H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — Shareholder Meeting (March 2020)
48 slides from H. Lundbeck A/s Class A's shareholder meeting presentation, Mar 24, 2020
Slide 1: 2020 Annual General Meeting H. Lundbeck A/S
2020 ANNUAL GENERAL MEETING H. LUNDBECK A/S 24 March 2020
Slide 2: Welcome
Welcome LARS SØREN RASMUSSEN Chairman of the Board of Directors 2
Slide 3: Board of Directors – strong and relevant competencies
Board of Directors – strong and relevant competencies LARS SØREN LENE SKOLE- RIKKE KRUSE LARS ERIK RASMUSSEN SØRENSEN ANDREASEN HOLMQVIST JEREMY MAX HENRIK LUDOVIC JEFFREY HENRIK LEVIN SINDAL TRANHOLM BERKOWITZ ANDERSEN JENSEN OTTERBEIN 3
Slide 4: Executive Management – expanded and more diverse during 2019
Executive Management – expanded and more diverse during 2019 Deborah Peter Lars Bang Anders Elise Hauge Keld Flintholm Johan Jacob Dunsire Anastasiou Götzsche Jørgensen Luthman Tolstrup President and CEO Executive Vice President, Executive Vice President, Executive Vice President Executive Vice Pres
Slide 5: Agenda
Agenda 1. Report of the Board of Directors on the Company’s activities during the past year. 2. Presentation and adoption of the annual report. 3. Resolution on the appropriation of profit or loss as recorded in the adopted annual report. 4. Election of members to the Board of Directors. 5. Approval
Slide 6: Report from the Board of Directors and 2019 Annual Report
Item 1 and 2: Report from the Board of Directors and 2019 Annual Report LARS SØREN RASMUSSEN Chairman of the Board of Directors 6
Slide 7: 2019 started with strategic challenges on several fronts
2019 started with strategic challenges on several fronts The long term outlook showed a relative flat 10-year base case forecast emphasising the need to fill our late stage pipeline USA, the largest market, expected decline following Onfi and Northera loss of exclusivity in 2019 and 2021, respective
Slide 8: 2019: A flat 10-year outlook from existing business
2019: A flat 10-year outlook from existing business with sales decline from loss of exclusivity on older brands being replaced by strong growth in strategic brands Revenue In 2028, Rexulti revenue (incl. LCMs) equals DKK 7.5bn or ~50% of total revenue 2019 2020 2021 2022 2023 2024 2025 2026 2027 202
Slide 9: A new strategy was launched in February 2019: Expand and Invest to Grow
A new strategy was launched in February 2019: Expand and Invest to Grow 5 Strategic Imperatives to Focus on Growth 9
Slide 10: Strong progress on all five strategic imperatives during 2019
Strong progress on all five strategic imperatives during 2019 including maximizing existing brands 10
Slide 11: 2019 was a tremendous year for Lundbeck
2019 was a tremendous year for Lundbeck Revenue per region* (FY 2019 - DKKm) Revenue DKKbn 17.0 DKK 3,892m DKK 9,583m (▲11%) 23% (▼11%) North America Europe International Markets EBIT 57% DKKbn 19% 3.6 DKK 3,223m (▲9%) *Revenue per region excluding Other revenue and effects from hedging 11
Slide 12: Continued strong growth for the four strategic brands
Continued strong growth for the four strategic brands, but overall sales declined due to Onfi loss of exclusivity Revenue distribution* Strategic brands (FY 2019 - DKKm) (FY 2019 - DKKm) Onfi®, Sabril®, Xenazine® +18%** 2,826 +30% 2,328 +29% Strategic brands 56% 2,270 +32% 42% 1,961 +23% Mature bran
Slide 13: 2019 financial performance in line with expectations
2019 financial performance in line with expectations Guidance Reported Reported 2019 2019 2018 DKKbn DKKm DKKm Revenue 16.7 - 16.9 17,036 18,117 EBIT 3.4 - 3.7 3,608 5,301 EBIT margin 21.2% 29.3% 13
Slide 14: We expanded the operating space and began rebuilding the pipeline
We expanded the operating space and began rebuilding the pipeline through internal and external innovation 14
Slide 15: 50% of the pipeline is new since February 2019
50% of the pipeline is new since February 2019 Phase II Phase III Exp. Project Area Phase I Significant steps have been taken (PoC) (Pivotal) Filing to strengthen pipeline: New Eptinezumab (anti-CGRP mAb) Migraine Prevention Promising Life-Cycle Brexpiprazole* Agitation in Alzheimer’s disease ~2021
Slide 16: The acquisition of Alder BioPharmaceuticals expanded our operating space to Migraine
The acquisition of Alder BioPharmaceuticals expanded our operating space to Migraine and advanced our entry into bio-therapeutics Adding pipeline and competencies Migraine pipeline provide basis to build a franchise: Vyepti® (eptinezumab) – a pipeline in a product PACAP – currently in phase I We mai
