H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — H1 2021 Earnings Presentation
79 slides from H. Lundbeck A/s Class A's earnings presentation, Aug 24, 2021
Slide 1: Financial results & business update H1 2021
Financial results & business update H1 2021 24 AUGUST, 2021
Slide 2: Company Disclaimer
COMPANY DISCLAIMER 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. Forward looking statements include, without limitation, any statement that may predict,
Slide 3: Robust financial results for H1 2021 despite impact from LoEs
H1 2021: HIGHLIGHTS Robust financial results for H1 2021 despite impact from LoEs Key developments in the first half of 2021: • Strategic brands up 13% (L.C.) thereby reaching DKK Reported EBIT Net interest-bearing debt 4.4 billion (DKKm) (DKKbn) +58% 7,5 • Vyepti: U.S. revenue DKK 177 million in li
Slide 4: Strategic brands are major revenue contributors, returning to double-digit growth
H1 2021: PRODUCT PERFORMANCE Strategic brands are major revenue contributors, returning to double-digit growth • Strategic brands showed double-digit growth Strategic brands* revenue (Quarterly - DKKm) (L.C.) in Q2 2021 2,500 +13% • The strategic brands reached DKK 4.4bn in +16% H1 2021 (+13% in L.C
Slide 5: Vyepti shows continued strong momentum in vial demand
H1 2021: PRODUCT PERFORMANCE Vyepti shows continued strong momentum in vial demand • Vyepti reached sales of DKK 177m in H1 Vyepti demand 2021, in line with expectations (weekly - vials) • 235m individuals have access to Vyepti in the U.S. • Launch accelerators: • Strong efficacy drives clinical con
Slide 6: Robust performance across the three other strategic brands
H1 2021: PRODUCT PERFORMANCE Robust performance across the three other strategic brands Brintellix/Trintellix Rexulti/Rxulti Abilify Maintena (H1 - DKKm) (H1 - DKKm) (H1 - DKKm) Europe North America Europe North America Europe North America International Markets International Markets International M
Slide 7: Robust performance across all three regions considering impact from pandemic and currency headwind
H1 2021: REGIONAL PERFORMANCE Robust performance across all three regions considering impact from pandemic and currency headwind North America revenue International Markets revenue Europe revenue (H1 - DKKm) (H1 - DKKm) (H1 - DKKm) -17% 5,000 2,500 2,000 -1% +2% 4,000 2,000 Other 1,500 products Othe
Slide 8: Solid financial performance in H1 2021 – lower operational expenses
H1 2021: FINANCIAL PERFORMANCE Solid financial performance in H1 2020 – COVID-19 has resulted in lower operational expenses Revenue DKKm H1 2021 Δ% y/y Q2 2021 Δ% y/y • Strategic brands up 13% (L.C.) in H1 2021 Revenue 8,233 -8% 3,960 -9% and 19% in Q2 2021 Gross margin 78% -1pp 78.5% +1pp Operation
Slide 9: Solid financial foundation from which to execute on our strategy
H1 2021: FINANCIAL PERFORMANCE Solid financial foundation from which to execute on our strategy Net debt and Net debt/EBITDA* (H1 - DKKm) 6.000 1,6 • Net debt expected to reach around DKK 3.5bn Net debt (l.h.s.) 4.588 1,2 by end-2021 and Net debt/EBITDA expected to 4.000 Net debt/EBITDA (r.h.s.) sta
Slide 10: Operational performance impacted by Northera LoE, FX depreciation and lower contract work activity
H1 2021: FINANCIAL PERFORMANCE Operational performance impacted by Northera LoE, FX depreciation and lower contract work activity From H1 2020 sales to H1 2021 sales (DKKbn) From H2 2020 sales to H2 2021 sales (DKKbn) ~0,4 8,9 ~0,8 ~0,7 ~1,2 8,7 8,9 ~0,3 8,7 8,2 ~0,2 8,2 8,2 8,2 H1 2020 Revenue (exc
Slide 11: 2021 financial guidance updated
H1 2021: FINANCIAL PERFORMANCE 2021 financial guidance updated FY 2021 financial guidance FY 2021 considerations DKKm FY 2020 Previous Updated Revenue Actual 2021 Guidance 2021 Guidance • Continued solid growth of Abilify Maintena, Brintellix/Trintellix and Rexulti Revenue 17,672 16.3 ̶ 16.9bn 16.3
Slide 12: Strong momentum for Vyepti
