Business update Abilify Asimtufii U.S. launch builds upon the success of Abilify Maintena Global LAI market & Abilify Global Abilify LAI Abilify LAI franchise1) LAI franchise1) share franchise1) revenue delivering double-digit growth (quarterly – USD & MS%) (DKKm) • Growth driven by robust
Slide 10: Highly productive first six months of 2023 for Lundbeck's R&D
H1 2023: R&D update Highly productive first six months of 2023 for Lundbeck’s R&D Enric, Living with Alzheimer’s disease Rexulti AADAD approved by the FDA Monica, Caregiver • Regulatory process ongoing in Canada, Singapore, Australia and Switzerland Aripiprazole 2-month RTU advancement • Abilify Asi
Slide 11: New data confirm Vyepti's long-term benefits and effectiveness
H1 2023: R&D update New data confirm Vyepti’s long-term benefits and effectiveness Extension results presented at AHS 65th annual scientific meeting Phase IIIb DELIVER trial1) • Evaluating the safety and efficacy of Vyepti in hard to-treat patients with 2-4 previous treatment failures, including ope
Slide 12: Anti-PACAP ('222) holds the potential to be a novel MoA for migraine prevention
H1 2023: R&D update Anti-PACAP (‘222) holds the potential to be a novel MoA for migraine prevention Molecule addressing a new MoA • Anti-PACAP humanized IgG1 antibody • The PACAP biology provides: • New approach to migraine prevention Achievements to date Next steps • Potential in other pain conditi
Slide 13: Anti-CD40L ('515) first neuroimmunology program progressing
H1 2023: R&D update Anti-CD40L (‘515) first neuroimmunology program progressing Mechanism of action for anti-CD40L (‘515) Addressing immune-mediated nervous system disorders • Differentiated anti-CD40L antibody-like drug candidate Anti-CD40L scFv • Recombinant bispecific scFv-Fab fusion Anti-Serum
Slide 14: D1/D2 agonist ('996): Potential new oral treatment for Parkinson's disease
H1 2023: R&D update D1/D2 agonist (’996): Potential new oral treatment for Parkinson’s disease Innovative, orally available prodrug for a broad-acting dopamine Addressing Parkinson’s disease D1/D2 receptor agonist providing continuous dopaminergic activation patients experiencing motor complications
Slide 15: Lundbeck's R&D pipeline is substantially transformed
H1 2023: R&D update Lundbeck's R&D pipeline is substantially transformed Biology Project Area Phase I Phase II Phase III Filing/launch R&D organization transformed with focus on Eptinezumab (anti-CGRP mAb) 1) Migraine prevention SUN-studies SUN-studies 2) PROMISE PROMISE 11 & & 22 four biological cl
Slide 16: Excellent revenue and profit growth
H1 2023: Financial update Excellent revenue and profit growth Key figures Comments DKKm H1 2023 H1 2022 Growth Growth (CER)1) • Revenue growth driven by strong performance Revenue 9,982 8,847 13% 10% across all strategic brands Gross margin 78.2% 79.5% (1.3pp) • Adj. gross margin is reflecting stron
Slide 17: Adjusted EPS growth in line with underlying performance
H1 2023: Financial update Adjusted EPS growth in line with underlying performance Net profit & EPS Comments DKKm H1 2023 H1 2022 Change • EBIT growth is reflecting high revenue growth EBIT 2,073 1,497 38% and strong operating leverage EBIT margin 20.8% 16.9% 3.9pp • Net financial expenses driven by
Slide 18: Strong cash flow leading to continuous deleveraging