Slide 17: Migraine is one of the most debilitating diseases globally
Migraine is one of the most debilitating diseases globally Most disabling disease for people under 50 years - the most productive years of people’s lives ~18m individuals are candidates for prevention – less than 50% are treated ~20%–35% of people with migraine have ≥4 migraine days per month Attack
Slide 18: Two large pivotal studies demonstrated sustained efficacy and good tolerability
Two large pivotal studies including ~2,000 patients demonstrated sustained efficacy and good tolerability Promise 1 Promise 2 Powerful ≥50%, ≥75% and 100% reductions in migraine days in Episodic Migraine Patients in Chronic Migraine Patients (N=888; baseline ~9 migraine days/month) (N=1,072; baselin
Slide 19: Vyepti maximization through further trials
Vyepti maximization through further trials Submitted in Canada Feb. 2020 EU submission by end-2020 Preparing the path for China, Japan and emerging markets Initiating phase IIIb study to facilitate EU market access RELIEF study to complete Q4 2020 Trials for additional indications will begin Q4 19
Slide 20: Lundbeck La Jolla Research Center
Lundbeck La Jolla Research Center: Access to a novel biology platform and some early clinical assets Acquisition of Abide Therapeutics created Lundbeck La Jolla Research Center • Access to world class MAG-lipase development candidates to bolster our portfolio • Many potential indications • Phase II:
Slide 21: The operating model and culture advanced in 2019 as did the focus on ESG
The operating model and culture of the organization advanced in 2019 as did the focus on ESG* objectives * ESG (‘Environmental Social and Governance’) measures the sustainability and ethical impact of the company 21
Slide 22: Strengthening Lundbeck for the 2020's
Strengthening Lundbeck for the 2020’s Three new members of Executive Management added Simplified R&D structure and strengthened certain functional leadership Strong focus on establishing experimental medicine Increased diversity throughout the organisation Drive culture of “One Global Lundbeck” acro
Slide 23: Lundbeck has a strong commitment to support and contribute to society and the SDGs
Lundbeck has a strong commitment to support and contribute to society and support the SDGs Goal # 3: Good Health and Well-being We are Tirelessly dedicated to restoring brain health, so that every person can be their best Strong collaboration with and supporting policy makers, health professionals,
Slide 24: While investing to grow, we emphasize strong cost control
While investing to grow, we emphasize strong cost control and prudent use of resources 24
Slide 25: Robust financial performance in 2019 with return to growth in Q4
Robust financial performance in 2019 with return to growth in Q4 following Onfi decline FY2019 Q4.2019 Revenue impacted DKKm FY 2019 Δ% y/y Q4 2019 Δ% y/y Return to revenue by Onfi erosion Revenue 17,036 (6%) 4,421 +5% growth Operating costs 9,529 +2% 2,667 +2% Operational costs Profit impacted by S
Slide 26: Financial position solid despite acquisitions and elevated investment levels
Financial position solid despite acquisitions and elevated investment levels Selected cash flow figures Selected balance sheet figures DKKm FY 2019 DKKm 31.12.2019 Cash flows from operating Intangible assets 23,399 2,609 activities Total assets 35,757 Cash flows from investing Equity 14,554 (7,755)
Slide 27: Earnings impacted by investing to build Vyepti
2-6% revenue growth expected for 2020; Earnings impacted by investing to build Vyepti Continued strong growth for strategic 2020 financial guidance brands DKK FY 2019 FY 2020 actual guidance Increased uncertainty following the corona virus outbreak Revenue 17,036m 17.4 ̶ 18.0bn Substantial investmen
Slide 28: Lundbeck is ready to win the 2020s
Lundbeck is ready to win the 2020s Driven by our Purpose: Focus areas for 2020: Tirelessly dedicated to restoring brain health, so that every Transformative launch of Vyepti person can be their best during 2020 Capitalize on strong momentum in Guided by our beliefs: strategic brands Patient-Driven E
Slide 29: Item 2: Approval of the Annual Report
ITEM 2: APPROVAL OF THE ANNUAL REPORT 29
Slide 30: Item 3: Resolution on the appropriation of profit or loss
ITEM 3: RESOLUTION ON THE APPROPRIATION OF PROFIT OR LOSS 30
Slide 31: Resolution on distribution of profit or loss
