57 slides from H. Lundbeck A/s Class A's earnings presentation, Nov 8, 2023
Slide 1: Financial results and business update 9M 2023
November 8, 2023 Financial results and business update 9M 2023 Ronetta Stokes Living with migraine
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: Strong business performance in the first nine months of 2023
9M 2023: Business update Strong business performance in the first nine months of 2023 Robust revenue Double-digit growth Strong profit Advancing R&D performance of strategic brands achievements pipeline DKK 15bn DKK 10bn DKK 5bn PACAP PoC Revenue 68% of total revenue Adj. EBITDA data presented at th
Slide 4: Revenue growth powered by strategic brands performance
9M 2023: Business update Revenue growth powered by strategic brands performance Reported geographic revenue split & YoY growth1) Reported product revenue split & YoY growth1) (9M 2023) (9M 2023) DKKm Strategic brands Mature brands DKKm United States Europe International Markets 16,000 16,000 +9% +9%
Slide 5: Continued strong momentum for Vyepti
9M 2023: Business update Continued strong momentum for Vyepti U.S. Vyepti revenue RoW Vyepti revenue Vyepti's 9M 2023 global (DKKm) (DKKm) revenue up 81% +73% +447% • Lundbeck’s full investment behind the brand CER CER continues to drive growth DKK 1,119m DKK 82m • Continued strong performance drive
Slide 6: Rexulti continues strong growth
9M 2023: Business update Rexulti continues strong growth with 19% U.S. Rexulti demand1) Global Rexulti revenue Strong double-digit revenue (weekly – TRx) (DKKm) growth across all regions • U.S. the main driver of growth +19% CER • Other key markets, such as Canada and DKK 3,309m Brazil also growing
Slide 7: Brintellix/Trintellix growth trajectory in Europe continues
9M 2023: Business update Brintellix/Trintellix growth trajectory in Europe continues Global Brintellix/Trintellix revenue European market maintains (DKKm) strong momentum +4% CER Solid performance in DKK 3,177m DKK 3,207m International Markets • Growth driven by strong performance particularly in Ca
Slide 8: Abilify Maintena continues market share gain
9M 2023: Business update Abilify Maintena continues market share gain Global LAI market & Abilify Global Abilify LAI Abilify LAI franchise1) LAI franchise1) share franchise1) revenue delivering double-digit growth (quarterly – USD & MS%) (DKKm) • Growth driven by robust demand USDm (%) • Strong perf
Slide 9: Highly productive R&D in the first nine months of 2023
9M 2023: R&D update Highly productive R&D in the first nine months of 2023 Key R&D milestones Rexulti AADAD approval & PTSD phase III HLR • AADAD: JAMA Neurology published complete results of positive phase III trial of Rexulti for AADAD • AADAD: Regulatory process ongoing in Canada, Singapore, Aust
Slide 10: Lu AG09222 (PACAP) moving into full development
9M 2023: R&D update Lu AG09222 (PACAP) moving into full development ”The data offer real hope to patients” International Headache Congress 2023 Proof of concept for a new MoA strengthens Lundbeck’s reputation as a brain health expert – a potential next generation migraine prevention treatment Strong
Slide 11: R&D Event 2023: Lundbeck poised for success
9M 2023: R&D update R&D Event 2023: Lundbeck poised for success Join us at Lundbeck’s R&D Event 2023 in London November 30 Shorter event in NYC on December 6 Lundbeck’s CEO and R&D leaders will provide insights into the strategic roadmap for our transformative journey as a neuroscience innovator Ne
Slide 12: Strong revenue and profit growth
9M 2023: Financial update Strong revenue and profit growth Key figures Comments DKKm 9M 2023 9M 2022 Growth Growth (CER)1) • Revenue growth is driven by the strong Revenue 14,934 13,566 10% 9% performance across all strategic brands additionally benefited by hedging Gross margin 78.1% 79.6% (1.5pp)