H1 2023: Financial update Strong cash flow leading to continuous deleveraging Cash flows Comments DKKm H1 2023 H1 2022 • Cash inflow from operating activities driven EBIT 2,073 1,497 by strong underlying profitability partially offset by higher working capital. Adjustments for non-cash items 1,368 6
Slide 19: Lundbeck raises its full year guidance for 2023
H1 2023: Financial update Lundbeck raises its full year guidance for 2023 FY 2023 financial guidance DKKbn FY 2022 actual Previous FY 2023 guidance Revised FY 2023 guidance1) Revenue 18.2 19.4 – 20.0 19.5 – 20.1 Adj. EBITDA 4.2 5.1 – 5.5 5.2 – 5.6 FY 2023 considerations Revenue Profits • Strong mome
Slide 20: Lundbeck priorities for 2023 and beyond on track
H1 2023: SUM-UP Lundbeck priorities for 2023 and beyond on track Maximizing Driving innovation Delivering strong strategic and advancing R&D financial brands pipeline performance Lundbeck well positioned to • Continuous strong growth • Highly productive first six • Achieved the highest H1 (+18%) acr
Slide 21: CEO transition at Lundbeck – Introducing Charl van Zyl
H1 2023: Business update CEO transition at Lundbeck – Introducing Charl van Zyl Joining Lundbeck as of September 1, 2023 • Deborah Dunsire will continue to serve as President and CEO until Charl van Zyl assumes the position Vast experience from the pharmaceutical industry • Currently EVP and Head of
Slide 22: Q&A
Q&A 22 Lundbeck
Slide 23: Appendix
Appendix 23 Lundbeck
Slide 24: Total molecule sales (gross) - USDm
H1 2023: APPENDIX Total molecule sales (gross) - USDm 1.500 2.000 1.250 +29% 1.600 1.000 +43% 1.200 750 800 500 250 400 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022 2.000 Abilify Maintena: U.S. approval (Feb. 2013); EU approval (Nov. 1.600 2013) +67%
Slide 25: Volume growth in the U.S. robust, but Trintellix still impacted by post-pandemic effects
H1 2023: APPENDIX Volume growth in the U.S. robust, but Trintellix still impacted by post-pandemic effects (NRx Count) 75,000 400,000 0% +3% -3% +8% +13% 50,000 +4% 200,000 25,000 0 0 Q2.18 Q2.19 Q2.20 Q2.21 Q2.22 Q2.23 Q2.18 Q2.19 Q2.20 Q2.21 Q2.22 Q2.23 200,000 +14% +13% 600 +6% +10% +74% 400 100,
Slide 26: Volume growth in the U.S. robust for Abilify Maintena, Rexulti and Vyepti
H1 2023: APPENDIX Volume growth in the U.S. robust for Abilify Maintena, Rexulti and Vyepti (TRx Count) 150,000 800,000 +7% +11% -5% +2% -5% 125,000 +4% 600,000 100,000 75,000 400,000 50,000 200,000 25,000 0 0 Q2.18 Q2.19 Q2.20 Q2.21 Q2.22 Q2.23 Q2.18 Q2.19 Q2.20 Q2.21 Q2.22 Q2.23 400,000 +40% +13%
Slide 27: Q2 revenue driven by strategic brands growth
H1 2023: APPENDIX Q2 revenue driven by strategic brands growth Reported geographic revenue split & YoY growth1) Reported product revenue split & YoY growth1) (Q2 2023) (Q2 2023) DKKm Strategic brands Mature brands DKKm United States Europe International Markets 5,000 +10% 5,000 +10% 4,500 4,500 4,00
Slide 28: Q2 2023: Product distribution of revenue & YoY growth
H1 2023: APPENDIX Q2 2023: Product distribution of revenue & YoY growth DKKm FY 2021 FY 2022 Q2 2023 Q2 2022 Growth Growth % of total Q2 (CER) 2023 Brintellix/Trintellix 3,526 4,277 1,079 1,061 2% 4% 22% Rexulti 2,849 3,890 1,075 940 14% 16% 22% Abilify Maintena1) 2,420 2,964 799 716 12% 13% 16% Vye
Slide 29: H1 2023: Product distribution of revenue & YoY growth
