H. Lundbeck A/S Class A · OMXCOP:HLUN_A
H. Lundbeck A/S Class A — Q1 2004 Earnings Presentation
36 slides from H. Lundbeck A/S Class A's earnings presentation, May 11, 2004
Slide 1: Q1 results 2004
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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 2004 and the following years naturally involve uncertainties, and consequent
Slide 3: Q1 2004 highlights
Q1 2004 highlights 11/05/2004 3
Slide 4: Q1 2004 - Highlights
Q1 2004 - Highlights DKKm DKK CER growth growth Revenue 2,893 21%* 33%* - Cipralex® 352 350% - Lexapro ® 618 72% - Ebixa® 141 386% - Cipramil® 782 -32% - Celexa ® 346 -38% - Other revenue 654 186% EBIT 1,095 92% Finance income, net 16 137% Net profit 747 110% Free cash flow 705 166% EPS 3,20 110% *E
Slide 5: Financial Outlook 2004
Financial Outlook 2004 EBIT Approximately DKK 2.5 bill. incl. the gaboxadol initial payment At 2003 level excluding gaboxadol initial payment Cash flow Free cash flow of approximately DKK 1.5 billion 11/05/2004 5
Slide 6: 72% of total revenue generated on the largest CNS markets
72% of total revenue (excl. gaboxadol) generated on the 8 largest CNS markets in the world Q1 2003 Q1 2004 Canada UK Canada France UK 7% 7% 7% France 7% 4% Germany 9% 3% Spain Germany 3% 4% Spain US 3% Italy US 39% 4% 38% Italy 6% Rest of Europe 26% Rest of Europe RoW 21% RoW 5% 7% 11/05/2004 6
Slide 7: Revenue development
Revenue development 2.9 Other revenue 2.9 Mature 16% 2.5 Ebixa 3% 2.4 2% 16% Cipralex/Lexapro 7% 6% 9% 6% Cipramil/Celexa 1% 5% 5% 5% 18% 32% 34% 34% 71% 52% 39% 39% Q4 2003 Q1 2004 Q1 2003 Q1 2004 11/05/2004 7
Slide 8: Quarterly Ebixa and Cipralex group revenue figures
Quarterly Ebixa® and Cipralex® group revenue figures 493 500 Ebixa Cipralex 450 392 400 350 351.6 300 266 DKKm 250 270.6 200 166 179.3 150 107 100 117.2 78.1 121.8 141.4 50 86.6 29.1 48.4 0 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 11/05/2004 8
Slide 9: Increased efficiency
Increased efficiency Operating costs as % of revenue FTE Workforce 30% excluding gaboxadol 5600 5550 5500 20% 5450 5400 5350 5300 10% 5250 5200 5150 0% 5100 Production Distribution Admin R&D Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q1 2003 Q1 2004 11/05/2004 9
Slide 10: Total Costs, COGS and Administration lower in absolute figures
Total Costs, COGS and Administration lower in absolute figures – SG&A percentage flat (excl. gaboxadol) Cost structure EBIT 2 3 2004 guidance Downpayment Merck 1.8 Distribu. 0.580 Including downpayment Merck 1.6 0.620 24.2% Admin. 25.1% 1.4 COGS 2 R&D DKK billion DKK Billion 1.2 14.5% 0.346 0.336 1
Slide 11: Implemented cost containment initiatives - status
Implemented cost containment initiatives - status 2003 Approx. 170 employees made redundant Freeze on appointments IT prioritisation and new admin. policies Q1 2004 Regional offices closed Restructuring production Restructuring internal support functions Cost containment program in adm
Slide 12: Cost split in Q1 2004 – and Group targets
Cost split in Q1 2004 – and Group targets 2005 2006+ Q1 2003 Q1 2004 Q1 2004* FY 2003** target target On level COGS 457 424 17.1% 1,759 17-20% with 2003 On level SG&A 926 956 38.7% 3,815 32-35% with 2003 R&D 445 415 16.8% 1,933 20% 20% Other -2 4 0.2% -15 -- -- Total 1,826 1,799 72.8% 7,522 -- -- EB
Slide 13: DKK 400 million share buy back programme