Slide 13: Adjusted EPS growth in line with underlying performance
9M 2023: Financial update Adjusted EPS growth in line with underlying performance Net profit & EPS Comments DKKm 9M 2023 9M 2022 Change • EBIT growth reflects high revenue and strong EBIT 2,964 2,449 21% operating leverage EBIT margin 19.8% 18.1% +1.7pp • Net financials, expenses driven by CVR fair
Slide 14: Strong cash flow leading to continuous deleveraging
9M 2023: Financial update Strong cash flow leading to continuous deleveraging Cash flows Comments DKKm 9M 2023 9M 2022 • Cash inflow from operating activities driven EBIT 2,964 2,449 by strong underlying profitability partially offset by higher working capital Adjustments for non-cash items 1,888 1,
Slide 15: Lundbeck narrows and raises its Adjusted EBITDA guidance
9M 2023: Financial update Lundbeck narrows and raises its Adjusted EBITDA guidance FY 2023 financial guidance DKKbn FY 2022 actual Previous FY 2023 guidance1) Revised FY 2023 guidance2) Revenue 18.2 19.5 – 20.1 19.8 – 20.1 Adjusted EBITDA 4.8 5.2 – 5.6 5.6 – 5.8 FY 2023 considerations Revenue Profit
Slide 16: Lundbeck delivers on its priorities for 2023 and beyond
9M 2023: SUM-UP Lundbeck delivers on its priorities for 2023 and beyond Robust revenue Double-digit growth Strong profit Advancing R&D performance of strategic brands achievements pipeline Lundbeck delivers profitable growth 16 Lundbeck
Slide 17: Q&A
Q&A 17 Lundbeck
Slide 18: Appendix
Appendix 18 Lundbeck
Slide 19: Lundbeck's R&D pipeline is substantially transformed
9M 2023: R&D update Lundbeck's R&D pipeline is substantially transformed Biology Project Area Phase I Phase II Phase III Filing/Launch 1) 2) Hormonal / Eptinezumab (anti-CGRP mAb) Migraine prevention SUN-studies SUN-studies PROMISE 1 & 2 neuropeptide signaling 1) 3) Eptinezumab (anti-CGRP mAb) Clust
Slide 20: Brexpiprazole in combination with sertraline in two phase III PTSD trials
9M 2023: APPENDIX Brexpiprazole, in combination with sertraline, is being evaluated in two phase III PTSD trials High unmet need in Post- Exploratory PoC study in PTSD3) Phase III program Traumatic Stress Disorder suggested effects of brexpiprazole (Data read-out expected in (PTSD) in combination wi
Slide 21: Vyepti: Phase III study for cluster headache
9M 2023: APPENDIX Vyepti: Phase III study for treatment of cluster headache, a crippling pain with few effective medications currently available Cluster headache affects CHRONICLE1) phase III study to ALLEVIATE2) phase III study to approximately one in 1,000 evaluate safety of eptinezumab in evaluat
Slide 22: New data confirm Vyepti's long-term benefits and effectiveness
9M 2023: R&D update New data confirm Vyepti’s long-term benefits and effectiveness Extension results presented at AHS 65th annual scientific meeting Phase IIIb DELIVER trial1) • Evaluating the safety and efficacy of Vyepti in hard to-treat patients with 2-4 previous treatment failures, including ope
Slide 23: aPACAP holds the potential to be a novel MoA for migraine prevention
9M 2023: R&D update aPACAP holds the potential to be a novel MoA for migraine prevention Molecule addressing a new MoA • Anti-PACAP humanized IgG1 antibody • The PACAP biology provides: • New approach to migraine prevention Achievements to date Next steps • Potential in other pain conditions • Phase
Slide 24: Anti-CD40L first neuroimmunology program progressing
9M 2023: R&D update Anti-CD40L first neuroimmunology program progressing Mechanism of action for anti-CD40L (Lu AG22515) Addressing immune-mediated nervous system disorders • Differentiated anti-CD40L antibody-like drug candidate Anti-CD40L scFv • Recombinant bispecific scFv-Fab fusion Anti-Serum a
Slide 25: D1/D2 agonist: Potential new oral treatment for Parkinson's disease
