H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — Non-Deal Roadshow (August 2003)
47 slides from H. Lundbeck A/s Class A's roadshow presentation, Aug 20, 2003
Slide 1: H. Lundbeck A/S 1H-2003
H. Lundbeck A/S 1H-2003
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation contains forward-looking statements that reflect the Management’s current views with respect to certain future events and financial performance. Statements containing the outlook for 2003 and the following years naturally involve uncertainties, and consequent
Slide 3: About Lundbeck
About Lundbeck H. Lundbeck A/S • A unique fully-integrated pharmaceutical company focusing solely on the treatment of diseases of the central nervous system • Founded in 1915, listed on Copenhagen Stock Exchange June 1999 • Reuters: LUN.CO, Bloomberg: LUN DC • More information: www.lundbeck.com Busi
Slide 4: Short-term Challenges & Financial Outlook 2003
Short-term Challenges & Financial Outlook 2003 Challenges Financial Outlook 2003 • Cipralex/Lexapro launch • Approx 10% revenue growth • Ebixa launch • Approx 12% EBIT growth • Intensified generic impact on • Operating margin approx. 25% citalopram franchise Due to backend-loaded YoY growth, ability
Slide 5: Assumptions for 2003 guidance
Assumptions for 2003 guidance • Timing and impact of legal decisions on generic environment in Europe and Canada. • Accelerated Cipralex sales through launch in major antidepressant markets • Continuous high SG&A spending due to Cipralex and Ebixa launches • High R&D costs due to late phase projects
Slide 6: Mid-/Long-term Growth Drivers & Financial Outlook
Mid-/Long-term Growth Drivers & Financial Outlook Mid/Long term Growth Drivers Long-term Financial Outlook • Establish US Salesforce • Improve growth rates beyond IPO targets • Continue to strengthen pipeline through in-house R&D and • Drive margin expansion through licensing enhanced operational ef
Slide 7: Revenue growth development
Revenue growth development CAGR 1998 - 2002: 31% Other turnover 9.5 Antipsychotics 24% Other antidepressants DKK billion Cipralex/Lexapro 36% 7.7 Cipramil/Celexa 41% 3% 5.6 25% 4.8 5.0 4.0 3.2 1998 1999 2000 2001 2002 1H-2002 1H-2003 7, Wednesday, 20 August 2003
Slide 8: 70% of total revenue from the largest antidepressant markets
70% of total revenue from the 7 largest antidepressant markets in the world 1H - 2002 1H - 2003 RoW UK RoW UK France Canada 7% 10% France Canada 7% 7% 7% 6% 7% 8% Germany Germany 3% 4% Spain Spain 3% 3% Italy 4% US 32% Italy 4% Rest of Europe Rest of US 23% Europe 38% 27% 8, Wednesday, 20 August 200
Slide 9: Citalopram/escitalopram sales on the largest markets for antidepressants
Citalopram/escitalopram sales on the 7 largest markets for antidepressants Sales DKKm 1H 2003 1H 2002 Change UK 286.5 410.8 -30% - Cipramil 218.8 410.8 -47% - Cipralex 67.7 0 ---- France 330.5 328.8 1% Germany 62.0 138.6 -55% Spain 138.0 132.3 4% Italy 198.3 158.6 25% Canada 351.8 282.2 25% US incom
Slide 10: Cost structure & operating margin development
Cost structure & operating margin development Operating Costs Operating Margin 8 % 30 R&D 18.8% 7 S,G&A 39.3% 23.9% 6 COGS 17.9% 25 5 DKK Billion 4 20 3 2 15 1 0 10 1998 1999 2000 2001 2002 1H 1H 1999 2000 2001 2002 1H-2003 2002 2003 10, Wednesday, 20 August 2003
Slide 11: N6A value market shares in Europe
N6A value market shares in Europe 20% 19% 18% 15% 14% 13% 10% 10% 7% 5% 1% 0% E E E E E AM E IN N IN N LIN IN TI TI M PR X P RA XE ZA XE FA XA LO UO RT RO LA TA O TA SE UV N IR PA FL CI VE M FL 11, Wednesday, 20 August 2003
Slide 12: Sensitivity to generic competition on Cipramil
Sensitivity to generic competition on Cipramil Potential loss of sales > 50% 25% - 50% < 25% 12, Wednesday, 20 August 2003
Slide 13: Huge growth potential in depression market