H1 2021: RESEARCH & DEVELOPMENT Strong momentum for Vyepti Developing a global brand Presence in key conferences and publications • Approved in the U.S., Australia, Canada, Kuwait, UAE • American Headache Society 2021 – 10 posters, an oral presentation, reinforcing robust safety and efficacy for chr
Slide 13: Steady progress in R&D
H1 2021: RESEARCH & DEVELOPMENT Steady progress in R&D Rexulti • Phase II Proof of Concept study in borderline personality disorder did not show statistically significant separation from placebo on the predefined primary endpoint, though improvements greater than placebo were observed at other timep
Slide 14: Lu AF82422 – a novel monoclonal antibody for Multiple System Atrophy
H1 2021: RESEARCH & DEVELOPMENT Lu AF82422 – a novel monoclonal antibody for Multiple System Atrophy (MSA) MSA – a rare disease with high Lu AF82422 – Mechanism of Action Innovative and adaptive unmet medical need1 development program • Synucleinopathy; classified as an • Phase II biomarker supporte
Slide 15: Research collaborations advancing innovation
H1 2021: RESEARCH & DEVELOPMENT Rebuilding pipeline Research collaborations advancing innovation Pre-competitive Strategic industry partnership with collaboration with Discovering, optimizing, and developing Test and develop antibodies crossing small molecules targeting RNA blood-brain barrier (BBB)
Slide 16: Achieving our long-term ambition to be #1 in Brain Health
H1 2021: STRATEGY UPDATE Achieving our long-term ambition to be ”#1 in Brain Health”: Requires both internal and external innovation within our refined operating space • Internal innovation focused on four clusters of promising biologies • Business development priorities: • Late-stage opportunities
Slide 17: Lundbeck has good growth visibility the next 6-8 years
H1 2021: STRATEGY UPDATE Lundbeck has good growth visibility the next 6-8 years – we aim to deliver long-term profitable growth Short to mid-term targets • Revenue: Mid-single digit growth next 6 - 8 years • EBIT margin: From 2024 EBIT margin of at least 25% and Core EBIT margin exceeding 30% Longer
Slide 18: Second half of 2021 and beyond…
H1 2021 Second half of 2021 and beyond… 2030 Mid-term Providing transformative outcomes to patients in the highly attractive commercial areas of niche and rare disease neurology and niche psychiatry • Recognized as #1 in Brain Health by patients and other stakeholders globally • Premier neuroscience
Slide 19: Q&A
Q&A
Slide 20: R&D – Investing for a premier neuroscience pipeline
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT R&D – Investing for a premier neuroscience pipeline Project Biology Area Phase I Phase II Phase III Filing Eptinezumab (anti-CGRP mAb) Migraine prevention Eptinezumab (anti-CGRP mAb) Hormonal / neuropeptide Episodic cluster headache signaling Lu AG09222 (PA
Slide 21: Solid growth via both organic and external opportunities
H1 2021: CORPORATE STRATEGY Lundbeck has through its history generated solid growth via both organic and external opportunities Lundbeck revenue 1999 – 2021e (FY - DKKm) 2001 2006 2011 2016 2021e (mid- point) 21 Lundbeck
Slide 22: Prudent capital allocation into internal R&D and business development
H1 2021: CORPORATE STRATEGY Our strength today is founded on prudent capital allocation into internal R&D and business development Internally developed In-licensed Acquired 2020 revenue 40% 25% 35% contribution Strategic products and - Rexulti, - Brintellix/Trintellix - Vyepti growth drivers - Abili
Slide 23: Progress on five strategic imperatives of 'Expand and Invest to Grow'
H1 2021: CORPORATE STRATEGY Since 2019, significant progress on all five strategic imperatives of the ‘Expand and Invest to Grow’ strategy… Expand operating space and rebuild pipeline Maximize existing brands • Expansion into new areas • Strong existing portfolio • Strengthening and expand internal
Slide 24: Progress informed our future indication focus
H1 2021: CORPORATE STRATEGY Progress made on our ‘Expand and Invest to Grow’ journey has informed our future indication focus… Lundbeck’s historical indication focus Lundbeck’s future indication focus Specialist and broad indications Specialist indications addressing high unmet need Substantial comm
