H. Lundbeck A/S Class A · OMXCOP:HLUN_A
H. Lundbeck A/S Class A — H1 2002 Earnings Presentation
27 slides from H. Lundbeck A/S Class A's earnings presentation, Aug 20, 2002
Slide 1: 1H-2002 H. Lundbeck A/S
1H-2002 H. Lundbeck A/S
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 2002 and the following years naturally involve uncertainties, and consequent
Slide 3: About H. Lundbeck
About H. Lundbeck • H. Lundbeck A/S is... • a unique pharmaceutical company focusing solely on the treatment of diseases of the central nervous system • the third largest pharmaceutical company in Western Europe within antidepressants and sixth largest company within sales of antipsychotics (IMS Hea
Slide 4: H. Lundbeck world-wide
H. Lundbeck world- wide 1990 2002 Local sales organisation Global sales organisation Lundbeck subsidiaries Lundbeck partner alliance 4, 20 August 2002
Slide 5: Strong revenue growth
Strong revenue growth Other turnover CAGR 1997 - 2001: 31% Antipsychotics 7.7 36% Other antidepressants Cipralex/Lexapro 41% 5.6 Cipramil/Celexa 34% 4.8 DKK billion 4.0 3.6 3.2 2.6 1997 1998 1999 2000 2001 1H-2001 1H-2002 5, 20 August 2002
Slide 6: Cost structure & operating margin
Cost structure & operating margin Operating Costs Operating Margin % 35 7 R&D 14.4% 32.6% S,G&A 33.4% 30 6 COGS 19.4% 5 25 DKK Billion 4 20 3 15 2 10 1 5 0 0 1997 1998 1999 2000 2001 1H- 1H- 1997 1998 1999 2000 2001 1H-2002 2001 2002 6, 20 August 2002
Slide 7: Geographical distribution of revenue
Geographical distribution of revenue Growth 34% 1H-2001 1H-2002 RoW UK RoW UK Canada 8% 11% 7% Canada 10% 6% France 6% France 8% 7% Germany Germany 4% US 5% Spain 20% 3% Spain 3% Italy 4% Italy 5% US 32% Rest of Europe 27% Rest of Europe 34% 7, 20 August 2002
Slide 8: Detailing effort in the Antidepressant molecules
Detailing effort in the Antidepressant molecules Top 5 Antidepressant molecules USA** Major 5 Europe* 2001 2001 800 700 700 600 Full time Rep. equvalents Full time Rep. equvalents 600 500 500 400 400 300 300 200 200 100 100 0 0 CITALOPRAM - PAROXETINE - FLUOXETINE - SERTRALINE - VENLAFAXINE - CITALO
Slide 9: Citalopram growth by markets
Citalopram growth by markets Citalopram sales DKKm 1H-2002 1H-2001 Change UK 410.8 342.6 20% France 328.8 281.3 17% Germany 138.6 125.5 10% Spain 132.3 80.7 64% Italy 158.6 113.1 40% Canada 282.2 196.4 44% Australia 75.2 79.7 -6% 7 big countries 1,526.5 1,219.3 25% Other markets 1,229.1 1,040.1 18%
Slide 10: Total Rx Market Share in USA
Total Rx Market Share in USA Week Ended August 2, 2002 - 17,31% 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 6,0% Generic Prozac 4,0% launch 2,0% 0,0% 99 01 9 2 8 0 0 2 0 2 9 1 8 0 1 t-9 g-0 g-9 g-0 n-0 n-0 r-0 r-0 n-9 n-0 c-9 v-0 p-0 ar- ar- -ok -ap -ap -de -au -au -au -no -ja -ja -ju -ju -se -m -m 07 18 08
Slide 11: Building on the success of Cipramil/Celexa in largest and fastest growing categories
Building on the success of Cipramil/Celexa... in the Largest and Fastest Growing Therapeutic Categories... 70 2000 60 2005 50 USD Bill. 40 30 20 10 0 Cardiovascular CNS Alimentary Respiratory Anti-Infective Genito-Urinay Musculoskeletal Blood CAGR 8% 11% 8% 9% 8% 13% 10% 15% Source: IMS Pharma forec
Slide 12: ...being active within the most profitable and...
...being active within the most profitable and… Share of World audited CNS sales (USD 48.4 billions) N5A Antipsychotics 14% N2B Non-Narcotic Analgesics 11% N6A Antidepressants 28% N3A Anti-Epileptics 11% Other CNS drugs N2A Narcotic 7% Analgesics 8% N7D1 Anti-Alz Prod N5C Tranquillisers Chol Inhib 5
Slide 13: ... fastest growing segments...