Huge growth potential in depression market Treatment: Index 100 Treatment Diagnosed Prevalence 0 100 200 300 400 Source: Decision Resources, November 2002, major 7 pharmaceutical markets 13, Wednesday, 20 August 2003
Slide 14: Cipralex launch – coverage of N6A Lundbeck markets
Cipralex launch – coverage of N6A Lundbeck markets 25% 9% % of total N6A market (value 20% 15% 10% 5% 0% Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Source: IMS, 2002 Lundbeck markets: 25% of total N6A market US: 73% of total N6A market Japan: 2% of total N6A market 14, Wednesday
Slide 15: Cipralex launch
Cipralex launch Cipralex Launched Launch 2H 2003 Launch 2004 Austria South America Asian Region Australia Belgium Sweden Central Europe Canada Bulgaria Switzerland Eastern Europe Greece Czech Republic Turkey * France Russia Denmark UK Germany Estonia India Finland ** Italy Ireland Middle East Region
Slide 16: Cipralex total market share, value
Cipralex total market share, value From launch with reimbursement 14% 12% A 10% % of N6A market 8% USA 6% DK CH B IRL 4% MEX UK S 2% 0% 0 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11 +12 +13 14 15 Months after Cipralex/Lexapro launch CH S UK DK A IRL USA MEX B 16, Wednesday, 20 August 2003
Slide 17: Cipralex value market penetration - Switzerland
Cipralex value market penetration - Switzerland Cipralex penetration vs. competitors 7,0% Value market share – N6A 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Launch Q1 Q2 Q3 Q4 Q5 Q6 Time after launch Cipralex Effexor Remeron 17, Wednesday, 20 August 2003
Slide 18: Cipralex value market penetration - Sweden
Cipralex value market penetration - Sweden Cipralex penetration vs. competitors 6,0% Value market share – N6A 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Launch Q1 Q2 Q3 Q4 Q5 Q6 Time after launch Cipralex Effexor Remeron 18, Wednesday, 20 August 2003
Slide 19: Cipralex value market penetration - UK
Cipralex value market penetration - UK Cipralex penetration vs. competitors 4,0% Value market share – N6A 3,0% 2,0% 1,0% 0,0% Launch Q1 Q2 Q3 Q4 Q5 Q6 Time after launch Cipralex Effexor Remeron 19, Wednesday, 20 August 2003
Slide 20: Cipralex value market penetration - Denmark
Cipralex value market penetration - Denmark Cipralex penetration vs. competitors 8,0% Value market share – N6A 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Launch Q1 Q2 Q3 Q4 Q5 Q6 Time after launch Cipralex Effexor Remeron 20, Wednesday, 20 August 2003
Slide 21: Cipralex value market penetration - Austria
Cipralex value market penetration - Austria Cipralex penetration vs. competitors 12,0% Value market share – N6A 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% Launch Q1 Q2 Q3 Q4 Q5 Q6 Time after launch Cipralex Effexor Remeron 21, Wednesday, 20 August 2003
Slide 22: Cipralex value market penetration - Ireland
Cipralex value market penetration - Ireland Cipralex penetration vs. competitors 7,0% Value market share – N6A 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Launch Q1 Q2 Q3 Q4 Q5 Q6 Time after launch Cipralex Effexor Remeron 22, Wednesday, 20 August 2003
Slide 23: New Rx Market Share in USA
New Rx Market Share in USA Lexapro, 1 August 2003 – 13,83% 24,0% 21,0% 18,0% 15,0% 12,0% 9,0% 6,0% 3,0% 0,0% Week 35 Week 37 Week 39 Week 41 Week 43 Week 45 Week 47 Week 49 Week 51 Week 1 Week 3 Week 5 Week 7 Week 9 Week 11 Week 13 Week 15 Week 17 Week 19 Week 21 Week 23 Week 25 Week 27 Week 29 Week
Slide 24: A market being created – 46% growth within Alzheimer's in 02
A market being created – 46% growth within Alzheimer’s in 2002 Treatment: Index 100 Treatment Diagnosed Prevalence 0 100 200 300 400 500 600 700 24, Wednesday, 20 August 2003
Slide 25: Ebixa launch – coverage of N7D1 Lundbeck markets