Slide 25: Future medicines will provide a step-change in outcomes
H1 2021: CORPORATE STRATEGY Our future medicines will provide a step-change in outcomes to patients with difficult to treat brain diseases… 2020 Future focus Four biological clusters, Refined operating space: enabling wide disease area reach and innovation Targeted indications Indication groups 2019
Slide 26: Migraine prevention represents a large and under served market
H1 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Migraine prevention represents a large and under served market Migraine is divided into two major categories, episodic Addressable population and chronic depending on the frequency of headaches (major countries1) ~134m – Migraine prevalence 1-14 headache days
Slide 27: Share of patients diagnosed and treated is increasing
H1 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Share of patients that are diagnosed and treated is increasing – from 27% to 39% since September 2019 Migraine prevention market: 13.9m1, 2 Diagnosed, Untreated; Diagnosed, 47% untreated Breakout of 39% treated group Untreated, Preventive Treatment % of Use u
Slide 28: Two large pivotal studies demonstrated sustained efficacy and good tolerability
H1 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Two large pivotal studies including ~2,000 patients demonstrated sustained efficacy and good tolerability PROMISE 1 PROMISE 2 Powerful ≥50%, ≥75% and in episodic migraine patients in chronic migraine patients 100% reductions in migraine days (N=888) (N=1,072;
Slide 29: PROMISE 1: phase III study of Vyepti in episodic migraine
H1 2021: APPENDIX – VYEPTI (EPTINEZUMAB) PROMISE 1: A phase III study to evaluate the efficacy and safety of Vyepti for prevention of frequent episodic migraine • Vyepti reaching statistical significance for the primary and all key secondary endpoints • Migraine day prevalence dropped over 50% on Da
Slide 30: Vyepti reductions in migraine activity as early as Day 1: PROMISE 2
H1 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Vyepti achieved meaningful reductions in migraine activity as early as Day 1 that were sustained through Week 12: results from PROMISE 2 phase III trial in chronic migraine Day 1 Reductions from baseline in ≥75% Migraine Responder Rates (RR) • In subjects wit
Slide 31: HIT-6 is a widely used patient-reported outcome measure
H1 2021: APPENDIX – VYEPTI (EPTINEZUMAB) HIT-6 is a widely used patient-reported outcome measure in headache and migraine research • General measure of impact of headache on daily life1 • Six-item scale (severe pain, limits daily activities, lie down, too tired, felt fed up or irritated, limits conc
Slide 32: PROMISE-2 sub-group analysis in medication-overuse headache
H1 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Vyepti: Data from sub-group analysis of PROMISE-2 in patients with medication-overuse headache presented at AHS 2020 Vyepti reduced mean days of acute headache medication use - including triptans specifically - by ~50% over Weeks 1–12 in patients with chronic
Slide 33: Positive headline results from the Vyepti RELIEF study
H1 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Positive headline results from the Vyepti RELIEF study* Vyepti demonstrated… • statistical significance on the co-primary endpoints • all secondary endpoints were also statistically significant, including: • proportion of patients with pain freedom, and… • pr
Slide 34: Vyepti: Phase IIIb study, DELIVER, commenced in June 2020
H1 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Vyepti: Phase IIIb study, DELIVER, commenced in June 2020 Study objective: • Evaluate Vyepti in the prevention of migraine in patients with unsuccessful prior preventive treatments • Documented evidence of treatment failure in the past 10 years of 2-4 differe
Slide 35: Vyepti: Phase III study for treatment of cluster headache