DKK 400 million share buy back programme The open market 26.6% Designated Bank H. Lundbeck A/S 100% LFI A/S (owned by the 73.4% Lundbeck Foundation) By the end of Q1 2004 321.114 shares bought for 37,2 DKKm, corresponding to an average price of 115,95 9,9 DKKm bought in the market and 27,3 DKKm
Slide 14: Business Update
Business Update 11/05/2004 14
Slide 15: Cipramil market share in markets with generics
Generic loss taken on markets with generics for more than 12 months Generic entry 40% Cipramil® market share in 35% value (N6A) 30% 25% 20% 15% 10% Q1 - 04 Q1 - 04 Q4 - 03 5% Q1 - 04 Q1 - 04 0% -1Q 0 +1Q +2Q +3Q +4Q +5Q +6Q +7Q +8Q Nordic UK Germany Others Spain 11/05/2004 15
Slide 16: A true global Cipralex/Lexapro launch
A true global Cipralex®/Lexapro® launch – getting access to the markets 88% 100% Cipralex® /Lexapro® market share Antidepressant market (N6A) 80% 60% 40% 20% 7.7% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 Source: IMS, 2004 Lundbeck markets: 30
Slide 17: Cipralex now launched in almost 50 countries
Cipralex® now launched in almost 50 countries Cipralex® Launched Launch 2004 Asian countries New Zealand Asian countries Australia Middle East countries Canada Austria Norway Egypt Belgium Portugal France Denmark South America Hungary Eastern Europe Sweden Middle East countries Finland Switzerland R
Slide 18: Important launches of Cipralex in the last months
Important launches of Cipralex® in the last 12 months From launch with reimbursement 14% TR B N Market share in value (N6A) 12% 10% USA 8% FIN I 6% P 4% AUS GER US introduction of Lexapro is in the top 5 2% of most successful launches of prescription drugs in US history 0% 0 +1 +2 +3 +4 +5 +6 +7 +8
Slide 19: Cipralex/Lexapro market position
Cipralex®/Lexapro® market position 16% 14% Cipralex market share Market share in value (N6A) 12% 10% 8% 6% 4% 2% 0% A B N TR USA IRL CH I FIN DK S UK P GER AUS %-growth in market share 6 months 21 45 59 47 29 23 27 NA 112 -8 23 17 163 NA NA Source: IMS, N6A 11/05/2004 19
Slide 20: Escitalopram/citalopram revenue on the largest markets
Escitalopram/citalopram revenue on the 7 largest markets for antidepressants DKKm Q1 2004 Q1 2003 Change UK 81.0 144.8 -44% - Cipralex® 65.2 29.7 120% - Cipramil® 15.8 115.1 -86% France 149.1 153.3 -3% - Cipramil® 149.1 153.3 -3% Germany 44.4 30.1 47% - Cipralex® 21.2 0.0 - Cipramil® 23.2 30.1 -23%
Slide 21: Ebixa launch – getting access to the markets
Ebixa® launch – getting access to the markets 28% 35% 29% Market share in value 23% (N7D) 18% 12% 6% 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 Source: IMS, 2003 Lundbeck markets: 34% of total N7D market US: 55% of total N7D market Japan & RoW: 11% of
Slide 22: Ebixa launch update
Ebixa® launch update Ebixa® Launched Launch 2004 Australia* Ireland Argentina Austria Mexico Asian countries Brazil Scandinavia Canada Belgium Singapore Chile Czech Republic Spain India Eastern Europe Switzerland Middle East countries France Turkey Germany Ukraine Greece UK Holland *Awaits reimburse
Slide 23: Launches of Ebixa in major markets, Europe
Launches of Ebixa® in major markets, Europe From launch with reimbursement 18% F Market share in value (N7D) 15% GER 12% 9% ESP 6% 3% 0% 10 11 12 13 14 15 16 17 18 19 1 2 3 4 5 6 7 8 9 0 + + + + + + + + + + + + + + + + + + + ® Months after Ebixa launch ESP F GER Source: IMS, N7D 11/05/2004 23
Slide 24: Ebixa market position
Ebixa® market position 35% Ebixa market share Market share in value (N7D) 30% 25% 20% 15% 10% 5% 0% H F P FIN DK GER S A N NL ESP TR GR UK %-growth in market share 6 months 22 69 NA 33 18 7 19 6 45 17 34 NA 17 -36 Source: IMS, N7D 11/05/2004 24
