H. Lundbeck A/S Class A · OMXCOP:HLUN_A
H. Lundbeck A/S Class A — FY2005 Earnings Presentation
48 slides from H. Lundbeck A/S Class A's earnings presentation, Mar 15, 2006
Slide 1: Investor Kit FY 2005
Investor Kit FY 2005 FY 2005 Financial highlights Cost by quarter Sales by quarter Financial presentation FY 2005 1
Slide 2: Release No 204: Annual Report 2005
H. Lundbeck A/S Ottiliavej 9 Tel +45 36 30 13 11 E-mail investor@lundbeck.com DK-2500 Valby København Fax +45 36 43 82 62 www.lundbeck.com Release No 204 15 March 2006 Annual Report 2005 Today the Supervisory Board of H. Lundbeck A/S approved the Group’s annual report for 2005. Lundbeck’s revenue am
Slide 3: Financial highlights 2005
H. Lundbeck A/S Ottiliavej 9 Tel +45 36 30 13 11 E-mail investor@lundbeck.com DK-2500 Valby København Fax +45 36 43 82 62 www.lundbeck.com Financial highlights 2005 DKKm 2005 Growth in Q4 2005 Growth DKK in DKK Revenue 9,070 -7% 2,301 9% - Cipralex® 2,625 58% 746 67% - Income from Lexapro® 2,552 5%
Slide 4: Financial forecasts for 2006 and financial targets for 2007
H. Lundbeck A/S Ottiliavej 9 Tel +45 36 30 13 11 E-mail investor@lundbeck.com DK-2500 Valby København Fax +45 36 43 82 62 www.lundbeck.com Financial forecasts for 2006 and financial targets for 2007 Financial forecast for 2006: Profit from operations (EBIT) of approximately DKK 1.6 billion A level o
Slide 5: Lundbeck contacts
H. Lundbeck A/S Ottiliavej 9 Tel +45 36 30 13 11 E-mail investor@lundbeck.com DK-2500 Valby København Fax +45 36 43 82 62 www.lundbeck.com Lundbeck contacts Steen Juul Jensen Vice President +45 36 43 30 06 Media Caroline Broge Investor Jacob Tolstrup contact Media Relations Manager contact Investor
Slide 6: Financial highlights 1997-2005 (1999-2005 by quarter)
Financial highlights 1997-2005 (1999-2005 by quarter) DKKm 1997 1998 Q1 - 1999 Q2 - 1999 Q3 - 1999 Q4 - 1999 1999 Q1 - 2000 Q2 - 2000 Q3 - 2000 Q4 - 2000 2000 Revenue 2.639 3.200 863 957 1.018 1.153 3.991 1.163 1.375 1.263 1.822 5.623 Profit from operations 417 353 194 181 300 -11 664 281 326 166 23
Slide 7: Financial highlights by quarter 2001-2004
2001 2002 Q1 - 2003 Q2 - 2003 Q3 - 2003 Q4 - 2003 2003 Q1 - 2004 Q2 - 2004 Q3 - 2004 Q4 - 2004 2004 Revenue 7.656 9.488 2.395 2.555 2.505 2.486 9.941 2.893 2.325 2.410 2.105 9.733 Profit from operations 1.826 2.345 573 620 694 261 2.147 1.089 572 663 228 2.554 Finance income, net 79 -286 -44 9 -28 -
Slide 8: Cost percentage of revenue
Cost percentage of revenue Q1 Q2 Total Q3 Q4 Total DKKmillion 2000 % 2000 % 1H 2000 % 2000 % 2000 % 2000 % Revenue 1.163 1.375 2.538 1.263 1.822 5.623 Production costs 221 19% 296 22% 517 20% 276 22% 323 18% 1.116 20% Distribution costs 289 25% 309 22% 598 24% 293 23% 387 21% 1.278 23% Administrativ
Slide 9: Cost percentage of revenue
Cost percentage of revenue Q1 Q2 Total Q3 Q4 Total DKKm 2002 % 2002 % 1H 2002 % 2002 % 2002 % 2002 % Revenue 2.378 2.414 4.792 2.281 2.415 9.488 Production costs 486 20% 443 18% 929 19% 394 17% 495 20% 1.818 19% Distribution costs 452 19% 566 23% 1.018 21% 646 28% 794 33% 2.458 26% Administrative ex
Slide 10: Cost percentage of revenue
Cost percentage of revenue Q1 Q2 Total Q3 Q4 Total DKKm 2004 % 2004 % 1H 2004 % 2004 % 2004 % 2004 % Revenue 2.893 2.325 5.218 2.410 2.105 9.733 Production costs 424 15% 392 17% 816 15% 472 20% 438 21% 1.725 18% Distribution costs 623 21% 625 27% 1.248 24% 547 23% 507 24% 2.302 24% Administrative ex
Slide 11: Revenue by quarter (DKKm)
Revenue by quarter (DKKm) Europe FY 2003 Qtr1 04 Qtr2 04 H1 04 Qtr3 04 Qtr4 04 FY 2004 Qtr1 05 Qtr2 05 H1 05 Qtr3 05 Qtr4 05 FY 2005 Cipralex® 579 306 339 645 381 377 1.404 429 534 963 557 611 2.131 Ebixa® 276 136 162 298 170 208 675 223 241 464 262 276 1.003 Azilect® - - - - - - - - - - 2 4 6 Other