H1 2023: R&D update D1/D2 agonist: Potential new oral treatment for Parkinson’s disease Innovative, orally available prodrug for a broad-acting dopamine Addressing Parkinson’s disease D1/D2 receptor agonist providing continuous dopaminergic activation patients experiencing motor complications • Smal
Slide 26: Lu AF82422 – Potential first disease modifying therapy in MSA
9M 2023: APPENDIX Lu AF82422 – Potential first disease modifying therapy in MSA Lu AF82422 (α-synuclein) in phase II Medical condition • Alpha-synucleinopathies: Multiple System Atrophy – a rare, aggressive, disease with a high unmet medical need Molecule • Anti alpha-synuclein IgG1 antibody • Binds
Slide 27: Lu AG13909 – First neurohormonal program started clinical development
9M 2023: APPENDIX Lu AG13909 – First neurohormonal program started clinical development Hypothalamic-pituitary-adrenal (HPA) axis Medical condition • Neurohormonal dysfunctions related to HPA axis Molecule • Anti-ACTH humanized IgG1 antibody • First in class mAb with potential to offer a safe and ef
Slide 28: MAGLi program – Potential first-in-class endocannabinoid therapy
9M 2023: APPENDIX MAGLi program – Potential first-in- class endocannabinoid therapy MAGLi mode of action Medical condition • Multiple opportunities within psychiatry and neurology CB1 Restore neuronal transmission Molecule G(i/o) • Inhibitor of the monoacylglycerol lipase Ner (MAGL) and selective mo
Slide 29: Focus on promising biology – selected four biology clusters
9M 2023: APPENDIX Focus on promising biology – selected four biology clusters feeding into our strategy Scientifically well-described areas still rich in targets with untapped potential as well as high feasibility for early de-risking and maintaining a competitive edge Circuitry / neuronal biology W
Slide 30: Total molecule sales (gross) - USDm
9M 2023: APPENDIX Total molecule sales (gross) - USDm 1.500 2.000 1.250 +29% 1.600 1.000 +43% 1.200 750 800 500 250 400 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022 2.000 Abilify Maintena: U.S. approval (Feb. 2013); EU approval (Nov. 1.600 2013) +67%
Slide 31: Volume growth in the U.S. robust, Trintellix impacted by post-pandemic effects
9M 2023: APPENDIX Volume growth in the U.S. robust, but Trintellix still impacted by post-pandemic effects (NRx Count) 75,000 400,000 +1% -1% -3% +8% +8% +8% 50,000 200,000 25,000 0 0 Q3.18 Q3.19 Q3.20 Q3.21 Q3.22 Q3.23 Q3.18 Q3.19 Q3.20 Q3.21 Q3.22 Q3.23 +15% 200,000 +14% 600 +8% +29% 400 +10% 100,
Slide 32: Volume growth in the U.S. robust for Abilify Maintena, Rexulti and Vyepti
9M 2023: APPENDIX Volume growth in the U.S. robust for Abilify Maintena, Rexulti and Vyepti (TRx Count) 150,000 +6% 800,000 +9% -2% 0% 125,000 +8% -6% 600,000 100,000 75,000 400,000 50,000 200,000 25,000 0 0 Q3.18 Q3.19 Q3.20 Q3.21 Q3.22 Q3.23 Q3.18 Q3.19 Q3.20 Q3.21 Q3.22 Q3.23 400,000 +13% +55% 1,
Slide 33: Q3 revenue driven by strategic brands growth
9M 2023: APPENDIX Q3 revenue driven by strategic brands growth Reported geographic revenue split & YoY growth1) Reported product revenue split & YoY growth1) (Q3 2023) (Q3 2023) DKKm Strategic brands Mature brands DKKm United States Europe International Markets 5,000 +7% 5,000 +7% 4,500 4,500 4,000
Slide 34: Q3 2023: Product distribution of revenue & YoY growth
9M 2023: APPENDIX Q3 2023: Product distribution of revenue & YoY growth DKKm FY 2021 FY 2022 Q3 2023 Q3 2022 Growth Growth % of total Q3 (CER) 2023 Rexulti 2,849 3,890 1,174 1,046 12% 20% 24% Brintellix/Trintellix 3,526 4,277 1,051 1,126 (7%) 0% 21% Abilify Maintena1) 2,420 2,964 790 771 2% 7% 16% V
Slide 35: 9M 2023: Product distribution of revenue & YoY growth
9M 2023: APPENDIX 9M 2023: Product distribution of revenue & YoY growth DKKm FY 2021 FY 2022 9M 2023 9M 2022 Growth Growth % of total 9M (CER) 2023 Rexulti 2,849 3,890 3,309 2,817 17% 19% 22% Brintellix/Trintellix 3,526 4,277 3,207 3,177 1% 4% 22% Abilify Maintena1) 2,420 2,964 2,374 2,164 10% 11% 1