H1 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Vyepti: Phase III study for treatment of cluster headache, a crippling pain with few effective medications currently available Cluster headache affects approximately one in 1,000 ALLEVIATE phase III study to evaluate Vyepti in people across the world episodic
Slide 36: RECONNECT: Vortioxetine in MDD with comorbid GAD
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT RECONNECT: Vortioxetine improves depressive and anxiety symptoms in MDD with comorbid GAD patients Demographic and baseline characteristics 100 Mean age: Working Mean MADRS total score: 29.5 Inadequate Female: patients 42.2 years patients: 65% Mean HAM-A to
Slide 37: RELIEVE: Vortioxetine improves overall functioning in real world study
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT RELIEVE: Vortioxetine significantly improves patients overall functioning in global real world study Demographic and baseline characteristics 994 patients Mean age: Female: Working Mean MDD Patients w/ comorbid enrolled 49.3 years 64% patients: 56% duration
Slide 38: Rexulti 2 mg/day potential treatment for agitation in Alzheimer's
H1.2021: APPENDIX – RESEARCH & DEVELOPMENT Data from the two studies suggest that Rexulti 2 mg/day has the potential to be an efficacious, safe and well-tolerated treatment for AAD Study 283: Fixed dose study Study 284: Flexible dose study (post hoc) Fast Track designation granted February Mean chan
Slide 39: Agitation affects some 50% of patients with dementia
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT Agitation affects some 50% of patients with dementia and is an important predictor of institutionalization Delusions, hallucinations, aggression, and agitation ~80% of AAD patients are in the community setting, affect ≥50% of patients with Alzheimer’s disea
Slide 40: Aripiprazole 2-Month formulation: potential to maximize the franchise
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT Aripiprazole 2-Month formulation: Potential to further maximize the franchise Aripiprazole 2-Month formulation: • PK-based bridging approach to establish similar exposure between aripiprazole 2- Month Ready to Use (RTU) formulation and Abilify Maintena • Pa
Slide 41: PTSD offers an opportunity for Rexulti
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT PTSD offers an exciting opportunity for Rexulti PTSD PoC study* Post-traumatic Stress Disorder (PTSD) epidemiology Rexulti (with placebo) as monotherapy ~8.6m U.S. adults affected, but or combination therapy in adults with >8m – U.S. prevalence ~80% estimat
Slide 42: Both studies in Rexulti pivotal program in PTSD ongoing
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT Both studies in Rexulti pivotal program in PTSD ongoing Two studies initiated in the pivotal programme (phase III) Study objective1 Rexulti (fixed 2, 3mg and flexible dose up to 3mg) in combination To evaluate the efficacy, safety, and with sertraline toler
Slide 43: Lu AG09222: PACAP inhibitor mAb for migraine
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT Lu AG09222: Potential to build a migraine franchise in the future with early-stage PACAP2 inhibitor mAb A differentiated approach to migraine Phase I study4: prevention • Determine the safety, tolerability and pharmacokinetics of Lu • Highly potent and sele
Slide 44: Lundbeck La Jolla serine hydrolases platform
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT Lundbeck La Jolla has access to an exciting biology platform exploring serine hydrolases starting with the endocannabinoid system Access to world class MAG-lipase development candidates to bolster our portfolio “Pipeline in a drug” – many potential indicati
Slide 45: Broad MAGLipase program initiated
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT Broad MAGLipase program initiated Lu AG06466 Lu AG06479 • Inhibitor of the monoacylglycerol lipase • MAGL inhibitor (MAGL) and selective modulator of the endocannabinoid system Ongoing phase I study3 Ongoing phase Ib study in PTSD1 • Single-ascending oral d