H1 2023: APPENDIX H1 2023: Product distribution of revenue & YoY growth DKKm FY 2021 FY 2022 H1 2023 H1 2022 Growth Growth % of total H1 (CER) 2023 Brintellix/Trintellix 3,526 4,277 2,156 2,051 5% 6% 21% Rexulti 2,849 3,890 2,135 1,771 21% 18% 21% Abilify Maintena1) 2,420 2,964 1,584 1,393 14% 14% 1
Slide 30: Strategic brands
H1 2023: APPENDIX Strategic brands Strategic brands revenue Strategic brands revenue Comments (Quarterly - DKKm) (H1 - DKKm) • Strong performance across the strategic brands reaching DKK 6.6bn, representing a growth of 18% (+18% CER) in H1 2023 5,000 7,500 +18% reported • Strategic brands showed str
Slide 31: Vyepti
H1 2023: APPENDIX Vyepti Vyepti revenue Vyepti revenue Comments (Quarterly - DKKm) (H1 - DKKm) • Grew 91% (+94% reported) and reached DKK 0.8bn in H1 2023 500 1,000 • Launched in the U.S., Australia, Canada, Denmark, Estonia, Finland, Germany, Kuwait, +85% reported +94% Singapore, Sweden, Switzerlan
Slide 32: Brintellix/Trintellix
H1 2023: APPENDIX Brintellix/Trintellix Brintellix/Trintellix revenue Brintellix/Trintellix revenue Comments (Quarterly - DKKm) (H1 - DKKm) • Grew 6% (+5% reported) and reached DKK 2.2bn in H1 2023 1,500 3,000 • Continued robust demand in most markets • Brintellix/Trintellix franchise protected for
Slide 33: Rexulti
H1 2023: APPENDIX Rexulti Rexulti revenue Rexulti revenue Comments (Quarterly - DKKm) (H1 - DKKm) • Grew 18% (+21% reported) to DKK 2.1bn in H1 2023 1,500 3,000 • Strong demand growth continues in the U.S. and other regions +14% +21% • Rexulti franchise protected for several years: 1,200 reported re
Slide 34: Abilify LAI franchise
H1 2023: APPENDIX Abilify LAI franchise Abilify LAI franchise revenue Abilify LAI franchise revenue Comments (Quarterly - DKKm) (H1 - DKKm) • Grew 14% (+14% reported) to DKK 1.6bn in H1 2023 1,050 2,000 • Continued robust traction in value share +14% achieving ~21.5% share of the global LAI 900 +12%
Slide 35: Cipralex/Lexapro
H1 2023: APPENDIX Cipralex/Lexapro Cipralex/Lexapro revenue Cipralex/Lexapro revenue Comments (Quarterly - DKKm) (H1 - DKKm) • Down 2% (-4% reported) reaching DKK 1.2bn in H1 2023 900 1,600 • The biggest markets are China, Japan, South Korea, Brazil and Italy in H1 2023 -4% -6% reported • The patent
Slide 36: Sabril
H1 2023: APPENDIX Sabril Sabril revenue Sabril revenue Comments (Quarterly - DKKm) (H1 - DKKm) • Down 32% (-30% reported) to DKK 0.2bn in H1 2023 250 400 • Down 32% (-33% reported) to DKK 0.1bn in Q2 2023 -30% reported • Sales impacted by generic erosion from Q3 200 2017 -33% reported 150 200 100 50
Slide 37: Other pharmaceuticals
H1 2023: APPENDIX Other pharmaceuticals Other pharmaceuticals revenue Other pharmaceuticals revenue Comments (Quarterly - DKKm) (H1 - DKKm) • Grew 6% (+5% reported) to DKK 1.8bn in H1 2023 2,000 3,600 • Grew 5% (+2% reported) to DKK 0.8bn in Q2 2023 • Around 15 mature products included 1,500 2,700 •
Slide 38: Other revenue
H1 2023: APPENDIX Other revenue Other revenue Other revenue Comments (Quarterly - DKKm) (H1 - DKKm) • Down 15% (-15% reported) to DKK 132m in H1 2023 250 150 • Down 21% (-24% reported) to DKK 69m in Q2 2023 • Mostly contract manufacturing to third-party -15% reported -24% reported 0 0 Q2.20 Q2.21 Q2
Slide 39: Brexpiprazole, in combination with sertraline, is being evaluated in two phase III PTSD trials