Slide 36: Strategic brands
9M 2023: APPENDIX Strategic brands Strategic brands revenue Strategic brands revenue Comments (Quarterly - DKKm) (9M - DKKm) • Strong performance across the strategic brands reaching DKK 10.1bn, representing a +14% growth of 16% (+14% reported) in 9M 2023 reported 5,000 10,500 • +17% (+9% reported)
Slide 37: Vyepti
9M 2023: APPENDIX Vyepti Vyepti revenue Vyepti revenue Comments (Quarterly - DKKm) (9M - DKKm) • Grew 81% (+79% reported) and reached DKK +79% 1.2bn in 9M 2023 reported 500 +57% 1,250 • Launched in the U.S., Australia, Canada, reported Denmark, Estonia, Finland, Germany, Kuwait, Singapore, Sweden, S
Slide 38: Rexulti
9M 2023: APPENDIX Rexulti Rexulti revenue Rexulti revenue Comments (Quarterly - DKKm) (9M - DKKm) • Grew 19% (+17% reported) to DKK 3.3bn in 9M 2023 1,500 4,000 • Strong demand growth continues in the U.S. +17% and other regions reported +12% reported • Rexulti franchise protected for several years:
Slide 39: Brintellix/Trintellix
9M 2023: APPENDIX Brintellix/Trintellix Brintellix/Trintellix revenue Brintellix/Trintellix revenue Comments (Quarterly - DKKm) (9M - DKKm) • Grew 4% (+1% reported) and reached DKK 3.2bn in 9M 2023 1,500 4,000 • Continued robust demand in most markets +1% • Brintellix/Trintellix franchise protected
Slide 40: Abilify LAI franchise
9M 2023: APPENDIX Abilify LAI franchise Abilify LAI franchise revenue Abilify LAI franchise revenue Comments (Quarterly - DKKm) (9M - DKKm) • Grew 11% (+10% reported) to DKK 2.4bn in 9M 2023 1,050 3,000 • Continued robust traction in value share +10% achieving ~21.5% share of the global LAI 900 +2%
Slide 41: Cipralex/Lexapro
9M 2023: APPENDIX Cipralex/Lexapro Cipralex/Lexapro revenue Cipralex/Lexapro revenue Comments (Quarterly - DKKm) (9M - DKKm) • Down 5% (-9% reported) reaching DKK 1.7bn in 9M 2023 900 2,400 • The biggest markets are China, South Korea, Brazil, Italy and Japan in 9M 2023 -9% -19% reported • The paten
Slide 42: Sabril
9M 2023: APPENDIX Sabril Sabril revenue Sabril revenue Comments (Quarterly - DKKm) (9M - DKKm) • Down 34% (-34% reported) to DKK 0.3bn in 9M 2023 250 600 • Down 38% (-41% reported) to DKK 0.1bn in Q3 2023 -34% reported • Sales impacted by generic erosion from Q3 200 2017 -41% reported 400 150 100 20
Slide 43: Other pharmaceuticals
9M 2023: APPENDIX Other pharmaceuticals Other pharmaceuticals revenue Other pharmaceuticals revenue Comments (Quarterly - DKKm) (9M - DKKm) • Grew 3% (+0% reported) to DKK 2.6bn in 9M 2023 2,000 5,400 • Down by 1% (-9% reported) to DKK 0.8bn in Q3 2023 4,500 • Around 15 mature products included 1,50
Slide 44: Other revenue
9M 2023: APPENDIX Other revenue Other revenue Other revenue Comments (Quarterly - DKKm) (9M - DKKm) • Down 7% (-6% reported) to DKK 193m in 9M 2023 500 150 • Grew 24% (24% reported) to DKK 61m in Q3 2023 • Mostly contract manufacturing to third-party +24% reported -6% 250 reported 0 0 Q3.20 Q3.21 Q3
Slide 45: 9M 2023: EBIT and Adjusted EBITDA
9M 2023: APPENDIX 9M 2023: EBIT and Adjusted EBITDA Change DKKm 9M 2023 9M 2022 Change (CER)1) Revenue 14,934 13,566 10% 9% Gross profit 11,657 10,794 8% 6% thereof adjustments 327 - - - thereof depreciation/amortization 1,359 1,150 18% 19% Sales and distribution costs 5,297 4,740 12% 15% thereof ad
Slide 46: Q3 2023: EBIT and Adjusted EBITDA
9M 2023: APPENDIX Q3 2023: EBIT and Adjusted EBITDA Change DKKm Q3 2023 Q3 2022 Change (CER)1) Revenue 4,952 4,719 5% 7% Gross profit 3,854 3,758 3% 4% thereof adjustments 67 - - - thereof depreciation/amortization 447 409 9% 12% Sales and distribution costs 1,796 1,653 9% 16% thereof adjustments -
Slide 47: Full year figures: EBIT and Adjusted EBITDA