Slide 12: FY 2005 Financial Results
Investor Presentation FY 2005 Financial Results
Slide 13: Safe Harbour Statement
15 March 06 Page 2 Safe Harbour Statement 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. Such forward-looking statements are subject to risks, uncertaint
Slide 14: Lundbeck in CNS
Lundbeck in CNS
Slide 15: About H. Lundbeck A/S - Quick facts
15 March 06 Page 4 About H. Lundbeck A/S - Quick facts History Share information • 1915 - Founded by Hans Lundbeck Trading code: • 1920s - Into pharmaceuticals • Reuters (LUN.CO) / Bloomberg (LUN DC) • ISIN Number DK0010287234 • 1940s - Own research established • Unsponsored ADR programme with Bank
Slide 16: CNS: world's biggest niche
15 March 06 Page 5 CNS: world’s biggest niche (17% of world pharmaceutical sales) - Lundbeck involved in high potential segments Saroten® - 1961 Cipramil® - 1989/ 2004 CNS market Celexa® - 1998 USDbn 87.0* (+9%) Depression, N6A Cipralex® - 2002/ Lexapro® - 2002 Truxal® - 1959 24% Psychosis, N5A Serd
Slide 17: Niche strategy – CNS is our focus and our strength
15 March 06 Page 6 Niche strategy – CNS is our focus and our strength Why 100% CNS? • CNS is the largest and fastest growing pharmaceutical market in the world • Underlying conditions trends towards continued growth R&D strength • 50 years of experience – with own innovations and licensing agreement
Slide 18: Lundbeck strategic challenges
15 March 06 Page 7 Lundbeck strategic challenges Infrastructure Key challenges: World-wide sales • Optimise existing product infrastructure assets Except in US and Japan – two • Expand to increase top line important markets growth (new geographic markets and new areas within CNS) Profitability in Eu
Slide 19: Current position and mid-term issues
Current position and mid-term issues
Slide 20: Financial figures FY 2005
15 March 06 Page 9 Financial figures FY 2005 3% Cipralex® (+58%) 29% 28% Lexapro® (+5%) DKKm 2005 2005 guidance Ebixa® (+53%) Revenue 9,070 Azilect® (-) R&D (19.6% 1,782 0% of revenue) Other (-41%) pharmaceuticals EBIT 2,170 Appr. DKKm 2,200 12% 28% Other revenue EBIT margin 23.9% Above 22.9% 3% 13%
Slide 21: Financial guidance and targets
15 March 06 Page 10 Financial guidance and targets 2005 2006 guidance 2007 target Approximately 2,170 EBIT DKKbn 1.6* 23.9% EBIT margin 25%** Approximately 1,434 Free Cash Flow DKKm 900* Approximately 621 Capex DKKm 650 Approximately 2,618 Income from Forest DKKbn 1.7* Approximately 1,393 Prepayment
Slide 22: Strengthening key product position – Cipralex/Lexapro
15 March 06 Page 11 Strengthening key product position – Cipralex®/Lexapro® Europe – antidepressant market 2005 development 20% 15% Combined 14.8% • Expansion of label to 10% Cipralex® 9.9% cover GAD – Cipralex® 5% Citalopram 4.9% now covers all major 0% dec-01 dec-02 dec-03 dec-04 dec-05 anxiety co
Slide 23: US market development – Lexapro
15 March 06 Page 12 US market development – Lexapro® US – antidepressant market, value 2005 development 25% 20% Combined 16.8% • Second most 15% Lexapro® 16.4% prescribed anti- 10% 5% depressant in the US Citalopram 0.4% 0% dec-01 dec-02 dec-03 dec-04 dec-05 • Value market share of Lexapro® C ombine
Slide 24: Strengthening key product position – Ebixa
15 March 06 Page 13 Strengthening key product position – Ebixa® Europe – anti-alzheimers market 2005 development 25% Combined 20.4% • Second most 20% 15% Ebixa® 13.6% prescribed alzheimers 10% Other 6.8% compound in Europe 5% 0% • Expansion of EU label dec-02 dec-03 dec-04 dec-05 Ebixa® C ombined Ot
Slide 25: Launch of new compound – Azilect