H1 2023: APPENDIX Brexpiprazole, in combination with sertraline, is being evaluated in two phase III PTSD trials High unmet need in Post- Exploratory PoC study in PTSD3) Phase III program Traumatic Stress Disorder suggested effects of brexpiprazole (Data read-out expected in (PTSD) in combination wi
Slide 40: Migraine prevention represents a large and underserved market
H1 2023: APPENDIX Migraine prevention represents a large and underserved market Migraine is divided into two major categories, episodic and Addressable population chronic depending on the frequency of headaches (major countries) • Migraine prevalence: ~135 million people 1-14 headache days >14 heada
Slide 41: Vyepti: Moving into new frontiers; adapting based on learnings
H1 2023: APPENDIX Vyepti: Moving into new frontiers; adapting based on learnings US & Europe Asia program Well-established effect China: New insights Japan: Unknown effect PROMISE I/II SUNLIGHT SUNRISE SUNSET RELIEF • China, Europe, Korea • Japan, China, Europe, Korea • MOH in chronic migraine • Chr
Slide 42: Anti α-synuclein ('422) – Potential first disease modifying therapy in MSA
H1 2023: APPENDIX Anti α-synuclein (‘422) – Potential first disease modifying therapy in MSA Anti α-synuclein (‘422) in phase II Medical condition • Alpha-synucleinopathies: Multiple System Atrophy – a rare, aggressive, disease with a high unmet medical need Molecule • Anti alpha-synuclein IgG1 anti
Slide 43: Anti-ACTH ('909): First neurohormonal program started clinical development
H1 2023: APPENDIX Anti-ACTH (‘909): First neurohormonal program started clinical development Hypothalamic-pituitary-adrenal (HPA) axis Medical condition • Neurohormonal dysfunctions related to HPA axis Molecule • Anti-ACTH humanized IgG1 antibody • First in class mAb with potential to offer a safe a
Slide 44: MAGLi program: Potential first-in-class endocannabinoid therapy
H1 2023: APPENDIX MAGLi program: Potential first-in-class endocannabinoid therapy MAGLi mode of action Medical condition • Multiple opportunities within psychiatry and neurology CB1 Restore neuronal transmission Molecule G(i/o) • Inhibitor of the monoacylglycerol lipase Ner (MAGL) and selective modu
Slide 45: Focus on promising biology – selected four biology clusters
H1 2023: APPENDIX Focus on promising biology – selected four biology clusters feeding into our strategy Scientifically well-described areas still rich in targets with untapped potential as well as high feasibility for early de-risking and maintaining a competitive edge Circuitry / neuronal biology W
Slide 46: H1 2023: EBIT and Adjusted EBITDA
H1 2023: APPENDIX H1 2023: EBIT and Adjusted EBITDA Change DKKm H1 2023 H1 2022 Change (CER)1) Revenue 9,982 8,847 13% 10% Gross profit 7,803 7,036 11% 8% thereof adjustments 260 - - - thereof depreciation/amortization 912 741 23% 22% Sales and distribution costs 3,501 3,087 13% 14% thereof adjustme
Slide 47: Q2 2023: EBIT and Adjusted EBITDA
H1 2023: APPENDIX Q2 2023: EBIT and Adjusted EBITDA Change DKKm Q2 2023 Q2 2022 Change (CER)1) Revenue 4,938 4,475 10% 10% Gross profit 3,800 3,509 8% 7% thereof adjustments 159 - - - thereof depreciation/amortization 448 373 20% 20% Sales and distribution costs 1,828 1,652 11% 13% thereof adjustmen
Slide 48: 2023: Overall Adjusted EBITDA reconciliation
H1 2023: APPENDIX 2023: Overall Adjusted EBITDA reconciliation DKKm H1 2023 Q1 2023 Q2 2023 Profit from operations (EBIT) 2,073 1,233 840 Amortization of product rights 789 404 385 Depreciation and amortization 216 107 109 EBITDA 3,078 1,744 1,334 Restructuring expenses 15 - 15 Other adjustments 245