Ebixa launch – coverage of N7D1 Lundbeck markets 30% % of total N7D1 market (value 15% 25% 20% 15% 10% 5% 0% Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Source: IMS, 2002 Lundbeck markets: 31% of total N7D1 market US: 60% of total N7D1 market Japan: 9% of total N7D1 market 25, Wednesday,
Slide 26: Ebixa launch
Ebixa launch Ebixa Launched Launch 2003 Launch 2004 Austria Australia Asia France * Belgium ** Italy Germany Central Europe Latin America Greece Eastern Europe Middle East Holland Hungary South Africa Ireland Lebanon Mexico Pakistan Scandinavia Portugal Spain Slovenia UK Switzerland Turkey *) Launch
Slide 27: Ebixa market share, value
Ebixa market share, value From launch with/without reimbursement 11% DK 9% GER A S % of N7D1 market 7% NL ESP FIN 5% N GR UK 3% 1% -1% 0 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11 Months after Ebixa launch GER UK S N DK FIN NL A GR ESP Source: IMS 27, Wednesday, 20 August 2003
Slide 28: Existing late-stage pipeline
Existing late-stage pipeline Compound Activity Indication 2003 2004 2005 2005+ III/NDA Launch Escitalopram SSRI SAD Rasagiline MAO-B Parkinson’s NDA Launch Alzheimer’s Memantine NMDA antagonist III NDA Launch Mild to Moderate Sertindole D2-5HT2 Schizophrenia PMS Launch Bifeprunox Dopamine/serotonin
Slide 29: Appendix
H. Lundbeck A/S Appendix
Slide 30: More information please contact Investor Relations & Corporate Reporting
More information please contact Investor Relations & Corporate Reporting Steen Juul Jensen Jacob Tolstrup Anette Kirkeby Divisional Director Investor Relations Officer Event Coordinator Investor Relations & Investor Relations & Investor Relations & Corporate Reporting Corporate Reporting Corporate R
Slide 31: 1H 2003 - Highlights
1H 2003 - Highlights • Revenue amounts to DKK 4,951 million compared to DKK 4,792 for 1H 2002 • Sales of Cipralex amounts to DKK 195 million • Sales of Cipramil decreased 15% to DKK 2,344 million • Sales of Ebixa amounts to DKK 78 million • Income from Celexa sales in the USA decreased from DKK 1,10
Slide 32: Cash flow
Cash flow (DKK million) 1H 2003 1H 2002 Cash flow from operating 778 451 activities Cash flow from investing -954 -331 activities Cash flow from operating and -175 119 investing activities, net Cash flow from financing -15 -297 activities Increase in cash and cash -190 -178 equivalents 32, Wednesday
Slide 33: Key figures
Key figures 1H 2003 1H 2002 Earnings per share – EPS (DKK) 3.32 3.20 Cash flow per share – CFPS (DKK) 3.33 1.93 Operating margin (%) 23.9 32.6 Return on net assets (%) 19.4 31.8 Return on equity (%) 12.8 15.0 Solvency ratio (%) 64.3 64.0 Net asset value per share (DKK) 26.98 22.43 33, Wednesday, 20
Slide 34: Depression – 15.9 bill. USD
Depression – 15.9 bill. USD 28% 72% Rest of Europe Q2 2002 Fluvoxamine world USA Q2 2002 North 7% Fluoxetine America 75% Citalopram Sertraline Europe Paroxetine 18% 0% 10% 20% 30% 40% Leading product Marketing Corporation Sales 2001 (USDm) Growth in % Seroxat®/Paxil® GlaxoSmithKline 2,848 18 Zoloft®
Slide 35: Mature but still growing – healthy growth
Mature but still growing – healthy growth Euro Mill. 20000 70% MAT Q2 02 Sales 18000 Growth 60% 16000 14000 50% 12000 40% 10000 30% 8000 6000 20% 4000 10% 2000 0 0% Anaesthetics Narcotic Anti-Migraine Anti- Anti- Anti- Hypnotics & Anti- Anti- General Analgesics Preps Epileptics Parkinson psychotics
Slide 36: Patients achieved sustained remission faster on ESC than on venlafaxine XR
Patients achieved sustained remission 6.6 days faster on ESC than on venlafaxine XR Montgomery et al, Poster presented at ECNP, 2002 80 70 ESC (N=125) * Percentage of patients with 60 VLF (N=124) sustained response 50 ** * p ≤0.05 vs VLF ** p <0.01 vs VLF 40 ** 30 20 * 10 0 Day 7 14 21 28 42 Percent
Slide 37: Escitalopram offers significant tolerability advantages compared with venlafaxine