15 March 06 Page 14 Launch of new compound – Azilect® • Azilect® (rasagiline) ”simply effective”: • Once daily treatment for Parkinsons Disease • as monotherapy • and as adjunct therapy with levodopa treatment • Azilect® is developed in partnership with Teva Pharmaceuticals Market share, value In ad
Slide 26: Launch of new compound – Serdolect
15 March 06 Page 15 Launch of new compound – Serdolect® • Serdolect® (sertindole) for the treatment of schizophrenia – Lundbeck’s first atypical antipsychotic • Serdolect® is developed by Lundbeck and the company holds world-wide rights • First launch in January 2006 – re-entrance after eight years
Slide 27: Expansion to the US market
15 March 06 Page 16 Expansion to the US market – first steps to establish own sales force in important US market Importance of US market CNS market, • Largest pharmaceutical market in the world 2004 (value) USA • Important contribution to Lundbeck long term 16% Europe growth International • Possibil
Slide 28: Expansion to the Japanese market
15 March 06 Page 17 Expansion to the Japanese market – three development projects in the second largest market in the world Importance of Japanese market CNS market, • Second largest pharmaceutical market in the 2004 (value) world – in total as well as in CNS 11% 5% • CNS only covers 8% of the total
Slide 29: Innovation & development of new pharmaceuticals
Innovation & development of new pharmaceuticals
Slide 30: Pharmaceuticals in clinical development
15 March 06 Page 19 Pharmaceuticals in clinical development Indication Development step Registration Expected Compound Activity Phase I Phase II Phase III application launch Obsessive Compulsive Disorder (OCD) Escitalopram ASRI 2006 2007 Selective Extra- Insomnia synaptic GABA Gaboxadol agonist 2007
Slide 31: Late stage pipeline – Gaboxadol for insomnia
15 March 06 Page 20 Late stage pipeline – Gaboxadol (phase III) for the treatment of insomnia • Gaboxadol is the first in a new class of Prevalence in US: treatments for sleep disorders +60 mio people • Outlicensed to Merck on co-development and 19% co-promoting terms in the US and in Japan Strategi
Slide 32: Late stage pipeline – Bifeprunox for schizophrenia
15 March 06 Page 21 Late stage pipeline – Bifeprunox (phase III) for the treatment of schizophrenia • Bifeprunox is a latest generation atypical antipsychotic • Inlicensed from Solvay in Belgium and is jointly developed with Solvay and Wyeth (North American rights) Strategic fit: - Fits well into Lu
Slide 33: Late stage pipeline – Desmoteplase for ischaemic stroke
15 March 06 Page 22 Late stage pipeline - Desmoteplase (phase III) for the treatment of ischaemic stroke • Potentially first compound to treat Prevalence patients within an up to 9 hours Stroke patients, mio. treatment window 0,9 0,6 0,6 0,6 • Inlicensed from PAION, Germany 0,3 0,2 0,0 • Lundbeck ho
Slide 34: Contact info
Contact info
Slide 35: More information please contact Investor Relations
15 March 06 Page 24 More information please contact Investor Relations Steen Juul Jensen Jacob Tolstrup Mads Bjerregaard VP Corporate Finance Investor Relations Manager Investor Relations Officer Corporate Reporting Corporate Reporting Corporate Reporting Tel: + 45 36 43 30 06 Tel: + 45 36 43 30 79
Slide 36: Financial figures and market data
Financial figures and market data
Slide 37: Revenue – Key figures
15 March 06 Page 26 Revenue – Key figures DKKm Q4-05 Q4-04 Growth 2005 2004 Growth Revenue 2,301 2,105 9% 9,070 9,733 -7% - Cipralex® 746 448 67% 2,625 1,661 58% - Income from Lexapro® 624 617 1% 2,552 2,420 5% - Ebixa® 306 226 35% 1,105 722 53% - Azilect® 4 0 - 6 0 - - Other pharmaceuticals 568 785
Slide 38: Key figures