9M 2023: APPENDIX Full year figures: EBIT and Adjusted EBITDA DKKm 2022 2021 2020 2022 (∆%) Revenue 18,246 16,299 17,672 12% Cost of sales 3,951 3,648 4,166 8% Sales & Distribution (S&D) costs 6,610 5,885 5,946 12% Administrative expenses 1,079 933 966 16% Research & Development (R&D) costs 3,754 3,
Slide 48: 2023: Overall Adjusted EBITDA reconciliation
9M 2023: APPENDIX 2023: Overall Adjusted EBITDA reconciliation DKKm 9M 2023 Q1 2023 Q2 2023 Q3 2023 Profit from operations (EBIT) 2,964 1,233 840 891 Amortization of product rights 1,173 404 385 384 Depreciation and amortization 326 107 109 110 EBITDA 4,463 1,744 1,334 1,385 Restructuring expenses 1
Slide 49: 2022 impacted by appreciation of main currencies with some weakening in 2023
9M 2023: APPENDIX 2022 impacted by appreciation of main currencies with some weakening in 2023 YTD 2023 sales by currency Main currencies2) Comments (January 1, 2022 = index 100) • ~83% of sales in non-EUR currencies 120 • USD directly represents ~52% of sales YTD EUR 115 2023 Other1) 110 17% 20% 10
Slide 50: Lundbeck is well-positioned through its strong balance sheet
9M 2023: APPENDIX Lundbeck is well-positioned through its strong balance sheet Assets (DKKbn) Liabilities (DKKbn) 37.5 37.7 37.5 37.7 Inventories 4.1 4.4 Current liabilities 8.2 8.0 Receivables 3.8 4.0 Cash and bank balances 3.6 4.3 3.7 Bank and bond debt 5.1 Other non-current assets 3.5 3.4 3.7 Oth
Slide 51: Financial position and dividend
9M 2023: APPENDIX Financial position and dividend DKKm 30.09.2023 31.12.2022 Dividend (DKK) Intangible assets 21,599 22,500 DKK Dividend Yield (%) Other non-current assets 3,425 3,540 3 5% Current assets 12,648 11,412 Assets 37,672 37,452 4% Equity 22,305 20,779 2 3% Non-current liabilities 7,329 8,
Slide 52: 9M 2023: Cash generation
9M 2023: APPENDIX 9M 2023: Cash generation DKKm 9M 2023 9M 2022 FY 2022 FY 2021 FY 2020 Cash flows from operating activities 3,139 2,232 3,519 2,272 3,837 Cash flows from investing activities (362) (1,360) (1,892) (610) (467) Cash flows from operating and investing 2,777 872 1,627 1,662 3,370 activi
Slide 53: Q3 2023: Cash generation
9M 2023: APPENDIX Q3 2023: Cash generation DKKm Q3 2023 Q3 2022 FY 2022 FY 2021 FY 2020 Cash flows from operating activities 1,490 1,521 3,519 2,272 3,837 Cash flows from investing activities (97) (133) (1,892) (610) (467) Cash flows from operating and investing 1,393 1,388 1,627 1,662 3,370 activit
Slide 54: Solid financial foundation from which to execute on our strategy
9M 2023: APPENDIX Solid financial foundation from which to execute on our strategy Net debt and Net debt/EBITDA Comments (FY - DKKm) • FY 2023: Cash flow negatively impacted by Net debt Net debt/EBITDA • Dividend increase from DKK 397m to DKK 8,000 1.6 576m 6,635 6,000 1.2 • CAPEX investments • Net
Slide 55: Funding and debt maturity
9M 2023: APPENDIX Funding and debt maturity Debt maturity profile A diversified and long-term (EURm equivalent) balanced debt portfolio is a 1,500 priority to Lundbeck RCF Bond • This includes access to various funding sources as well as a balanced maturity profile to support the Expand and Invest t
Slide 56: Solid revenue and Adjusted EBITDA growth to continue mid-term
9M 2023: APPENDIX Solid revenue and Adjusted EBITDA growth to continue mid-term Revenue performance (DKKbn) Expected organic development towards mid-term aspiration Mid-single (3-4 years) digit CAGR • Continued double-digit growth for strategic brands in aggregate • Continued erosion of mature brand
Slide 57: For more information, please contact Investor Relations
9M 2023: APPENDIX For more information, please contact Investor Relations Number of A-shares 199,148,222 IR contact Number of B-shares 796,592,888 Palle Holm Olesen Vice President, Head of Investor Relations Total 995,741,110 Mobile: +45 3083 2426 Listed on the Copenhagen Stock Treasury A shares 466