Slide 46: Lu AF28996: potential new oral treatment for Parkinson's
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT Lu AF28996: A potentially new oral treatment for Parkinson’s patients experiencing motor fluctuations D1/D2-type agonists Lu AF28996 Phase I studies: • Single- and sequential- Known to be highly efficacious A highly potent agonist at the D1- ascending-dose
Slide 47: Alzheimer's project with new MoAs in clinical development
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT Alzheimer’s project with new MoAs in clinical development Lu AF87908 • Tau mAb • Binding to and inhibition of pathological seeding form of Tau • Specific and pathology directed mAb • Retaining the capacity to mediate active clearance of Tau Ongoing phase I
Slide 48: Focus research in four biology clusters
H1 2021: APPENDIX – RESEARCH & DEVELOPMENT Focus research in four biology clusters where the science has the most potential to deliver innovative therapies… Circuitry / neuronal Protein aggregation, biology folding and clearance Targeting neurotransmission / synaptic dysfunction to restore Targeting
Slide 49: Committed, leading and diverse organization
H1 2021: APPENDIX – ESG UPDATE Committed, leading and diverse organization ESG update • In Q2, Lundbeck took a number of new steps following our ambitions in our 2030 Access the Brain Health strategy • Shipped product donation to International Health Partners (IHP) partner clinics in Lebanon • Annou
Slide 50: Sustainability update
H1 2021: APPENDIX – ESG UPDATE Sustainability update • Lundbeck has significantly improved its ESG ratings in 2020 • New reporting format to increase our disclosure of relevant sustainability information for investors • Task Force on Climate-related Financial Disclosures (TCFD) Reference Index Key p
Slide 51: The four strategic brands grew 13% in local currencies in H1 2021
H1 2021: APPENDIX – PRODUCT PERFORMANCE The four strategic brands grew 13% in local currencies in H1 2021 Key brand revenue (H1 2021 – DKKm and L.C. growth) • Strategic brands*: Up 13% in L.C. to DKK 4,408 million (up 6% reported) • Brintellix/Trintellix: Up 12% in L.C. to Brintellix/Trintellix +12%
Slide 52: Diverse portfolio across products and regions
H1 2021: APPENDIX – FINANCIAL PERFORMANCE Diverse portfolio across products and regions with geographical footprint well aligned to global CNS market Lundbeck product diversity Lundbeck geographic split* Global CNS market split** Sales by product (H1 2021) Sales by region (H1 2021) Sales by region (
Slide 53: Vyepti global roll-out brings significant growth potential
H1 2021: APPENDIX – PRODUCT PERFORMANCE Vyepti global roll-out brings significant growth potential • The market for prophylactic migraine treatments in value is expected to grow considerably in the Prevalent cases of migraine coming years Region Migraine • Approved in three and currently submitted f
Slide 54: Product distribution of revenue – H1 2021 and FY 2020
H1 2021: APPENDIX – PRODUCT PERFORMANCE Product distribution of revenue – H1 2021 and FY 2020 DKKm FY 2020 FY 2019 H1 2021 H1 2020 Growth Growth in local % of total currencies TOTAL: Abilify Maintena 2,271 1,961 1,197 1,176 2% 5% 15% Brintellix/Trintellix 3,102 2,826 1,656 1,575 5% 12% 20% Cipralex/
Slide 55: Continued excellence in commercial execution for the strategic brands
H1 2021: APPENDIX – PRODUCT PERFORMANCE Continued excellence in commercial execution for the strategic brands; impact from COVID-19, FX and Q1 reset in the U.S. 1,000 +12% 800 +23% +4% North America +9% North America 800 Europe+Int. Markets Europe+Int. Markets 600 600 400 400 200 200 0 0 Q2.18 Q2.19
Slide 56: Volume growth in the U.S. impacted by the pandemic (TRx)
H1 2021: APPENDIX – PRODUCT PERFORMANCE Volume growth in the U.S. impacted by the pandemic (TRx Count) 125,000 +4% 800,000 +12% +6% +26% -5% +18% 100,000 600,000 75,000 400,000 50,000 200,000 25,000 0 0 Q2.18 Q2.19 Q2.20 Q2.21 Q2.18 Q2.19 Q2.20 Q2.21 300,000 +14% +2% 180 +167% +26% 200,000 120 100,0