… fastest growing segments... The CNS market USD Bn Growth % Central nervous system 56.4 18 Antidepressants 15.9 20 Antipsychotics 7.7 30 Anti-parkinson products 1.7 12 Anti-epileptics 6.1 25 Anti-alzheimer products 1.2 46 Anti-migraine products 2.4 12 Source: IMS World Review 2002. Market size 2001
Slide 14: Expanding the depression franchise and establishing Lundbeck in Alzheimer's and Schizophrenia
...expanding the depression franchise and establishing Lundbeck in Alzheimer’s and Schizophrenia • Supporting continuous growth with three major launches within the next two years: • Cipralex/Lexapro - next generation antidepressant - Global launch starting 2002 • Ebixa - first ever approved treatme
Slide 15: Cipralex/Lexapro
Cipralex/Lexapro • Patented S-isomer of Cipramil/Celexa • Next generation antidepressant (Cipralex/Lexapro) approved in 12 countries in Europe and FDA approved in the United States • USP’s: - Consistent early onset of action - 10 mg as effective as Celexa 40 mg - Escitalopram 10 mg adverse event dro
Slide 16: Efficacy in placebo-controlled trials of escitalopram and citalopram
Efficacy in placebo-controlled trials of escitalopram and citalopram MADRS Treatment Week 1 2 4 6 8 LOCF 0 placebo -4 citalopram escitalopram Baseline Change from * -8 * -12 ** ** * * p < .05 ** ** ** p < .001 ** -16 ** Gorman, APA 2001 16, 20 August 2002
Slide 17: Ebixa
Ebixa • Licensed from Merz + Co in June 2000 • Approved for treatment of moderately severe to severe Alzheimer’s disease • European launch started second half 2002 – Already launched in Germany, Denmark and Mexico • USP’s: – First drug ever to be approved for treatment of moderately severe to severe
Slide 18: Serdolect
Serdolect • Second generation antipsycotic developed by Lundbeck • Suspension of Serdolect for treatment of schizophrenia lifted by CPMP • PMS studies to start in 2002, European launch 2004 • USP’s: – Efficacy against positive symptoms – Efficacy against negative symptoms – Low weight gain – Associa
Slide 19: Existing late-stage pipeline
Existing late-stage pipeline Compound Activity Indication 2002 2003 2004 2004+ PMS- Sertindole D2-5HT 2 Schizophrenia Launch studies Escitalopram SSRI SAD NDA Launch Etilevodopa L-dopa Parkinson’s III NDA Launch Rasagiline MAO-B Parkinson’s III NDA Launch NMDA Alzheimers Memantine NDA Launch antagon
Slide 20: In-licensed active projects since June 1999
In-licensed active projects since June 1999 Compound Company Indication Gaboxadol Max Planck Institute, Munich Sleep disorder CEP 1347 Cephalon Inc. Parkinson’s disease+ Ion Chelators P.N. Gerolymatos S.A. Alzheimer’s disease Almotriptan Almirall Prodesfarma SA Migraine Rasagiline Teva Pharm. Indust
Slide 21: Focused in-licensing will continue...
Focused in-licensing will continue... < Pipeline support < Technology access < Resource access < Know-how expansion < Risk reduction < Globalisation 21, 20 August 2002
Slide 22: What makes Lundbeck an attractive partner
What makes Lundbeck an attractive partner • CNS heritage with proven track record • Top management commitment to partnerships • Dedicated and strong European sales force • Opinion leader network • Flexible - Commercially - R&D • Focus and priority to licensed projects 22, 20 August 2002
Slide 23: H. Lundbeck A/S Q & A
H. Lundbeck A/S Specialist in psychiatry, pioneers in neurology Q&A
Slide 24: 1H 2002 - Highlights
1H 2002 - Highlights • Revenue increased by 34% to DKK 4,792 million • Sales of Cipramil increased by 22% to DKK 2,756 million • Income from Celexa sales in the USA increased from DKK 719 million to DKK 1,106 million • Income from Lexapro shipments to Forest Labs. reached DKK 414 million • Profit fr
Slide 25: Financial Results
Financial Results (DKK Million) 1H-2002 1H-2001 % change Net turnover 4,792 3,575 34 Operating profit 1,562 1,101 42 Profit before tax 1,182 1,173 1 Net profit 748 812 -8 25, 20 August 2002
Slide 26: Cash flow
Cash flow (DKK million) 1H-2002 1H-2001 Cash flow from operating 451 147 activities Cash flow from investing -331 -1,295 activities Cash flow from operating and 119 -1,148 investing activities, net Cash flow from financing -297 278 activities Increase in cash and cash -178 -870 equivalents 26, 20 Au
Slide 27: Key figures
Key figures 1H-2002 1H-2001 Earnings per share – EPS (DKK) 3.21 3.48 Cash flow per share – CFPS (DKK) 1.93 0.63 Operating margin (%) 32.6 30.8 Return on net assets (%) 31.8 27.8 Return on equity (%) 15.0 20.4 Solvency ratio (%) 64.0 59.4 Net asset value per share (DKK) 22.46 18.09 27, 20 August 2002