15 March 06 Page 27 Key figures DKKm Q4-05 Q4-04 Growth 2005 2004 Growth Costs 1,821 1,876 -3% 6,900 7,179 -4% - Cost of sales 293 438 -33% 1,488 1,725 -14% - Distribution and administration 989 908 9% 3,639 3,666 -1% - Research and development 538 504 7% 1,782 1,776 0% - Other operating expenses, n
Slide 39: Lundbeck hedges the USD on a rolling basis
15 March 06 Page 28 Lundbeck hedge the USD on a rolling basis up to 18 months ahead – 2006 USD hedge rate of 5.87 6.000 DKK/USD 10 5.500 5.000 9 8.42 4.500 8.32 4.000 7.90 8 3.500 7.78 3652 Quarterly figures DKKm 3401 3.000 3155 7 6.68 2.500 6.65 2618 6.02 2.000 5.85 5.81 5.87 6 1916 6.00 1.500 1.00
Slide 40: Lundbeck recognition of income from Forest
15 March 06 Page 29 Lundbeck recognition of income from Forest Settlement to full royalty P&L Expected sales price Balance P&L (prepayment at USD spot at bulk delivery) Minimum price P&L* At bulk delivery At US sales * Hedging effect at bulk delivery recognised on P&L: Gain/loss from difference in d
Slide 41: Global IP position
15 March 06 Page 30 Global IP position Europe Bifeprunox: Compound patent in majority of countries to Feb. 2022 Escitalopram: Compound patent in majority of countries to May-June 2014. Process patent in majority of countries to June 2014 Gaboxadol: Use patent in majority of countries to July 2021 Me
Slide 42: Worldwide pharmaceutical market 2004
15 March 06 Page 31 Worldwide pharmaceutical market 2004 USD 521.2 billion*, (+11%) 8% 17% (+9%) 3% (+4%) 5% (+4%) (N) CNS 6% (+11%) (C) Cardiovascular (A) Alimentary (J) Anti-Infectives (R) Respiratory 6% (+12%) 16% (+8%) (L) A+Immun (B) Blood (M) Muscolo-Skeletal (G) G.U.& Sex Hormones 7% (+15%) (
Slide 43: Worldwide CNS market 2004
15 March 06 Page 32 Worldwide CNS market 2004 USD 87.0 billion, (+9%) 9% 4% (+33%) 23% (+1%) 3% (+6%) N6A Antidepressants N5A Antipsychotics 3% (+7%) N3A Anti-Epileptics 3% (1%) N2B Non-Narcotic Analgesics N2A Narcotic Analgesics 4% (+5%) N5B Hypnotics & Sedatives N2C Anti-Migraine Preps 4% (+11%) N
Slide 44: Alzheimer's (N7D-2004)
15 March 06 Page 33 Alzheimer’s (N7D-2004) – 3.2 bill. USD (+20%) Value Market Shares of N7D Rest of Europe M12 2005 world North Rivastigmine USA M12 2005 15% America 52% Memantine Galantamine Europe Donepezil 33% 0% 10% 20% 30% 40% 50% 60% Leading product Marketing Corporation Sales 2004 (USDm) Gro
Slide 45: Depression (N6A-2004)
15 March 06 Page 34 Depression (N6A-2004) – 20.3 bill. USD (+1%) Value Market shares of N6A North Venlafaxine Rest of America Sertraline world 68% 9% Paroxetine Mirtazapine Europe M12 2005 USA M12 2005 Fluoxetine Escitalopram Duloxetine Citalopram Europe 23% 0% 5% 10% 15% 20% 25% Leading product Mar
Slide 46: Anti-Parkinson's (N4A - 2004)
15 March 06 Page 35 Anti-Parkinson’s (N4A - 2004) – 2.5 bill. USD (+7%) Value Market Shares of N4A - Europe Europe M12 2005 Stalevo® North Europe NMDA America 43% MAOI 31% Anticholinergics COMT Inhibitors Levodopa ex Stalevo® Dopamine agonists 0% 10% 20% 30% 40% 50% 60% Rest of world 26% Value Marke
Slide 47: Antipsychotics (N5A-2004)
15 March 06 Page 36 Antipsychotics (N5A-2004) – 14.1 bill. USD (+12%) Value Market Shares of N5A North Europe M12 2005 America Aripiprazole USA M12 2005 Rest of 65% Risperidone world 10% Olanzapine Amisulpride Clozapine Ziprasidone Europe Quetiapine 25% 0% 5% 10% 15% 20% 25% 30% 35% 40% Leading prod
Slide 48: Worldwide sales of hypnotics (N5B - 2004)
15 March 06 Page 37 Worldwide sales of hypnotics (N5B - 2004) – 3.8 bill. USD (+11%) Value Market Shares of N5B Europe Q3 2005 North Europe USA Q3 2005 America 25% Zaleplon 55% Zopiclone Rest of world Zolpidem 20% 0% 20% 40% 60% 80% 100% Leading product Marketing Corporation Sales 2004 (USDm) Growth