Slide 57: Volume growth in the U.S. impacted by the pandemic (NRx)
H1 2021: APPENDIX – PRODUCT PERFORMANCE Volume growth in the U.S. impacted by the pandemic (NRx Count) 50,000 400,000 +11% +4% +25% +1% 0% +19% 25,000 200,000 0 0 Q2.18 Q2.19 Q2.20 Q2.21 Q2.18 Q2.19 Q2.20 Q2.21 200,000 120 +102% +6% +9% +22% 100,000 60 0 0 Q2.18 Q2.19 Q2.20 Q2.21 April June August O
Slide 58: Total molecule sales (gross) - USDm
H1 2021: APPENDIX – PRODUCT PERFORMANCE Total molecule sales (gross) - USDm 1.250 1.600 1.000 +35% 1.200 750 +56% 800 500 250 400 0 0 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 • Abilify Maintena: U.S. approval (Feb. 2013); EU approval (Nov. 1.600 2013) 1.200 • Brintellix/
Slide 59: Europe: Limited impact from COVID-19
H1 2021: APPENDIX – PRODUCT PERFORMANCE Europe: Limited impact from COVID-19 Abilify Maintena Brintellix Rexulti (Monthly - Volume) (Monthly - volume) (Monthly - Volume) 1,800,000 18,000,000 80,000 1,750,000 17,000,000 70,000 1,700,000 1,650,000 16,000,000 60,000 1,600,000 1,550,000 15,000,000 50,00
Slide 60: International Markets: Strong growth strategic brands
H1 2021: APPENDIX – PRODUCT PERFORMANCE International Markets: Strong growth strategic brands Abilify Maintena Brintellix/Trintellix Rexulti (Monthly - Volume) (Monthly - volume) (Monthly - Volume) 950,000 8,500,000 2,000,000 900,000 8,000,000 850,000 1,500,000 800,000 7,500,000 750,000 7,000,000 1,
Slide 61: Brintellix/Trintellix: Solid underlying performance
H1 2021: APPENDIX – PRODUCT PERFORMANCE Brintellix/Trintellix: Solid underlying performance driven by strong clinical profile • Grew 12% (L.C.) to DKK 1.7bn in H1 2021 Brintellix/Trintellix sales per region (Quarterly - DKKm) and 18% in Q2 2021 1,000 • Volume share sustained or increased in Europe I
Slide 62: Rexulti: Growing 9%
H1 2021: APPENDIX – PRODUCT PERFORMANCE Rexulti: Growing 9% – an effective drug that is meeting patient needs in several new markets • Grew 9% in L.C. to DKK 1,378 million Rexulti sales per region*** Rexulti sales*** in H1 2021 (Quarterly - DKKm) (H1 - DKKm) • Continued solid traction in market 800
Slide 63: Abilify Maintena: High resilience through the pandemic
H1 2021: APPENDIX – PRODUCT PERFORMANCE Abilify Maintena: High resilience through the pandemic • Grew 5% (L.C.) to DKK 1.2bn in H1 2021 Abilify Maintena sales per region** (Quarterly - DKKm) and 11% in Q2 2021 • Global LAI market up 10% to USD 3.0bn 800 Europe (H1 2021)* Int. Markets • Continued rob
Slide 64: Cipralex/Lexapro: Adjusted for FX, sales were unchanged
H1 2021: APPENDIX – PRODUCT PERFORMANCE Cipralex/Lexapro: Adjusted for FX, sales were unchanged • Declined 7% (flat in L.C.) to DKK Cipralex/Lexapro Cipralex/Lexapro 1,235 million in H1 2021 (Quarterly - DKKm) (H1 – DKKm) • Main growth drivers were Saudi 900 1,500 North America Arabia and several sm
Slide 65: Northera: Sales impacted by generic erosion
H1 2021: APPENDIX – PRODUCT PERFORMANCE Northera: Sales impacted by generic erosion from February 2021 • Declined 63% (60% in L.C.) to Northera sales Northera sales (Quarterly - DKKm) (H1 – DKKm) DKK 439 million in H1 2021 • Declined 86% (85% in L.C.) to 900 1,500 DKK 91 million in Q1 2021 -63% -86%
Slide 66: Sabril: Sales impacted by generic erosion
H1 2021: APPENDIX – PRODUCT PERFORMANCE Sabril: Sales impacted by generic erosion from Q3 2017 • Declined 14% (6% in L.C.) to Sabril sales Sabril sales (Quarterly - DKKm) (H1 – DKKm) DKK 336 million in H1 2021 • Declined 22% (14% in L.C.) to 300 500 DKK 169 million in Q1 2021 -14% -22% 150 0 0 Q2.19
Slide 67: Onfi: Sales impacted by generic erosion
H1 2021: APPENDIX – PRODUCT PERFORMANCE Onfi: Sales impacted by generic erosion from October 2018 • Declined 4% (up 6% in L.C.) to Onfi sales Onfi sales (Quarterly - DKKm) (H1 – DKKm) DKK 285 million in H1 2021 • Declined 3% (up 6% in L.C.) to 400 1,000 DKK 139 million in Q2 2021 300 200 -3% 500 -4%
Slide 68: Other pharmaceuticals