Slide 25: Pipeline
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Slide 26: Pipeline
Pipeline Compound Activity Indication Dev. stage 2004 2005 2006 2006+ Rasagiline MAO-B Parkinson’s NDA Launch Generalised anxiety Escitalopram SSRI III NDA Launch disorder NMDA Mild to moderate Memantine III NDA Launch antagonist Alzheimer’s Sertindole D2-5HT2 Schizophrenia PMS Launch Dopamine/ Bife
Slide 27: Capital Market Day
Capital Market Day Lundbeck will host a Capital Market Day 16 September 2004 Venue At Lundbeck premises Ottiliavej 7-9, Valby DK-2500 Copenhagen For more information please contact Teresa Zoe Langgaard, Investor Relations 11/05/2004 27
Slide 28: More information please contact Investor Relations
More information please contact Investor Relations Steen Juul Jensen Jacob Tolstrup Niels Christian Hobolt Teresa Zoe Langgård Vice President Investor Relations Investor Relations Event Coordinator Manager Officer Investor Relations & Investor Relations & Investor Relations & Investor Relations & Co
Slide 29: Appendix
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Slide 30: Worldwide pharmaceutical market 2002
Worldwide pharmaceutical market 2002 USD 400,6 billion, (+7%) Other (D) Dermatologicals 8% (C) Cardiovascular 3% (+2%) 17% (+6%) (B) Blood 5% (+14%) (G) G.U.& Sex Hormones 5% (+5%) (M) Muscolo- (N) CNS Skeletal 16% (+11%) 6% (+6%) (L) A+Immun 7% (+18%) (R) Respiratory 8% (+7%) (A) Alimentary (J) Ant
Slide 31: Worldwide CNS market 2002
Worldwide CNS market 2002 USD 64,4 billion, (+11%) N5A Antipsychotics 15% N2B Non-Narcotic Analgesics 11% N6A Antidepressants 27% N3A Anti-Epileptics 11% Other CNS drugs 6% N2A Narcotic Analgesics N7D1 Anti-Alz Prod 9% Chol Inhib 3% N5C Tranquillisers 4% N1A Anaesthetics N5B Hypnotics & General N4A
Slide 32: Depression – 17.1 bill. USD
Depression – 17.1 bill. USD (+6%) Market shares of SSRI/SNRI Europe Q3 2003 Rest of Mirtazapine USA Q3 2003 world North Fluoxetine 7% America 73% Venlafaxine Citalopram/Escitalopram Sertraline Europe Paroxetine 20% 0% 5% 10% 15% 20% 25% Leading product Marketing Corporation Sales 2002 (USDm) Growth
Slide 33: Alzheimer's – 1.6 bill. USD
Alzheimer’s – 1.6 bill. USD (+33%) Europe Q3 2003 North Memantine USA Q3 2003 Rest of America world 57% Galantamine 15% Rivastigmine Donepezil Europe 0% 20% 40% 60% 80% 28% Leading product Marketing Corporation Sales 2002 (USDm) Growth in % Aricept® Pfizer 1,128 22 Exelon® Novartis 290 25 Reminyl® J
Slide 34: Antipsychotics – 9.5 bill. USD
Antipsychotics – 9.5 bill. USD (+20%) North Europe Q3 2003 America Aripiprazole Rest of USA Q3 2003 % world Risperidone 69% 10% Olanzapine Amisulpride Clozapine Ziprasidone Europe% Quetiapine 21% 0% 10% 20% 30% 40% 50% Leading product Marketing Corporation Sales 2002 (USDm) Growth in % Zyprexa® Eli
Slide 35: Anti-Parkinson's – 1.8 bill. USD
Anti-Parkinson’s – 1.8 bill. USD (+8%) NMDA Europe Q3 North 2003 America MAOI 36% Antikolinergika COMT Europe 37% Levodopa Rest of Dopaminagonister world 0% 10% 20% 30% 40% 27% NMDA USA Q3 2003 MAOI Antikolinergika COMT Levodopa Dopaminagonister 0% 10% 20% 30% 40% 50% 60% 11/05/2004 35
Slide 36: Worldwide sales of insomnia drugs – 1.7 bill. USD
Worldwide sales of insomnia drugs – 1.7 bill. USD (+22%) North America 78% Rest of world 7% Worldwide Q3 Zaleplon 2003 Europe 15% Zopiclone Zolpidem 0% 10% 20% 30% 40% Source: IMS 11/05/2004 36