Escitalopram offers significant tolerability advantages compared with venlafaxine Montgomery et al, ECNP 2002 30 * VLF (N=148) No other TEAEs with an 25 ESC (N=145) incidence above 5% showed any significant difference * p <0.05 Percentage of patients 20 15 * 10 * 5 0 Nausea Sweating Constipation inc
Slide 38: Escitalopram compared to citalopram in severe depression
Escitalopram compared to citalopram in severe depression CIT 40 mg (N=60) 9 ESC 20 mg (N=51) # Baseline MADRS total score ≥30 8 MADRS total score at endpoint # p<0.05 vs CIT 7 Change from placebo in 6 5 4 3 2 1 0 CIT 40 mg ESC 20 mg H. Lundbeck, data on file (study MD-01) 38, Wednesday, 20 August 20
Slide 39: Alzheimer's – 1.2 bill. USD
Alzheimer’s – 1.2 bill. USD 2% 98% Rest of world Europe Q2 2002 North Tacrine 13% USA Q2 2002 America 63% Galantamine Rivastigmine Europe Donepezil 24% 0% 20% 40% 60% 80% Leading product Marketing Corporation Sales 2001 (USDm) Growth in % Aricept® Pfizer 923 26 Exelon® Novartis 228 119 Reminyl® John
Slide 40: Alzheimer's - high growth market
Alzheimer’s - high growth market Euro Mill. 20000 70% MAT Q2 02 Sales 18000 Growth 60% 16000 14000 50% 12000 40% 10000 30% 8000 6000 20% 4000 10% 2000 0 0% Anaesthetics Narcotic Anti-Migraine Anti- Anti- Anti- Hypnotics & Anti- Anti- General Analgesics Preps Epileptics Parkinson psychotics Sedatives
Slide 41: Overview of Marketed Compounds for AD
Overview of Marketed Compounds for AD Donepezil Rivastigmine Galantamine Memantine Indications Mild to moderate Mild to moderate Mild to moderate (M- Moderately severe to (M-M) (M-M) M) severe (MS-S) MMSE 24-12 24-12 24-12 15-4 Launch 1997 1998 2000 2002 Position in class 1st 2nd 3rd 1st Titration N
Slide 42: Selected pipeline compounds for AD
Selected pipeline compounds for AD Name Class Company Phase Phenserine AchEI Axonyx II Lovastatin Statin Andrx II NS 2330 DA, NA and AchE activity NeuroSearch/BI II Colostrinin Immunomodulator ReGen III Therapeutics Xaliproden NGF agonist Sanofi-Synthelabo II Aggregate modulators/ I-II gamma secreta
Slide 43: Antipsychotics – 7.7 bill. USD
Antipsychotics – 7.7 bill. USD 14% 86% North Amisulpride Europe Q2 2002 Rest of America% USA Q2 2002 Clozapine world 69% 11% Ziprasidone Quetiapine Risperidone Olanzapine Europe% 0% 10% 20% 30% 40% 50% 20% Leading product Marketing Corporation Sales 2001 (USDm) Growth in % Zyprexa® Eli Lilly 3,226 3
Slide 44: Antipsychotics - Major value conversion
Antipsychotics - Major value conversion Euro Mill. 20000 70% 18000 MAT Q2 02 Sales 60% Growth 16000 14000 50% 12000 40% 10000 30% 8000 6000 20% 4000 10% 2000 0 0% Anaesthetics Narcotic Anti-Migraine Anti- Anti- Anti- Hypnotics & Anti- Anti- General Analgesics Preps Epileptics Parkinson psychotics Se
Slide 45: Parkinson's – 1.7 bill. USD
Parkinson’s – 1.7 bill. USD 3% 97% North Cabergolin Europe Q2 2002 America 37% Benserazid/Levodopa Pergolid Europe Pramipexol 34% Carbidopa/Levodopa Rest of world 0% 5% 10% 15% 20% 25% 30% 35% 40% 29% Pergolid USA Q2 2002 Entacapon Ropinirol Pramipexol Carbidopa/Levodopa 0% 5% 10% 15% 20% 25% 30% 35
Slide 46: Parkinson's - A mature & relatively stable market
Parkinson’s - A mature & relatively stable market Euro Mill. 20000 70% MAT Q2 02 Sales 18000 Growth 60% 16000 14000 50% 12000 40% 10000 30% 8000 6000 20% 4000 10% 2000 0 0% Anaesthetics Narcotic Anti-Migraine Anti- Anti- Anti- Hypnotics & Anti- Anti- General Analgesics Preps Epileptics Parkinson psy
Slide 47: Drugs in Development – Parkinson's disease
Drugs in Development – Parkinson’s disease Compound Mode of action Company Clinical Phase Chiesi 1512 Dopamine precursor Chiesi Launch date 2004 + decarboxylase Levodopa methyl inhibitor ester + carbidopa Levodopa+ D presursor+ Novartis Launch date 2003 Carbidopa+ decarb+ COMT entacapone inhibitor K