H1 2021: APPENDIX – PRODUCT PERFORMANCE Other pharmaceuticals • Declined 13% (9% in L.C.) to Other pharmaceuticals Other pharmaceuticals DKK 1,275 million in H1 2021 (Quarterly - DKKm) (H1 – DKKm) • Around 15 mature products 900 1,800 included -12% -9% • Biggest products are Azilect, Cipramil, Cisor
Slide 69: Other revenue
H1 2021: APPENDIX – PRODUCT PERFORMANCE Other revenue • Declined 30% (31% in L.C.) to Other revenue Other revenue DKK 153 million in H1 2021 (Quarterly - DKKm) (H1 – DKKm) • Mostly contract manufacturing to 300 500 utilize excess capacity 150 -9% 250 -30% 0 0 Q2.19 Q2.20 Q2.21 H1 19 H1 20 H1 21 69 L
Slide 70: Regional performance impacted by FX headwinds and generic erosion
H1 2021: APPENDIX – REGIONAL PERFORMANCE Regional performance impacted by FX headwinds, base effect from last year and generic erosion Regional growth Sales by region* • North America impacted by generic erosion and impact from (H1 2021 – DKKm and in L.C. %) (H1 2021) COVID-19 • International Market
Slide 71: Core operating profit maintained at robust level
H1 2021: APPENDIX – FINANCIAL PERFORMANCE Core operating profit maintained at robust level H1 2021 H1 2021 core EBIT reconciliation (DKKm) 2,147 0 0 • Core EBIT reached DKK 2,147 million in H1 669 2021 1,478 • Amortizations decreased from DKK 711 million to DKK 669 million due to Northera Reported E
Slide 72: Cash flow impacted by debt repayment
H1 2021: APPENDIX – FINANCIAL PERFORMANCE Cash flow impacted by debt repayment, but solid cash generation still provides flexibility Net cash flow • FY 2021: Cash flow negatively (Quarterly - DKKm) impacted by: 1,800 • Repayment of term loan in February 1,200 • Lower revenue base due to Northera 600
Slide 73: Cash position, funding and debt maturity
H1 2021: APPENDIX – FINANCIAL PERFORMANCE Cash position, funding and debt maturity • A diversified and long term balanced debt portfolio is a priority to Debt maturity profile Lundbeck (EURm equivalent) • This includes access to various funding sources as well as a 1,500 (4+1+1+1)* balanced maturity
Slide 74: 2021 impacted by depreciation of main currencies
H1 2021: APPENDIX – FINANCIAL PERFORMANCE 2021 impacted by depreciation of main currencies H1 2021 sales by currency Main currencies** Spot Lundbeck’s Avg. Avg. Avg. (January 1, 2020 = index 100) August hedging H1 H2 H1 EUR 109 4, 2021 rate 2020 2020 2021 Other* USD 628.33 628.79 677.47 630.52 617.1
Slide 75: Cash generation
H1 2021: APPENDIX – FINANCIAL PERFORMANCEE Cash generation DKKm H1 2021 H1 2020 FY 2020 FY 2019 FY 2018 Cash flows from operating activities 670 1,595 3,837 2,609 5,981 Cash flows from investing activities (194) (116) (467) (7,755) (2,907) Cash flows from operating and investing 476 1,479 3,370 (5,1
Slide 76: Balance sheet and dividend
H1 2021: APPENDIX – FINANCIAL PERFORMANCE Balance sheet and dividend DKKm 30.06.2021 31.12.2020 Dividend (DKK) Intangible assets 22,667 22,738 15 5% Other non-current assets 3,224 3,186 Dividend 12 4% Current assets 8,145 10,105 Yield (r.h.s.) 9 3% Assets 34,036 36,029 Equity 17,540 16,973 6 2% Non-
Slide 77: Costs – Full year figures
H1 2021: APPENDIX – FINANCIAL PERFORMANCE Costs – Full year figures DKKm 2020 2019 2018 2020 (∆%) 2019 (∆%) Revenue 17,672 17,036 18,117 4% (6%) Cost of sales 4,166 3,840 3,911 8% (2%) Sales & Distribution costs 5,946 5,514 5,277 8% 4% Administrative expenses 966 899 762 7% 18% R&D costs 4,545 3,116
Slide 78: Clear growth ambition based on current brand portfolio
H1 2021: APPENDIX – FINANCIAL PERFORMANCE Lundbeck has a clear growth ambition and further possibility to grow based on current brand portfolio Lundbeck revenue 1999 – 2021e (FY - DKKm) Expected growth drivers: • Rexulti: Continued strong growth including LCM activities (e.g. Alzheimer’s agitation)
Slide 79: For more information, please contact Investor Relations
INVESTOR RELATIONS For more information, please contact Investor Relations IR contact • Listed on the Copenhagen Stock Number of shares1 199,148,222 Exchange since June 18, 1999 Treasury shares1 449,896 (0.23%) Palle Holm Olesen Insider holdings1 137,878 (0.07%) VP; Head of Investor Relations • Deut