Slide 49: 2022 impacted by appreciation of main currencies with some weakening in 2023
H1 2023: APPENDIX 2022 impacted by appreciation of main currencies with some weakening in 2023 FY 2022 sales by currency Main currencies2) Comments (January 1, 2022 = index 100) • ~80% of sales in non-EUR currencies 120 • USD directly represents ~50% of sales in 2022 EUR Other1) 115 17% • Three main
Slide 50: Lundbeck is well-positioned through its strong balance sheet
H1 2023: APPENDIX Lundbeck is well-positioned through its strong balance sheet Assets (DKKbn) Liabilities (DKKbn) 37.5 37.2 37.5 37.2 Inventories 4.1 4.3 Current liabilities 8.2 7.7 Receivables 3.8 4.2 Cash and bank balances 3.6 3.7 4.5 Bank and bond debt 5.1 Other non-current assets 3.5 3.4 3.4 Oth
Slide 51: Financial position and dividend
H1 2023: APPENDIX Financial position and dividend DKKm 30.06.2023 31.12.2022 Dividend (DKK) Intangible assets 21,643 22,500 DKK Dividend Yield (%) Other non-current assets 3,449 3,540 3 5% Current assets 12,150 11,412 Assets 37,242 37,452 4% Equity 21,572 20,779 2 3% Non-current liabilities 7,980 8,
Slide 52: H1 2023: Cash generation
H1 2023: APPENDIX H1 2023: Cash generation DKKm H1 2023 H1 2022 FY 2022 FY 2021 FY 2020 Cash flows from operating activities 1,649 711 3,519 2,272 3,837 Cash flows from investing activities (265) (1,227) (1,892) (610) (467) Cash flows from operating and investing 1,384 (516) 1,627 1,662 3,370 activi
Slide 53: Q2 2023: Cash generation
H1 2023: APPENDIX Q2 2023: Cash generation DKKm Q2 2023 Q2 2022 FY 2022 FY 2021 FY 2020 Cash flows from operating activities 1,271 916 3,519 2,272 3,837 Cash flows from investing activities (188) (64) (1,892) (610) (467) Cash flows from operating and investing 1,083 852 1,627 1,662 3,370 activities
Slide 54: Solid financial foundation from which to execute on our strategy
H1 2023: APPENDIX Solid financial foundation from which to execute on our strategy Net debt and Net debt/EBITDA Comments (FY - DKKm) • FY 2023: Cash flow negatively impacted by Net debt Net debt/EBITDA 8,000 1.6 • Dividend increase from DKK 397m to DKK 6,635 576m 6,000 1.2 • CAPEX investments 4,000
Slide 55: Funding and debt maturity
H1 2023: APPENDIX Funding and debt maturity Debt maturity profile A diversified and long-term (EURm equivalent) balanced debt portfolio is a 1,500 priority to Lundbeck RCF Bond Drawn • This includes access to various funding sources as well as a balanced maturity profile to support the Expand and In
Slide 56: Solid revenue and Adjusted EBITDA growth to continue mid-term
H1 2023: APPENDIX Solid revenue and Adjusted EBITDA growth to continue mid-term Revenue performance (DKKbn) Expected organic development towards mid-term aspiration Mid-single (3-4 years) digit CAGR • Continued double-digit growth for strategic brands in aggregate • Continued erosion of mature brand
Slide 57: For more information, please contact Investor Relations
H1 2023: APPENDIX For more information, please contact Investor Relations Number of A-shares 199,148,222 IR contact Number of B-shares 796,592,888 Palle Holm Olesen Total 995,741,110 Vice President, Head of Investor Relations Listed on the Copenhagen Stock Treasury A shares 466,028 Mobile: +45 3083