Item 3: Resolution on distribution of profit or loss DKKm 2019 Share Profit for the year 2,667 Transfer to distributable reserves 1,851 69% Proposed dividends for the year 816 31% Proposed dividend per share (DKK) 4.10 31
Slide 32: Item 4: Election of members to the Board of Directors
ITEM 4: ELECTION OF MEMBERS TO THE BOARD OF DIRECTORS 32
Slide 33: Members of the Board of Directors - elected at the 2019 AGM
Members of the Board of Directors - elected at the 2019 AGM Remuneration & Nomination Audit Scientific Members Independent Committee Committee Committee Lars Søren Rasmussen, Chairman Yes C Lene Skole-Sørensen, Deputy Chairman No Henrik Andersen Yes C Lars Erik Holmqvist No Jeremy Max Levi
Slide 34: Members of the Board of Directors - proposed for election at the 2020 AGM
Members of the Board of Directors - proposed for election at the 2020 AGM Members Independent Lars Søren Rasmussen Yes Lene Skole-Sørensen No Henrik Andersen Yes Lars Erik Holmqvist No Jeremy Max Levin Yes Jeffrey Berkowitz Yes Henrik Sindal Jensen Members elected by the Ludovic Tranholm Otterbein e
Slide 35: Election of board members
Item 4: Election of board members LARS SØREN LENE SKOLE- LARS ERIK JEFFREY HENRIK JEREMY MAX RASMUSSEN SØRENSEN HOLMQVIST BERKOWITZ ANDERSEN LEVIN 35
Slide 36: Item 5: Approval of Remuneration
ITEM 5: APPROVAL OF REMUNERATION 36
Slide 37: Approval of remuneration
Item 5: Approval of remuneration Approval of remuneration for the Board of Directors for the current financial year Board of Directors Current Proposal DKK Members of the Board 350,000 400,000 Supplement to members of the Board with permanent residence outside of Europe 350,000 400,000 Deputy Chairm
Slide 38: Item 6: Election of State-Authorized Public Accountants
ITEM 6: ELECTION OF STATE-AUTHORIZED PUBLIC ACCOUNTANTS 38
Slide 39: Election of State-Authorized Public Accountants
Item 6: Election of State-Authorized Public Accountants PWC, Statsautoriseret Revisionspartnerselskab Lars Baungaard Torben Jensen State-Authorized Public Accountant State-Authorized Public Accountant 39
Slide 40: Item 7: Proposals from shareholders or the Board of Directors
ITEM 7: PROPOSALS FROM SHAREHOLDERS OR THE BOARD OF DIRECTORS 40
Slide 41: Any proposals: 7.1 Acquisition of treasury shares
Item 7: Any proposals by shareholders or the Board of Directors 7.1. Acquisition of treasury shares It is proposed to authorize the Board of Directors until the next annual general meeting to allow the Company to acquire treasury shares of a total nominal value of up to 10% of the share capital. The
Slide 42: Any proposals: 7.2 Remuneration Policy
Item 7: Any proposals by shareholders or the Board of Directors 7.2. Adoption of the Remuneration Policy for the Board of Directors and Executive Management The Board of Directors proposes to adopt the enclosed Remuneration Policy for the Board of Directors and the Executive Management of H. Lundbec
Slide 43: Any proposals: 7.3 Increase of share capital
Item 7: Any proposals by shareholders or the Board of Directors 7.3. Authorise the Board of Directors to increase the share capital of the Company As the current authorisations set out in Articles 4.1 and 4.2 of the Articles of Association will expire on 25 March 2020, the Board of Directors propose
Slide 44: Any proposals: 7.4 Amend standard agenda
Item 7: Any proposals by shareholders or the Board of Directors 7.4. Amend the standard agenda for the annual general meeting to include approval of the Remuneration Report and thereby amend Article 8.1 of the Articles of Association Authorise the Board of Directors to increase the share capital of
Slide 45: Any proposals: 7.5 Authorize Chairman to file registration
Item 7: Any proposals by shareholders or the Board of Directors 7.5. Authorize the Chairman of the meeting to file for registration of the resolutions passed at the annual general meeting with the Danish Business Authority The Board of Directors proposes to authorise the Chairman of the annual gener
Slide 46: Item 8: Any Other Business
ITEM 8: ANY OTHER BUSINESS 46
Slide 47: Questions
Questions PSYCHIATRY CEREBROVASCULAR BEHAVIOURAL ANXIETY MOOD STRESS BIOLOGY PERSONALITY & PSYCHOSIS DEMYELINATING DISORDERS NEUROLOGY CNS DEGENERATION/DEMENTIA MITOCHONDRIAL DISORDERS HEADACHE/MIGRAINE DEMYELINATING DISORDERS OTHER NEUROLOGY AND RARE DISORDERS. MOVEMENT DISORDERS ADDICTION NEURO-EN
Slide 48: Thank you and goodbye
THANK YOU AND GOODBYE SEE YOU AT NEXT YEAR’S ANNUAL GENERAL MEETING 48